Refer to sections of the Income Tax Assessment Acts, the Fringe Benefits Tax Assessment Act, A New Tax System (Good and Services Tax) Act, Tax Rulings and Case Law, where relevant.

1. A firm of accountants includes 20 partners, employs 8 accountants and 15 administrative staff. How should this firm potentially account in a taxation sense for its income?

2. What are the circumstances, if any, where an indexed cost base may be used to determine a capital gain?

3. A family trust distributes $55,000 to Bloggs aged 80. Bloggs suffers from significant illness and therefore has a legal disability. Who should pay the tax on the $55,000? Justify your answer by reference to a section in the legislation