what do you see as the rationale for the use of the arm's length price? consider the acceptable methods for determing the arms length price. do you believe they represent a reasonable transfer price between related parties?

question

calculate the net income for the partnership for the income year if a husband and wife own many investments jointly are they in a partnership even though they are not conducting business but instead are acting as passive investors? are they required to lodge a partnership tax return?

question

your client os a small it consulting business consisting of a husband and wife as the principals and two employees. from the time the business was established, 1 july 2010, it has been accounting for tax purposes on a cash basis. for the currnt financial year client has decided to account on an accruals basis as the size of the business is increasing. as at 30 june it has $40000, which was paid to it from the previous financial year, and this amount was not included in its assessable income for that year. must it be included in the current financial year?

would your answer be different if your client had deliberately told the customer not to pay its account for $40000 until after 30 june ?

question

your client is a medim -sized building company and has provided you with iits accounting record for the current financial year. included in the accounting figures are the following amounts. how would you treat them for tax purposes?

a) provision for long service leave for 10 employees $25000. the actual amount paid during the year was $12000.

b) insurance premium on the plant and equipment -$22500 paid on 1 june for 12 months

c) as at 30 June there is an outstanding electricity account for $$1500 and telephone account for $4500

d) a maintenance contract on the computer equipment for 12 months $12000 the payment was made in the current year but ends in May of the following year.

e) the sum of $165000 was paid to the sales manager on 30 June as compensation for the early termination of his employment contract. that one-year to go it would have ended on 30 June of the following year.

f) interest expense of $56000 on a loan that has 5 years to run that was originally used to purchase a computer repair business that ceased to operate on 30 June 2018.

question

when are taxpayers allowed to account for their taxable income on a cash basis and when are they required to account for their taxable income ion an accruals basis? could business with a turnover of $20 million accounts on a cash basis

question

if your client is required to pay interest on a loan that was used in a business that was sold last year, are they still entitled to claim a deduction for the interest expense even though they are not able to match the expense to the derivation of assessable income from the business

question

would it be tax-effective if your client paid for the lease payment on their photocopier for the next 2 years in one lump sum just before the end of the financial year?