1. Due to the holy structure of the profession, Holy Trading Group offers superior managers an opening to use a softness mongrel car. Provide some education on the advantages of purchasing a softness mongrel fuel fertile demeanor, not-absolute to a plummet softness car.
2. The Managing Director is generally driving a mongrel demeanor that absorb $66,000 including GST. General absorbs on the demeanor were $12,000 plus diminution of $16,500. The car was adscititious on 1 April 2016. He has a log capacity pretexting 60% profession habit. He is because replacing this car and compensation packaging a bike for $2,200 (including GST) to get him to and from employment. Discuss the FBT consequences of the two resources of bliss.
3. The Holy Trading Group has now adscititious two joined mongrel motor demeanors, A Toyota Hilux ute, intended to heave up to 1 tonne for $44,000 including GST and a Lexus Mongrel for $48,500 including GST. Twain demeanors were adscititious on the 1 April in the general FBT year. In analysis the forthhence details accept been provided:
• The 1 tonne ute travelled 55,000 kilometres. A log capacity has been maintained and exalted a profession habit of 90%.
• The whole general absorbs of the ute were $15,000 (notwithstanding diminution).
• The employee did not gain any assistance towards general absorbs of the ute.
• The ute was adapted for use for 360 days.
• Jeff used the Lexus Mongrel and travelled 32,000 kilometres of which 8,000 kilometres were privy. A log capacity has been maintained noting profession habit of 75%.
• General absorbs were $12,000 (notwithstanding diminution).
• The car was implicated in an garb and gone-by two weeks at the shiver repairers. Jeff hired $2,000 out of his own steal for the garb.
a) Consider twain demeanors. Determine any FBT consequences and then investigate the taxable estimate (TV) of the advantage using twain systems for car fringe advantage cautions – the statutory formula and bounteous absorb systems. (Note: gladden pretext all employmentings or caution steps in your tally). Which system provides the best product for Holy Trading Group?
b) There are two bulk up objurgates used when sagacious an employer’s burden for FBT. What are these objurgates? Why are there two objurgates? Provide an pattern of where each objurgate would be used.
Report Section 2: GST and Imports
4. Holy Trading Group is importing chattels on a monthly totality from India, Sri Lanka and France and selling these items twain in Australia and overseas. Discuss any peculiar GST consequences to be cognizant of. Hint: Consider the rules environing taxable importations.
Report Section 3: Franking totalitys and dividends
5. Part (a) Discuss the limitation for the Holy Trading Group of franking totalitys. Why is it required and when can dividends be hired? What is the manner that Holy Trading Group should ensue in compliments to hence to the resolution to pay a dividend?
Ethical Trading Group had a praise franking totality et of $8,500 at the source of the financial year (1 July).