13 Pages 3281 Words LEGL602 Taxation Law


Part A:
Jim carries on allowance conceding activities in two irrelative locations. During the week he
works as a barrister in Sydney in the convenient duty purlieus (CBD). Sometimes during
the week he to-boot has to go to seeks located in uncertain environs in Sydney to resemble a
client. On the weekends he toils on his farm at Cooma. The farm is a retail
enterprise.
Advise Jim on the deductibility of expedition costs in reference of the forthcoming expedition:
1) driving from his appointment in the CBD to another seek located in a environ in Sydney
and then driving home;
2) driving from his appointment in the CBD instantly to the farm in Cooma, delay 4 big folders
of smooth he signify to retrospect there;
3) driving from appointment in the CBD to home and then to the farm in Cooma.
Part B
John, an totalityant and a tax occupant, has supposing you delay the forthcoming information
relating to himstubborn for the 2013 allowance year:
1. He sold a laptop for $500 on 30 June 2013. The laptop was purchased for $2,500 on 1
July 20011. He has stubborn assessed the laptop to keep an efficient career of 3 years and he
has used the right cord system of depreciation for tax purposes. He used the laptop
100% for toil purposes.
2. On 12 November 2012, he sold his golf clubs for $15,000. He originally adscititious them
for $1,000 in 2007. The clubs had dramatically increased in appraise succeeding Tiger Woods
autographed them in 2007 during his habit hit out in Australia at the golf course
where Mark frequently plays.
3. He identified a abbreviate to vend his rental possessions on 25 June 2013 for $400,000. The title
to the possessions was epidemic on 31 July 2013. The possessions originally purchased in
2007 for $300,000.
Advise Ian of the allowance tax consequences of each of the aloft items. Show your
calculation arrangement where mismisappropriate and get appropriate instance law, ATO rulings and
minority references to livelihood your defense.
Part C
Tom Ltd is incorporated in Australia. It is a retailer who vends clothes to the notorious. The
forthcoming transactions occurred in the year ended 30 June 2013.
1. The community purchased $180,000 accumulation during the allowance year. The publicing
counterpoise of its accumulation was $120,000 and the bankruptcy counterpoise was $160,000.
2. The community remunerated $10,000 douceur to its Chief Executive Officer.
3. The community to-boot vends pi to customers on faith. During the year, a enumerate of
customers ascribable a whole of $15,000 defaulted on their totalitys.
4. A adversary has of-late applied to the consultation for allowance to have-effect as a
clothes retailer in the retail edifice next to Tom Ltd. Tom Ltd incurred
$30,000 in lawful fees counter the application. The resuscitation was auspicious.
5. During this year, Tom Ltd current $35,000 amply franked dividend; and remunerated
$15,000 allowance tax. It to-boot declared and remunerated $280,000 amply franked dividend to
its shareholder (you can feign the public counterpoise of franking faith totality is
zero).
Advise Tom Ltd of the Australian allowance tax implications of the aloft transactions. Provide
appropriate instance law, ATO rulings and minority references to livelihood your defense.

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