Australian taxation law Assignment Example | Topics and Well Written Essays - 2000 words

Australian taxation law - Assignment Example (1+GST rate) ? FBT rate Hence, the following benefits of Paul shall be as follows: Car fringe Benefit $22,500 Entertainment Fringe Benefit $ 2,000 Loan Fringe Benefit $ 8,000 ---------------- Employer’s type 1 aggregate fringe benefits $32,500 amount 46.5% + 10% ------------------------------------------- $32,500 x (1 – 46.5%) ? (1+ 10%) ? 46.5% rate $32,500 ? 2.0647 = $67,102.75 Total Fringe Liability This is the total value of the fringe benefits tax liability of Chatswood Pty Ltd. for the year ended 31 March 2011. For purposes of computation, ‘the FBT year is the 12 months beginning 1 April and ending 31 March. Currently, the FBT rate is 46.5%. A GST of 10% is applied on most goods and services that are supplied in Australia and on goods imported into Australia’2. ‘If an employee receives certain fringe benefits with a total taxable value of more than $1,000 in an FBT year (1 April to 31 March), employer must report the grossed-up taxable value of the benefits on their payment summary for the corresponding income year (1 July to 30 June). This is called the reportable fringe benefits amount’3. Therefore, the Fringe Benefits Tax (FBT) that should be paid by the employer Chatswood Pty Ltd., at the end of the year is $67,102.75. The car fringe benefit, the loan fringe benefit and the entertainment fringe benefit which were granted to Paul by his employer are all entitled to Goods and Services Tax (GST) credit that is available to Chatswood Pty Ltd. However, the $1,000 salary of Paul is not considered as a fringe benefit since there is an imposed tax on the salary which is being paid by the employee. As defined under the Finance Act of 2005: â€Å"Fringe Benefits† means any consideration for employment provided by way of: (a)  Ã‚  Ã‚  Ã¢â‚¬Å"any privilege, service, facility or amenity, directly or indirectly, provided by an employer, whether by way of reimbursement or otherwise, to his employees (including former employee or employees) (b)  Ã‚  Ã‚  any free or  concessional  ticket provided by the employer for private journeys of his employees or their family members;  Ã‚  and (c)  Ã‚  Ã‚  Ã‚  any contribution by the employer to an approved superannuation fund for employees†.4 The total value of all fringe benefits given to a particular employee by his or her employer in an FBT year is known as their individual fringe benefits amount. 2. Peter’s is liable to pay a capital gains tax (CGT) for the sale of the gift shop for the year 2010/2011 based on the following computation: Gross Sale Proceeds from the gift shop: $840,000 Less: Incidental Cost of Disposal : $(60,000) Net Sale Proceeds: $780,000 Less Cost of Asset: $(450,000) Capital Gain: $330,000 Therefore, Peter shall be liable to pay a CGT on his gain amounting to $330,000. ‘Capital gains tax is a tax on the profits which may be made from the sale of capital assets. Only individuals are liable to pay CGT, cor porations are not liable to CGT. A liability to pay CGT arises only when a chargeable person makes a chargeable disposal of a chargeable assets’5. Some of chargeable assets include lands and buildings, paintings, jewelry, plant and machinery. However, no CGT shall be imposed on the sale of his main residence as he is entitled to ‘Private Residence Relief’. To qualify for the exemption based on the ‘Private Residenc

Similarities between the Picture House and theme parks in Disneyland Essay

Similarities between the Picture House and theme parks in Disneyland - Essay Example The only answer would be that until then we were confined to having pictures painted, but the possibility of seeing our pictures on paper as though they were real, enthralled people. The advent of the motion picture further popularized this cause. With the creation of movies, people who watched them began to feel that they were integral entities in the movie so much so that if there were an emotional scene, then most would be in tears, or if there were any action, one could see people emulating their favorite actors and sometimes would end up punching the fellow next to them accidentally. People began to sense their lives in the movie's story and this is the prime reason as to why people loved to throng the picture house. Pictures were beginning to be made on all sorts of subjects, from comedy to tragedy; from history to mystery; from morals to quarrels etc. Within due course of time, movies had extended such an influence over the public that everyone wanted to emulate his personal hero, for whom he was god (the actors in this case). We like to develop ourselves into looking and behave like our heroes. Cinemas became symbols of economic prosperity, and people felt proud of its stature.