Case Study on Capital Gains Tax and Fringe Benefits Tax

It is assumed that Dave Solomon, is an individual, whose main source of income is the salary, paid by his employer. He is not involved any kind of trading business. The assets sold by him in the current tax year can be considered, completely, as his capital assets. Moreover, he has generated any revenue from those assets earlier. The net taxable capital gain or loss, generated from the sale of assets by David Solomon in the current tax year, is presented below (Law.ato.gov.au, 2016):- Calculation of Net Capital Gain/Loss for the period ending on 30th June,20†¦. Less : Purchase Price of the painting Less : 50% Exemption on Capital Gain Less : Purchase Price of the Cruiser Less : Purchase Price of the Shares Less : Stamp Duty on purchase of Shares Less : Capital Loss of Previous Year The net capital gain, earned by David Solomon in the current year, will be added with the other assessable income to ascertain the net taxable assessable income of the taxpayer. The income slab for taxation purpose will be then determined on the basis of that net taxable income. If David Solomon would generate any net capital loss, then that would be carry forwarded into next tax periods. It would be adjusted only if the taxpayer would generate any capital gain in future.   It is assumed that Periwinkle Pty. Ltd. is a normal company and not entitled to any benefit for small business entities.   The FBT consequences of Periwinkle, aroused for the benefits provided to Emma, one of the employee of the company is discussed below:- 1) It is assumed that the employee uses the car not only for office use but for non-work related purpose in frequent and regular basis. Therefore, the car benefit should be accounted for FBT as it is allowed to use for private purposes (Stilwell 2016). During the interstate travel of the employee, the car was parked at airport, not at the employer’s premises and the repairing of the car was annual maintenance type, not an unscheduled repairing. Therefore, the ten days, when the car was not used, also to be included in the FBT calculation (Hodgson and Pearce 2015). The statutory formula method is used for estimating the car fringe benefit. The calculation of car fringe benefit is shown in the following table:- Calculation Of Car Fringe Benefit:- Total Kms. Travelled during the FBT year Statutory Rate as per Annualised Km. No. of Days available for Private Use 2) The interest charged on the loan, given to the employee, should be treated as FBT. The Benchmark Interest Rate for such loan is 5.95% (Ato.gov.au, 2016). The company has charged the loan at an interest rate of 4.45%. As the actual rate is lower than the Benchmark Rate, the FBT should be calculated on the actual rate of interest (Pearce and Pinto 2015). The calculation for FBT on interest on loan is shown below:- Calculation of Interest on Loan for FBT:- 3) The bathtub provided to the employee at a special discounted rate, is a FBT expense. The taxable value of the bathtub is estimated at 75% of the normal selling price and the FBT is calculated accordingly in the following table (Ato.gov.au, 2016):- Calculation of Special Discount for FBT:- The Fringe Benefit Tax for Periwinkle Pty. Ltd. is calculated in the following table according to the above-mentioned assumptions (Ato.gov.au, 2016):- Name of Taxpayer : Periwinkle Pty. Ltd. for the period ending on 31st March,2016 Total of GST Inclusive/Free Benefits If the employer, herself, purchased the shares, instead of her husband and earn dividend from such shares, then the part interest on loan for $50000, will be considered as an deductible expenses of the employee. Therefore, the FBT of the employer will also get reduced accordingly (Eccleston 2013).   Ato.gov.au. (2016).  How to calculate your FBT | Australian Taxation Office.   Ato.gov.au. (2016).  Property fringe benefits | Australian Taxation Office.   Chan, C., 2014. Earnouts and CGT: Fine-tuning the.  Tax Specialist,  18(1), p.27 Conesa, J.C. and Domà ­nguez, B., 2013. Intangible investment and Ramsey capital taxation.  Journal of Monetary Economics,  60(8), pp.983-995 Eccleston, R., 2013. The Tax Reform Agenda in Australia.  Australian Journal of Public Administration,  72(2), pp.103-113 Faccio, M. and Xu, J., 2015. Taxes and capital structure.  Journal of Financial and Quantitative Analysis,  50(03), pp.277-300 Harding, M., 2013. Taxation of dividend, interest, and capital gain income Hodgson, H. and Pearce, P., 2015. TravelSmart or travel tax breaks: is the fringe benefits tax a barrier to active commuting in Australia? 1.  eJournal of Tax Research,  13(3), p.819 Jacob, M. and Jacob, M., 2013. Taxation, dividends, and share repurchases: Taking evidence global.  Journal of Financial and Quantitative Analysis,48(04), pp.1241-1269 Law.ato.gov.au. (2016).  TR 1999/19 - Income tax capital gains: treatment of forfeited deposits (As at 11 October 2000).

Financial Accounting Midterm Project Essay Example | Topics and Well Written Essays - 2000 words

Financial Accounting Midterm Project - Essay Example Meanwhile, managerial accounting reports are designed to serve specific needs of the management. They make use of both historical data and estimated data. While financial accounting reports have to be prepared according to the Generally Accepted Accounting Principles (GAAP), the same does not hold true with managerial accounting reports. (Warren, Reeve, etc., 1987, pp. 2-4) A job opening in the field of financial accounting at the Monster website states that "the Accounting Manager is responsible and accountable for the entire Company's Accounting Department." As such, he/she will manage and provide direction to the accounting department personnel as well as direct and lead all accounting functions to ensure that all accounting, financial and tax information are properly disseminated and reported. The job requirements include a bachelor's degree in Accounting, experience in cost accounting and the preparation of cash flow statements and skills in preparing tax returns and audit revie ws. (Monster 2010) Meanwhile, a job opening in the field of managerial accounting requires a Revenue Accounting Manager who will have the following main duty: "continuously work to understand the various revenue streams to ensure the highest levels of revenue recognition." (Monster 2010) Similarly, the job requirements include a bachelor's degree in Accounting. In contrast to the job opening for a financial accountant, however, this one requires "strong project management and planning skills" and an "analytical mind which is able to process information logically delivering value added analysis." These stuffs are definitely necessary in the domain of managerial accounting. 2. According to history, accounting was first established by Luca Pacioli - an Italian Renaissance mathematician, a close friend and tutor to Leonardo da Vince and a contemporary of Christopher Columbus. Pacioli described in his work entitled "Summa de Arithmetica, Geometria, Proportione et Proportionalite" a syste m that served to make sure that financial information were efficiently kept in accurate records. This basic system eventually became established as the way to note down all transactions of businesses. (Weygandt, Kieso, etc. 2009, pp. 5-6) 3. The following are the liquidity ratios of Microsoft Corporation (MSFT) and Apple Inc. (AAPL) for the year 2010: MSFT AAPL Current Ratio 2.5 1.8 Acid Test Ratio 2.2 1.6 These ratios show that both MSFT and AAPL have sufficient liquid resources to pay up their short-term liabilities. Of the two, MSFT is the company with the higher level of liquidity. The current ratios indicate that their current assets can well be utilized to fully settle their current liabilities. Meanwhile, the acid test ratios indicate that the two companies would be able to fully settle all their short-term liabilities by using only the most liquid of their assets - namely: cash, marketable securities and accounts receivable. 4. The following are the activity measures of Micr osoft Corporation (MSFT) and Apple Inc. (AAPL) for the year 2010: Asset Management Ratios MSFT AAPL Inventory Turnover (# of times) 19.2 63.9 Accounts Receivable Turnover 5.5 16.7 Fixed Assets Turnover 8.8 17.0 Total Assets Turnover 0.8 1.1 The above

Should the U.S. Government Levy Additional Fines or Taxes on Companies Essay

Should the U.S. Government Levy Additional Fines or Taxes on Companies That Ship Jobs Overseas - Essay Example The paper tells that according to the McKinsey Global Institute the threat posed by shipping jobs abroad has been grossly exaggerated. To start with, they argue that the number of jobs lost per year to offshoring is far fewer than the normal rate of job turnover in the economy. Secondly, savings from offshoring enables companies to invest in future technologies that create more jobs at home and abroad. Thirdly, global competition improves the skills of American companies making them more competitive. Companies that offshore have the opportunity to take advantage of distinctive skills that are available overseas. Fourthly, the U.S. runs a trade surplus in services. This means that America needs other countries to buy its surplus services. If America refuses to similarly offer overseas countries a platform for trade – by refusing to procure their services – these countries may opt to retaliate and thus leave the U.S. with no one to trade in its excess capacity. On the con trary, in â€Å"It's a Flat World After All† argues that the convergence of information and communication technologies (ICTs) have leveled the playing field and if not addressed as a critical issue by the U.S. policies, it could signal the end of American wealth and global dominance. He further argues that whereas in the past American companies offshored primarily to minimize production costs, nowadays they do so because they are unable to find the talent they need locally. Nobel Laureate Paul Samuelson agrees with Friedman when he states that free trade could leave rich countries worse off by eroding them off their comparative advantages. Moreover, who says that China, India, Russia and the other emerging economies are content with providing low-end, low-wage jobs for eternity.

Horse Dealers Daughter Essay -- essays research papers

Horse Dealer's Daughter This story is about a girl named Mabel who tries to commit suicide by drowning herself in a pond. A young doctor, Joe Ferguson, saves her. She then believes that he loves her. Although this idea never occurred to Joe, he begins to find that he indeed loves her. However, Mabel thinks she is "too awful" to be loved, and finds that when Joe declares over and over that he wants her and that he loves her, she is more scared about that than of Joe not wanting her. So does Joe really love Mabel? Somehow, he is convinced that he is. I don't think the idea of love or marriage ever occurred to him. When Mabel finds out that he saved her, she convinces herself that he loves her. "Do you love me, then?" she asks him. Then, more confidently, she says, "You love me. I know you love me, I know." The reason why I think she committed suicide is because she felt unloved at her home. Her father had recently died and her brothers were unkind to her. The father had left the family in debt, and the family will soon have to leave their house and move somewhere else. When asked which path she would pursue, she did not answer. I don't think she had anything planned. She probably didn't have a good education so there were few options for her. Perhaps she felt overwhelmed with the pressure to decide what to do, and decided to commit suicide. Thus, when Joe Ferguson saves her, her hope in life is renewed and she convinces herself that Joe loves he...

Foreign Literature Essay

We are committed to a cosmopolitan and multicultural syllabus. As part of this commitment, all our single-subject students take one module in a foreign literature, studied at least partly in the original language. Modules are normally available in modern Arabic, Old Norse, Anglo-Saxon and Latin, as well as French, German, Italian and Spanish literature. A detailed description of the available foreign literature pathways and modules is sent to new entrants in August. If you’re a combined course student, you don’t have to take a foreign literature pathway, though you will be welcome to do so. Pathways We offer two distinct pathways, leading either to a Literature and Language module (in the second year) or to a Foreign Literature module (in the second and third year). You can choose your pathway based on a combination of your own interests and your prior language learning, either improving your skills in a language you already know or learning a new one. Each pathway offers formal teaching in both language and literature in the second year of study, and the Foreign Literature module extends into the third year. Why study foreign literature? Investigating foreign literature will offer you a different sense of the contexts in which English literature has been produced and studied. Although foreign literatures can (and, on occasion, will) be fruitfully studied in translation, there is no substitute for engaging with a text in its original language. You’ll gain a richer understanding of the text and a particular awareness of the politics of translation, and your understanding of grammar, and developing alertness to vocabulary and ambiguity, will be essential critical skills that will inform your study of English as well. Employers look positively on the language skills our students have added to their CVs, and external examiners have praised their cosmopolitan and sophisticated literary sensibilities. The training provided by the department was fantastic and it really is a major feat being able to read foreign literature in its original language. Steve, English.

What Is Andragogy and Who Needs to Know

Andragogy, pronounced  an-druh-goh-jee, or -goj-ee, is the process of helping adults learn. The word comes from the Greek andr, meaning man, and agogus, meaning leader. While pedagogy refers to the teaching of children, where the teacher is the focal point, andragogy shifts the focus from the teacher to the learner. Adults learn best when the focus is on them and they have control over their learning. The first known use of the term andragogy was by the German educator Alexander Kapp in 1833 in his book, Platon’s Erziehungslehre (Plato’s Educational Ideas). The term he used was andragogik. It didnt catch on and largely disappeared from usage until Malcolm Knowles made it widely known in the 1970s. Knowles, a pioneer and advocate of adult education, wrote more than 200 articles and books on adult education. He espoused five principles that he observed about adult learning at its best: Adults understand why something is important to know or do.They have the freedom to learn in their own way.Learning is experiential.The time is right for them to learn.The process is positive and encouraging. Read a full description of these five principles in  5 Principles for the Teacher of Adults Knowles is also famous for encouraging the informal education of adults. He understood that many of our social problems stem from human relations and can be solved only through education–in the home, on the job, and anywhere else people gather. He wanted people to learn to cooperate with each other, believing this was the foundation of democracy. Outcomes of Andragogy In his book, Informal Adult Education, Malcolm Knowles wrote that he believed andragogy should produce the following outcomes: Adults should acquire a mature understanding of themselves — they should accept and respect themselves and always strive to become better.Adults should develop an attitude of acceptance, love, and respect toward others — they should learn to challenge ideas without threatening people.Adults should develop a dynamic attitude toward life — they should accept that they are always changing and look at every experience as an opportunity to learn.Adults should learn to react to the causes, not the symptoms, of behavior — solutions to problems lie in their causes, not their symptoms.Adults should acquire the skills necessary to achieve the potentials of their personalities — every person is capable of contributing to society and has an obligation to develop his own individual talents. Adults should understand the essential values in the capital of human experience — they should understand the great ideas and traditions of history and realize that th ese are what bind people together.Adults should understand their society and should be skillful in directing social change — In a democracy, the people participate in making decisions that affect the entire social order. It is imperative, therefore, that every factory worker, every salesman, every politician, every housewife, know enough about government, economics, international affairs, and other aspects of social order to be able to take part in them intelligently. Thats a tall order. It is clear that the teacher of adults has a far different job than the teacher of children. Thats what andragogy is all about.

Georgia State Perimeter College Clarkston Campus - 1751 Words

On Thursday evening, February 9, 2017, my mother drove me to Georgia State Perimeter College Clarkston Campus which is located in Clarkston, Georgia for my second mandatory encounter for HUMN 1000. Due to the fact that I was going at night, it was quite a boring drive to Georgia State University Clarkston Campus (GSUPC); however, on the way to GSUPC, I had the anxious feeling of not knowing what to expect from the play I was going to watch, SHE. SHE is a play that was written and devised by Shirlene Holmes and Anastasia Wilson. Eventually, I would reach the Fine Arts building at GSUPC with my anxiety at full throttle. Although my mother drove me to see the play, she did not stay to watch driving away while wishing me good luck. I then†¦show more content†¦White represents cleanliness, holiness, and purity which are all components to not only the actors the but the community in which they are a part of. To add on this the actors were barefoot which is a very unique and distin ct aspect of the play. This also has more symbolism than what meets the eye. As a society, we attribute, or connect, the appearance of barefeet with poverty, sorrow and primitivity. Once again, the play turns this stigma on its head as showing this society as an â€Å"ideal† and as one that even the antagonists coveted and wanted to take by force. Speaking of the antagonists, the â€Å"evil† actors of the play would be the doctors. It is inferred that the antagonists are doctors since they wore green lab clothing save a lab coat. The apparel of the doctors were even accompanied by face masks. The doctors and their clothing are also good symbols in this play, but unlike the barefeet symbol, doctors are seen as something positive in today’s society-a necessity. However, in the play, the doctors are coming to not only bring destruction to the utopia but also to take whatever they please by force. The doctors also represent something more realistic in the play, the evil of knowledge. In our society knowledge is something that people either covet or regret, and in this play it’s obvious that knowledge is something that the doctors covet. This conclusion is reached by the fact that the color of the doctors’ apparel was green.