Taxation Theory, Practice & LawCase Studies of Specific Deductions and Tax Liability - Due...

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Taxation Theory, Practice & LawCase Studies of Specific Deductions and Tax Liability - Due 19/05/2021 at 6:00 PM (2000 words)• The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers. • Harvard Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Harvard referencing style. You also must refer to relevant legislation and/or case law in your answer. Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Harvard referencing style.Question 1Calculate Total Assessable Income, Taxable Income, Tax Liability, Student loan (HECS), Medicare Levy, and Medicare Levy Surcharge if applicable, for the taxpayer (Susanne) with the information below:• Susanne is a single and an Australian resident plans to lodge a tax return for the tax year XXXXXXXXXX.• Her total taxable income is $90,000 (Including tax withheld). • She does not have private health insurance.• Susanne has a student loan HECS outstanding for her previous study at Sydney University of $53,000.• Her employer pays superannuation guarantee charge of 9.5% on top of her salary to her nominated fund.• Susanne earned a passive income of $10,000 from the investments in shares in the same tax year.Hint: The following website can be used to cross-check your answer, but you need to provide the detailed calculations, rates and explanations with the screenshots of rates from the ATO website. https:www.paycalculator.com.auQuestion 2Part-AWhat is ‘fringe benefit tax’ (FBT)? Explain at least five main salient features of the FBT?Part -B Calculate the taxable value of the fringe benefit using the statutory formula in the following case context: Caon provides his employee (Raie) with the use of a Nissan Xtrail car 196 days during the FBT year. During the period, the car travelled 15,000 km. Caon purchased the car last year for $45,000. Raie contributed $1,500 towards the cost of running the car and has provided Caon with relevant documentation.

Munmun · Accepted Answer

Question 1.
Calculation for Total assessable income 
Salary Income  								$ 90,000
Less: Superannuation (9.5%)							$ (8550)
Less: Medicare (2%)								$ (1800)
Add: Income earned from Investments						$10,000
Total assessable income 							$ 89,650
Tax calculation 
Up to $ 45000								$ 5092
From (89650-45000)* 32.5						$ 14511.25
Total tax liability 								$ 19603.25
Note: 
	Taxable Income (AUD)
	Tax on column 1 (AUD)
	Income tax on excess (%)
	Over
	Not over
	
	
	0
	18,200
	-
	0
	18,200
	45,000
	-
	19.0
	45,001
	120,000
	5,092
	32.5
	120,001
	180,000
	29,467
	37.0
	180,000
	
	51,667
	45.0
Question 2.
Part A. 
Fringe Benefit Tax is paid by the employer of an organization for the benefits provided by him or their organization to the employee their family or other associates of the employee. FBT is further applicable in the case where there is third party agreement to provide indirect benefit to the employee.

Taxation Theory, Practice & Law Case Studies of Specific Deductions and Tax Liability - Due 19/05/2021 at 6:00 PM (2000 words) • The assignment must be in MS Word format, no spacing, 12-pt Arial font...

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