
BCO6603 Enterprise Resource Planning Systems Assignment Help
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1. This taxation law assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook.
2. It is the responsibility of the student who is submitting the work, to ensure that the work is in fact her/his own work. Incorporating another’s work or ideas into one’s own work without appropriate acknowledgement is an academic offence. Students can submit all assignments for plagiarism checking (self-check) on Turnit- in before final submission in the subject. For further details, please refer to the Subject Outline and Student Handbook
3. There are three questions that required calculations. Show all workings on a separate attachment.
Paladin Pty Ltd is a private company incorporated in 1995 and engaged in the development and sale of computer hardware.
The company makes sales on terms that require a 10% deposit and the balance payable in equal monthly instalments over three years at 10% interest pa. Income in respect of term sales is brought into accounting income over the term of the agreement. This is the first year that sales have been made on this basis. Previously terms were "net 30 days".
This year (2012/13) the company commenced to provide a facility whereby customers can enter into a maintenance agreement in respect of new hardware purchased. The agreement is for three years and Paladin undertakes to provide maintenance servicing when required at no additional cost to the customer. The cost of the agreement is $10,000 p.a,payable in advance. The agreement provides that it is non-assignable and non-refundable in the event of disposal of the hardware. However, the company sales' representatives state that there will be an abatement of the maintenance agreement charges if equipment, the subject of the agreement, is traded-in for new equipment with Paladin during the term of the agreement.
The following financial data for Paladin Pty Ltd has been assembled for the year ended 30/6/13:-
Question 1
i) Refer to the decision in Arthur Murray (NSW) Pty Ltd v FCT (1965) 114 CLR 314.
In your own words, briefly describe the facts, issues and conclusion in that case.
ii) Advise Paladin Pty Ltd whether the principle in Arthur Murray applies to:
[Note: Case reports and extracts of Arthur Murray are widely available or the decision may be accessed via www.hcourt.gov.au]
Question 2
Advise how items (iv) to (ix) are treated for tax purposes and indicate whether, in determining taxable income, the amount of $2.1m net profit should be increased or decreased. Refer to appropriate sections of the Acts and authorities. [That is, does the tax treatment differ from how the items would have been dealt with in the companys’accounts. If the tax treatment is the same as the accounting treatment, you should explain how that comes about and what sections of the Acts apply.]
Question 3
i) Refer to item (x). Advise the company what tax deductions are available for the costs connected with the new factory under s8-1, Div 40 or Div 43. [You should include calculations of any allowable deductions.]
ii) Calculate Paladin’s tax liability using $2.1m as the base and making the necessary adjustments calculated in Required 2 & 3(i).