LAW6300.TutorialPaper.No.11.2.2016 - EDITH COWAN UNIVERSITY...

Info icon This preview shows pages 1–2. Sign up to view the full content.

EDITH COWAN UNIVERSITY PRINCIPLES OF TAXATION LAW – LAW6300 TUTORIAL PAPER NO. 11 2/2016 QUESTION 1 On 1 April 2015, Joanna entered into a contract of employment, as a sales manager, with DotCom Pty Ltd (“Dotcom”), which carries on a business as computer distributors. As part of her remuneration package, she: (i) receives a salary of $75,000 per annum; (ii) receives a fully maintained company car, a Holden Astra, which is available for her private use all year; and (iii) is entitled to the use of an IBM laptop PC for work at home as she has to work for long hours. The PC costs $3,500. On 1 April 2015, Dotcom purchased the car for $22,500. For the FBT year ended 31 March 2016: (i) the total running costs of the car (not including depreciation) were $8,000; (ii) the car travelled 20,000 km during the FBT year, of which 5,000 km were for purposes of the business; and (iii) Joanna did not make any contribution towards the costs of running the car. [For the purposes of this Question, the Holden Astra is a “car” as defined in s.136(1) of the FBT Act]. Advise DotCom Pty Ltd as to its FBT liability arising from above arrangements for
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.
  • One '14
  • Law, Personal computer, Edith Cowan University, Edith Cowan, Holden Astra

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern