Deferred tax assets are the amounts of income taxes recoverable in future

Deferred tax assets are the amounts of income taxes

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Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of: (a) deductible temporary differences; FNSACC512 Prepare tax documentation for individuals Assessment Guide Copyright © Mentor Education Pty Ltd RTO 21683 V1.0 12
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(b) the carryforward of unused tax losses; and (c) the carryforward of unused tax credits. Temporary differences are differences between the carrying amount of an asset or liability in the statement of financial position and its tax base iii. Income test definitions that include reportable superannuation and FBT b. The key aspects of principles and application the following for individual taxpayers: i. CGT:- If you sell a capital asset, such as real estate or shares, you usually make a capital gain or a capital loss. This is the difference between what it cost you to acquire the asset and what you receive when you dispose of it. You need to report capital gains and losses in your income tax return and pay tax on your capital gains. Although it's referred to as capital gains tax (CGT), this is actually part of your income tax, not a separate tax. When you make a capital gain, it is added to your assessable income and may significantly increase the tax you need to pay. As tax is not withheld for capital gains, you may want to work out how much tax you will owe and set aside sufficient funds to cover the relevant amount. If you make a capital loss, you can't claim it against your other income but you can use it to reduce a capital gain. CGT is calculated by subtracting the cost involved in acquiring and holding an asset from the proceeds of the sale of the asset. Any gain made on the sale of a CGT asset is included in your assessable income in the financial year that you sell the asset. ii. FBT:- Employers must self-assess the amount of fringe benefits tax (FBT) they have to pay when lodging their FBT return at the end of each FBT year (1 April to 31 March). When working out your FBT liability you gross-up the taxable value of benefits you provide, to reflect the gross salary employees would have to earn at the highest marginal tax rate (including Medicare levy) to buy the benefits after paying tax. There are two different gross-up rates to calculate fringe benefits taxable amounts: higher gross-up rate (type 1) is used where you (or other benefit providers) are entitled to a GST credit for GST paid on benefits provided to an employee (known as GST-creditable benefits). FNSACC512 Prepare tax documentation for individuals Assessment Guide Copyright © Mentor Education Pty Ltd RTO 21683 V1.0 13
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lower gross-up rate (type 2) is used where there is no entitlement to a GST credit. ETP rules:- An employment termination payment (ETP) is a lump sum payment made as a result of the termination of a person's employment. It can include: payments for unused sick leave or unused rostered days off payments in lieu of notice a gratuity or 'golden handshake' an employee's invalidity payment (for permanent disability, other than compensation for personal injury) compensation for loss of job or wrongful dismissal
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