Back
Back
Back
Back
Back
Back
Back

Welcome to Live Chat

Welcome to LiveWebTutors Services, World's leading Academic solutions provider with Millions of Happy Students.

Call Back
logo

24x7 Support Available

To Get the Best Price Chat With Our Experts

chat now

In A Hurry? Get A Callback

logo

shopping cart 0

Subject Solutions Code Description Price Delete

Amount Payable : $0

continue shopping proceed to checkout

World's Leading Assignment Library

RIP Pty Ltd is a resident private company carrying on the business of undertaker/funeral director. It operates out of premises comprising office facilities, a chapel and assembly area and professional

Question Preview:

RIP Pty Ltd is a resident private company carrying on the business of undertaker/funeral director. It operates out of premises comprising office facilities, a chapel and assembly area and professional rooms. Its other assets include a fleet of motor vehicles. For the year ended 30 June 2016 the company reported a net profit of $2.45m. Its income arises from the provision of funeral services financed as follows: i)Fees payable under a ‘net, 30 days’ invoice. ii)Fees payable under several external insurance contracts to which bills are issued under a ‘net, 30 days’ arr...

View Complete Question >>

Question Preview:

RIP Pty Ltd is a resident private company carrying on the business of undertaker/funeral director. It operates out of premises comprising office facilities, a chapel and assembly area and professional rooms. Its other assets include a fleet of motor vehicles. For the year ended 30 June 2016 the company reported a net profit of $2.45m. Its income arises from the provision of funeral services financed as follows: i)Fees payable under a ‘net, 30 days’ invoice. ii)Fees payable under several external insurance contracts to which bills are issued under a ‘net, 30 days’ arrangement. For instance, some funeral costs are paid by the Transport Accident Commission, others are paid out of private life assurance plans. iii)Fees received from RIP Finance Pty Ltd, a company providing credit under an instalment repayment plan. iv)Amounts paid under a funeral plan in which clients make periodic contributions to meet future funeral costs. ‘Easy Funeral Plan’ is a fixed price contract. When the agreed amount is paid, the client is guaranteed a ‘deluxe funeral arrangement’. If the contract price in not fully paid at date of death, the deceased’s estate is billed under (i) or (iii), above. The amount is not refundable or transferable. At 30 June the credit balance Easy Funeral Plan is $225,000. From time-to-time amounts paid pursuant to the Easy Funeral Plan are not drawn upon. The clients might die abroad or remains not be recovered and no funeral service is provided. No refund issues arise. At 30 June, the company transfers from Easy Funeral Plan amounts estimated to have arisen in connection with defaulting members (ie, members who have ceased making scheduled payments and who are not expected to make up arrears). These are credited to a ‘Forfeited Payments Account’ that has a balance at 30 June of $16,200. Required (70% of the answer) [Note: it is necessary to refer to appropriate case law on the issues.] 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. [Note: Case reports and extracts of Arthur Murray are widely available or the decision may be accessed via www.hcourt.gov.au] a.Advise RIP Pty Ltd when income is derived (i) generally, and (ii) when it derives its income from funeral services and related activities. b.Does the Arthur Murray principle apply to the company’s accounting treatment of amounts in Easy Funeral Plan? Explain. c.Does the Commissioner or any taxpayer have a choice in the method of accounting for tax? ii)Advise the company of the tax treatment of $16,200 in ‘Forfeited Payments Account’ in item (iv). Part B i)RIP Pty Ltd holds a stock of three types of caskets as well as a range of accessories (such as religious and secular icons). In June 2016 the company prepaid $25,000 for material to be delivered in August 2016. The company obtained considerable discounts for the advance purchase. ii)A fully franked cash dividend of $21,000 was received from RIP Finance Pty Ltd. iii)An amount of $57,000 was paid on 1 March 2016 for two year's rental of storage space. The lease expires on 28 February 2018. In the company’s financial accounts an amount of $9,500 was expensed and $47,500 capitalised. iv)On 1 June 2016 the managing director of RIP commenced three months long service leave and was paid $22,000 in advance. In the company’s accounts the amount was debited against a Provision for Long Service Leave Account. v)In 2013 the company’s Board of Directors decided existing accommodation was inadequate and it resolved to construct a purpose built facility. In that year $250,000 was paid for preliminary architectural designs. In 2014 land costing $1.25m was acquired and $50,000 paid to demolish an existing structure. Construction of the new premises commenced on 1 September 2014 at a cost of $2.5m. Fitting and equipment was installed on 1 June 2015; operations began on 1 August 2015. On-site car parking costing $125,000 was completed on 30 September and landscaping of the site was completed on 31 January 2016 at a cost of $40,000. Required (30% of the answer) Advise the company about the following: [You must refer to appropriate sections of the legislation and relevant case law.] i)The nature of trading stock, generally, whether the caskets and accessories would be trading stock for tax purposes and how the amount of $25,000 is treated for tax purposes. ii)What adjustments (if any) should be made to the company’s reported profit for tax purposes in regard to items (ii), (iii) and (iv). iii)What deductions (if any) are available for expenditure set out in item (v). Explain.

View Less >>

Solution Preview

Introduction

In modern business environment, competition among players has increased dramatically for sustainable growth and development. Governments globally have been actively involved in promotion of ease of doing business However, taxation issues have been the most concerning factor for organisations. The essay discusses about Australian Corporate Tax Law and provides feasible solution in order to resolve tax related problematic issues. The essay discusses about taxability of income based on classification of income and its implications on an organisation. Case studies, previous

question Get solution

$30

Orginal Price : $39.0

Pay Now

Upload Assignments

250 words

side

Get Your Assignment

Don’t delay more, place your order now. Quick assignment help will be offered to you.

Order Now

CUSTOMER REVIEWS

Excellent

logo

Based on 702 reviews See all reviews here

One of the Best Service

I trust LiveWebTutors for my assignments because of their ability to deliver the perfect assignments time and again. Only a few of my assignments required minor revisions. The rest assured it is the best assignment writing service in the market.

Elizabeth
Sydney

Great Service and on time

I felt so exhausted and burdened with the large number of assignments I had to write and desperately needed someone to help me with all the writing and there was LiveWebTutors company on the internet. They finished my assignments before the due date and also offered me a first-timer discount.

Christina
Perth

One of the Best Assignment Provider

I ordered my Mathematics and Marketing assignments from them last month. I received the content on the set date. Most importantly, the assignments were well-written and plagiarism free. I scored a top grade for the assignment written by them. They are a reliable company.

Oli
Brisbane

Very Helpful Customer Service

I was quite unsure about getting my assignment written online but after coming across LiveWebTutors.com, all my worries have vanished. The quality of the assignments written by their writers is just invincible. Their customer support is very polite and helpful. You should try their service at least once

Kabir
Adelaide