THIS IS AUSTRALIA TAXATION LAW?Reference should be made to appropriate legislation, case law and rulings.This Essay must include the topic of capital gain and deduction. Please analyze case carefully!
PROBLEM
ABC Sport Pty Ltd is a distributor of golf and tennis equipment based in Melbourne. It has recently experienced a reduction in projected sales, primarily because a major supplier, who supplied 40% of the sporting goods that ABC Sport distributed to its customers, cancelled a contract to supply sporting goods to ABC Sport. ABC Sport received $200,000 compensation from the supplier for the cancellation of the supply contract. Although a new supplier was found, John Smith, who is both the accountant and the Managing Director of ABC Sport, decided that more was needed to be done to improve sales and make the company more efficient. On 1 August 2016, John visited Brisbane for four weeks to examine the possibility of relocating some of the ABC Sport stores to Brisbane, where the weather is warmer for a longer period of time each year and accordingly, potential clients would have more time to play golf and tennis. The cost of this trip was $6,000. After returning to Melbourne, the company spent $125,000 analysing whether the relocation of some of the ABC Sport stores to Brisbane was desirable.

John was paid a salary of $100,000 a year and ABC contributed to John’s superannuation fund. ABC Sport also paid for his son’s school fees of $20,000 a year and provided John with a car for both business and private use. John regularly leaves his youngest son at the child care centre that ABC Sport provides for employees free of charge. ABC also gives John a new set of golf clubs each year and pays for his annual membership subscription to CPA Australia.

On 2 April 2017, the Board of Directors resolved to relocate some of the stores to Brisbane. By June 2017, production of golf clubs in Brisbane had commenced.

Prior to moving to Brisbane, John sold the family home, which was bought in 2000. At the time of purchase, the land was vacant and in 2006, John constructed a home on the property, which the family has lived in ever since. Prior to that, the family lived in rented accommodation. John was a keen yachtsman and in 1984 he had purchased an ocean racing yacht for $500,000. He sailed the yacht in a number of Sydney to Hobart races. In 2012, he installed a new mast in the yacht at a cost of $600,000. He decided not to take the yacht to Brisbane, and sold it for $2,000,000 in September 2016. At the time of sale, the mast was valued at $500,000. John also sold a small houseboat for $8,000. He had purchased it for $12,000 in 2008 and the family used it for recreational purposes on the Murray River. John was an expert horse rider and had purchased a horse for $14,000 in 2009. He trained the horse and competed in equestrienne events as a hobby. He decided not to take the horse to Brisbane, and sold the horse for $30,000 shortly before moving to Brisbane. He also gave his mother an antique table he had purchased for $12,000 in 2006 from an antique shop in Melbourne. The table had been manufactured in 1922. At the time he gave it to his mother, it was valued at $18,000.

In 1982, John had purchased a 10 hectare block of land near Wandin, east of Melbourne, for $300,000. The family regularly spent the weekend at the property, and both John and his daughter kept their horses there. In 2014, the land was rezoned for residential development and became very valuable. John therefore decided to sell the property. He obtained a council permit to subdivide the land. However, when the decision was made to move to Brisbane, John did not continue with the subdivision and sold the land to a local property developer for $3,000,000.
In June 2017 ABC Sport was fined $50,000 for a breach of the Trade Practices Act.

REQUIRED:
Advise ABC Sport and John on the taxation issues arising from the above fact situation. Reference should be made to appropriate legislation, case law and rulings.
(30 Marks)

 

Sample Solution

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.

God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.