QUESTION 1- (10 MARKS)
The City Sky Co is a property investment and development company. Recently the
company purchased a vacant piece of land south of Brisbane on which it is planning to
build 15 apartments to sell. The City Sky Co has engaged the services of the local lawyer,
Maurice Blackburn, to provide the legal services required for the development for $33,000.
Maurice Blackburn runs an established sole trader business and turns over revenue of
$300,000 per year.
Advise The City Sky Co of the input tax credit entitlements that they may be entitled to.
Assume that The City Sky Co is registered for GST purposes.
QUESTION 2 – (10 MARKS)
Emma has provided to you a listing of the transactions she has undertaken throughout the
financial year to assist you in completing her 2015 income tax return.
Sale of a block of land for $1,000,000: Emma purchased the land as an investment in
- The purchase price was $250,000, plus $5,000 in stamp duty, $10,000 in legal fees.
To fund the purchase, she took out a loan on which she paid interest totalling $32,000.
During the period of ownership her council rates, water rates and insurance totalled
$22,000. In January 2005 a dispute occurred with a neighbour over the use of the land and
legal fees incurred amounted to $5,000 in resolving this dispute. Before putting the property
on the market $27,500 was spent to remove a number of large dangerous pine trees that
were on the land. Advertising, legal fees and agent’s fees on the sale of the land were
Sale of Emma’s 1000 shares in Rio Tinto for $50.85 per share: Emma paid brokerage
fee of 2% on the sale. Emma initially purchased the shares for $3.5 per share in 1982.
Sale of a stamp collection Emma had purchased, from a private collector, in January
2015 for $60,000: Emma sold the collection at auction for $50,000. Auction fees totalled
$5,000 for the sale.
Sale of a grand piano for $30,000: It was initially bought for $80,000 in 2000.
HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 5
Advise Emma of the capital gain tax (CGT) consequences of her transitions. Ignore
equirements, long haul co-activity and high trust between on-screen characters in the inventory chains or systems, shared dangers and advantages, cross coordination on different levels between organizations, shared dreams and comparable organization societies. The benefit of such close co-activity is a progressively straightforward store network. This can prompt diminished lead-time, lower vulnerability, streamlining of stocks and higher limit use. (T. Skjoett-Larsen 2000) The idea of SCM frequently speaks to the more extensive perspective on coordinations as its principle capacity is to guarantee the smooth progression of materials from providers to association and after that out to clients through the tasks inside the association (D. Waters 2003). The reason for SCM can be portrayed as to evacuate redundancies and correspondence obstructions through coordination, checking and control capacities (D. Power 2005). The inventory network as a rule comprises of various associations and procedures, which are expected to guarantee the smooth progression of materials from the underlying provider to the end client. Much of the time, producers get their materials from countless providers and offer to various clients, which is the situation with LEGO Group. In figure 1, you can see a case of the production network around a maker. Materials move from a few levels of providers however association to a few levels of clients, for example, wholesalers, retailers and end clients. Figure 1: Supply chain of maker (D. Waters 2003, 9) The toy business is one of the most seasoned innovative enterprises in the word. In any case, C. Y. Wong, J. S. Arlbjørnand J. Johansen in their investigation named "Store network the board rehearses in toy supply chains"(2005) express that such innovative business is occasional and unpredictable with unequivocally fluctuating requests, short and determined undercutting windows just as item life cycles. In addition, the toy business can be portrayed as seriously aggressive on valuing and development, where retailers frequently start contending with their providers. The creators reason that most retailers and makers utilize a "push" plan of action. This model incorporates low usage of innovation and data sharing just as moderate execution of production network activities. Prologue TO THE CASE COMPANY: LEGO GROUP LEGO can be unquestionably characterized as one of the most renowned brands in the toy business. The Danish organization's toys are appreciated worldwide by youngsters and grown-ups the same, who utilize a huge number of various pieces to develop structures, robots and other toy. In 1932, Ole Kirk Christiansen, a Danish woodworker established an organization named LEGO (Danish words "Leg" and "Godt", signifying "play well"). Initially a carpentry business for furniture, LEGO started delivering kids' toys in 1934. The organization presents itself by expressing: "It is LEGO theory that "great play" advances a youngster's life – and its consequent adulthood. In view of this, the LEGO Group has created and showcased a wide scope of items, all established on a similar fundamental way of thinking of learning and creating – through play." In figure 2 the center structure squares of LEGO Group are exhibited. (M. M. Larsen et al. 2010; LEGO Group, Corporate Communications 2009) Figure 2: The LEGO Company (LEGO Group 2010) Seeking after such a way of thinking, LEGO has developed enormously since its foundation. By 2009 the organization was the world's fifth biggest toy producer as far as deal with 290 Million US Dollars in incomes and roughly 7000 workers around the world. The LEGO block which is potentially the best realized toy was first presented and protected in 1958. It has from that point forward spoken deeply achievement and picture of this organization. With two only blocks there are 24 distinct mixes and with six there are 915 million conceivable outcomes. This empowers boundless innovativeness. As recently expressed, before LEGO block was named as "Toy of the century" by Fortune magazine and later by British Association of Toy Retailers also. (M. M. Larsen et al. 2010; J. Tidd, J. Bessant 2009)>GET ANSWER