Answer 1:

Bill Tree’s Case:

The sale proceeds ought to be part up as between those trees which were developed without help

and those trees which were developed by him depends on the grouping in regard of sale proceeds

of unconstrained development in a backwoods zone which had been held to be non-agrarian pay.

This choice could have no application where normal activities are conveyed even in regard of

woodland trees. Only in light of the fact that a few trees were at that point there in the Bill's

homestead, without his having developed them, such trees are the same as different trees in the

ranch.

In any case, all trees need not be capital assets, where trees are developed for timber as on account

of a casuarina ranch, where such trees are cut and sold. Salary there from will have the character

of farming pay. Truth be told, there is a distinction between trees cut alongside roots and trees

which leave a stump in the wake of cutting for re-age. It is just in the previous case, it could be a

capital receipt and in the last occurrence of sale of trunks.

This pay won't be taxed as it's anything but a noteworthy salary of Bill. He is into cultivating and

brushing, on the off chance that he was associated with tree ranger service, at that point he would

have been taxed. This is certainly1 not a capital gain for Bill, henceforth taxin on such pay isn't

exacted.

1
"Capital Gains Tax (CGT)", Business.Gov.Au (Webpage, 2019) <https://www.business.gov.au/finance/taxation/capital-gains-
tax>.
On the off chance that Bill was paid a singular amount of $50000 for giving the logging

organization a privilege to evacuate as much timber as required from his territory, the chunk of

cash would be gotten in return for, and usually as the present value of things to come premium

which he would get. This is income not a capital thing the taxpayer basically changes over future

salary or enthusiasm into present pay.

Answer 2:

Brian Batt Case

A capital gains tax (CGT) was presented in Australia on 20 September 1985, one of various tax

changes by the Hawke/Keating government. The CGT connected uniquely to assets obtained on

or after that date, with gains (or losses) on assets claimed on that date, called pre-CGT assets, not

being liable to the CGT.

Work out the amount of capital gain or capital loss

For most CGT events, a capital gain occurs when the “capital proceeds” exceeds the “cost base”

of the CGT asset.

Taxpayer makes a capital gain if:

Capital gain = capital proceeds - Cost Base

Taxpayer makes a capital loss if:

Capital Loss = Reduced Cost Base - Capital Proceeds

Calculate the gain or loss for CGT events

Capital gains and losses should be calculated in accordance with s 100-45:

 As per Div 116, Capital Gains for Brian is $200000 *4 = $800000

As per Div 110 the cost base for the CGT asset is $500000+$600000 = $1100,000

Capital Loss = 1100,000 - 800,000 = 300,000

As per Sec 102-5 Net working loss = $300,000

The capital loss has to be managed with the CGT Asset hence next year 300000 has to be deducted

from $1100000 so that their is an equilibrium and the taxes can be managed.

On the off chance that you make a capital loss, you can't guarantee it against your other salary yet

you can utilize it to diminish a capital gain. All assets you've procured since tax on capital gains

began (on 20 September 1985) are liable to CGT except if explicitly rejected. Most close to home

assets are absolved from CGT, including your home, vehicle and individual use assets, for

example, furniture. CGT likewise doesn't have any significant bearing to deteriorating assets

utilized exclusively for taxable purposes, for example, business gear or fittings in an investment

property.2

The time when you make a capital gain or loss is typically when you go into the agreement for

disposal, not when you settle. So in the event that you sign an agreement to sell a venture property

in June 2017, and settle in August 2017, you have to report the capital gain or loss in your 2016–

17 tax return.

In case you're an Australian inhabitant, CGT applies to your assets any place on the planet. For

Norfolk Island inhabitants, CGT applies to assets obtained from 23 October 2015. Remote

2
"Capital Gains Tax", Ato.Gov.Au (Webpage, 2019) <https://www.ato.gov.au/General/Capital-gains-tax/>.
occupants make a capital gain or loss if a CGT event happens to an asset that is 'taxable Australian

property'.

Question 3

Rosyln Johnson Case:

Goods and services tax, regularly known as GST, is an expansive put together tax of 10% with

respect to most goods, services and different things sold or expended in Australia. GST applies to

most Australian organizations and all things considered, your business will be influenced by the

tax.

New Australian goods and services tax (GST) measures to catch services of an advanced sort gave

to Australian shoppers are currently as a result and more are en route. Australian purchasers ought

to hope to pay more for these services!

The Australian GST is like the esteem included tax (VAT) of different nations where VAT is

payable on offers of most items and services at last made to buyers. In Australia the GST rate is

10% with the goal that 1/eleventh of the sum that Australian buyers pay for most items and services

is payable to the ATO.

Move or generally discard a capital asset, and you're enlisted or required to be enrolled for GST,

it's commonly a taxable deal and you have to represent GST on the deal. You should report the

installment (or other thought) you get at G1 (absolute deals) on your action proclamation for the

pertinent tax time frame.

As per the Australian law only the 10% deposit is allowed for GST as that is the payment which

has been processed and the payment left with the new owner will be proceeded after the payment.

So the GST amount would come to 135,700* 10%= 13,750

When the further amounts will be processed then the GST will be charged on that amount. Though,

the maintenance of Mercedes-Benz will be done by Johnson and he has to pay the GST on the

maintenance of the car.

Rosyln has to take care of the following matters:

● drop your Australian Business Number (ABN) (ensure you've met all your announcing and

installment commit3ments first)

● either move your business name (if the new proprietors need to keep utilizing it) or drop

your business name (in the eve4nt that they would prefer not to utilize it any longer)

● Hotel any last tax returns

● drop other tax enlistments, for example, Goods and Services Tax (GST)

● pay any outstanding bills, for example, water and power

● move some other assets, for example, area names or web enrollment, to the new proprietor

● pay any outstanding action explanations and portion takes note

● move any business records, client records and representative records to the new proprietor.

3
"Register For Goods And Services Tax (GST)", Business.Gov.Au (Webpage, 2019) <https://www.business.gov.au/registrations/register-for-
taxes/register-for-goods-and-services-tax-gst>.
4
"GST And The Disposal Of Capital Assets", Ato.Gov.Au (Webpage, 2019) <https://www.ato.gov.au/Business/GST/In-detail/Rules-for-
specific-transactions/Business-asset-transactions/GST-and-the-disposal-of-capital-assets/>.
"Australian GST Changes In Effect Now And On The Way | HLB Mann Judd", HLB Mann Judd (Webpage, 2019)
<https://www.hlb.com.au/australian-gst-changes-in-effect-now-and-on-the-way-expect-to-pay-more/>.
 ● make GST alterations on your last movement explanations

References

"Australian GST Changes In Effect Now And On The Way | HLB Mann Judd", HLB Mann

Judd(Webpage,2019) <https://www.hlb.com.au/australian-gst-changes-in-effect-now-and-on-

the-way-expect-to-pay-more/>

"Capital Gains Tax", Ato.Gov.Au (Webpage, 2019) <https://www.ato.gov.au/General/Capital-

gains-tax/>
"GST And The Disposal Of Capital Assets", Ato.Gov.Au (Webpage, 2019)

<https://www.ato.gov.au/Business/GST/In-detail/Rules-for-specific-transactions/Business-asset-

transactions/GST-and-the-disposal-of-capital-assets/>

"Capital Gains Tax (CGT)", Business.Gov.Au (Webpage, 2019)

<https://www.business.gov.au/finance/taxation/capital-gains-tax>

"Register For Goods And Services Tax (GST)", Business.Gov.Au (Webpage, 2019)

<https://www.business.gov.au/registrations/register-for-taxes/register-for-goods-and-services-

tax-gst>