A) How successful has the government of the Irish Republic been in Essay

A) How effective has the legislature of the Irish Republic been in running it's economy throughout the most recent three years b) Describe and assess the fundamental large scale econo - Essay Example â€Å"Because Ireland is a little nation, FDI The lodging market caused assisted with continuing development in the ongoing years as lodging speculation has reached practically 16% of GNI, yet the market has turned since 2006.on the premise GNI development is relied upon to decrease from 5% in 2007 to 3% in 2008. The lodging market shortcoming additionally affected gravely on expanding the pace of joblessness from 4% in 2006, to 5.5% in 2008. Ireland delighted in dynamite development in charge incomes over the previous years however this is influenced by the financial declining, the administration excess of 3.5% of GNI has decreased in to .5% in 2007due to the lower property related receipts the genuine government use has extended quickly In the year 2005, Ireland’s work rates decreased from 14% to 4%, because of the development in GDP. Be that as it may, in the year 2006 the joblessness rate expanded to 4.4% Ireland faces an issue of maintainability from different nations in light of the age hole in populace matured more than 65, identifying with working age populace .the current framework will impractical even with the national benefits support The development rate in GDP has arrived at 10%from 1997 to 2000; which in 2005 has reached $169 billion, over the normal of EU 25. Notwithstanding, since year 2006 Ireland’s monetary development began to back off, because of the lower speculation spending and progressively moderate utilization, which is 5.6%, in 2007 at 4.7% and it is anticipated to hinder further in the coming years. In the previous years monetary action stay solid by the solid household request yet it is presently facilitating in the short advance ought to be taken to pull in the outside speculation. In the more drawn out run, more grounded profitability development and proceeded with increment in investment rates will be expected to support a quick pace of genuine salary development. The moseying action has hinder government incomes and a sharp drop in the financial excess

How to Refinish Hardwood Floors Research Paper Example | Topics and Well Written Essays - 500 words

The most effective method to Refinish Hardwood Floors - Research Paper Example A few stories become dainty when they have been resurfaced a ton of times in light of the fact that after various restoring, there is no layer left on it to be evacuated. Along these lines, before restoring, consider whether your floor is in acceptable condition to sand. 2. Mastermind the Equipment. Get a belt sander on the off chance that you can on the grounds that it is simpler to deal with. Drum sander isn't just heavier to convey yet additionally it is adept to make grooves on the wood which are difficult to expel. An edge sander should likewise be promptly accessible to reach in niches and corners of the room where a belt sander doesn't reach without any problem. Other gear that you need is a clay blade, scrubber, cushion, security covers, eye assurance, brush, and froth utensils. 3. Set up the floor for sanding by evacuating all furnishings, heat meshes, rugs, and old nails. Mop the floor since it must be dust cleaned before sanding. Try not to go for wood clay on delicate floors since profound gouges and breaks in delicate woods would require supplanting entire boards. 5. Begin sanding from the least observable region to get simple with the sander. Concentrate. Spot the sander forward and sand alongside the floor’s grain. Begin sanding near the dividers, sanding the two advances and in reverse. Beginning sanding will just evacuate the layer of old completion. Utilize the edge sander to arrive at the regions the belt sander had not reached. A drum sander will have a 20-36 coarseness paper in it now. 6. Sand once more, moving in reverse, forward, left and right movement. It will evacuate the scratches that the first sanding left on the floor. This time, a drum sander ought to have a 80 coarseness paper. Select a fitting heading relying on the look and feel. The edge sander should likewise have a 80 coarseness paper in it. 8. Pick a completion. Polyurethane stain which is either water-based or oil-based, or Osmo Hard Wax Oil, is utilized regularly. The completion can be polished or matte. Glossy silk finish is favored in light of the fact that it is known to conceal the flaws

Facebook Link Previews Not Working Properly Try This!

Facebook Link Previews Not Working Properly Try This! Make Money Online Queries? Struggling To Get Traffic To Your Blog? Sign Up On (HBB) Forum Now!Facebook Link Previews Not Working Properly? Try This Then!Updated On 09/01/2018Author : Pradeep KumarTopic : FacebookShort URL : https://hbb.me/2CDIEkF CONNECT WITH HBB ON SOCIAL MEDIA Follow @HellBoundBlogChanging your blog posts titles, links and thumbnails often? Facebook link previews not working or showing properly? We almost had the same problem long back, but no more. I guess there is only one way to fix quickly this. Well talk about it.Facebook Link Previews Not Working Properly?Most of my old (and some current) blog posts have thumbnails as random screenshots and pictures. Sometimes I do this on purpose, but then, I also become way too lazy to edit them and replace them with some other image. If you are like me, or if you have the habit of frequently messing up with your blog posts, then here is an easy way to overcome this. Thanks to Facebook Developers Debugger Tool.Recently I added a new thumbnail image for my blog post, but still, the old screenshot remains not the new one.This is how my blog post looks with the old thumbnail, but I wanted to change it.Head over to Facebook Developers Debugger Tool and enter the desired blog post URL there. Click the button that says Debug. Now youll come to this page (below). We are now going to tell Facebook to fetch the new scrape information instead of the old ones. So, click the button that says Fetch new scrape information. Thats it.READYou Can Now Find Your Orkut Friends On FacebookThis tool shows the scraped time and other useful information regarding your blog post link.Now, here is the same blog post with the updated thumbnail I added.Perfect and Easy right? Most of us try using short URLs and other unnecessary tricks to get the preview links working correctly, but this is the direct and natural way I would say. This trick/tip applies not just for thumbnail but also for the title, description and others as wel l.I hope this helps you to fix the Facebook link preview issues, do let us know your views in the comments below, maybe you have a better solution for this?

Marijuana Essay - 1535 Words

Marijuana A smoker would theoretically have to consume nearly fifteen hundred pounds of marijuana within about 15 minutes to induce a lethal response... In strict medical terms, marijuana is far safer than many of the foods we commonly consume. For example, eating ten raw potatoes can result in a toxic response. By comparison, it is physically impossible to eat enough marijuana to induce death. DEA Administrative Law Judge Francis L. Young. Between 9 and 17 million Americans are occasional users of marijuana and about 3 million are daily users. As many as 40 million have tried the drug for many different reasons such as experimentation and peer pressure (Schleichert 40). Much of Americas youth is experimenting with the drug and†¦show more content†¦In India marijuana was holy and was given to people by the Hindu god Shiva as a gift. It was taken as a drink mixed with milk and sugar, and was available to many people because it was inexpensive. (Abel 33) Use in ancient Rome was noted ar ound 70 A.D. by a physician named Pedacius Dioscorides in a book about plants and their healing characteristics. The book contained information that marijuana was a good remedy for earaches, and this treatment was used throughout Europe for about 1500 years. Recently scientists discovered a body of a woman who died of childbirth 1600 years ago. Close to the body, a burnt substance was found and with later investigation the substance was determined to be marijuana. Scientists concluded that marijuana was used to ease labor pains (Abel 33). Marijuana use in the United States is more recent. George Washington and Thomas Jefferson both grew marijuana on their estates and Washington said to Make the most of the hemp seed, and sow it everywhere (Schleichert 9). During the early 1800s marijuana was sold as extracts that were said to help cure aliments ranging from migraines and asthma to epilepsy, insomnia, chronic bronchitis and gonorrhea. Later, around 1890, the medical use of marijuana declined with the invention of the hypodermic needle. Drugs could now have quicker and more reliable pain relief and finally in 1941 cannabis was taken out of professionalShow MoreRelatedThe Legalization Of Marijuana And Marijuana Essay1314 Words   |  6 PagesMarijuana or Cannabis is one of the bused drugs in America and the rest of the world. Interesting accumulating evidence show that the significant negative impact of this drug outweighs the positive effects. However, the medical benefits of the drug seem on the process of chemical compounds as compared to the drug itself. Medical debates show that chemical compound in marijuana are the problem as compared to the plant. The said chemical compound affects the mental and physical health of the personsRead MoreThe Cons Of Marijuana And Marijuana1449 Words   |  6 PagesEmma Biggs/Regalia Political Studies 22 October 2014 The Cons of Cannabis Although it is a highly common defense that marijuana is not addictive, it in fact is. Many regular smokers find themselves ridden with very similar withdrawal symptoms of a tobacco addict (Marijuana Addiction Symptoms and Effects). Around 9% of people who use find themselves dependent on marijuana (Is Marijuana Addictive?). That may not seem like much, but that is almost 1 in every 10 people hooked on a drug that is supposedlyRead MoreThe Legalization Of Marijuana For Marijuana2792 Words   |  12 PagesThe legalization of marijuana in America Overview Issue The new events of legalizing marijuana for recreational use has increased controversy in the United States, those against it say it was bad enough before when it was merely allowed for medicinal use and now that these new laws and rules are really infuriating those who are against it. However on the flip side people are also arguing that now that it is allowed for recreational use people it will lessen crime rates, related to selling and buyingRead MoreShould Marijuana Be Legalized? Essay1685 Words   |  7 Pagesof medical marijuana. However, the amount of licensed medical marijuana card holders was small until 2009, when the U.S Attorney General gave the prosecution and legalization of marijuana over to the states. After this, the number of medical marijuana licenses increased greatly in Colorado. Then, in 2012, the sale of recreational marijuana was legalized in Colorado, to all those over the age of 21, and retail stores began selling marijuana in 2014 (Monte). Public opinion on Marijuana is generallyRead MoreMarijuana Laws Restrict The Growth And Use Of Marijuana1513 Words   |  7 PagesMarijuana is â€Å" the dried leaves and female flowers of the hemp plant, used in cigarette form as [a] narcotic or hallucinogen.†(â€Å"Marijuana†) In the 17th century, marijuana production was encouraged and supported by U.S. legislation. Later, â€Å"during the 19th century,[marijuana] use became a fad in France and also, to some extent, in the U.S.†(â€Å" Marijuana Timeline†). During the 1920’s and 1930’s, the drug raised fears linked with illegal immigrants and criminal activity. (â€Å"Marijuana Timeline†). ThenRead MoreThe Legalization of Marijuana862 Words   |  3 PagesCannabis, also known as marijuana, is a plant which when consumed has psychoactive effects. It is believed to have been first used in the 3rd millennium BCE in what is now modern-day Romania (Rudgley). Throughout history, it has been known to b e used during rituals and ceremonies, becoming an important aspect of numerous cultures. It has become illegal to possess, sell or use marijuana in various countries beginning in the 20th century, despite that it’s used quite commonly. According to a UnitedRead MoreShould Marijuana Be Legalized? Essay1587 Words   |  7 Pages Legalization of Marijuana Marijuana is not a recent discovery, but the mysteries surrounding the controversial topic in question remains to be disputed since its prohibition. Classified as an illegal substance, cannabis has been restricted in Canada and around the world. Marijuana is a complex drug and its contradictory claims of medical purposes, and harmful destruction, fuel the debate on whether or not the legal constraints of consuming marijuana should be reconsidered. In consideration of academicRead MoreThe Legalization of Marijuana628 Words   |  2 PagesLegalization of Marijuana Marijuana, the plant of the cannabis, has been around since the early 1900’s. Throughout history, marijuana has been used illegally, for both recreational and medical uses. Recently, marijuana has been used for medicinal purposes, like aiding HIV/AIDs patients, healing migraines and controlling nausea caused by chemotherapy. Today, there are currently 21 American states that have legalized medicinal marijuana including two states that have legalized recreational marijuana. SinceRead MoreThe Origns of Marijuana726 Words   |  3 Pages Coca, and Poppy). Therefore, Marijuana should be removed from the criminal justice system. Legalizing and regulation marijuana can bring cash crop under the criminal justice law, bring in jobs, medical use, and overall create economic opportunities to The United States of America. There has been reports of marijuana being less harmful than alcohol or tobacco. According to the British research foundation two deaths worldwide can be directly caused by marijuana, yet 150,000 people die from alcoholRead MoreShould Marijuana Be Legalized?1953 Words   |  8 PagesAnalysis of Legalized Marijuana Josh Raabe Mountain Lake Christian School Abstract This paper will look at the benefits and drawbacks to legalizing marijuana by looking in at Colorado.The state made forty million dollars by taxed marijuana in 2014 alone, also Colorado saved countless millions because of the extremely lower amounts of marijuana arrest and court cases. It is not clear how having new recreational marijuana stores opening will affect the cannabis market, or businesses

The Economic Expansion Of Venice - 1738 Words

In the Middle Ages, Venice was possibly the richest place in the world. Venice become rich due to reconstituting strong central political power by kings such as Charlemagne. By 1050 to 1330, Venice was then as big as Paris, and probably three times the size of London. This expansion includes contractual innovations making economic institutions much more inclusive such as commenda. Government documents replaced with new names. The economic expansion of Venice created more pressure for political change. There are some innovation such as Great Council with sub councils Senate and the Council of Forty, General Assembly, new doge had to swear an oath of office. The institutional innovations included creation of independent magistrates, courts, a court of appeals, and new private contract and bankruptcy laws. But there was a tension. Economic growth was accompanied by creative destruction. Each new wave of enterprising young men who became rich via the commenda or other similar economic in stitutions tended to reduce the profits and economic success of established elites. And they did not just reduce their profits; they also challenged their political power. To avoide this disturbance, On October 3, 1286, a proposal was made that Great Council that the rules be amended so that nominations had to be confirmed by a majority in the Council of Forty, which was tightly controlled by elite families. This would have given this elite veto power over new nominations to the council. TheShow MoreRelatedInfluence Of The Renaissance On Modern Western Society Essay1712 Words   |  7 Pageslife; so much so that it could be seen as beginnings of our modern western society. Leading this revitalization in culture and society in Europe’s historical development were to the two of the most dominant states of renaissance Italy, Florence and Venice. These small city-states were the powerhouses of the time and assisted speeding up the renaissance and helped spur revolutionary develo pments along the way being the main hubs of influence in the Italian peninsula during the late 13th and early 16thRead MoreThe World Of The Eastern Hemisphere1497 Words   |  6 Pagesand infamous Genghis Khan. Marco Polo was only six years old when his father and uncle set out eastward on their first trip to Cathay (China). He was by then fifteen years old when his father and his uncle returned to Venice and his mother had already passed away. He remained in Venice with his father and uncle for two more years and then three of them embarked the most courageous journey to Cathay the second time. This journey thus began the medieval period of intercourse between China and the dominantlyRead MoreThe Religious Emancipation Of The Crusades Essay1738 Words   |  7 PagesHeaven† (Durant 587). However, just as religion can be attributed to the reason for Urban’s crusade, so too can the financial and economic goals of both the Church, nobility, and common folk. Changing econ omic structure in the medieval period fostered a need for change in commerce and trade. With that, came an ambition from the lower class to change their socio-economic status. The emergence of the merchant class, desire for commerce and trade among centralized empires, and the lure of financial freedomRead MoreCharacteristics Of The Italian Renaissance1299 Words   |  6 Pageslanguage, the renaissance happened between the fifteenth century and sixteenth century. Beginning in Italy, the Renaissance was an era that rediscovered the culture of ancient Greece and Rome in the fourteenth century and witnessed a continuation of the economic, political, and social trends. Jacob Burck-hardt, a swiss historian and art critic, created the Renaissance in his celebrated book The Civilization of the Renaissance in Italy, and published in 1860. He portrayed Italy in the fourteenth and fifteenthRead MoreThe Guiding Rules and Principles of Ragusa During the Middle Ages1070 Words   |  5 PagesIt is the aim of this report to examine and present in as concise a from as possible the principles and rules which guided and regulated the economic activities of Ragusa during the period known as the Middle Ages. Moreover, touching upon the primary commercial institutions and players that helped establish this city, how this city regulated itself along with gearing itself to prosperity. Hypothesis: The dissertation of this research report will focus on demonstrating how Ragusa’s economy flourishedRead MoreThe Later Years Of The Postclassical Era943 Words   |  4 Pagesgeneration a new way to live, cities became vastly important for trades for merchants and foreigners, and how different states reacted to the change by making laws that would be applicable for their own self interests. Among the trades and policy’s. Expansion became vitally important, for many states and regions, the essay will present a big picture of how the later postclassical era innovated many lives by different states and regions interacting with each other and sharing their own traditions and valuesRead MoreJustinian And The Roman Empire1477 Words   |  6 PagesThe Byzantine Empire, though often forgotten among better-known empires, such as the Roman Empire, ran for nearly one thousand years, occupying the eastern half of what once was the Roman Empire. It engaged in trade, expansion, and decades of warfare. It also gave women a better status then men, valued and preserved Greek history, and eventually fell to the Ottomans. During the year 535, Justinian overthrew the Ostrogothic Kingdom, which had occupied Italy after the split and decline of the RomanRead MoreEssay about Rival Middle Ages1808 Words   |  8 Pageswell as technical advances in farming, and social changes, when taken in conjunction with population expansion this leads to Western Europe evolving, a merchant base, manufacturing, and agricultural production to equal, and even surpass in terms of trade, the Eastern Empire of Constantinople and the Islamic caliphates. The expanding population founds new towns and cities. The new cities such as Venice, in Italy and Lubeck in Germany would have a significant impact on the future development of pan EuropeanRead MoreWhy Did Europeans Expand Into America, Africa and Asia Between 1415 and 1715?1964 Words   |  8 PagesDuring the sixteenth century expansion became a key theme across the face of Early Modern Europe; this caused the sixteenth century to acquire the retrospective name of the Age o f Expansion or Age of Discovery. According to the historian Richard Mackenney the cause of European expansion during this period can be explained in terms of three major symptoms: overseas discovery, population growth and price inflation all of which are tied together in a complex multiplicity making in difficult to isolateRead MoreThe Renaissance Essay758 Words   |  4 PagesRenaissance was above all an urban phenomenon, a product of cities that flourished in central and northern Italy, such as Florence, Ferrara, Milan, and Venice. It was the wealth of these cities that financed Renaissance cultural achievements. The cities themselves, however, were not creations of the Renaissance, but of the period of great economic expansion and population growth during the 12th and 13th centuries. Medieval Italian merchants developed commercial and financial techniques, such as bookkeeping

The Rising Concerns of Underage Drinking Essay - 1923 Words

Alcohol is a drink that possesses a seducing effect to tempt many citizens. Adults worldwide consume countless cans of beers, wine, vodkas, and other alcohol beverages. However, its luring quality has been secretly shared to minors, resulting to a problem called Underage Drinking. This situation has existed for quite some time. In the past, underage drinking was considered a miniscule crime, and wasn’t strictly restrained or monitored. As we continued to remain oblivious, numbers of adolescent drinkers have gradually increased as they used the tolerant rules to their advantage. Now, the problem has become significantly noticeable, and we can no longer neglect it. High school, even middle school students have been found with†¦show more content†¦Children tend to absorb the contents with a sense of judgment. This is because their curiosity sometimes leads to terrible consequences, in this case, the addiction to alcohol. â€Å"A national study †¦ concluded that gr eater exposure to alcohol advertising contributes to an increase in drinking among underage youth. Specifically, for each additional ad a young person saw †¦ he or she drank 1% more. For each additional dollar per capita spent on alcohol advertising in a local market †¦ young people drank 3% more† (Alcohol Advertising and Youth). Therefore, the commercials do have a great impact to the number of drinking adolescents, since the number of underage alcohol consumption rises as advertisement rates rise. If such commercials continue to display on the media without any types of appropriate-content filters, the number of teenage alcoholics will continue to rise as years pass by. As a result, we must greatly reduce the number of commercials referring to alcohol products, to minimize the possibility to create future drinkers under the legal age. Education is another great way to prevent the number of teenage alcoholics from rising any further. We can control this situation w ith just a couple lessons and speeches to inform kids about the consumption of alcohol by explaining how it affects their mind psychologically. Sure, drinking may cause stress relief and relaxation to the teenagers burdened with the amount of schoolwork and deciding their future. However, whenShow MoreRelatedUnderage Drinking And Teenage Drinking1584 Words   |  7 PagesAlex Wilmore Joshua James, Instructor ENG 111 07 July 2015 Underage Drinking â€Å"With such compelling information, the question is why haven t we been able to do more to prevent the crisis of underage drinking? The answer is: rising the age to 25† is what Lucille Roybal-Allard once said, a U.S. Representative for serving in Congress since 1993. This statement has brought many to speculate of issues and debates. This expression opened the eyes of American people that often struggled to make this truthRead MoreUnderage Drinking And Teenage Drinking1584 Words   |  7 PagesAlex Wilmore Joshua James, Instructor ENG 111 07 July 2015 Underage Drinking â€Å"With such compelling information, the question is why haven t we been able to do more to prevent the crisis of underage drinking? The answer is: rising the age to 25† is what Lucille Roybal-Allard once said, a U.S. Representative for serving in Congress since 1993. This statement has brought many to speculate of issues and debates. This expression opened the eyes of American people that often struggled to make this truthRead MoreShould the Minimum Drinking Age Be Lowered1128 Words   |  5 PagesTayrin O’Rand 14 March 2012 Should the Minimum Drinking Age be Lowered? The minimum drinking age became a hot topic ever since it was set to twenty one years old. It is a law not everyone welcomes with open arms, one that has the most impact in the lives of adolescents and if violated, one that can put a state at risk of forfeiting ten percent of its annual federal highway appropriation. John M. McCardell Jr., president of Middlebury College; founder and president of Choose Responsibility,Read MoreIntroduction. Alcohol The Debate Of The Ages, Between The1730 Words   |  7 Pagesold, researchers, people, alcohol companies, and parents. Within this topic, always comes the concern of when is it appropriate for people to legally drink alcohol. Currently, in the United States the minimum legal drinking age (MDLA) is the age 21. There are many reasons and sciences behind why the U.S. choose the age of 21. On July 17, 1984 the president signed an act called National Minimum Drinking Age Act (NMDAA). This mandated all the states, to federally instate this law within time all cameRead MoreLowering The Legal Drinking Age1387 Words   |  6 PagesThe concerns about safety involving alcohol, including alcohol-related fatalities, â€Å"binge drinking†, and long-term health effects, will not be compromised by lowering the legal drinking age to nineteen in the United States. Activists who wish to raise the legal minimum age frequently discuss the ways that driving while intoxicated endangers countless lives every day in the United States, and is an increasing problem in model Europe as well. However, drunk driving increases will secrecy, not withRead MoreNational Minimum Drinking Age Act Essay719 Words   |  3 PagesIn 1984 the United States Government approved the National Minimum Drinking Age Act that required that â€Å"the States prohibit persons under 21 years of age from purchasing or publicly possessing alcoholic beverages as a condition of receiving State highway funds.† Even though this bill was nowhere near the magn itude of the prohibition act that was passed less than a century before it, the act still damaged the relationship between individuals, firms, and the United States government. Although theRead MoreUnderage Alcohol Drinking And Cigarette Smoking1398 Words   |  6 PagesThe underage alcohol drinking and cigarette smoking has been a consistent problem for the last few decades. Majority easily blame marketing advertisements to this problem particularly to the rising percentage of alcohol, cigarette, and drug abuse among teens. While this may seem unfair to marketing industry, there may be some truth to that according to research. This study will focus on the probability to ban marketing advertisements of alcohol, cigarette and medically prescribed substances as theRead More The Drinking Age Should Be Lowered Essay2234 Words   |  9 Pageslinked to drinking underage. The legal drinking age in many states is twenty-one years old. The purpose of this law is to keep minors out of dan ger: away from drunk driving, alcohol poisoning, and injuring the brain before it is fully developed. The government supports the belief that people are not ready or responsible enough for alcohol until this age. However, various professors and researchers are discovering ways to disprove this belief. These people think that reducing the drinking age toRead More Controversial Television Advertising Essay1498 Words   |  6 Pagesadvertising standards. Some ads a media company will simply refuse to accept (Peart, Karen N). Concerns have been raised about Beer advertising, Cigarette advertising, Sex advertising, Political advertising, and food advertising to children. Alcohol advertising is a primary concern for many Americans who believe that alcohol advertising in media directly influences the frequency of underage drinking. While drinking among youth and young adults has declined over the last six years, a recent study by theRead MoreEffects Of Alcohol Consumption On The Uk1630 Words   |  7 PagesAlcohol consumption in the UK has a clear tradition of having moderate and heavy drinking as seen in Plant and Plant s (2006) analysis of trends in alcohol consumption. It is also notable that most concerns about levels of alcohol consumption is directed particularly towards young people which most consider to be a link to crime and anti-social behaviour. As a result, there is no denying that a stigma has been attached to young people and alcohol. In the UK, general consumption is on a rise. Data

Australian Taxation Laws Case Study & Assignment

Question: Case Study One The following separate scenarios require your advice as indicated: Part A Pierre is qualified chef and a citizen of France. He has always lived and worked in his home town of Paris. Pierre was offered a full-time position as a pastry chef at an exclusive Melbourne hotel for a period of 2 months to cover the Christmas holiday season. Pierre signed the contract of employment before he left France. Pierre is not married and has no dependants or family ties in Paris. Pierre moved out of his apartment in Paris and placed all his belongings in storage. Due to Pierre's world renowned experience, the Melbourne hotel offered Pierre the use of a fully furnished apartment at another property owned by their group at no expense during his stay. Pierre arrived in Melbourne on 1 December 2013 and finished working at the hotel on 31 March 2014 after gaining a 2 month extension on his contract. Pierre stayed on in Australia for a holiday until the end of April 2014 before returning to Paris. Pierre lived in the Melbourne apartment for the whole length of his stay. During the income tax year ended 30 June 2014, Pierre earned interest on a French bank account of $1,500 (EUR); salary and wages from his work in France prior to November 2013 $30,000 (EUR); and salary and wage income from his Melbourne job of $27,500 (AUD). Pierre had PAYG of $4,200 deducted from the Australian salary. Required: Discuss with reference to legislation, case law and/or rulings (where relevant) whether Pierre would be considered a resident of Australia for tax purposes for the income year ended 30 June 2014. Based on this conclusion and discussing the source of income principles, state which amounts would be included in his assessable income for the year. Part B At the beginning of the 2014 income year, Carl and Jill set up an eBay account to sell unwanted personal items from their garden shed. Setting up the account was free. During the period July 2013 through to November 2013, their total sales were $4,200 and this all related to second hand personal items sold below cost. Carl and Jill discovered through this process there was a large market for garden tools. Carl and Jill have therefore begun to source foreign made garden tools and sell this through their eBay account. Carl and Jill have spent $27,000 during the income year acquiring stock. Some of the stock is sold exactly as it was purchased, whereas some stock is modified through the addition of ergonomic handles for older gardeners. All listings are made with a minimum bid price of 150./0 of the cost price. Up to 30 June 2014 Carl and Jill have made total sales of $31,500 in relation to gardening tools. Carl and Jill have also received total postage income of $4,000. The total cost of postage to customers was $3,000. Carl currently has a full-time job as a carpenter and Jill works part-time in an accounting firm. All income received from sales of gardening tools is currently being put back into purchasing new stock. Jill is also working on a website which will launch in January 2015. The website will allow Carl and Jill to sell their stock directly online without the need for eBay auctions. Required: 1. Discuss with reference to appropriate legislation, case law and/or rulings whether Carl and Jill are carrying on a business for taxation law purposes in either the 2014 or 2015 income years. 2. Ignoring your answer in (1), assuming Jill and Carl are carrying on a business for taxation law purposes; provide advice as to whether the cash or accruals basis of accounting should be used. Part C Eddie is a semi-retired mechanical engineer. Throughout his working life he always worked on new inventions at his home workshop. Eddie's specialty is solar powered farm equipment. Eddie's prototype was almost complete when the Global Financial Crisis hit and he ran out of money to continue building and testing the machine. His intention had been to begin either manufacturing the equipment or enter into licence agreements (for royalty income) once the designs were completed and certifying them. Fortunately for Eddie, after an appearance with his design on a television program, he was approached by a manufacturing company to purchase his prototype and working designs. Eddie was paid a lump transferring all designs, prototypes, past drawings and in-progress drawings to the company. The agreement also stated that Eddie would provide knowledge and input into the ongoing design process and any new designs for a period of 12 months. There was to be no additional remuneration for Eddie's time in working with the company, simply the lump sum payment. Eddie was also given 10% of the shares in the company (market value of $100,000) in exchange for entering into the agreement. As a result of entering into the agreement, Eddie transferred all existing patents into the name of the manufacturing company. Required: Discuss with reference to appropriate legislation, case law and/or rulings whether either the lump sum or the shares are ordinary income to Eddie in the 2014 income year. You should provide brief comment about whether there is likely to be any CGT consequences. Case Study Two Part A As a result of a fire in January 2014, the downstairs kitchen area of Toni's rental property in Brisbane was damaged. Toni's rental property was tenanted at the time of the fire; however it has been vacant since that time while repairs are being carried out. Toni has had the following expenses up until 30 June 2014 in relation to the rental property; Replacement of all kitchen cupboards and bench tops at a cost of $14,000. The old kitchen cupboards were damaged from the fire and the old bench tops were not able to be used on the new cupboards. However, all other aspects of the replacement were of a similar design and with similar materials to the old kitchen. Toni made two payments in relation to the installation of the kitchen. The first payment was $7,000 on 1 March 2014 and the second final payment of $7,000 was made on 20 June 2014. The kitchen was fully installed and completed on 1 June 2014. Replacement of the downstairs rear entry door. As a result of the fire damage the door would not close properly. The cost of the replacement door was $850 including installation and was paid on 1 April 2014. The old door was a plain solid timber door, whereas the new door included some decorative stained glass at the top. Toni also took the opportunity to add a security screen to the door at an additional cost of $1,800. Required: Discuss with reference to appropriate (and most relevant) legislation, case law and/or rulings whether the rental property expenses are deductible in the 2014 income year. For the purpose of this discussion you can assume Toni is not covered by insurance for this type of event. Part B Karen carries on a bakery business in Toowoomba where she sells directly to the public and also supplies restaurants making deliveries in her delivery truck. Karen is a small business entity. Karen had the following outgoings in the year ended 30 June 2014: 1. One of Karen's customers, Mrs Smith swallowed a small metal object that was in one of the cakes that Toni sold to Mrs Smith. Mrs Smith sued Karen for damages and Karen paid $6,000 to Mrs Smith on 16 April 2014. Karen paid her own legal costs of $5,000 related to legal advice on the claim on 12 April 2014. 2. Karen is married to Adam; and Karen borrowed $50,000 from the National Bank and purchased shares in Adam's name and he will get the dividends. Karen paid interest of $2,000 on the loan for the bank in the year ended 30 June 2014. 3. Karen paid $6,800 in child care expenses during the year to put her daughter in child care to enable Karen to carry on her business. 4. Karen paid for the cost of food and accommodation being $150 for staying overnight at the Novotel Hotel in Brisbane while attending a baking and catering conference. Required: Based on this information what amount can Karen claim as a tax deduction under s 8-1 Income Tax Assessment Act 1997 for the year ended 30 June 2014? Support your discussion with reference to appropriate authority. Part C Oliver carries on a computer repair business, employing 3 qualified IT technicians, where he repairs computer hardware and networks which have been damaged by computer viruses. At 30 June 2014 he provides the following information in relation to her trade debtors/accounts receivable: 1. Oliver estimates that around 10% of his trade debtors ($4,800) will not pay him for work done and invoiced. The 10% is based on Oliver's experience of bad debts in the past. Total debtors at 30 June 2014 were $48,000. 2. Oliver has identified that ABC Pty Ltd, who owes him $2,300 for computer repairs, has just been made insolvent. Oliver made a written note on 27 June 2014 that he considers that he will not receive any amount from ABC Pty Ltd. Oliver has not removed ABC Pty Ltd from the trade debtor balance at 30 June 2014. 3. Oliver had written off a debt of $1,700 as bad in the 2013 year. The debtor, William O'Conner, had told Oliver that he could never pay the money and that he did not have any assets. Fortunately for William he received $20,000 from a win at the casino, and paid Oliver the $1,700 owing on 13 April 2014. Required: Based on this information what amount can Oliver claim as a tax deduction for the year ended 30 June 2014? Will he have to include any amount in assessable income? Support your discussion with reference to appropriate authority. Case Study Three Paula is a resident of Australia for tax purposes and has informed you of the following transactions which occurred during the income year ended 30 June 2014. Paula also informs you that she has carried forward capital losses from the 2012 year of $4,000. This loss relates to the sale of shares. Additionally she has a $700 carried forward capital loss from the 2009 income year in relation to the sale of an antique. Vacant Land and House Paula purchased a vacant block of land in Brisbane QLD on 1 October 1984 for $87,000 for investment purposes. On 1 July 2012 Paula subdivided the land into two equal allotments at a cost of $40,000. At the time of the sub-division the total land area had a market value of $230,000. The total cost of council rates and other maintenance fees incurred on the vacant land up until 1 July 2012 was $27,000. On 1 January 2013, Paula entered into a contract with a builder to build a house on one of the blocks of land. The construction commenced on 1 February 2013. The total cost of construction of the house was $320,000 and the construction was completed on 1 August 2013. After the construction was completed, the new home was rented out to tenants immediately. Paula entered into a contract on 1 January 2014 to sell the new home (with tenants) for $620,000. Information provided by the local Council indicates that at the time of the sale, the relevant land was valued at $345,000. During the period the property was rented out Paula incurred $1,200 in council rates and fees and $7,000 in interest on a loan taken out for construction of the house. On 1 June 2014 Paula entered into another contract to sell the remaining vacant block of land for $405,000. Settlement took place on 1 August 2014. Paula incurred $3,800 in council rates and maintenance fees during the period 1 July 2012 through to the sale of the land. Shares Paula acquired 1,000 shares in XYZ Ltd on 1 November 2007 at a cost of $7,500. She also incurred $450 in brokerage fees at the time of purchase. On 1 March 2014, she also acquired an additional 2,000 shares in XYZ Ltd from her Grandmother's estate. Her Grandmother died on 1 February 2014 when the shares had a market value of $11 each. Her Grandmother had acquired the shares on 1 July 2000 at a total cost of $6,000. Paula sold all 3,000 shares on 1 June 2014 for $45,000. She incurred $900 in brokerage fees and transfer costs at the time of sale. Required: Advise Paula as to her net capital gain included in assessable income for the income year ended 30 June 2014 as a result of the above transactions. Perform calculations of any relevant capital gains and support calculations and discussions with legislation and/or cases where relevant. Case Study Four Jerry (aged 50) is considering selling his bookshop/cafe business and using the profits to start a new business in a different industry. Jerry has a purchaser who is interested in the business and has advised them that his asking price is $1,100,000 but that he is willing to negotiate. Jerry has calculated this asking price as follows; Goodwill $180,000 Fittings and Fixtures $125,000 Trading Stock $295,000 Building Premises $500 000 $1,100,000 Notes: All values stated above are market values. Jerry has advised that Fittings and Fixtures have an adjusted value (written down value) of $120,000. Trading stock is valued at a cost of $150,000 in the financial accounts. The building premises were purchased on 1 July 2010 for $375,000 and have a current market value of $500,000. Jerry started the business himself on 1 July 2005 from leased premises. Jerry is concerned about the tax consequences on the sale of his business and has asked for your advice. As stated, Jerry wishes to purchase a new business in a different industry with the profits from the sale. Jerry is not married and his only other assets are his own home which was purchased in 2002 and has a market value of $750,000 and a parcel of shares purchased in 2005 with a market value of $28,000. Required: You are required to prepare a letter of advice to Jerry regarding the likely tax consequences on the sale of each of his business assets should the sale go ahead as stated above. You should comment on any further information you would require to provide more detailed advice. You should also comment briefly on any concessions that might be available to Jerry. Answers: Case Study One Part A Issue- Residential Status of an individual is the most important factor for determining the taxable income of the individual. There are various provisions relating to the Residential status of an individual in Australia. Rule- The key point here is whether the Individual is resident of Australia for taxation purposes. The assessee can be Resident of Australia in any other manner but in order to tax a particular income in Australia, he/she should be a Resident for Taxation purpose. As per the section 6(1) of the Australian Taxation law(Income Tax Assessment Act 1936), an individual is resident in Australia if he/she satisfies any of the following tests: 1. a) Primary test or the resides test is related to the residence of the individual in Australia. If the individual is residing in Australia then he will be resident in Australia for taxation purposes. This provision has some exclusions. Here exclusions means the cases where the individual is not residing in Australia but still will be deemed as residing in Australia. The circumstances are: The trade and commerce establishment outside Australia can be excused. The agreement and the scope of the activity in Australia. If the personal effects are kept in Australia The reasons of employment Bank Account maintenance and the tasks performed in Australia. The business is established, set up and running in Australia and the assessee is going outside the country because of the business reasons.b) Permanent Home test: This is also called domicile test and is satisfied when the assessee is having a permanent home in Australia. Here the commissioner must be satisfied and can me enquiry for sat isfaction. If the commissioner founds that the individual is having a permanent dwelling outside India, then he wont be called a resident of Australia for taxation purposes.c) Another important test is the number of days the person is residing in Australia. If the individual is resident of Australia for more than 183 days then he will be a Resident of Australia. Here also there is an exception. If the commissioner is satisfied that the permanent intention of the person is to live outside Australia then this test is not satisfied even if the individual is residing in Australia for more than 183 days.d) Employee under Superannuation Act 1976: It is also called as Deemed Residency Test. It says that an individual who is an eligible employee under the Superannuation Act 1976 is deemed as resident of Australia for taxation purposes. Along with the individual the spouse of the individual and the child who is less than 16 year of age, shall be regarded as resident. (TAX n.d.) Now when an Individual becomes a non resident in Australia for taxation purposes, then source basis principles comes into picture. The rules are as follows: The Individual income shall be partially taxed in Australia in relation to the service performed in Australia if all the following conditions are satisfied: Contract for services are signed in Australia The services are performed in Australia There is an express or implied contract. The payment is made in the Currency of Australia At least one party is resident of Australia. Application: In the given case Pierre is a qualified chef and he is permanently residing in Paris (outside Australia). He is a citizen of France. He came to Australia for employment purposes. His intention is to permanently live outside Australia. Here we can see that any of the conditions are not satisfied. Also the individual is residing in Australia for employment reasons only. Therefore Pierre fails to satisfy any of the 3 tests mentioned earlier and thus he wont be called as Resident of Australia for Taxation purposes. Conclusion The individual is not resident of Australia for taxation purposes for the income year ended 30.06.2014. Thus only the amount which has accrued or arisen in Australia shall be added in computing the taxable income of Pierre. In this case the Income source based conditions are satisfied and the source of income shall be partially taxed because all the conditions are satisfied. Salary Income Salary and Wage Income in Australia = $30000(AUD) Less: PAYG Deductions = $4200(AUD) Net Assessable Income = $23300(AUD) Note: Non residents are not required to pay any Medicare Levy. Reference to Case Law: ATO ID 2002/81 (Non-resident in receipt of Australian sourced employment income 2002) Part B Issue- Tax Implications Of Running Business Online Rule The provisions relating to running a business online are to be focussed on to comment whether or not the activity of selling personal goods amounts to business. As per the Australian Taxation laws, the selling or personal effects upto $10000 does not lead to capital gain income. Also a business involves recurring purchase and sale by the assessee. If the activities of purchase and sale are of non recurring in nature and the assessee is not having any intention to purchase and sale and run the business, then the activity is said to be non recurring for that period. On the other hand if the activity is now intentionally made, both purchase and sale are affected continuously then it is said to be business. In this case it does not make any sense whether the goods are your personal effect or not. The main idea is the recurring purchase and sale and the Business motive. Tax cannot be avoided merely on the point of having a small business. If the activity is a business then the taxation ru les will be applied. Application Here, it is given that the Carl and Jill are selling some personal items from their garden shed by opening an account with ebay website and selling them below cost just to dispose the old items. This activity is merely a sale of personal items. It does not involve any purchase or sale. Also the sale of items is below the cost of the product. July 2013 to November 2013: In this period the sale is made of the personal items sold below cost just for the sake of disposal. There is not recurring purchase and sale by the dealer. The sale amount being $4200 After November 2013 : In this period of the year the assessee is now intentionally purchasing the stock from other people or local market and thus it involves intentional activities of purchase and sale by the assessee. In this case the assessee has spent $27000 for acquiring the stock and sold this at a profit of 150% over the cost. Total Sales here is $31500. In 2015: The assessee carl is now introducing all money from his full time job in the business and purchasing stock out of this money. On the other hand jill is working on the development of the website such that they can sell the goods on their own now. This involves clear business motive. Conclusions Answer 1 For the period July 2013 to November 2013, the assessee is not carrying on any business. Thus no business income or loss shall arise. Also there will be no capital gain or loss for the sale of personal items. From December 2013 onwards, the business activity is going on and thus there would be a Business income or loss for the purchase and sale of the goods. Sales Proceeds : $31500 Purchase of stock : $27000 Net Income : $4500 Postage Income : $1000(4000-3000) Total Business Income = $4500+$1000=$5500 From January 2015 the situation would be same as in the last part. The activities are of business nature and thus business income shall arise. Answer 2 As per the Australian taxation law the method of accounting can be cash basis or accrual basis depending on the turnover of the business. In case the turnover of the business is less than $2 million then the assessee is required to follow cash or accrual basis as per the requirement of the individual. On the other hand the assessee is ought to follow the accrual basis when the turnover of the business is greater than $2 million. In this case since the turnover is below $2 million the assessee can follow either of the methods. (Government n.d.) Part C Issue- Capital Gains Implications Rule Firstly we should summarise the points mentioned in the case give. Eddie is a semi retired mechanical engineer. He has invented a new prototype at home. His intentions are to either start the manufacturing or entering onto the licence with any other company in exchange of the royalty income. The assessee is in receipt of lump sum consideration from the company amounting to $650000 during the year 2014. The patents are fully transferred to the company. The assessee is in discharge of extra service of providing knowledge and assistance to the company on the manufacturing and invention of the prototype. An additional consideration of 10% shares (market value $100000) is also received by him. All existing patents are transferred to the company. Under Australian taxation laws the payments received in connection patents, copyrights etc are treated as royalty only if these are in nature of the payments in connection with the use of the patents. The royalty income arises when the exclusive rights are still with the assessee. On the other hand if assessee is selling the patent for a lump sum then the same will be regarded as the Capital receipt and thus would not be taxable here. In the given case the assessee is receiving a Lump Sum for the sale of the patent of $650000 will be a capital receipt and thus will be untaxed. However any other consideration than cash like shares, then that amount shall be a capital receipt also. Conclusion This amount will not be treated as cost while the assessee is selling the asset later on. Hence the cost of the shares received shall be nil. (Toby Eggleston 2007) In case of capital gain part the same should be untaxed since the cost of the patent is indeterminable and hence the amount shall be in nature of the capital receipt. Case Study Two Part A Issue- Allow ability of Expenses On rental property Rule As per the relevant provisions of the Australian Tax laws the rental property expenses are allowable only when they are directly related with the rental property. Another important thing here to note is the point when the expenses are incurred. Whether the expenses are incurred before the period when the property is rented i.e when the intention to use the property for rental purposes or the expenses is incurred before such intention arises? It is also relevant to note that the expenses directly related to the capital part of the property shall be treated as capital receipt. And this expenses of capital nature shall be added to the cost of the property and is not allowable as a claimable expenditure. Application In the given case the assessee (Toni) is having a rental property but is vacant because of the fire reasons. The intention of the asseessee was to lent the property on rent but the same could not be made because of the fire which broke out in January 2014. The payment schedule is not a determining factor for the allowability of the expenses. The intention of the assessee should be there. Actual renting of the property is not to be checked. If a basic part of the property is being repaired and the same is a necessity for effecting the renting of the property then the same shall be allowed for tax purposes. The repairs must be in relation to the wear and tear of the property. Otherwise the expense would be a capital in nature. Conclusion The following expenses incurred: a) Replace cost of the kitchen Cupboards amounting to $14000 shall be disallowed and added to the cost of the asset since it is not a normal wear and tear, it is related with capital part of the house.b) Another expense was incurred in relation to the replace of the downstairs entry door. This is an essential expenditure. So amount of $850 shall be allowable as a revenue expenditure.c) Adding of an extra security system in the house is a capital expenditure, since the same is not related with the incurring of the expenditure necessary for the purpose of giving the property on rental. So this expenditure of $1800 shall be added to the cost of the asset and will be taken into consideration while calculating the capital gain or loss on the disposal of the property.d) Since the assessee is not covered by insurance then any insurance expenses are also not deductible. If the assessee was covered under insurance then the insurance expenses would have been allowable. (Inc n.d.) The date of payment may be delayed. The important things here to remember is the incurring of the expenditure. If the expenditure is incurred then the dedcution can be claimed even if the payment is not made. Part B Issue- Deduction of Expenses Rule As per the provisions of the section 8-1 of the Income Tax Assessment Act 1997, the following expenses will be allowable as deduction in a particular year: a) the expenses must be related with the income directly. b) personal expenses are disallowed. c) child care care expenses are disallowed. It is relevant to quote that the expense must not be claimed elsewhere while computing the income of the assessee. Application Now we should consider each and every case one by one. 1. One of the karens customer had swallowed some metal piece found in the cake which were sold by the assessee to Mrs smith(customer) and the customer sued for a damage of $6000. The same was paid by the assessee. another legal expenses was incurred for this purpose. So in this case the damage payment of $6000 shall be allowable as it is a normal business expenditure. On the other hand legal expense incurred of $5000 for the purpose of taking some legal advice on the damage expenses is also allowable expenditure.2. Karen has taken loan from a bank and paid interest expenses of $2000. The loan is taken solely for the purpose of the investment in shares and securities in name of her husband Adam. In this case since the entire dividend income is not taxable. Thus the interest expenses incurred for this purpose shall be fully disallowed as the interest expense is incurred in relation to an income which is exempt and section 8-1 specifically disallows expenditure in connection with the ex empt income.3. Karen paid child care expenses for maintaining the child. The amount of $6800 paid for this service shall be disallowed as it is not directly related with the business of the assessee. A contrary view here is taken by Tax Institute of Australia which says child care expenditure must be allowed so that more and more people join work. (Australia 2014)4. Karen visited a conference of catering and baking for the purpose of business. There the expense incurred on food and accommodation was $150. The same is directly related with the business of the assessee and this will be allowed as deduction from the business income of the current year. (H R Block tax accountants n.d.) Part C Issue- Bad Debt Allowance Expenses Rule As per the provisions of the 63(1)(b) of the Income Tax Assessment Act 1936, the bad debt is an allowable expenditure. As per the provisions of this section the following points should be focused on the allowability of the bad debts: The debt should be present in the books of account. This means that some amount must be due to be received by the assessee. The debtor must have been declared as insolvent in order to assume that the debt is now bad. There must be close nexus between the debts incurred and the business of the assessee. Here this implies that the expense must be related to the business of the assessee. The debt should be included in the income of the assessee earlier. (Government 1992) Application Conclusions Now we shall discuss each case separately. 1. In the first case Oliver has made a claim that 10% of the debtors are said to be bad solely because of the reason that the assessee has experience with that debtor regarding the non payment of the dues. This claim is nothing but a provision for bad debt. A provision for bad debt is not allowed as allowable expenditure. Only actual bad debts or the circumstances showing the actual bad debts like insolvency, death etc shall be considered as valid points for claiming a debt as bad one. Thus the amount of $4800 shall be disallowed in the year 2014.2. ABC Pty Ltd is made insolvent and thus cannot pay any amount to the assessee. But there is no written declaration received from the party. Here the insolvency of the customer is a valid point to claim the deduction for the bad debt. The fact that the assessee has not removed the debtor from his books is irrelevant and the entire expenditure shall be allowed as bad debt deduction amounting to $2300.3. In this case a bad debt was claimed as deduction in the last year 2013 amounting to $1700. Now in the year 2014, the debtor paid the debt which was declared as bad. The amount received shall be taxable as business income of the assessee, since it is related with the business of the assessee and previously was declared as bad and disallowed. The amount of $1700 shall be taxable as ordinary business income. The total deduction is $2300 and the income to be included is $1700. So, the net deduction amount is $600. Case Study Three Application Firstly we need to summarize every point. 1. Paula is a resident of Australia for taxation purposes for the year ended 30.06.2014.2. Brought Forward Capital Loss on sale of shares of the year 2012 is $40003. Brought Forward Capital Loss on sale of antique of the year 2009 is $7004. Vacant block of land purchased on 01.10.1984 for investment $87000. On 01.07.2012 the land was divided into two blocks @ $20000 per block. The market price at that time was $230000 of the total area. Other Costs incurred are $27000. Now the cost of each block being : Cost of the total land = $87000(to be ignored) Division costs = $40000 Other Expenses = $27000 Total cost = $67000. Since the land was purchased before 20.09.1985, therefore the assets shall not be hit by the provisions of the Capital Gain tax and is not added to the cost as well. the amount incurred for the purchase of the asset is a capital expenditure. Now $67000 is the cost for the two blocks. The cost of each block is $33500. Now the assessee entered into a contract with the building to construct a house on 1 block and the cost in this case is $320000. Sale consideration for the sold house = $620000 Cost of the house(including the block cost) = $33500+$320000= $353500. Capital gain of $266500 will be there. Since the house is used for sale only there will be now exemption from capital for this part. The information relating to the market price of the house at the time of the sale of the house is irrelevant here. Another block of Land was sold on 01.06.2014 for $405000. Cost of the block was $33500 Add: council rates and fees = $1200 Interest on Loan = $7000 Other charges = $3800 Total Cost = $45500 Capital Gain amount comes to $359500. Shares We need to check when the assets are acquired. The date of acquisition is after 1999 that is 2007 and 2000. So the assessee should calculate the income as per the normal way by deducting the sale consideration and the cost base of the assets. Cost of the shares = $7500 Brokerage = $450 Grandmothers share = 2000 shares @11 per share = $22000 Total Cost of 3000 shares = $29950 Sale Consideration = $45000 Expenses on transfer = $900 Net Sale Consideration = $44100 Capital Gain on sale of shares = $44100-$29950 = $14150 Capital Loss on shares for the year 2012 = $4000 Net capital gain on shares = $10150 The capital loss carried forward on the antique shall be allowed from the house sale income. Net Capital Gain sale of house = $266500-$700 = $265800 Total Capital Gain taxable during the year = $265800+$10150+$359500 = $635450 (help and Guidance 2011) Case Study Four Application If an assessee sells his running business then it is utmost essential for him to get in touch with a tax consultant and value the assets properly in adavance such that the tax burden is not much on him. The tax planning is the most essential part of selling a business. If a proper tax planning is not made then there are chances of higher tax payments and much more. So it is better to have a clear understanding of the Australian taxation Laws in order to have the best out it. The following consequences may arise: 1) Goods and Service tax on sale of a going business does not arise but on sale of that capital asset shall arise. 2) capital gain tax will be there for sale of the capital assets. Now we should consider each and every point given in the question. Asking Price = $1100000 Goodwill =180000 Fixtures and Fittings = 125000 Trading stock = 295000 Premises = 500000 Total = $1100000 For furniture the adjusting value should be used in place of the asking price. $120000 shall be taken in place of 125000. The cost of the stock is irrelevant for decision making. Calculation of the capital gain Building Sale cosideration = 500000 Cost = 375000 Capital Gain = $125000 Stock Sale consideration = 295000 Cost of the stock = 150000 Capital Gain = $145000 Furniture Sale Consideration = 125000 Cost of the asset = 120000 Capital Gain = $5000 Goodwill capital Gain = $180000 Total Capital Gain = $180000+145000+5000+125000 = $455000 Letter of Advice Dear, Mr. Jerry Re: Income Tax Advice for Sale of Business Hope you are doing well. This letter is an advice regarding some of the tax consequence which you might face and are also desired to know the benefit which you will get from sale of the business. In this regard I would like to inform you that the Australian government has made various income Tax provision regarding the individual selling his small Business. Australian government provides various exemption to the seller of the small business. I am writing the some of the provision which might be useful for you in selling your business and get rid from the capital gain tax or in reducing your capital gain Tax liability. Australian government provide capital gain concession to individual on the following small business To the sole proprietor or individual Partners of the partnership firm, and A trust or a company The Concession provided by the Australian government will reduce the capital gain tax liability on sale of the business asset which has been used by the assesses in earning the business income and the said income is consider by the assessee in his assessable income. For claiming the exemption one must satisfy the basic condition of the capital gain concession for small business along with any additional condition depending upon the individual case. As per Income Tax Act of Australia one can apply as many concession or deduction as he can till the tax liability be NIL. A capital gain arising from the sale of the depreciating asset is exempt if the same has been completely used for the income generating purpose. There are basically Four small business CGT concession Availiable 15 Year Exemption for Small Business Retirement Exemption for small Business 50% Active Asset reduction Exemption for small Business, and Small Business rollover However, to avail the above mentioned Exemption the tax payer must be owner of the small business and satisfy the following criteria It has a annual turnover of not more than $2 million, and The value of asset is also not more than $6 million excluding any superannuation benefit and the family home. One of the major important condition for availing exemption is that the asset sold must passes the active asset test. The Test state that the Asset must be used in business for half of its life for a maximum 0f 7.5 years. 15 Year Exemption This Exemption entitled the business owner to disregard its capital gain. For Availing this exemption the asset must be owned for 15 years and age of the tax payer must be over 55 years and he is selling his business because of his permanent retirement. Since you are not above 55 years therefore, this is not applicable to you. Small Business retirement Exemption This concession also allows the tax payer to disregard with the capital gain on the asset. Under this concession the total capital gain that can be disregarded is subject to the lifetime limit of $ 500,000. This Concession does not mandate the tax payer to be 55 years old or to hold asset for 15 years. This Concession require the tax payer who is less than 55 years to contribute the gain disregarded into is superannuation as a cap contribution to Capital gain Tax. However, this contribution will reduce the life time cap amount. 50% deduction on Small Business This Concession allows the tax payer to claim deduction of 50% on its capital gain unless other method has been adopted by the taxpayer in his return. The concession is available both to trust and individual. Small Business roll over This concession allows the tax payer to defer its capital gain tax liability by rolling over the amount in Acquiring new Asset or, Improvement of the current asset However, to avail this concession one should meet the basic criteria. Further one this concession has been chosen general capital gain tax concession and 50% deduction is not applicable. Hope you have satisfy with the above advice. Best of Luck. Good Bless! References Australia, Tax Institute of. Feb 6, 2014. https://www.abc.net.au/news/2014-02-06/tax-institute-of-australia-calls-for-childcare-tax-deductions/5241426. Government. December 1992. https://law.ato.gov.au/atolaw/view.htm?DocID=TXR/TR9218/NAT/ATO/00001. Government, Australian. "ATO." https://www.ato.gov.au/business/gst/accounting-for-gst-in-your-business/choosing-an-accounting-method/. "H R Block tax accountants ." https://www.hrblock.com.au/tax_deductions_faq. "help and Guidance." June 2011. https://learn.nab.com.au/calculating-and-paying-capital-gains-tax/. Inc, Taxpayers Australia. "AUSTAX." https://www.austaxaccountants.com.au/docs/Rental%20Expenses.rtf.pdf. Non-resident in receipt of Australian sourced employment income . ATO ID 2002/181 (February 2002). TAX, LOW. "Gloabl Tax and Business Portal." https://www.lowtax.net/information/australia/australia-individual-non-resident-taxation.html. Toby Eggleston, Greenwoods Freehills. "tved.net.au." August 2007. https://www.tved.net.au/index.cfm?SimpleDisplay=PaperDisplay.cfmPaperDisplay=https://www.tved.net.au/PublicPapers/August_2007,_Sound_Education_in_Taxation,_Tax_Aspects_of_Licensing_Technology_and_Know_How.html.