In addition, in preparation for his retirement, Mark has taken up cattle breeding. He currently owns one hundred cows which live and feed on an external farm in Australia (for a fee). These cows are being fattened up and after half are at the required weight they will be sold. The other half will be used for further breeding.
Mark consistently keeps up to date with the development of the cows. He spends most of his free time reading literature and attending paid courses related to the business. Mark plans on purchasing a large, vacant property next door to his farmhouse specifically for keeping his cows when he retires from the luxury liner. In retirement, Mark intends on living permanently in the converted shed and will still rent out the farmhouse.
For each of the prior three years that Mark has been undertaking this activity, there has been a tax loss made, although the tax losses have been reducing in size as the venture becomes more successful. In fact, this year Mark has made a small profit before tax of $50,000 (taxable income $200,000, tax deductions $150,000).
Hints: • Identify the specific tax issues relating to the four main categories above • Find any relevant taxation legislation/case law pertaining to the tax issues • Prepare your written responses for each part of the question in the following manner: • Writing your concluding advice as if you were presenting to Mr Lewis himself
Why is this important to the student? This assignment will develop your ability to apply relevant taxation principles, legislation and case law to real world scenarios. The ability to work collaboratively and effectively in a team environment is also an essential skill for a professional workplace environment.
Required Resources: Income Tax Assessment Act (1997) Income Tax Assessment Act (1936) Principles of Taxation Law 2019 Any other appropriate references, internet etc.
Due Date: Friday, 23 October 2020, 5:00pm
Submission: Through the LMS Case Study submission link. Please insert a picture of the completed Murdoch cover page. Please do not copy the assignemilogige. • ur answer.
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