Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Law & Ethics Expert

Case study: Sue Lin was made redundant from her employment on 15 March 2009. She is motor car enthusiast, and so decided to take this opportunity to spoil her hobby. On 1 July 2008 Sue took out a bank loan of Rs750, 000 at the annual interest rate of 10%, rented a workshop for 12 months at a rent of Rs4, 000 month, and bought high precision equipment at a cost of Rs235, 000. On 10 July 2008 Sue bought four dilapidated motor cars for Rs80, 000 each. The restoration of the four motor cars was completed on 10 June 2009 at a cost Rs120, 000 each motor car. Sue immediately sold all of the motor cars for a total of Rs2, 000,000 - Sue was then offered employment elsewhere in the country beginning on 1 July 2009. She therefore sold the equipment for Rs150, 000 on 20 June 2009, repaid bank loan on 30 June 2009.

As she has just been indulging her hobby, Sue thinks that the disposal of the motorcars throughout the tax year 2008/9 should be exempt from tax. Sue has done some research on the Internet and has discovered that whether or not she is treated as carrying on a trade will be determined according to the 'badges of trade':

Sue had no other income throughout the tax year 2008/9 except as indicated above and was entitled to deductions in respect of 3 dependents.

Required:

(a) List out the nine badges of trade and briefly describe the meaning of each of the ‘badges of trade' listed. You are not anticipated to quote from decided cases.

(b) Briefly describe why Sue is likely to be treated as carrying on a trade in respect of her motor car activities.

(c) Evaluate Sue's income tax liability for tax year 2008/9, if she is treated as carrying on a trade in respect of her motor car activities.

Business Law & Ethics, Finance

  • Category:- Business Law & Ethics
  • Reference No.:- M94543

Have any Question? 


Related Questions in Business Law & Ethics

Prepare a three- to five-page paper not including title and

Prepare a three- to five-page paper (not including title and reference pages), formatted according to APA style as outlined in the Ashford Writing Center, that details the importance of ethical behavior and its significa ...

In the final assignment for this class you will research a

In the final assignment for this class, you will research a court case in which the defendant is charged with "honest services fraud". This type of crime is referred to in a 28-word sentence of 18 U.S.C. § 1346 (the fede ...

Homeland security assignmentutilize external resources such

Homeland Security Assignment Utilize external resources such as online searches, journals, texts, and archived newspapers in answering these question sets. Be sure to give proper attribution by referencing and citing any ...

Question 1 evaluate the appeals process for death penalty

Question 1: Evaluate the appeals process for death penalty cases. Do you think the process is too long, too short, or totally appropriate? Be sure to include specific reasons to support your stance on the process. Your r ...

Assignment - environmental issues faced by business and

Assignment - Environmental Issues Faced by Business and Society Research and explain the importance of an environmental issue (fracking, hazardous waste disposal, oil pipeline leaks, deforestation, etc.) faced by busines ...

In this case study you will explore the death penalty as it

In this case study, you will explore the death penalty as it relates to juveniles. Hopefully, this assignment will assist in learning how complex and significant the Roper v. Simmons case was in the juvenile justice syst ...

If you work for a financial service organization such as a

If you work for a financial service organization (such as a bank or credit union), which law from 1999 affects your use of customer data? What other effects does it have? Which 1997 law provides guidance on the use of en ...

Read the following fraud case first nationwide bank v gelt

Read the following fraud case: First Nationwide Bank v. Gelt Funding Corp., 820 F. Supp 89 (1993) Prepare a case brief of this case. Include the following components: Case name and citation The procedural history - what ...

Each student will be required to complete the term project

Each student will be required to complete the term project, which is a 8-12 page APA Style paper. Your paper should have at least 8-12 pages of substance not counting the cover and reference pages. Please be sure that yo ...

Assignment whistleblowing and sarbanes-oxleyuse the

Assignment: Whistleblowing and Sarbanes-Oxley Use the Internet to research instances of whistleblowing in publicly traded companies within the last 12 months. Write a two to three (2-3) page paper in which you: 1. Descri ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen