Julez has his specialist expertise in Information Technology and has emigrated from Germany with his wife...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Julez has his specialist expertise in Information Technology and has emigrated from Germany with his wife Joelle. Joelle wants to take care of her young children and sets up a business making fine chocolates using her knowledge and experience from the family business back in Belgium. Joelle buys the necessary plant and equipment including a fridge, table, mixer, stove top, trays and storage containers, and shelving racks, knives, moulds, spatulas, thermometers, colourful foils, cellophane, ribbons, boxes, computer and printer for labelling, which are set up in one of the bedrooms in her home. Joelle makes her first batch and is delighted with the taste and texture. In a matter of days, Joelle has developed six different chocolates and then she builds a client base and sells the chocolates to different restaurants once a week. Joelle also decides to sell her chocolates at the markets and invests in a collapsible stall and tables. It is a family event visiting the markets and selling the chocolates each www weekend. Joelle is very artistic and sculpts novelty chocolate decorations to draw customers to her stall and buy the chocolates. Julez is pleased sales are quick and suggests expanding their activities by moving the plant and equipment into the larger family room. Now Joelle can increase capacity, have more table space with marble bench tops and introduce a large sink. In addition, on the weekends when there are no markets, Joelle introduces a one day sculpting class (up to 10 people) to novices, given she had so many compliments at the markets for her novelty sculptures. She is lucky and receives a feature article in the Gourmet Traveller magazine. REQUIRED PART 1 Is Joelle carrying on a business? Refer to the 8 factors established from Ferguson's case to make your decision. Hints: Set out your answer as follows: 1. Introduction -Identify and advise the relevant tax ruling which outlines the 8 factors (1 mark) 2. Discussion - Address the 8 factors - use the following table to discuss whether the factors point to a business or not (8 marks) BUSINESS FACTORS FOR AGAINST 3. Conclusion - Weigh up the factors, and decide on balance, whether Joelle is carrying on a business. (1 mark) PART 2 What 3 considerations do you see impact most when transitioning from a hobby to a business and why? (3 marks) PART 3 An SBE by definition is carrying on a business. Outline 2 SBE concessions stipulated in this course. (make sure you refer to the law and state what the concession provides) (2 marks) Julez has his specialist expertise in Information Technology and has emigrated from Germany with his wife Joelle. Joelle wants to take care of her young children and sets up a business making fine chocolates using her knowledge and experience from the family business back in Belgium. Joelle buys the necessary plant and equipment including a fridge, table, mixer, stove top, trays and storage containers, and shelving racks, knives, moulds, spatulas, thermometers, colourful foils, cellophane, ribbons, boxes, computer and printer for labelling, which are set up in one of the bedrooms in her home. Joelle makes her first batch and is delighted with the taste and texture. In a matter of days, Joelle has developed six different chocolates and then she builds a client base and sells the chocolates to different restaurants once a week. Joelle also decides to sell her chocolates at the markets and invests in a collapsible stall and tables. It is a family event visiting the markets and selling the chocolates each www weekend. Joelle is very artistic and sculpts novelty chocolate decorations to draw customers to her stall and buy the chocolates. Julez is pleased sales are quick and suggests expanding their activities by moving the plant and equipment into the larger family room. Now Joelle can increase capacity, have more table space with marble bench tops and introduce a large sink. In addition, on the weekends when there are no markets, Joelle introduces a one day sculpting class (up to 10 people) to novices, given she had so many compliments at the markets for her novelty sculptures. She is lucky and receives a feature article in the Gourmet Traveller magazine. REQUIRED PART 1 Is Joelle carrying on a business? Refer to the 8 factors established from Ferguson's case to make your decision. Hints: Set out your answer as follows: 1. Introduction -Identify and advise the relevant tax ruling which outlines the 8 factors (1 mark) 2. Discussion - Address the 8 factors - use the following table to discuss whether the factors point to a business or not (8 marks) BUSINESS FACTORS FOR AGAINST 3. Conclusion - Weigh up the factors, and decide on balance, whether Joelle is carrying on a business. (1 mark) PART 2 What 3 considerations do you see impact most when transitioning from a hobby to a business and why? (3 marks) PART 3 An SBE by definition is carrying on a business. Outline 2 SBE concessions stipulated in this course. (make sure you refer to the law and state what the concession provides) (2 marks)
Expert Answer:
Answer rating: 100% (QA)
PART 1 Introduction The relevant tax ruling outlining the 8 factors to determine whether an individual is carrying on a business is established in Taxation Ruling TR 9711 Discussion Addressing the 8 f... View the full answer
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
Posted Date:
Students also viewed these law questions
-
Suppose the only horizontal forces acting on a 20-N object on a smooth table are 36 N [45] and 60 N [125]. (a) What is the net force acting on the object? (b) Calculate the acceleration of the object.
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Now that you have background on ethics and a set of skills for evaluating ethical issues, the application to real-life dilemmas seems fairly straightforward. However, there is one additional aspect...
-
Start with the partial model in the file Ch19 P08 Build a Model.xls on the textbooks Web site. Maggies Magazines (MM) has straight nonconvertible bond that currently yield 9%. MMs stock sells for $22...
-
Air in a piston/cylinder is at 95 F, 15 lbf/in 2 and a relative humidity of 80%. It is now compressed to a pressure of 75 lbf/in 2 in a constant temperature process. Find the final relative and...
-
The expected improvements from the new machine would allow for an increase in membership fees. The CFO expects cash flows from the investment in the first three years to be $89,000, $91,000, and...
-
Discuss the types of discrimination that occur in the workplace.
-
The owner of Marshall Restaurant is disappointed because the restaurant has been averaging 7,500 pizza sales per month, but the restaurant and wait staff can make and serve 10,000 pizzas per month....
-
What strategies are effective for managing resistance to change, particularly in the context of entrenched organizational cultures and power dynamics ?
-
Questions 4. What would be a reasonable estimate of total cost for January of Year 2? 5. With only a 5 percent risk of being wrong, would you accept without investigation a January of Year 2 actual...
-
A test requires that you answer first Part A and then either Part B or Part C. Part A consists of 7 true/false questions, Part B consists of 9 multiple choice questions with one correct answer out of...
-
The ACME Computer Co. operates three plants that manufacture notebook computers. The plants are located in Seattle, Singapore, and New York. The plants produce 20, 30, and 50 percent of the company's...
-
A company manages three different mutual funds. Let \(A_{\mathrm{i}}\) be the event that the ith mutual fund increases in value on a given day. Probabilities of various events relating to the mutual...
-
A large-scale firm specializing in providing temporary secretarial services to corporate clients has completed a study of the main reason why secretaries become dissatisfied with their work...
-
SUPERCOMP, a retail computer store, sells personal computers and printers. The number of computers and printers sold on any given day varies, with the probabilities of the various possible sales...
-
Consider the experiment of tossing a fair coin (meaning heads and tails are equally likely on each toss) three times and observing the sequence of heads and tails that results. Let \(H\) denote heads...
-
Question The Mssbauer effect was discovered using the decay of the 0.12939 MeV second excited state of 19Ir. The lifetime of this isomer is 0.13 ns. (a) Compute the width I of this level. (b) Compute...
-
The 2017 financial statements of the U.S. government are available at: https://www.fiscal.treasury.gov/fsreports/rpt/finrep/fr/fr_index.htm Use these to answer the following questions: a. Statement...
-
Holmen (formerly MoDo), is a Swedish group manufacturing and selling newsprint and magazine paper as well as paperboard. Its financial statements are prepared in accordance with IFRS. The 2010 and...
-
Nokia (Finland) is still among the leaders in the telecommunication industry, with emphasis on cellular phones and other wireless solutions. The consolidated financial statements are prepared in...
-
Mr Hans Christian, a senior partner at Harmony Accountancy, has asked an intern to review the issues and the positions the firm should adopt concerning specific rules of revenue recognition adopted...
-
Example In January 2004, a Mars Exploration Rover touched down on the surface of Mars and rolled out for exploration ( Figure
-
Does the snowflake have rotational symmetry in Figure 1.6? If yes, describe the ways in which the flake can be rotated without changing its appearance. Does it have reflection symmetry? If yes,...
-
A battery-operated wall clock no longer keeps timeneither hand moves. Develop a hypothesis explaining why it fails to work, and then make a prediction that permits you to test your hypothesis....
Study smarter with the SolutionInn App