essay 243810

essay – T opic – Tax Avoidance Facts John and Kristy sold their family home at market value to a look-through company (LTC); The home is used by the LTC as a rental asset and is rented to John and Kristy

Document Preview:

Topic – Tax Avoidance Facts John and Kristy sold their family home at market value to a look-through company (LTC); The home is used by the LTC as a rental asset and is rented to John and Kristy at market rate; John and Kristy own 100 per cent of the shares in the LTC; The LTC borrowed from a bank to fund the purchase and John and Kristy guaranteed equally a bank loan of $300,000; John and Kristy then use the funds raised from the sale to purchase a new investment property; John and Kristy, in their capacity as holder of an effective look-through interest in the LTC, claimed a deduction for the interest incurred by the LTC on the loan. Required: Apply the above facts and conclude whether there has been a tax avoidance arrangement or not under the general anti-avoidance provision of the Income Tax Act 2007, s BG 1 and s YA 1 and relevant cases. Also outline the effect on a taxpayer if it is found that a tax avoidance arrangement exists. (Maximum 1,000 words) Instructions for this assignment your material. Created with an evaluation copy of Aspose.Words. To discover the full versions of our APIs please visit: https://products.aspose.com/words/ ?PAGE ??

Attachments:

Related Articles

armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...

read more
GET A FREE QUOTE





  
Open chat
Need help? We are Online 24/7
Hello 👋
Can we help you?