Activity 14 1. A business purchases 10 digital televisions for use in its offices. When the televisions arrive at the workplace the owner of the business decides that one will be taken home. The...

Activity 14
1. A business purchases 10 digital televisions for use in its offices. When the televisions arrive at the workplace the owner of the business decides that one will be taken home. The total cost of the acquisition was $26,500 (GST inclusive). Describe how you would process this to comply with taxation reporting requirements. How much input tax credit could be claimed, what would be the BAS code for the acquisition? 125 words
The BAS must be submitted to the Australian Tax Office on a monthly, quarterly and annual basis. The BAS is used for reporting the GST and the PAYG instalments, the various tax obligations and PAYG withholding taxes. In the above case where 10 televisions will be purchased by the business house of which 1 will be taken home on arrival, the taxation will be on only on the 9 television sets. The reason of this is that all were being purchased for the purpose of business but 1 was taken and used for owner’s personal use. The GST can be claimed only for the nine sets and the calculation will be as below: 26500 ÷ 110 x 10 x 9 ÷ 10 = $2168.18. Thus the claims on GST credit will be $2168.18.
Activity 20
1. If a business has an annual turnover over $20 million, what options does it have on how to pay its GST obligations? By what method can it report and pay its GST? 30 words
The process that needs to be applied in payment of GST on an annual turnover of $20 million will be reporting monthly as well as need to lodge the activity statement electronically. Although the ATO will keep on sending the activity statement in paper format whatsoever may the turnover of the entity be. Yet the company still needs to electronically report with a turnover over $20 million (Bill d'Apice AM, 2014).
2. Businesses must...