Teacher premium should be limited to 2%, says the government

Teacher premium should be limited to 2%, says the government

State Minister of Education Diminish Hits has indicated that teachers in England will need to add up to 2% next year.

Extremely Disappointing '

The National Association of Teacher Secretary General Paul Whiteman said a 5% wage increase was "vital if we had to enter the UK's ongoing recruitment and teacher training pipeline." "After years of shrinking public sector salaries, it is embarrassing for the government to impose another, this time by 2%," he said. Last week, the Department of Education introduced wage increases in three groups, 3.5 per cent for classroom teachers and 2.5 per cent or 1.5 per cent for senior leaders, which, Whiteman added, "gave a real wage reduction for all, but one-third of teachers, including the most experienced staff and leaders. " The Association of Secretary General of School and College Leaders Geoff Barton said it was extremely disappointing that the government had said a 2% increase was affordable by school budgets when it was not absolutely incidental. "Student fundraising has fallen by 8% in real terms over the last eight years, including cuts of more than 20% in financing six schools," he said. And this has led schools to absorb a number of cost pressures without any other funding, leading to budgets and deficit cuts. "To say that schools can now afford another infinite cost pressure not only adds insult to injury, but sets standards in education," he added. Barton.

Taxation Assignment Help

Institution

Question ONE

The Income Tax Assessment Act of 1997 provides several cases on how expenditure on some items is to be treated for tax accounting purposes. The various expenditures incurred by a business are treated differently, depending on theirclassifications. The following are few situations, and how they are treated:

1. a) During project execution, machines may be moved. Some cost is incurred when moving machinery from one site to another. The cost incurred during such movement of machinery is known as expenditure on capital, or capital expenditure. According to section 8-1 of the Income Tax Assessment Act of 199797, there are no deductions on capital expenditure (Afshari-Jouybari, H., & Farahnaky, 2011). When these costs are involved, the depreciation of the asset increases, increasing the amount of depreciation included for the purpose of accounting.
2. b) Revaluation of assets is sometimes needed in order to obtain insurance policies ( John Wiley & Sons, 2012). Sometimes, this process may incur some expenses in terms of paying the valuers and other associated costs. These kind of expenses results into increase in expenditure on fixed assets (Fritz, & Schiefer, 2009). Tax deductibility on these expenses occurs if the expenses result to reduction of the capacity of the entity to make profits. Under section 8-1 of the Income Tax Assessment Act of 1997, if the expenditure positively influences the capacity of earning revenue, then it is deductible for taxation purposes because such benefits are not to be experienced for a long period of time.
3. c) Legal expenses incurred by a company opposing a petition for winding up.

Companies are legal artificial persons who have the capacity to enter into legal suits on its own without the involvement of the owners. As a result, it will require the services of legal personnel, which are paid for. During winding up, legal cases are involved, and there two factors that are considered when deciding on the taxation behavior of the expenses involve. These are the structure of the expenditure and effect on the ability of the business to earn income. If there is an interruption on the normal operations of the business, it means that the ability or capacity of the firm to make profit is negatively affected. In this case, the expense is a capital expenditure, hence no deductions made (Afshari-Jouybari, H., & Farahnaky, 2011). Looking into the other side, if the results of the case greatly influence the general process of the business operation, the expenditure involved is considered as revenue when accounting for taxation.

1. d) Legal expenses incurred for the services of a solicitor in respect of a number of matters

Lawyer charges, litigation fees and many other legal expenses are incurred during the life of any business entity (Hoch, Roeding, Lindner, & Purkert, G. 2010). These kinds of expenses are known as investment or business expenses. They affect the normal operations of the business and are fully deductible.  There are many business expenses, which include but not limited to the following: negotiating employment terms with order workers and wrongful dismissal expenses, defamation charges, evicting a tenant who has defaulted in rent payment, to mention but a few.

The following costs are also deductible:

Costs incurred in amending an existing employment agreement are deductible; however, costs associated with securing an employment agreement with a new employer are not deductible to the employee.

Costs incurred in arbitration; settling disputes arising out of employment agreements are deductible for both employers and employees. Costs of amending existing terms and conditions of employment with the same employer are also deductible, as well as the Costs of renewing or extending a contract of employment that have a fixed term (Gelinas & Dull, 2008).

There are other legal charges incurred by individuals, which do not amount to any effect on the business. Those incurred by individuals are not deductible, and include loan discharge expenses, borrowing expenses and expenses on lease payment valuation, the cost of negotiating employment contracts, defending driving charges, charges of sexual harassment in the workplace, eviction of a tenant after term expiry, etc. They are capital expenses in nature (Fritz, & Schiefer, 2009).

Section 8-1 of the Income Tax Assessment Act 1997 is the key provision which relates to general deductions ( John Wiley & Sons, 2012). This provides that one can deduct from their assessable income any loss or outgoing to the extent that it is incurred in gaining or producing the assessable income or it is necessarily incurred in the course of doing business with aim of gaining assessable income.

The section also provides cases when one cannot deduct a loss. These cases include if it is a loss or a capital nature or when it is a loss or outgoing of a private or domestic nature (Afshari-Jouybari, H., & Farahnaky, 2011). Finally, a loss or outgoing that can be deducted under this section is called a general deduction.

Moreover, the section allows the taxpayer to subtract all losses suffered in the process of acquiring assessable income. Taxpayers are not however permitted to deduct a loss of capital or domestic nature.  Capital expenses are quite hard to claim an allowable deduction.

Question two

The total Expenditure incurred by the business =     $ 1,650,000

Subtract cost incurred on advertisement through television = $550,000 (taxable)

Remaining amount which is not taxable= $ 1,100,000 (not taxable)

Let us assume the total amount of GST paid = $ 1,650,000 * 10/110 = $150,000

GST that was incurred on print media = $1,100,000 * 10/110 = $100,000 (this is exempted for taxation)

Expenditure amount on television media = $ 550000 * 10/110 = $ 50,000

The difference on print media is given by ($150,000- $50,000 =$100,000). This amount can be claimed as input tax credit

Taxation Assignment Help

Question Three.

One can claim the foreign income tax offset in his/ her income tax return. This is done in order to discourage double taxation. This is done excluding any penalties and interest and disregarding any tax offsets. In order to arrive at Angelo’s s foreign income tax that is offset, the limit is first computed using the following few steps:

First Step:

The first step will be to calculate the gross tax payable on his taxable income

Tax on $62,000 (note medical expenses are not deductible): $12,937 (includes Medicare levy of 2%)

Second Step: the second step will be computing the tax that would be payable depending on some factors:

• His assessable income is not inclusive of any amount where foreign income tax has been paid and his foreign income tax offset or other non-Australian source amounts, calculated as follows:

Details	Amount ($)
Employment income from United States	12,000
Employment income from United Kingdom	8,000
Rental income from United Kingdom	2,000
Dividend income from United Kingdom	1,200
Interest income from United Kingdom	800
Total	24,000

The difference between the foreign income tax that Aangelo has paid and the offset limit cannot be refunded or carried forward to a future income year (Afshari-Jouybari,  & Farahnaky, 2011). It should be noted that foreign income tax is deducted from the person’s assessable income, and this provides an explanation as to why it was deducted from income at this step.

• Any expenses that are close to the amounts included in Aangelo’s assessable income on which foreign income tax has been paid, as long as the tax counts towards his foreign income tax offset, or other non-Australian amounts that are part of his assessable income (excluding debt deductions).

Expense item	Amount  ($)
Expenses incurred when obtaining  employment income from United States	900
Expenses incurred when determining the amount of rental income from the United Kingdom	500
Total expenses	1,400

*it is important to state that the deductions of $200 and $ 400 relating to the United Kingdom dividends and interest income are not disregarded. This is so due to the fact that Angelo does not have a permanent resident in the foreign country.

The calculation is as shown in the steps below:

Total Assessable income (not including the  amount in  2(a)above	$44,000
Less allowable deduction (disregarding Step)	4,600
Taxable income under Step 2 assumptions:	39,400

Tax on $39,400 (inclusive of a 2% Medicare levy) $5,140

Step 3; Get the difference in step 2 and 1 above gives us his foreign income tax offset limit.

$12,937 – $5,140 = $7,797

Since he had paid foreign income tax of $4,400, he is entitled to a full offset of that amount.

Question 4

Answer

The following is a table, showing how the calculations are done.

Details	Amount $
Assessable income: total amount of accessible income
– sales: s.6-5 ITAA97	400,000
– bank interest: ditto	10,000
– dividend: s.44 ITAA36	21,000
– imputation gross up ($21,000 x 30/70 x 60%): s.207-20 ITAA97	5,400
– bad debt recovered: s.20-30 ITAA97	10,000
– exempt income: not assessable: s.6-20 ITAA97	–
– capital gain: regarded as made by the partners individually: s.106-5 ITAA97	–
Deductions made:
– sales proceeds stolen by employee: s.25-45 ITAA97	3,000
– partners’ salaries: not deductible: Scott	–
– FBT: s.8-1 ITAA97	16,000
– interest on partner’s capital: not deductible	2,000
– interest on partner’s loan: deductible: s.8-1 ITAA97	4,000
– travel expenses of Johnny between home and office: personal expenses: not deductible	3,000
– legal fees for office lease renewal: s.8-1 ITAA97	2,000
– legal expenses for preparation of partnership agreement: capital expenses: ditto	4,400
– legal fees for new office lease: ditto	700
– debt collection expenses: ditto	500
– council rates: ditto	500
– staff salaries ($25,000 – 5,000): ss.8-1 & 26-35 ITAA97	20,000
– purchase of trading stock: s.8-1 ITAA97	30,000
– rent on shop: ditto	20,000
– provision for bad debts: not deductible until written off: s.25-35 ITAA97	–
– business lunches: not deductible assuming the expenses are not subject to FBT: ss.32-5 & 32-20 ITAA97	–
– excess of opening stock over closing stock ($20,000 – 16,000): s.70-35 ITAA97	4,000
– net partnership loss last income year: not deductible, as the amount was attributed to partners last income year	–
Net income of partnership	345,700

From the above computation, we obtain an income of $ 345,700 from the partnership.

Taxation Assignment Help

References

Afshari-Jouybari, H., & Farahnaky, A. (2011). Evaluation of Photoshop software potential for      food colorimetry. Journal of Food Engineering, 106(2), 170-175.

Fritz, M., & Schiefer, G. (2009). Tracking, tracing, and business process interests in food              commodities: A multi-level decision complexity. International Journal of Production            Economics, 117(2), 317-329.

Gelinas, U. J. & Dull, R. B., (2008). Accounting Information Systems. s.l.:Thomson/South-            Western.

Hoch, D. J., Roeding, C., Lindner, S. K., & Purkert, G. (2010). Secrets of software success (pp.    23-40). Boston: Harvard Business School Press

John Wiley & Sons, (2012). Accounting Information Systems: Understanding Business       Processes. 4th ed. s.l.:John Wiley & Sons.

Johnson, S. (2013). Fresh Item Management: Lessons in DSS, ERP and SCM from a Grocery             Bakery Department. AMCIS 2003 Proceedings, 415.

Microsoft, (2015). Microsoft Dynamics. [Online]

Maiden, N. A., & Ncube, C. (2008). Acquiring COTS software selection requirements. IEEE        software, 15(2), 46-56.( Maiden, N. A., & Ncube, C. (2008).

Order, S. (2012). Sage 100 ERP.

Romney, M. B. & Steinbart, P. J., (2014). Accounting Information Systems. s.l.:Pearson.

Soliman, F., & Youssef, M. A. (2008). The role of SAP software in business process re-    engineering. International Journal of Operations & Production Management, 18(9/10),            886-895.  

Create Contract Assignment Help

Question 1

In the present case, it is identified that tenders for the supply of the green would be accepted by the University. The tender is expected to close on 1st June and the tenders are an invitation in which the party can create contract with anyone offering the best price. The tender advertisement is not an offer to the parties but an invitation. The parties interested in the contract have the opportunity of approaching the company by presenting relevant quotations. The present case scenario states that they had hand delivered the Green land tender through the tender box. The university received the tender letter on 17th May through Enviro though it had been posted on 15th May. On 30th Many, the Plan Forever tender was posted and the University received it on 2nd June. The tenders were then put into the tender box. These tender letters that the respective companies had provided was regarded as offers.

After the companies had made the offers, the University could accept them. The case states that tenders that Enviro offered was not present during the time of decision-making; hence, this absence of documents would hinder the acceptance of the tender. As the quality of the services and productsmentioned in the tender, whom Greenland had provided, gave a reflection of a lack of certainty, the University did not accept the tender. This gave a picture about the tenders stating that those which the company had provided are offers and do not suggest their acceptance by the University. The offers are declared to be given as a presentation within the specified time of 1st June. However, it has been observed that the Plant Forever had made the offer after the deadline, hence, it cannot be used for invalidation of the invitation terms to offer. However, the University accepted the same due to best available alternative for them (Khoury and Yamouni, 2009).

One thing that must be considered here is that after the post makes an order, this order will remain valid only till it is delivered to the concerned party and not till the date of its posting. This consideration suggests the offer, which Plan Forver had made cannot be regarded as a valid offer. In case of acceptance of the offer by the University, it can be said the offer will not remain valid because lapse of time has expired the validity of the offer. It must also be noted that any kinds of contract is not created through the acceptance. This suggests that Plant Forever cannot be held responsible for making supplies to the University as per promised terms of the offer because no contract has been created. Hence, the University can say that it has not accepted any offer for creating contract. However, the University can make offers officially to any one of those three companies for the same reason for accepting it in order to establish an enforceability of the offer (Monahan and Carr-Gregg, 2007).

.Question 2

The case states that the shoe company, the Footloose Pty Ltd had published a notice declaring that the organisation will offer a percentage of discount on bulk order made in the purchase of latest Italian Shoes. The advertisement contained the contact number and other details of the Sale Manager and was published on 1st October. On 2nd October, the Famous Footwear had sent a fax to the shoe company sending them an order for buying 500 pairs of shoes for $2000 for a hundred pairs. It was mentioned by the company that they would later provide the details of delivery location. This suggests that the fax which the Famous Footwear had made would be regarded as the offer for purchasing the advertised shoes. The posted advertisement is regarded only as an invitation for the offer. In this context, Footloose Pty Ltd can only ask the interested buyer, here the Famous Footwear for making the suited offer in order to start the respective negotiations. Here, the statement giving notification of the possibility of creating contract with the best offeror is regarded as the advertisement.

A large variety of regional stores was included in the Jame’s Shoes. The store had sent a fax on 4th October, which states that they are looking to buy 2000 pairs of sandals bit the total billing cost must not exceed $30,000 dollars even after including the delivery charge and the GST. This fax of the Jame’s Shoes was regarded as an offer since it is a response to the invitation to offer. The offer contained the details in terms of number of sandals to me bought along with the price that was to be charged for the purchase. This offer also has the features of being regarded as primary offer allowing negotiations and counter offer because the phrase ‘please advise’ is present at the end of the offer (Paterson, 2011).

On 6th October, James of the company James’s Shoes had received a fax from Ms Simone, which stated that James will be able to purchase the desired number of shoes from Footloose, however, it will cost $30,000 without the delivery cost. On 10th October, James received the fax and Simone called up James to state the counter offer and forward the copy of the offer from 8th October. In response, James stated that the company is ready to receive the shoes as per the decided terms from the Footloose warehouse. It is to me noted here that this communication between the two parties had occurred only through fax.

It can be said that the Footloose have proposed the invitation to offer and Jame’s Shoes responded to it on 6th October giving it the status of an offer. Footloose had negotiated this offer which James had made through making a counter offer presented to James. This counter offer had also occurred through fax. However, just to ascertain the acceptance of the offer by James, Footloose had again sent a letter after having a telephonic conversation with James. James notified that the accept the Footloose offer and is also agreed to receive delivery as per the letter specifications.

The case of Carlill v Carbolic Smoke Ball provides a clear picture of the distinction between a counter offer and an offer. It states that an advertisement was provided the company for selling smoke ball that promise of curing influenza. The offer also said that in case of failure in curing, the affected can sue them for damages that have been deposited in the bank under the specified account name. This is not regarded as an invitation to offer but an offer itself. This is because it had clearly discussed the effects of both negative and positive performance; it has also shown the intent of being bound within the contract with the product buyer. This offer was similar to a unilateral contract since the party accepting the offer had to perform the required action for enforcing the contract. Mrs.Carlill faced no positive outcome after suing the smoke ball and consequently claimed for the damage. However, company did not accept the claim because the company was not informed about Mrs. Carlill’s acceptance of the offer. The court however, decided that since the offer was made to the world, there is no need for the accepting party inform the acceptance and perform the act of enforceability. As Mrs.Carlill performed the same, she became entitled to receive the claim amount as the contract had promised (Willmott,Christensen and Butler, 2005).

Create Contract Assignment Help

Question 3:

In this case, Richard Anderson is described as a chemist who had successfully achieved collaboration with grants, government contracts and scholarships. He had been working with a lab under a five-year contract that was to expire on 30th June. In the meantime, he had received an offer from arrival lab for leaving his job and joining there to work and be posted as the Chief Chemist. Richard had a great willingness to accept the offer, however, he was intrigued with the thought that his wife would need to change her job and his children would have to change schools. On 1st March, he approached his boss and discussed about the offer. His job said that in order to succeed, the lab requires his presence and his present designation is highly appreciated in the company. On getting assurance and appreciation the decided to turn down the offer and stated to the rival lab that he does not want to cause any kinds of troubles to his family (Khoury and Yamouni, 2009).

After some months, Richard lost his job because the Chief Chemist of his lab, warren felt that Richard’s position in the lab is not anymore required citing the reasons of liquidity issues and the have been sacked. Richard at present is devoid of job and the position in the rival lab is also not more available. The market for hiring chemist is also inactive and Richard was finding it difficult to get hold of a job. He had to then unwillingly take up a job at the university. The University offered him a much lower pay scale as compared to his earnings in the private practice. Family expenses have also come up as an issue now because of his low income.

In this context, it can be said that the discussion, which Richard had with his lab Chief is just a promise for extension of his contract due to an appreciation of his work but not an entire contract itself. When the contract reached the time of renewal, it got terminated as a result of downsizing issues. This discussion acxted as a promise and increased the motivation for Richard to work harder in his current position and refuse the offer made by the rival lab. In this aspect, it can be pointed out that the action was the result of the made promise, thereby leading to the decision. In this case, theDoctrine of Promissory Estoppel can be applied to parties that participated in the discussion. According to this doctrine, if a party makes a promise to another party and of the promise is effective enough to make a party take an important decision, it is bound to fulfill the made promise. If the promise is liable to influence another party in taking essential decisions, the party must fulfill the promise. In the present context, richard has been influenced to take the decision by the promise made by the lab chief regarding the requirement of his position in the company. Hence, following the principles of the doctrine, Warren is bounded by its terms and Richard’s term must be extended when Richard had taken the drastic decision of refusing the offer. If the term is not extended by Warren, Richard should be compensated for suffered loss due to non-performance of the promise (Monahan and Carr-Gregg, 2007).

In the Walton’s Stores (Interstate) Ltd vs Maher case, the two parties, Maher and Walton had undergone a negotiation for property lease. The contract was that Walton will take hold of  a new building after Maher demolishes the existing building. The contract also contained the terms of the rent. Maher received a draft of the lease and Walton got the revised lease. Maher performed the demolition in November and informed Walton about the occurrence. Walton asked Maher to perform the demolition slowly as it had certain reservations about the decision. After about 40% of the new building had been prepared in January, Walton decided to back out. The court proceedings stated that the discussion was enough for Maher to continue the contract terms because a promise had been made and was encouraged by the promisor. The court also said that the conduct and actions made by the promisor is sufficient and enough for ensuring a continuation of the promise and carrying out the actions discussed in the negotiations. Hence, it  can be said that the Promissory Estoppel is regarded as a valid reason for undertaking certain actions based on the reliability of the promise and stop the promisor party from backing out from the claim or the promise in case of any k9ind of damage or occurrence of unanticipated events.

References

Khoury, D. and Yamouni, Y. (2009). Understanding contract law. Chatswood, N.S.W.: LexisNexis Butterworths.

Monahan, G. and Carr-Gregg, S. (2007). Essential contract law. New York, NY: Routledge-Cavendish.

Paterson, J. (2011). Unfair contract terms law in Australia. Pyrmont, N.S.W.: Thomson Reuters (Professional) Australia.

Willmott, L., Christensen, S. and Butler, D. (2005). Contract law. South Melbourne, Victoria, Australia: Oxford University Press.

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Australia officially the Commonwealth of Australia, is a country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. It is the world’s sixth-largest country by total area. Neighbouring countries include Papua New Guinea, Indonesia and East Timorto the north; the Solomon Islands and Vanuatu to the north-east; and New Zealand to the south-east.

For about 50,000 years before the first British settlement in the late 18th century, Australia was inhabited byindigenous Australians, who spoke languages grouped into roughly 250 language groups. After the European discovery of the continent by Dutch explorers in 1606, Australia’s eastern half was claimed by Great Britain in 1770 and initially settled through penal transportation to the colony of New South Wales from 26 January 1788. The population grew steadily in subsequent decades; the continent was explored and an additional five self-governingcrown colonies were established. On 1 January 1901, the six colonies federated, forming the Commonwealth of Australia. Since federation, Australia has maintained a stable liberal democratic political system that functions as afederal parliamentaryconstitutional monarchy comprising six states and several territories. The population of 24 million[5] is highly urbanised and heavily concentrated in the eastern states and on the coast.

Australia is a developed country and one of the wealthiest in the world, with the world’s 12th-largest economy. In 2014 Australia had the world’s fifth-highest per capita income.[20] Australia’s military expenditure is the world’s 13th-largest. With the second-highest human development index globally, Australia ranks highly in many international comparisons of national performance, such as quality of life, health, education, economic freedom, and the protection of civil liberties and political rights.[21] Australia is a member of the United Nations, G20, Commonwealth of Nations, ANZUS,Organisation for Economic Co-operation and Development (OECD), World Trade Organization, Asia-Pacific Economic Cooperation, and the Pacific Islands Forum.

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