Exam 13: Goods and Services Tax

Abel Lawyers is a partnership that is registered for GST and that accounts for GST on an accruals basis. During the March quarter tax period, Abel Lawyers billed out $66,000 worth of invoices. An amount of $22,000 was not collected against those invoices by the end of the March tax period. The partnership received other receipts of $33,000 in the March tax period for invoices that had been billed out in the December tax period. What is the GST liability if Abel Lawyers in the March tax period?

Peter Nolan runs a small jewellery shop in the outskirts of Melbourne and provides specialised advice on all purchasers. Peter employs two permanent staff and is registered for the GST. For the tax period ending 31 March 2020, Peter reported the following transactions and uses the cash basis of accounting for GST. Receipts (inclusive of GST where appropriate) Cash sales: $55,000 Credit sales outstanding: $7,700 Gift vouchers issued: $4,400 Expenses (inclusive of GST where appropriate) Cash purchases: $22,000 Staff salaries: $45,000 Electricity: $990 Gas heating: $880 Telephone: $440 Assuming that all tax invoices are held where appropriate, the net amount for the tax period ending 31 March 2020 is:

Which of the following is an example of a GST-free supply (as defined in Division 38 of the GST Act 1999)?

Which one of the following does not entitle the members to form a GST group?

If ABC Wholesalers Pty Ltd sells items for a total of $3,630 (GST-inclusive), what is the value (as per s9-75 of the GST Act 1999) of these supplies?

Which of the following is not an example of an input taxed supply (as defined in Division 40 of the GST Act 1999)?

BG Plumbers accounts for GST on a cash basis. What amount of GST can BG Plumbers claim in the most recent tax period if the following information is obtained: Expenses paid of $8,800 to registered suppliers; Expenses of $2,000 paid to unregistered suppliers; Expenses of $4,400 for which invoices have been received but these invoices have not been paid as yet.

Which of the following statements is not true with respect to creditable importations?

Which of the following is correct regarding the claiming of input tax credits in respect to the purchase of a car for business use?

Which of the following is not an example of a creditable acquisition?

Dennis is a dentist who is registered for GST. During the most recent tax period his total receipts from dental services he supplied equalled $44,000. Dennis paid for the following expenses during this same tax period: Practice rent of $6,600; electricity and gas of $2,200; liability insurance costs of $3,300 and staff salaries of $411,000. What is the likely result of this tax period? Will it result in an amount payable to the ATO or an amount refundable? What is this net amount likely to be?

Frank is a painter and registered for GST. During the most recent tax period he paid $24,200 for painting supplies. 30% of these painting supplies were used to paint his own home. What is the amount of GST that Frank can claim in respect to the painting supply purchases made in this recent tax period? Explain.

Which one of the following supplies of residential premises is input taxed?

If a retailer, that is registered for GST, in a tax period has furniture sales totalling $22,000 and in the same tax period had purchases that were all creditable acquisitions of $12,100, what would the net amount of GST be that this retailer owes the ATO?

Martin operates a second hand store in Launceston and he wants your help to work out his net GST amount for the September quarter. During the September quarter Martin purchases 20 second hand items for a price of $220 each from various persons (none of whom are registered for GST). He also purchased a second hand item for $440 from a person who also was not registered for GST. During the September quarter martin sold second hand items for a total of $11,000. What is Martin's net GST amount payable to the ATO for the September quarter?

Which if the following is not a requirement of a taxable supply?

Which is not included in calculating the value of a taxable importation?

Lisa Martin has operated a small legal practice on a part-time basis for the last ten years and is registered for the GST. However, in December 2019 she became a mum and as a result expects her business income to decline. Lisa believes that her projected annual turnover will change as a result and impact upon her GST registration. Lisa estimates the following income over the next 12 months: Client fees (including GST): $44,000 Sale of old computer equipment no longer required (excluding GST): $10,000 Settlement of an insurance claim: $5,000 Lisa's own drawings and dividends paid $1,500. Based on the above information, Lisa's projected annual turnover is:

Which if the following is not a requirement of a taxable importation?

Which one of the following statements is not true about a purchase of second hand goods?