Posted: August 16th, 2016
Does the Arthur Murray principle apply to the company’s accounting treatment of amounts in Easy Funeral Plan? Explain.
Note: it is necessary to refer to appropriate case law on the issues.]
- Refer to the decision in Arthur Murray (NSW) Pty Ltd v FCT (1965) 114 CLR 314. In your own words, briefly describe the facts, issues and conclusion in that case. [Note: Case reports and extracts of Arthur Murray are widely available or the decision may be accessed via hcourt.gov.au]
- Advise RIP Pty Ltd when income is derived (i) generally, and (ii) when it derives its income from funeral services and related activities.
- Does the Arthur Murray principle apply to the company’s accounting treatment of amounts in Easy Funeral Plan? Explain.
- Does the Commissioner or any taxpayer have a choice in the method of accounting for tax?
- Advise the company of the tax treatment of $16,200 in ‘Forfeited Payments Account’ in item (iv).