As a sales representative, I am required to travel frequently in the course of my duties. My employer reimburses me $500 each month for the uses of my E-plated car for business purposes. Am I entitled to claim a deduction on the car expenses incurred by me? Are there any order income tax implications? Generally, in respect to salon cars only expenses incurred on Q-plated cars are deductible. The $500 payable by your employer can be viewed from two angles: Round sum allowance at $500 p.m. The amount would be taxable on you with no deduction for car expenses as the car in question is not a Q-plated car. However, the company would enjoy a tax deduction; the payment being additional remuneration payable without any reference to your transport expenses. View Full Article »
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The united shoe decision is worth nothing for at least two reasons. It provides an example of the kind of behavior that courts have taken as sufficient to condemn a monopoly position of under the Sherman act. Further, in giving his opinion, Judge Charles E, Wyzanski, Jr. provided a succinct summary of the development of the law under section 2. The united shoe machinery corporation was formed in 1899 by a merger that combined seven previously independent firms. The government challenged this merger under the Sherman act, but in a 1918 decision the Supreme Court declined to find a violation. From that point on, united shoe machinery dominated the U.S. market for machines used to manufacture shoes. View Full Article »
A small shop adjoining the arcade has become vacant and can be leased for $150 per week on a three year plus three year extension agreement. Rent review will be required if the extension is taken. The shop is virtually empty and will need fittings to make it into a salon; satisfactory electrical and water (hot and cold) services are installed.
Public rest room facilities are available in the arcade. The shop area will permit a double sink setup for hair washing, four chairs for service a small walled, separate room for stock and office making as well as a waiting area with two chairs and a two seat lounge plus magazine table. Plot plants will be used as area separators and add a feeling of comfort. View Full Article »
Hairdressing equipment both fixed and manual is required along with consumables stock. Product supplier will arrange for short term credit against orders if an exclusive is agreed, and stock will be offered for customer purchases. This will be more a convenience than anticipate profit opportunity although the markup will permit a 50% gross margin on sales.
The customer have each saved $5,000 for the venture, Leigh Wilson’s fiancé is investing $3,000 as a silent partner for a total cash investment of $13,000. A $5,000 bank overdraft facility is needed to support negative cash flow during the first 6 months of operation. The overdraft may be secured by the purchased equipment (47% of value) and cash flow access. (Personal guarantees will be provided including the silent partner). Each operator partner will be paid, or credited, a wage of $20,000 per annum on a View Full Article »
