Discussion Post: Taxation Law
Tom owns a business called Tom's Band in Westfield Sydney selling musical instruments. Tom also teaches guitar on a casual basis at the Sydney Guitar School a local musical college. The following are Tom's receipts during the 2019-20 financial year: Particulars $ Tom's Band sales include $2,500 from sales of musical instruments made last year. In addition, there is a sale of $3,200 made in April of the current year but not yet paid. 220,000 Salary from the Sydney Guitar School. This includes Long Service Leave of $4,200 which Tom is going to take in July of the following year. 53,000 Tom has withdrawal from bank. This was made up of the original capital deposited of $20,000 plus interest of $1,000 which was paid last year and reinvested. Interest of 5% was paid on the invested money. 22,050 Fully franked dividends includes franking credits of $5,143 were attached- 12,000 ,Unfranked dividend -4,000.
Required: Assuming Tom does not have allowable deductions, you are required to calculate Tom's taxable income and net tax payable.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.