Assignment Question -
Question 1.1 - (a) Prescribed person or an excepted person.
(b) Significance of being either prescribed person or excepted person.
Question 1.9 - (a) How much excepted assessable income has Ron derived?
Gross Wages - 4,700.00
Estate of Late Aunt - 7,500.00
Total - 12,200.00
(b) How much eligible assessable income has Ron derived?
Interest with Parents - 10,000.00
Family Trust - 6,000.00
Shares - 1,200.00
Total - 17,200.00
(c) Calculate the net tax payable by Ron for the 2014/15 tax year.
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Income
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Tax
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Excepted Income
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12,200.00
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Tax NIL
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-
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Assessable Income
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17,200.00
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Tax 6AA - 47%
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8,084.00
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Total
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29,400.00
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8,084.00
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Low Income Offset N/A (Under Threshold for Excepted Income)
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Medicare on $29,400 2%
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588.00
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Less Tax Withheld (PAYG $800, Fund $4800, Trust $1500)
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(7,100.00)
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Net Tax Payable
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$1,572.00
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Question 2.3 - Who is assessed for the net income and which sections of the Act apply?
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Person assessed
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Percentage of net income
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Net income amount
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Applicable Section(s)
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%
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$
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Eric
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30%
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S97
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Derek
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30%
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S97
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Merrick
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30%
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S97
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Question 2.27 - (a) Net income of the trust for 2015/16.
(b) Which section(s) of the Act includes the distribution to Larry as assessable?
(c) Who is assessed on Larry's distribution?
(d) Which section(s) of the Act includes the distribution to Ricky as assessable?
(e) Who is assessed on Ricky's distribution?
(f) Calculate tax payable on Ricky's distribution from the trust.
(g) Calculate the net tax payable by Ricky on his taxable income.
(h) Calculate the tax payable on the net income retained by the trust.
Question 3.5 - Prepare a statement calculating each partner's share of Partnership Net Income (PNI)
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Partnership Net Income (Loss)
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Gross Income
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925,000.00
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Operating Expenses
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(995,000.00)
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Net Income
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(70,000.00)
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Adjusted Net Income
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Add Back Salary
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80,000.00
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Interest on Capital
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6,000.00
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Interest on Capital - Clark
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9,000.00
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Adjusted Net Income
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$ 25,000.00
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Distribution of Partnership Net Income
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Toby
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Clark
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Total
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Salary
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10,000.00
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10,000.00
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Interest on Capital
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6,000.00
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9,000.00
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15,000.00
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Each partner's share
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9,000.00
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Question 4.7 - Big Assed Biscuit Pty: Can the company utilise any of its tax losses against its 2015/16 taxable income?
Question 4.25 - Limbo Dancers Pty Limited: Statement Reconciling Net Profit With Taxable Income for the year
Question 5.27 - What amount should Barry include in his taxable income for the 2015/16 tax year?
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Wool Sales
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Octber Clip
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70,000.00
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April Clip
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50,000.00
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$120,000.00
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Shearing expenses
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Octber Clip
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12,000.00
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April Clip
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9,000.00
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$21,000.00
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Wool Selling expenses
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Octber Clip
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4,000.00
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April Clip
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3,000.00
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$7,000.00
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Questions 6.5 - Superannuation Funds: Blowhard Superannuation Fund - calculate the fund's assessable income from investments.
Question 6.17 - Superannuation Funds: Dale Superannuation Fund - Calculate the taxable income and tax payable for the Dale Superannuation Fund.
Question 8.9 - Special Professionals: Calculate Shaun Mender's taxable professional income for the tax year.
Question 9.1 - Giving reasons, indicate which applicants have satisfied the academic qualifications criteria set out in the Tax Agent Services Regulations 2009 (Regulations).
Question 9.5 - For each of the following, indicate whether the individuals concerned have committed an offence. Where an offence has been committed, state the relevant section of the Income Tax Administration Act that they have breached.
Question 9.9 - How much will Frodo be required to pay for these adjustments and penalties?
Question 9.19 - What action can the ATO take?
Question 10.3 - For each of these taxpayers, state whether or not they are liable to penalties for late lodgement; and where penalties apply, state the amount.
Question 10.7 - Have the ATO officers acted properly?
Question 11.1 - For each of these taxpayers, specify the date due for payment of amounts owed to the tax office.
Question 11.3 - Should Steve simply wait for an amended assessment and refund cheque?
Question 11.7 - Advise Roger as to any action he can take in discharging his tax liability.
Question 11.9 - List any action available to the Commissioner to recover the outstanding tax liability.
Question 12.3 - (a) Calculate any penalties that would apply if she has lodged her own return, followed the instructions in Individual tax return instructions, but made a mistake due to an ambiguity in these instructions.
(b) Calculate any penalties that would apply if the same mistake was made but Dana has hired a Registered Tax Agent to prepare and lodge her return. She has disclosed all relevant information to her tax agent.
Question 12.7 - This error has come to light as the result of a tax audit.
(a) Calculate the shortfall amount that resulted from her error.
(b) Would the Commissioner be likely to penalise Toni for making a false or misleading statement?
(c) If the Commissioner finds that the shortfall is the result of a 'lack of reasonable care', how much will Toni have to pay in tax and penalties?
(d) If Toni became aware of the error during the audit, how much will the penalty be if:
i. She tries to conceal the source documents from the tax auditor?
ii. She immediately notifies the tax auditor that she has made an error?
Question 12.9 - It is considered that Frank has not taken reasonable care. What could he have done to have taken reasonable care?
What are the likely penalties if Frank lodges and notifies the Commissioner of his error immediately?
Attachment:- Assignment File.rar