Assignments will be assessed against the SILOs for the assessment. In particular, assignments will be assessed based on objective demonstration of the following:
1. Acting as a team, engagement of critical thinking and interpretation skills to correctly identify the issues to be analysed in the case study.
2. Application of critical thinking, interpretation and analytical skills to develop a meaningful analysis of the issue(s) previously identified, with detailed and analytical application of tax concepts, tax principles, legislation and case law. Mere citation, transcription or repetition of theory, concepts, legislation and case law without proper application will not attract any marks.
3. Correct application of tax concepts and case law principles to calculate tax liability (if required). Calculations must be fully stated and supported by applicable legislation and case law (where case law is required).
4. Elaboration of a solution to the issues presented in the case study, referring to the elements analysed and concluding the case.?
Jenny Jones is a 43 year-old marketing manager employed by Jockwood Pty Ltd in Melbourne. Jenny engages your services for the preparation of her 2018/19 tax return.
On 20 April 2020 Jenny sends you the email below:
From: Jenny Jones <firstname.lastname@example.org>
Sent: Monday, 20 April 2020, 9:00:43 AM
To: Tax Accountant
Subject: Tax return 2018/19 – Jenny Jones
Dear Tax Accounting Team,
I provide some details that should be of assistance in the preparation of my tax return.
Salary and allowance - As discussed, please note that I received $69,000 net salary for 2018/19 after my employer had deducted PAYG of $30,000. This can be found on my 2018/19 payments summary. I will send this to you later. In addition, I received an Executive Allowance of $10.000 to cover my wardrobe needs that I fully spent to improve my professional wardrobe (and I have all the receipts) and claim as a deduction to cover my professional attire. (Image is everything as a marketing director). In addition, I also claim hairdressing costs of $4,000 and make-up of $1,000 that I was required to also spend to promote and maintain my professional image.
Gifts? - I received a $1,000 Myer gift voucher from Rockfords for my 20 years service and I was so happy when my staff all chipped in together to give me a China vase valued at $200.
Investment earnings – I received $1,000 from the bank for my high interest term deposit and my partially franked dividends (40%) of $7,250 from Tiny Co P/L being a very small company Casino Winnings and TAB Account– I loved going to the Casino on the weekend and was getting to be well known by staff as a bit of a regular playing Roulette - they joked and said I was addicted to gambling and was like a ‘professional gambler’. Fortune favoured the brave and I made $20,000 over the year with my regular attendances, which I was delighted with. But what has been really great is that I have won $50,000 in 2018/19 – I just love watching the ponies, it is so exciting. I limit myself to a betting only once each week and I did really well – although some weeks were not so good - I really bombed out. But I received a good tip one week and won $25,000 on a trifecta!
Sale of my residence - Settlement has finally come through on the sale of my home. Hooray. You will recall that I purchased my 2 story apartment in Melbourne city on 1 July 2001 at a bargain cost of $200,000 and $25,000 for various expenses such as stamp duty and other fees and on 30 June 2019 I entered into a contract, and I sold it for $700,000, and settlement was 3 months later. There was another $15,000 expenses for commission on sale and other expenses. You might remember I rented out the top floor to university students for a period of 9 years but that doesn’t matter as at all time it was still my main residence, so it is still exempt– is that right?
Company Car - Since I was promoted to my current Marketing Director position, Jockwood provided me with a Toyota Corolla at no cost (although I know the car cost them $25,000) except for fuel, which costs me $80 per month. I’ve been driving this car since 1 October 2018, to and from work and on the weekends, but not to visit clients (I prefer to take an Uber to visit clients so I can work during the trips). I did use the car for income producing purposes. I travelled a number of times to visit the property to inspect it and discuss matters with the tenants such as when they were late paying me the rent, and the leaking roof (see rental property) I estimate my car expenses were in the order of 1000 kms so using the Commissioner’s rate of 68c/km for income producing purposes, I claim $680.
Rental property - I signed the contract to purchase the Inverloch house on 10 August 2018 and it has been rented at $1,500 per month since 1 September 2018. On 1 October 2018 the tenants advised of a leak from the roof, so I had it fixed at a cost of $22,000. It was that expensive because 1/3 of the roof had to be replaced, and I paid this amount in full on 04 October 2018 when the service was completed.
Company Loan - On 1 January 2019 I took a loan with Jockwood of $600,000 at an interest of 4% per annum. I used $400,000 to buy an investment property in Inverloch/VIC, and the rest I used to pay off my home mortgage.
Various expenses – I made a donation to La Trobe University of $1,000. I had a tax return fee I paid in August 2018 of $300, that I paid to a retired tax officer – much cheaper than going to the registered tax agent. I made a superannuation contribution of $10,000 to my superfund (not salary sacrificed but through my after tax money). I had telephone expenses of $1,000, and 10% are business related. I purchased a new leather brief case at the January sales on New Year’s Day for $290 which I use as a tool of my trade - no private use.
That should be all you need for your deliberations. I look forward to hearing back from you with my completed tax return.
Thank you very much.
Actually, there is one more issue I need to discuss with you. In March this year I spent $25,000 in legal fees while suing my previous employer who, during my employment time, consistently paid me 25% less than a male colleague who held an equivalent position and performed exactly the same functions as me. We ended up settling the dispute out of Court and I agreed to receive a payment of $350,000 in arrears and moral damages, which were paid in a lump sum on 15 June this year. This is a significant amount and I don't want to have trouble with the ATO. Could you please provide me with a separate letter of advice explaining the income tax consequences related to the legal fees I incurred and the payment I received?
Prepare a report to put into Jenny’s file which you can use as background in discussion with the Partner, and subsequently when you need to provide further advice to Jenny.
Format of your report. You must:
Law that applies, including Reasons (& Common Law/Tax Ruling)
Effect on taxable income
1. Be succinct given the word limit, but in your discussion make sure you state, the relevant legislative authority and/or case law authority and the final effect on taxable income / tax liability under the Amount heading).
2. Based on your report, prepare Jenny’s statement of taxable income and calculate her final tax refund/liability including Medicare Levy for the year ending 30 June 2019, stating the applicable legislation and case law (note: calculation of the private health insurance is not required).
3. Prepare a letter of advice explaining the tax consequences related to the legal fees incurred by Jenny and the lump sum payment received in connection with the lawsuit for the year ending 30 June 2019, applying legislation and case law to support your letter.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2020). Taxation. Retrieved from https://myassignmenthelp.com/free-samples/acc5tax-taxation.
"Taxation." My Assignment Help, 2020, https://myassignmenthelp.com/free-samples/acc5tax-taxation.
My Assignment Help (2020) Taxation [Online]. Available from: https://myassignmenthelp.com/free-samples/acc5tax-taxation
[Accessed 09 August 2020].
My Assignment Help. 'Taxation' (My Assignment Help, 2020) <https://myassignmenthelp.com/free-samples/acc5tax-taxation> accessed 09 August 2020.
My Assignment Help. Taxation [Internet]. My Assignment Help. 2020 [cited 09 August 2020]. Available from: https://myassignmenthelp.com/free-samples/acc5tax-taxation.
Many students find an annotated bibliography to be troubling. Adding to that, it takes a lot of time for listing out citations in articles, books and documents. If you have any query regarding how to write an annotated bibliography, feel free to contact MyAssignmenthelp.com. To make your job easier, we can help you understand the bibliography format thoroughly.
We feel proud to announce that we have advanced level plagiarism software that will help to make your academic paper free of plagiarism.
Answer: The given question pertains to the tax treatment for income earned by Andrew Smith, a lawyer in sole practice, for the income year ending 30th June, 2019. Income earned/received in current year: In the given case, a major decision is selection of a method of determination of income earned by the assessee. Relevant provisions: There are two methods for determination of income, i.e. earnings method and receipts method (Section 6...Read More
Answer: Introduction Mark Lewis works in a luxury cruise liner that travels within the Mediterranean Sea. His main tax is received from income tax although he has other sources of income such as the rent income from his rented farmhouse which he subleases through Airbnb. This is lease income that comes from the farmhouse that he sublets. Additionally, Mark Lewis also has been breeding cattle in Australia or his retirement preparation. He owns...Read More
Answers: Introduction Taxation is a very important component in any government. Through taxation, a country can earn a good amount of income which will spend in undertaking its various developmental projects among other key businesses. It is now very important for every entity to submit its taxes without evading or even avoiding whichever the circumstances. This is because it will enable the government to run its activities to improve the eco...Read More
Answer: Private & Confidential To Herbie Smith Advisors Consultant & Co 85 Smiths Villa Native Heights Dear Herbie We look forward to respond to your recent meeting, messages and telephone conversation. We are attaching the advice in respect to the matters sought by you in relation to the assessment of small business entity. Scope: The main objective or scope of the current letter of advice is to give the taxpayer with a valua...Read More
Answers: 1: The commissioner might under the “sec 353-10 (1)” it may provide in writing where it may require a person to do any of the following To provide the commissioner with any type of information for administration purpose or operation of tax law To attend and provide evidence to commissioner for administration purpose or operation of tax law To provide the commissioner with any type of documents in their cus...Read More
Just share Requriment and get customize Solution.
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
Awesome work. Awesome response time. Very thorough & clear. Love the results I get with MAH!
Work was done in a timely manner took it through grammarly checked for plagiarism very well satisfied
Great work for the short notice given. Thank you for never disappointing and helping out.
I received a full point on the assignment. Thank you for all the help with the assignment.