Tom Ltd is an Australian company which is involved in the business of selling clothes. Following transactions have taken place.
To determine the tax implications of the various transactions underwent by Tom Ltd as highlighted above.
A company which is incorporated in Australia is considered a tax resident of Australia.
Trading stock used = Beginning stock + Purchases – Ending stock = 120000 + 180000 -160000 = $ 140,000
Franking credit = (30/70)*35,000 = $ 9.000
Hence, total taxable income on account of dividend = 35000 + 9000 = $ 44,000
Dividend paid = $ 280,000
Franking debit = (30/70)*280000 = $ 120,000
Thus, net balance of the franking account = 9000 – 120000 = -$ 111,000
Already, a tax in this regard of 15,000 has been made and thus $ 96,000 more would be need to be paid to the ATO.
Frank, Gilders, et. al., Understanding taxation law 2015. (LexisNexis, Butterworths 2015)
Kerrie, Sadiq, et. al., Principles of Taxation Law 2015, (Pymont,Thomson Reuters, 2015)
Robert, Deutsch, et. al., Australian tax handbook. (Pymont, Thomson Reuters, 2015)
Stephen, Barkoczy, Foundation of Taxation Law 2015, (North Ryde, CCH, 2015)
Gilders, Frank, et. al., Understanding taxation law 2015. (LexisNexis, Butterworths 2015), 77
Sadiq, Kerrie, et. al., Principles of Taxation Law 2015, (Pymont,Thomson Reuters, 2015), 103
Barkoczy, Stephen, Foundation of Taxation Law 2015, (North Ryde, CCH, 2015), 69-70
Deutsch, Robert, et. al., Australian tax handbook. (Pymont, Thomson Reuters, 2015), 135
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Determine The Tax Implications Tom Ltd . Retrieved from https://myassignmenthelp.com/free-samples/determine-the-tax-implications-tom-ltd.
"Determine The Tax Implications Tom Ltd ." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/determine-the-tax-implications-tom-ltd.
My Assignment Help (2018) Determine The Tax Implications Tom Ltd [Online]. Available from: https://myassignmenthelp.com/free-samples/determine-the-tax-implications-tom-ltd
[Accessed 08 April 2020].
My Assignment Help. 'Determine The Tax Implications Tom Ltd ' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/determine-the-tax-implications-tom-ltd> accessed 08 April 2020.
My Assignment Help. Determine The Tax Implications Tom Ltd [Internet]. My Assignment Help. 2018 [cited 08 April 2020]. Available from: https://myassignmenthelp.com/free-samples/determine-the-tax-implications-tom-ltd.
MyAssignmenthelp.com boasts a pool of 3000+ experts from different backgrounds, who are solely dedicated to providing premier quality assignment help. Due to the diversity in our expert team, we are capable of providing academic assistance in more than 100 subjects. Some of our popular services include math assignment help, economic assignment help, accounting assignment help, statistics assignment help, law assignment help and more at a reasonable price.
Answer: Part A: According to “section 6-1, ITAA 1936”, personal exertion income includes income that is derived from wages, salaries, gratuities, superannuation allowance etc. by working as the employee or from business activities. According to “section 6-5, ITAA 1997” most of the income that is earned by the taxpayer is treated as ordinary income. According to the taxation commissioner in “Scott v CT ...Read More
Barkoczy, S. 2014. Foundations of taxation law.
Kenny, P. 2014. Australian tax.
Krever, R. 2015. Australian taxation law cases.
Morgan, A., Mortimer, C. and Pinto, D. 2015. A practical introduction to Australian taxation law.
Answers: Question 1 Provisions The provision related with the determination of the assessable income of the partnership firm is contained in the Pt III of Division 5 of the Income Tax Assessment Act 1997. Tax is chargeable on the all income which is derived by the firm from the ordinary course of the business activity (Butler, and Giles, 2018). Along with this, normally all the expenses which are incurred for carrying the business acti...Read More
Answer: Introduction The Section 4-15 of the Income Tax Assessment Act, 1997 lays down the way in which taxable income is to be calculated for the income year (1st of July to 30th June), as per this section taxable income = Assessable income – Deductions, Assessable income is as explained in division 6 and the deductions allowable in division 8 where division 35 prevents losses from non-commercial business activities that may ...Read More
Answer: Introduction: The current case study provides the scenario that the Rob has inherited the business that contained the small plot of land. An adjacent plot of land was purchased by Rob so that he can set up the plant of concrete recycling by paying stamp duty and legal fees. Due to the rapid residential development Rob failed to set up the concrete recycling plant. On noticing the current boom in the residential property if Rob takes i...Read More
Just share your requirements and get customized solutions on time.
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
Good work. it was on topic base, understandable and relevant. Help me to achieve great mark. Really appreciate.
got assignment completed on time. I had lot of important information and up to the point.
I was so excited to share my experience. I had Peter help me with assignment. He did and exceptional job that I couldn\'t believe it. I got an A+ PERFECT SCORE! ALL i can say is WOW! THANK YOU.
Excellent work from the teacher. I got excellent marks and Assignment help had given the. assignment in the time.