TAX305 Taxation Law Assignment Sample
Here’s the best sample of TAX305 Taxation Law Assignment, written by the expert.
Calculation of the Net Partnership Income for the Partnership
| Income statement | ||
| Particular | Amount | Amount |
| Gross trading receipts | 19,00,000 | |
| Capital gain from sale of shares | 20000 | |
| Cash dividend from BHP | 10,500 | |
| Interest income from Bank of China | 11,250 | |
| withheld AUD $1,250 from the gross interest | 1250 | 10,000 |
| Total income | 19,40,500 | |
| EXPENSES | ||
| Salary to Mary | 40,000 | |
| Interest on loan of funds by Mary | 10,000 | |
| Salaries paid to employees | 2,50,000 | |
| Rent and power | 60,000 | |
| Purchase of trading stock (see note (v) below) | 3,20,000 | |
| Loss on trading stock | 130000 | |
| Superannuation to staff | 85,500 | |
| Superannuation paid on behalf of Mary | 25,000 | |
| Superannuation paid on behalf of Sally | 25,000 | |
| Purchase of treadmill and exercise bikes (see note (vii) below) | 1,80,000 | |
| Add: GST | 18000 | |
| Interest on bank overdraft | 18,623 | 1,98,000 |
| 18,623 | ||
| Provision for long service leave (see note (viii) below) | 25,984 | |
| Less: Long service leave | 13057 | |
| provision for bed dept | 67,000 | 12,927 |
| Less: bed debts | 36849 | |
| 30,151 | ||
| Total expenses | 12,05,201 | |
| Profit | 7,35,299 | |
| Profit of Mary Burns | 367649.5 | |
| Profit of Sally Brown | 367649.5 | |
Calculation of the Tax Payable for Mary
| Mary Burns’s Income Account | ||||
| Particular | Mary Burns | Particular | Mary Burns | |
| Train fares for travel to and from work | 1200 | |||
| Rates on family home | 2200 | Dividends received | 7000 | |
| Electricity for family home | 900 | Gross salary | 30000 | |
| Tax agent’s fees for preparing tax return for Mary | 3000 | Rental Income | 10000 | |
| Gross medical expenses for Mary | 5000 | Interest income | 5000 | |
| Rates paid on abovementioned investment property | 2000 | Refunds from Government Medicare | 2000 | |
| Interest paid on loan to acquire the investment property | 15000 | Salary | 40000 | |
| Cost of painting the investment property | 5000 | Superannuation | 25000 | |
| Cost of replacing roof tiles on the investment property | 1000 | Profit of Mary Burns | 367649.5 | |
| Cost of extending the bathroom in the investment property | 15000 | |||
| Interest of loan of fund | 10000 | |||
| Taxable Income | 426349.5 | |||
| 486649.5 | 486649.5 | |||
Mary earned $486650 as the net income in the financial year after the paying all the expenses. According to Australian taxation office, a person who earns $180001 and above, it is liable for pay $54232 plus 45c for each $1 over $180000.
References
Barkoczy, S. (2016). Foundations of Taxation Law 2016. OUP Catalogue.
Cao, L., Hosking, A., Kouparitsas, M., Mullaly, D., Rimmer, X., Shi, Q., … & Wende, S. (2015). Understanding the economy-wide efficiency and incidence of major Australian taxes. Treasury WP, 1.
________________________________________________________________________________
Know more about UniqueSubmission’s other writing services:
