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Lou's Tax Return Calculation

   

Added on  2020-02-05

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INDIVIDUAL TAX
Lou's Tax Return Calculation_1

Table of ContentsDiscuss whether the four deposits are assessable income or otherwise, using Sectional references fromthe I.T.A.A. or other reference.................................................................................................................3REFERENCES............................................................................................................................................7
Lou's Tax Return Calculation_2

Discuss whether the four deposits are assessable income or otherwise, using Sectional references from the I.T.A.A. or other referenceTour deposits are assessable income because as per the Australian taxation regulations, allthe income that an entity derive from the ordinary course of business are considered as an taxableincome and will be the taxed by the statutory bodies at applicable rates. Thus, as per Income TaxAssessment Act, 1997, section 6.5m, assessable incomes comprises income which is generated inthe ordinary concept for a given accounting year. Thus, according to the legislation, the incomewhich Lou has received for the Environment Tour will be included in the assessable income. Inthe given case, Lou has received advance deposits from the four consumers at 1000 each for thetour in 2017/18. Although the amount is refundable, still, it will be included in the current year'sincome and in future, if the trip is not launched then such amount will be deductible in that yearbut currently, it is included in the assessable income. ToTax agentDate: 17th May 2017Sub: description about net tax payableThis is to inform that taxable income of Lou tide for the year 2016/2017 is 56859.44 charged on thetotal income earned by Mr Lou tide in a financial year 2016. It can be seen that income earned by MrLou tide is higher and he also gets deductions from its income of 12052 that reduces its income andgenerated a tax of 56859.44*30% that it generated a tax amount of 17057.832. The working notes of allthe taxable income of Lou is given as below.SincerelyLou tideWorkings3Employer LumpsumsLump sum A (Total tax withheld shown in the payment summary): $3800Lump sum B: $800Lump Sum D (Redundancy from the Bottlemart): $44,000
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