Taxation Law: Letter of Advice, Work Papers, Income, Deductions, and Tax Liability

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION LAW
Table of Contents
Letter of Advice:........................................................................................................................2
Work Papers:..............................................................................................................................3
Work Related Income and Deductions:.................................................................................3
Work related Car Expenses:...................................................................................................4
Capital Gains:.........................................................................................................................4
Income and Deduction from Other Sources:..........................................................................6
Tax Payable, Offsets and Levies:...........................................................................................7
References:.................................................................................................................................8

2TAXATION LAW
Letter of Advice:
To Arslan
From Tax Advisors
Date: 31st January 2019
Dear Arslan
We would like to draw your kind attention towards our letter of advice that seeks to
advice you matters related to your taxation and permissible deduction which you can claim
while filing tax return. The gross salary that you have reported amounting to $140,000 will
attract tax liability as your income from personal exertion within the ordinary concepts of
“section 6-5, ITAA 1997”. Though, the withheld tax from your salary income can used for
claiming an income tax deduction as this will help in reducing your tax liability.
The additional superannuation contribution and the mobile phone bill that is paid by
your employee will be considered as non-taxable under “section 23L, ITAA 1936”. Your
assessable income also includes the dividends that is received from CBA, COH, TLS, FLT
and Digital Feet Pty Ltd. Therefore, with reference to “section 44, ITAA 1936” these
amounts are included for assessment purpose because they amounted to statutory income.
Your dividend also included franking credit and these amounts are taxable under “section
207-20 (11), ITAA 1997” however, an income tax deduction can be claimed for reducing
your tax liability.
After the death of your father the shares were inherited by you on 1st December 2017.
Out of the share portfolio you sold the BHP shares and MYR which you inherited. The shares
were held by you for less than 12 months and as result you are not be eligible for the
discounted method. The sale of MYR shares led to loss. A recommendation in this matter can