Taxation Assignment Report
Added on 2020-07-23
8 Pages2017 Words42 Views
TAXATION
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11. Calculating the partnership income and taxable incomes of partners................................12. Measuring tax payable for Mary........................................................................................3CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
INTRODUCTIONIn the present assessment there will be measurement based on partnership income as wellas individual income. There will be exemptions over the income or earning generated by them aswell as taxes to be levied in accordance with taxation slab provided by ATO. In the present casestudy, Mary Burns and Sally Brown are the two partners who has started a partnershiporganisation namely The Two B's. Hence, there will be calculations based on various income orexpenses generated by them in assessable year. Thus, personal income of Mary Burns will alsobe calculated on the basis of transactions made by her in the financial year.1. Calculating the partnership income and taxable incomes of partnersMeasurement will be on the basis of both Australia resident partners Mary and Sally.There will be calculations over the partnership and the turnover made by them. Hence, it will betaxable in accordance with Australian taxation laws (Yeung and et.al., 2017). They will beawarded with the various exemptions over such expenses of income on which they can easilyclaim deductions in tax returns. The income statement of the firm is as follows:Income statement of The Two B'sPARTICULARSMary BurnsSally BrownGross Trading Receipts950000950000COGS (i)317000317000GROSS PROFIT633000633000OTHER INCOMESale of shares1000010000Cash on dividends BHP52505250Interest on bank of china55005500TOTAL INCOME2075020750EXPENSESsalary to marry40000Salary to employees125000125000Rent and power3000030000superannuation to staff4275042750superannuation to partners2500025000purchase of car120000interest on bank overdraft9311.59311.5Provision for long service leave (ii)6238.56238.5Provision for bad debts (iii)15075.515075.5Total expense413375.5253375.5Earning before tax240374.5400374.5Less: Tax45671.155130121.7125Add: surcharged amount18200370001
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