logo

Taxation Law Assignment on Deduction

   

Added on  2020-05-16

9 Pages2090 Words62 Views
 | 
 | 
 | 
Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
Taxation Law Assignment on Deduction_1

TAXATION LAW1Table of ContentsAnswer to question 1:.................................................................................................................2Answer to Question 2:................................................................................................................3Answer to question 3:.................................................................................................................4Answer to question 4:.................................................................................................................4Answer to question 5:.................................................................................................................5Answer to question 6:.................................................................................................................6Reference List:...........................................................................................................................7
Taxation Law Assignment on Deduction_2

TAXATION LAW2Answer to question 1: The current study is based on the determination of the income tax liability for Dr Jeanarising from the transactions reported for the year 2017. According to section 6-5 of theITAA 1997 an individual assessable income includes the income in respect of the ordinaryconcepts that is known as ordinary income. As evident the receipt of cash from the patientswould be considered assessable for Jean it is directly derived from the Australian sourcesduring the income year. Additionally, it is noticed that Jean received a reimbursement frommedibank of $50,000. According to the Australian taxation office if the reimbursement iscovered by FBT then the amount would not be considered assessable. As held in the case of“R v Davis (1978)” an allowance generally consists of any payment made for carrying outthe liability to account (Woellner et al. 2016). The amount of reimbursement is not a fringebenefit for Jean and these amount will be included in assessable income. Computation of Taxable Income of JeanFor the year ended 2016/17ParticularsAmount ($)Amount ($)Assessable IncomeCash received from Patients400000Reimbursements from Medibank50000Total Assessable Income450000Allowable Deductions Salaries paid to casual staff75000Salary paid to nurse60000Other expenses55000Total Allowable Expenses190000Total taxable income 260000Tax on taxable income90232Add: Medicare levy5200Total tax payable95432According to the Australian taxation office an individual can claim allowabledeductions for most of the expenditure that is incurred in running the business (Barkoczy
Taxation Law Assignment on Deduction_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Taxation Law Report Question Answer 2022
|12
|2800
|21

Taxation Law: Letter of Advice and Work Papers
|9
|1242
|453

Taxation Law
|6
|626
|70

Assignment on Taxation Law (Doc)
|11
|1671
|31

Taxation Law - Assignment PDF
|10
|1477
|25

Taxation Law Name of the University Authors
|11
|1743
|145