Taxation Law: Letter of Advice and Work Papers

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:..............................................................................................................................4
Work Related Income and Deductions:.................................................................................4
Capital gains:..........................................................................................................................5
Rental Property:.....................................................................................................................5
Other deductions:...................................................................................................................6
Tax Payable, Offsets and Levies:...........................................................................................6
References:.................................................................................................................................8

2TAXATION LAW
Letter of Advice
To Samudra
From Tax Consultant
Date: 14-09-2018
Dear Samudra
We wish to seek your attention towards our tax related advice based on the
transactions that has been furnished by you during the accounting year. We would like to
inform you that the amount of gross salary that is reported by you will be subjected to
assessment as ordinary income under “section 6-5 of the ITAA 1997”. A recommendation
can be made in this regard to enhance your financial position by creating balance for your
income and expenses. As per the information furnished by you we noticed that you reported
the superannuation contribution of $15,000. The superannuation contribution will reflect in
your taxable income. You also made personal superannuation contribution of $4,100
therefore, the amount will be held as permissible deductions.
We found that you incurred a vehicle running expense out which 82% of the expenses
were incurred for business purpose. We recommend you that, you can claim an allowable
deduction for the vehicle expense under “section 8-1, ITAA 1997” from your tax liability.
We noticed that you earned rental income for the month of May and June. The
expenses were mainly incurred on council rates, lease, insurance etc for your rental property.
These expenses were incurred in derivation of your rental income therefore you can claim
allowable deduction under “section 8-1, ITAA 1997”. While you incurred expenses on
interest on loan for the month of April, May and June. You will only be allowed to claim