Taxation Law - Assignment PDF

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

TAXATION LAW1
Contents
Answer 1:.........................................................................................................................................2
Answer 2:.........................................................................................................................................6
References:....................................................................................................................................13

TAXATION LAW2
Answer 1:
Calculation of tax liability of John:
Calculation of tax liability of John
Particulars Amount ($) Amount
($)
Taxable receipts:
Professional accounting fees received 100,000.00
Sales 25,000.00
Exempt income -
Dividend (7000 x 50%) 3,500.00
Interest received from Singapore company (9000 +1000) 10,000.00
Gross salary from part time lecturing at CPA (26000 + 4000) 30,000.00
Refund of medical expenses is exempt -
Rental income 10,000.00
178,500.
00
Less: deductible expenses and other deductions
Office rent deductible under s8-1 of ITAA 1997 14,000.00
Relevant cost for Do it superannuation guide (20000+10000-
13000)
17,000.00
Legal expenses for recovering accounting fee is allowed as per s8-1
of ITAA 1997
5,000.00
Salary to employee allowed as per s8-1 of ITAA 1997 30,000.00
Depreciation on Laptop (800 x 40%) 320.0
0
Tax fees of tax agent allowed as per s8-1 of ITAA 1997 1,000.00
Borrowing expenses allowed as per s8-1 of ITAA 1997 3,000.00
Interest paid on loan for acquiring investment property is allowed
as deduction
20,000.00
Painting cost of investment property allowed as per s8-1 of ITAA
1997
5,000.00
Roof tiles replacement costs 1,000.00
Legal expenses for lease on investment property 5,000.00
Maintenance of John's invalid father 5,000.00
Rates on Family home (1000 x 10%) 100.0
0
Electricity on family home (1000 x 10%) 100.0
0
106,520.