Taxation Law - Assignment PDF

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

TAXATION LAW1
Table of Contents
Letter of Advice:........................................................................................................................2
Work Papers:..............................................................................................................................3
Work Related Income and Deductions:.................................................................................3
Work related Car Expenses:...................................................................................................4
Capital Gains:.........................................................................................................................4
Rental Property:.....................................................................................................................4
Depreciation Worksheet:........................................................................................................5
Income and Deduction from Other Sources:..........................................................................5
Tax Payable, Offsets and Levies:...........................................................................................6
References:.................................................................................................................................7

TAXATION LAW2
Letter of Advice:
To Sworup
From Tax Advisors
Date: 27th January 2019
Dear Sworup
The letter seeks to address your taxable earnings and allowable deductions made by
you during the year of taxation. We would like to inform you that your gross salary of
$140,000 is included for assessment based on the ordinary concepts of “section 6-5, ITAA
1997”. However, the amount that is withheld from your salary can be claimed as income tax
deduction for reducing your tax liability.
The superannuation contribution and mobile phone paid by your employer is a non-
assessable under section 23L, ITAA 1936. The dividends received form the CBA, COH,
TLS, FLT and Digital Feet Pty Ltd is included for assessment as statutory income under
section “section 44, ITAA 1936” while the franking credits related to franked dividend is
also assessable income under “section 207-20 (11), ITAA 1997” but you can claim tax offset
to reduce your tax liability.
Following the demise of your father you inherited the shares on 1st December 2017.
The inherit shares of BHP were sold at $25.63 on 5th January 2018. This is less than 12
months and discounted method is not applicable to the CGT event under “section 115-40,
ITAA 1997”. However, the sales proceeds from MYR shares resulted loss. It is
recommended that you can offset the loss against the capital gains derived from BHP shares.
You have rented your property to your daughter and as per the ATO you are advised
to charge rent on the basis of the general commercial rate. The rental expenses incurred by