Taxation

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

1TAXATION
Table of Contents
Letter of Advice:........................................................................................................................2
Work Papers:..............................................................................................................................4
Work Related Income and Deductions:.................................................................................4
Capital gains:..........................................................................................................................5
Rental Property:.....................................................................................................................6
Income and Deduction from Other Sources:..........................................................................6
Tax Payable, Offsets and Levies:...........................................................................................7
References:.................................................................................................................................8

2TAXATION
Letter of Advice:
To Salil
From Tax Advisors
Date: 9th January 2019
Dear Salil
We would like to draw your kind attention towards our noteworthy advice that relates
to the information that is furnished by you during the year ended 30th June 2018. To simple
the matters, you reported a gross salary of $140,000 and tax withheld of $42,232. With
respect to the section 6 of the ITAA 1936 the gross salary represents income from personal
exertion that is received you in capacity of employee. Therefore, they gross salary of
$140,000 has been held as income based on the ordinary concepts of “section 6-5, ITAA
1997”. Whereas your tax withheld would be subjected to income tax offset from your net tax
payable amount to reduce your tax liability.
Your also reported a personal superannuation contribution during the year. Therefore,
you can claim an allowable deduction for the superannuation contribution made you
personally as the same helps in providing a true reflex of your income. During the year you
reported capital gains from the sale of BHP shares. However, we would like to notify you that
the sales proceeds obtained from the sale of BHP shares is held as pre-CGT asset because the
shares were acquired before 20 September 1985 and hence it is not included for assessment.
You also reported the sale of MYR shares but the sales proceed yielded capital loss. A
recommendation can be provided in this regard is that you can balance your income against
the expenditure as this would not only help in enhancing your financial position but would
also allow you greater savings.