Individual Tax Advice Letter and Return - ACC00132 Assignment 2

This document presents a tax advice letter prepared as part of an individual assignment. The letter provides advice on an individual's tax liability for the year 2017-18, considering the individual's tax residency in Australia. The analysis includes details on taxable income, tax implications, and tax planning strategies. The assessment covers various aspects, including vehicle expenses, mobile expenses, travel allowance, dividends, capital gains, depreciable assets, deductible expenses like borrowing expenses, insurance policy, and fees to accountant. The letter also addresses non-deductible expenses. The tax implication for the captioned year stands at AUD 41327/- and the amount payable stands at AUD 8557/-. The analysis also includes disclaimer stating that the views are expressed based on details provided and in term of law applicable for the captioned person. The assignment requires preparation of workpapers, calculation of taxable income, and income tax payable and preparation of an individual tax return.

ACC00132-2018-2 INDIVIDUAL ASSIGNMENT 2
To,
Ms. Garima Singh,
Australia.
Sub: Advice on taxation matter.
Sir,
Hope you are doing well and it has been a great honour to be associated with you and be a
part of your tax planning and I wish that association shall continue for ever.
This letter seeks to address you tax liability for the year and advised with respect to tax
planning.
In this regard, you have provided us with various details for computing your taxable income
and tax liability for 2017-18. It has been evidently clear that you are tax resident of Australia
for the captioned year. The details provided have been analysed from our end with respect to
deductibility, taxability and exemption if any.
The tax implication for the captioned year stands at AUD 41327/- and the amount payable
stands at AUD 8557/- . The details of the same have been annexed herewith for your
reference.
Our Tax analysis is here-in-under:
(a)For the captioned year, during our analysis we understood that you have not been
maintaining logbook on account of which it was not possible to claim 80% of the
expenditure incurred for vehicle used for official and the same was restricted to 66 cents
for 5000 KM under alternative method.
(b)For mobile expense, the expenditure pertaining to purchase of mobile belonged to
previous year and the same cannot be claimed.
(c)For travel allowance, since your daughter went with you the same has been considered at
50%.As only official expenditure is allowed under Australian tax Act,
(d)The term Gross pay symbolise enclosing all i.e. Travel allowance and Reportable
Superannuation contribution.
(e)For dividend, it has been believed that 28-03-0218 dividend has not received by you as
you have disposed your holdings before. Further, the dividends are franked and the credits
of the same have been taken at the end @ 30% . i.e Company Tax rate.

(f) Since the share have been held under both the case for more than 1 year benefit of
discounting method shall be available;
(g)For expenses incurred with the purchase of property , the same shall not be allowed as
expenditure rather they shall form a part of cost base at the disposition of property;
(h)Stove and Carpet has been considered as depreciable asset;
(i) Borrowing expense and interest has been immediately deducted;’
(j) Purchase of conventional clothing falls under conventional clothing. Hence, not
deductible.
(k)Donation to RSL Art Union prize Home is not deductible;
(l) Fees to accountant is deductible
(m) Insurance policy taken for loss of income is deductible;
(n)Medicare levy surcharge shall be applicable @1.25% as no private insurance taken.
Regards,
Disclaimer: The above views are expressed based on details provided and in term of law
applicable for the captioned person. The same shall change with change in circumstance and
law. Further, it shall be useful only for the person it is intended to.