Letter of Advice on Tax Filing and Deductions for Jinal Shah

The assignment comprises a detailed advisory letter from Tax Accountants to Jinal Shah dated 15-01-2018. It outlines the requirements set by the Australian Taxation Office concerning income reporting from both domestic and international sources and emphasizes balancing income against expenses to stabilize tax obligations. The letter addresses issues found in Jinal Shah's tax return, such as reported losses due to higher expenses than income generated from salaries and investments, advising on eliminating unnecessary transactions to minimize these losses. It highlights the eligibility for franking credits on dividends income from shares held in companies like BHP, CBA, COH, alongside allowable deductions including work-related car expenses, loan interest, donations, and superannuation contributions under ITAA 1997 Section 8-1. Furthermore, it discusses the reportable value of private superannuation contributions and their impact on reducing tax liabilities, as well as entitlements for health protection plan premium payments. The letter aims to assist Jinal Shah in assessing and determining his current tax liability and taxable status effectively.

Running head: LETTER OF ADVICE
Letter of Advice:
To JINAL SHAH
From Tax Accountants
Dt: 15-01-2018
According to the Australian Taxation Office an individual is required to include the
amount derived during the accounting year from both the Australian sources and the overseas
sources. In important considerations in this regard is that a person paying tax is required to
enhance their financial conditions by creating a balance between the income generated and
the expenses occurred so that the person would be able to stabilize the overall value of tax
that is applicable on the individual.
At the time of filing the tax return of Jinal Shah it is found that you have reported loss
that is arising out of the greater amount of expenses reported by you in respect of the come
that is generated from the salaries and investments. I would further like to bring into your
notice that the there is a higher amount of loss suffered by you and as a result of this the total
amount of deductions reported by you would not be eligible for claiming an allowable
deduction. As the matter of suggestion you are therefore advised to eliminate the unnecessary
transactions in an attempt to minimize the loss.
Additionally, it has been noticed that you have reported the dividends income in the
form of shares that is held in BHP, CBA, COH etc and as a result of this you will be entitled
to franking credits for each of components of shares held by you. On the other hand, you
have reported an work related car expenses that amounts to $9,533. The interest on loan
reported by you would be considered as allowable deductions along with the donations and
gifts that is made by you. It has been reported that you have reported a expenses related to

Running head: LETTER OF ADVICE
donations made in charity institutions that will be regarded as the allowable deductions and
would ultimately help you in reducing your tax liabilities.
I would further like to inform you that the reportable value of the superannuation
contribution that is made by you is standing at $10000. An important assertion in respect to
the superannuation contribution provided to you by your employer would be included in the
taxable amount at the time of filing the taxable return during the assessment year. The private
contribution made in regard to the superannuation contribution fund will be regarded as the
allowable deductions which would ultimately help in reducing your tax liability under section
8-1 of the ITAA 1997. Considerably you would also be entitled for claiming the allowable
deductions for the amount of premium paid in respect of the health protection plan. I hope
that the above stated advice and suggestion has helped you in determining the tax liability
along with the present taxable status.
Thank You
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