Question

question

Alina recently inherited a large block of land from her uncle. she built a house on the land and subsequently sold the house and the land for $900000. Alina received advice on the tax consequences of the sale from her accountant who is a registered tax agent;. the accountant fees for the year were $1800. the fees related to the lodgement of Alina income tax return $500 and the advice regarding the sale $1300 advise Alina as to whether the $1800 paid to her accountant is deductible for income tax purpose.

the question

in year 1, beta pty ltd has $600000nof assessable income and $1000000 of deductions. in year 2 beta has $300000n of exempt income $200000 of assessable income and $ 500000n of deductions in year 3, beta has $500000 of assessable income $200000 of exempt income and $200000 of deductions

question

rani is an Australian resident for tax purposes she has an assessable income of $50000. she has a deduction of $10000 and franking credit tax offsets of $300 what is rani tax payable for the 2018-19 income year.

question

acme pty ltd has determined that its assessable income for the year is $100000 and it has deductions of $30000. what is acme tax payable for the 2018-19 income yeat? assume that acme turnover is in excess of $50 million.

question

Jacqueline is an Australian resident for income tax purposes. she has been provided with a receipt for an expense in the amount of $1000. this expense will constitute a deduction. how the tax will Jacqueline save for the 2018-19 income year as a result of the deduction?

question

Fred an executive of a British corporation specializing in management consultancy comes to Australia to set up a branch of his company although the length of his stay is not certain, he leases a residence in Melbourne for 12 months. his wife accompanies him on the trip but his teenage sons having just commenced college stay in London Fred rent out the family home. apart from the absence of his children, Fred's daily behavior is relatively similar to his behavior before entering Australia . as well as the rent on the UK property Fred earns interest from investments he has in France. because of il health Fred returns to the UK 11 months after arriving in Australia. discuss residency and source issues.

question

Ajay is a student from India who comes to Australia to study for a four. year bachelor's degree in business. Ajay lives in rental accommodation near the university with fellow student and works part-time at the university social club as a barman. after six months he has to withdraw from his studies and return to India because his father is ill. is Ajay considered a resident of Australia?

Answer 1

1. $ 1800 paid to the accountant is deductible as an expense for income tax purposes.
2. Rani Tax liability is

Taxable Income = $ 50000 - $ 10000 = $ 40000

Tax = 3572+ 975 = 4547 – 300 = $ 4257

Tax liability = $ 4257

3. Acme ply LTD Tax Liability @30% as turnover exceeds $ 50 million

Taxable Income = $ 70000 , Tax Liability = $ 21000

4. Jacqueline can claim $ 1000 as deduction and lower taxable income .
5. To become a resident in Australia, the person stays should be at least 1 2 months, hence in the current case the stay for 11 months. Hence not a permanent resident.
6. The stay of Ajay is less than 12 months, hence not a resident of Australia.