Question

QUESTION 2 (10 MARKS) Anushka (an Australian Tax resident) works as an employee for a child care centre, Brilliant Kids Pty Ltd, on a permanent part-time basis while she runs her business as a day carer for her own customers. Meanwhile, she invested some of her extra cash in some shares on the ASX and in an Australian private company. Listed below is the summary of her earnings for the year ended 30 June 2020. Particulars Net Salary Received from Brilliant Kids for the year (Tax paid by company to ATO during the year is $29,000) $ 81,000 Net Business Profit as a sole trader (Day Carer) 30,000 Allowable Deductions on Employment (Uniforms, Laundry, Shoes) 5,000 Fully Franked Dividend Unfranked Dividend from a private company 7,000 1 200

TAXATION LAW- AUSTRALIA

Answer 1

(Pgnoir ( solutioni Now here , from given that, And here Anushka tax returns for the year ended June 2020. 30th Then, Gooss salary - net received t PAYG without holding 81.000 +29,100 both .. In this Case we need Gross salooy. = 110,000 And for the fully foanked dividends, we must include the amount for dividends plus toanking coedits. . Franked dividende = 7000 and Franking Credits = 30% of the dividends. to calculate the franking Credit. And In, $7000 Chere already the 30% has been deducted). For that, Pranking Goedit = ($7,000 =(1-0.39)- $7,000 - [$7,000 0.7] - $7000 . - [ $10,000] - $ 7000 Franking Coedit = $ 3000. (

Ipgnoir (2 Then we get, Taxable amount ist Item 30,000 142,200 137,200 amount Gooss Salary 110,000 Net business Profit Fully Franked dividends & Franking Credit 1000 Un foranked dividende 1.800 Total Deductiong? Deduction on Employment Contang, Layn doy, Shoe ) -5,000 Taxable income Then, Tax vale 2019/2020 $ 90,001 - $180,000 $ 20,297 +37% for over $ 90,000 , Tax liability. $20,797 +37%X 47000 $38,261 will not be able to offest the fully franked dividends since the foanking Credit rate (307) does not exceed the Anushka's tax rate for year 2019/2020 we will deduct the PAYG with holding of $29000 Tax payble will be $ 38261 -$29,000 $ 9,26). . amounts And Here we and how ever