Question

Answer the following multiple choice questions by selecting the most appropriate answer in each case. 1.1 Based on the following information, what is the tax liability of a single, resident taxpayer for the 2017-2018 income year:  Gross salary from employment, $50,000.  PAYG withheld from gross salary by employer, $8,000.  Interest received from a bank savings account, $450.  The taxpayer has sufficient private patient hospital insurance.  The taxpayer is 29 years old.

a. $8,000.00 refund b. $709.00 tax payable c. $952.25 tax payable d. $56.75 refund

1.2 Hamilton is single and a resident taxpayer. During the 2017-2018 income year, he earns royalties of $6,000 from a source in the United Arab Emirates. Assuming there is no tax treaty between Australia and the United Arab Emirates and that royalties are not taxed in the United Arab Emirates:

a. Hamilton will not be liable for tax on the royalties since it has a source outside of Australia.

b. Hamilton will be eligible to claim a foreign income tax offset for the royalties, against his taxes payable in Australia.

c. Hamilton will include the royalties in his taxable income in Australia.

d. Since there is no tax treaty between Australia and the United Arab Emirates, Hamilton will only have to declare the royalties to the tax authorities in the United Arab Emirates.

Also need the cauculation process thank u

Answer 1

1.1 ANSWER:

a. $ 8000 REFUND

RESIDENT SINGLE TAX PAYERS PARTICULARS GROSS SALARY INTEREST INCOME TOTAL 50000 450 50450 LESS: STANDARD DEDUCTION 12000 NET TAXABLE INCOME 38450 A) TAX FOR INCOME LESS THEN $38600 0 B) WITHHELD AMOUNT $8,000 C) REFUND (A-B) $8,000

1.2 ANSWER

c. Hamilton will include the royalties in his taxable income in Australia.