HI6028 Taxation Idea, Observe & Regulation
T3 2018 Explicit particular person Undertaking
Due date: Week 10
Most marks: 20 (20%) Most phrase prohibit – 1500 phrases.
This job is to be submitted by the due date in soft-copy solely (Safe assign – Blackboard).
The duty is to be submitted in accordance with analysis protection stated throughout the Matter Outline and Pupil Handbook.
It is the accountability of the student submitting the work to ensure that the work is in precise truth his/her private work. Ensure that when incorporating the works of others into your submission that it is appropriately acknowledged.
Question 1 (15 marks)
Daniel and Olivia Smith perform a mixed enterprise generally known as Brekkie and Lunch and OZ Bottle Retailer at 50 York Street Sydney. They go to you as a approach to put collectively their 2017 partnership tax return. All through your first meeting they give you their cash receipts and cash funds journals, their enterprise monetary establishment statements and a file comprise all their enterprise invoices and receipts referring to the transactions of their e book. Particulars of the transactions are as follows:
Enterprise Product sales (Cash) 150,170
Debtors cash funds 32,800
Car payments three,310
Electrical vitality bill 1,470
Council expenses 517
Enterprise insurance coverage protection 1,250
Cell funds 704
Union expenses 284 Account prices ( ANZ Monetary establishment) 595
Restore payments 1,490
Mortgage reimbursement eight,500
Drawings 6,000 Purchase of mounted Asset 3500
Cash Purchases 31,155
Reimbursement to Credit score 128,678
After cautious consideration of the working papers from last yr’s return, you establish:
Debtors at 1st July 2016 three,925
Debtors at 30th June 2017 three,zero10
Collectors at 1st July 2016 6,500
Collectors at 30th June 2017 7,zero10
Stock available 1st July 2016 9,120
Stock available 30th June 2017 9,750
ii. A number of of the collectors have been paid straight from the cash receipts account. Whole, $31,155 of stock was purchased on this system. Furthermore, $5,600 in cash has been used for private capabilities.
iii. The home homeowners have taken $three,200 from Bottle Retailer devices for private use.
iv. There was a $three,000 low cost throughout the mortgage reimbursement, as this was the mortgage principal. The enterprise mortgage reimbursement was $eight,500.
v. The enterprise has two autos: a van used 90% for enterprise capabilities and a SUV used 60% for enterprise capabilities. The worth of sustaining the van was $1,260 and the SUV $2,zero50.
vi. Repairs and maintenance payments are as follows:
1st October 2016- air-condition arrange 1,200
1st December 2016- retailer painting 150
1st April 2017- fridge motor substitute 140
vii. Asset purchases are as follows:
1st August 2016- new restaurant freezer $three,500
A trade-in of $500 was permitted on the earlier unit
viii. The depreciation schedule as at 30th June 2017:
Value $ Adjusted price $
Restaurant freezer eight,000 1,480
Restaurant refrigeration 14,600 three,580 Retailer fittings development 7,800 2,965 kitchen electrical house gear three,900 754
Car – Van 16,500 1,550
Car – SUV 42,200 10,350
The complete above talked about enterprise belongings of Brekkie and Lunch and OZ Bottle Retailer have been purchased sooner than 27 February 1992 and Daniel and Olivia Smith have chosen to utilize the depreciation expenses revealed by the ATO. Any new belongings might have a useful lifetime of 10 years and the Daniel and Olivia’s partnership enterprise will use diminishing price approach to depreciate their enterprise depreciable belongings.
ix. Daniel and Olivia keep on the enterprise properties, nonetheless 90% of mobile funds, 80% of electrical vitality payments and 60% of council expenses relate to the Brekkie and Lunch and OZ Bottle Retailer. The insurance coverage protection premium paid is completely related to their enterprise. Daniel and Olivia have a separate insurance coverage protection for his or her non-public gadgets.
From the information supplied, put collectively the working papers and resolve the net income for the partnership for the yr ended 30 June 2017.
Question 2 (5 marks)
John is a senior govt with a printing agency. As part of his remuneration bundle his employer pays for his child’s college expenses at a private college costing $15,000. His employer moreover offers him with lodging in a Sydney home all by the FBT yr. John ought to pay $100 of lease per week for the home. The market price lease for the home is $800 per week.
Advise John’s employer of the FBT penalties of John’s remuneration bundle.