Question
Akari is a chef. He resides in Brisbane. Akira is also an equal partner in a partnership with his brother Riko. The partnership bakes gourmet
Akari is a chef. He resides in Brisbane. Akira is also an equal partner in a partnership with his brother Riko. The partnership bakes gourmet cakes to sell at local markets.
Akari provides you with the following information:
Information on Akari's 2021 PAYG Payment Summary for his employer:
- Gross income: $151,000
- PAYG withholding deductions: $8,000
- Reportable fringe benefits: $40,000
Information from the partnership for the 2021 income tax year:
Gross receipts from trading: $100,000
- Purchase of trading stock: $50,000
- Partners salaries
- Akari: $20,000
- Riko: $10,000
- Interest on cash advance made to the partnership by Akari: $1,000
- Trading stock on hand at 1 July 2020; $10,000
- Trading stock on hand at 30 June 2021: $20,000
Other information
- Akari made donations to the Animal Welfare League of $1,000 in September 2020.
- On 1 January 2021, Akari received a dividend from a listed public company (not a base rate entity). The accompanying dividend statement disclosed the following information:
- Franked amount: $450
- Unfranked amount: $20
- Imputation amount: $100
- Akari was covered by private health insurance for the entire 2021 income tax year.
- Akari also has his invalid mother, Mei, living with him and supports her throughout the income year. In the 2021 income tax year, Mei receives a disability support pension, and has an adjusted taxable income of $1,000.
Required: Calculate Akari's taxable income and net tax payable for the 2021 income tax year. You can assume, for the purposes of this question, that the partnership is not a small business entity.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started