Amity Holdings Pty Limited $($Amity$)$ is an Australian resident company that was incorporated

during $2022.$ After purchasing several investments including real estate and shares, in $2023$

Amity commenced business as a golf equipment wholesaler with both Australian and overseas

clients.

Katy Mahon, the Managing Director of Amity, has terminated Kurt Aild, the company$$s

accountant, as she is concerned that there are several errors in the returns prepared. Katy has

provided the following information produced by Kurt:

a$)2023$ Income Tax Return

b$)$ Additional notes accompanying the income tax return including franking account

c$)$ June $2023$ Business Activity Statement $($BAS$)$

d$)$ Additional notes accompanying the BAS

e$)2023$ Fringe Benefits Tax Return

f$)$ Notes and workings accompanying the FBT return

Requirements

Katy has requested that you prepare a statement of advice including:

i$)$ Any necessary corrections to Amity$$s Income Tax Return that impacts taxable income,

income tax liability or the franking account. Each correction should be supported by a brief

explanation and correct referencing from legislation, along with any workings and

calculations.

ii$)$ Any necessary corrections to Amity$$s Fringe Benefits Tax Return that impacts the taxable

value of benefits and fringe benefits tax liability. Each correction should be supported by a

brief explanation and correct referencing from legislation, along with any workings and

calculations.

iii$)$ Any necessary corrections to Amity$$s Business Activity Statement that impacts GST on

sales, GST on purchases and net GST payable. Each correction should be supported by$2$ of $13$

Information statement $-$ To be completed by all companies

$6$ Calculation of total profit or loss

Income

Gross payments subject to foreign resident

withholding $($excluding capital gains$)$

B $$,,590,000*x$

Gross payments where ABN not quoted $A$$$,,,*x$

Other sales of goods and services $C$$$,,,*$

Gross distribution from partnerships $D$$$,,,*\frac{}{?}$

Gross distribution from trusts $E$$$,,,*{|}^{\text{C}\text{O}\text{D}\text{E}\text{.}}$

Forestry managed investment scheme income $x$$$,,,*$

Gross interest $F$$$,,,*$

Gross rent and other leasing and hiring income $G$$$,,,*$

Total dividends $H$ $ $,,23,0,0,0*$

Fringe benefit employee contributions I $$,,,*$

$\{\begin{array}{ccc}\text{:}[& \text{U}\text{n}\text{r}\text{e}\text{a}\text{l}\text{i}\text{s}\text{e}\text{d}\text{g}\text{a}\text{i}\text{n}\text{s}on\text{r}\text{e}\text{v}\text{a}\text{l}\text{u}\text{a}\text{t}\text{i}\text{o}\text{n}& ]\\ & of\text{a}\text{s}\text{s}\text{e}\text{t}\text{s}to\text{f}\text{a}\text{i}\text{r}\text{v}\text{a}\text{l}\text{u}\text{e}& \end{array}$$$,,,*$

Other gross income $R$$$,,135,0,00*\frac{}{}$

Total income $S$$$,,,8,08,0,0.1$

$6$ Calculation of total profit or loss $-$ continued

Expenses