Calculation of Income Tax Liability Brendan West is a New Zealand tax resident He works full time at Mitre 10 Mega He is also a musician and works part time at the local bar on Fridays and Saturdays Brendan received the following gross amounts during the year ended 31 March 2019 Ref Description Source Amount $ 1 Salary Mitre 10 Mega 58,000 2 Bar income Local bar 15,000 3 Interest ANZ Bank 200 4 Garage sale receipts Various people 1,000 5 Dividends Fletcher Building Ltd 600 6 Tips Various fans 400 7 Board fees School Board of Trustees 980 8 Lotto Powerball winnings LOTTO New Zealand 750 9 Free Holiday voucher Mitre 10 Mega 350 10 Loan Kiwi Bank 14,000 Supplementary Notes the numbers in this section refer to the items in the table above PAYE of $10,420 was deducted by Mitre 10 Mega Brendan worked part time as a musician at the local bar (as an independent contractor) Brendan provided his IRD number to ANZ Bank and RWT was deducted at 30 Brendan had a garage sale to sell items that he did not need This dividend from Fletcher Building Ltd was fully imputed and an appropriate amount of RWT was deducted Brendan received cash tips from his part time work at the local bar Brendan is on the Board of Trustees of the local primary school Withholding tax of $280 was deducted from this amount Brendan won various amounts playing Lotto during the year To recognise 20 years of service, he received a $350 gift voucher from Mitre 10 Mega Brendan took a loan of $14,000 from Kiwibank to renovate his house Brendan made the following payments during the 2019 income year Fees of $750 for preparing his income tax return Loss of income protection insurance premiums $860 Provisional tax $3,800 Costs of transporting musical instruments to local bar where he worked as a musician $2,600 Interest on loan $3,200 Required For the year ended 31 March 2019, calculate Brendans income tax liability and the terminal tax to be paid or tax refund Show step by step working where possible

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Calculation of Income Tax Liability Brendan West is a New Zealand tax resident. He works full time at Mitre 10 Mega. He is also a

Calculation of Income Tax Liability

Brendan West is a New Zealand tax resident. He works full time at Mitre 10 Mega. He is also a musician and works part time at the local bar on Fridays and Saturdays. Brendan received the following gross amounts during the year ended 31 March 2019.

Ref	Description	Source	Amount $

1	Salary	Mitre 10 Mega	58,000
2	Bar income	Local bar	15,000
3	Interest	ANZ Bank	200
4	Garage sale receipts	Various people	1,000
5	Dividends	Fletcher Building Ltd	600
6	Tips	Various fans	400
7	Board fees	School Board of Trustees	980
8	Lotto- Powerball winnings	LOTTO New Zealand	750
9	Free Holiday voucher	Mitre 10 Mega	350
10	Loan	Kiwi Bank	14,000

Supplementary Notes - the numbers in this section refer to the items in the table above.

PAYE of $10,420 was deducted by Mitre 10 Mega.
Brendan worked part time as a musician at the local bar (as an independent contractor).
Brendan provided his IRD number to ANZ Bank and RWT was deducted at 30%.
Brendan had a garage sale to sell items that he did not need.
This dividend from Fletcher Building Ltd was fully imputed and an appropriate amount of RWT was deducted.
Brendan received cash tips from his part time work at the local bar.
Brendan is on the Board of Trustees of the local primary school. Withholding tax of $280 was deducted from this amount.
Brendan won various amounts playing Lotto during the year.
To recognise 20 years of service, he received a $350 gift voucher from Mitre 10 Mega
Brendan took a loan of $14,000 from Kiwibank to renovate his house.

Brendan made the following payments during the 2019 income year:

Fees of $750 for preparing his income tax return;
Loss of income protection insurance premiums $860;
Provisional tax $3,800
Costs of transporting musical instruments to local bar where he worked as a musician $2,600.
Interest on loan $3,200.

Required:

For the year ended 31 March 2019, calculate Brendans income tax liability and the terminal tax to be paid or tax refund. Show step by step working where possible.