Chiara, the influencer Chiara is an Australian tax resident who runs her own business as a professional influencer. During the income year ended $30$ June $2024,$ Chiara sold two assets: Asset Description Purchase details Sale details Other information $1$ Converted school bus $($with Chiara$$s image and brand all over it$)1$ July $2022$ for $$68,00030$ June $2024$ for $$80,000($to a keen fan$)$ Chiara$$s logbook shows an $80\%$ business use for the bus $($consistently across her ownership period$)$ as she used it to travel to professional speaking engagements. $$ Chiara claimed a tax deduction of $$54,400$ for the bus using the temporary fully expensing measures for the income year ended $30$ June $2023.2$ Wildflower Cottage $($a residential house and land$)1$ July $2015$ for $$780,00030$ June $2024$ for $$1,900,000$ Chiara used Wildflower Cottage as her main residence from $1$ July $201530$ June $2019,$ and from $1$ January $2023$ to the date of sale. $$ Chiara rented out Wildflower Cottage on $1$ July $2019($its market value at the time was $$1,250,000)$ until $31$ December $2022,$ as during this time Chiara lived with her sister, Elise. Elise, the Olympic athlete Chiara$$s sister, Elise, is a famous cyclist who represented Australia at the Olympic games. Elise is an Australian tax resident, and she prepares and lodges her own tax returns. During the income year ended $30$ June $2024,$ Elise disposed of some share investments. Elise deliberately did not calculate any capital gain$/$loss in respect of these share investments, and she lodged her tax return in August $2024$ without any reference or amounts included in relation to them. Elise knew when she lodged her return that the sale of her share investments would have tax consequences; however, she did not think that failure to report the asset sales would result in any overall tax shortfall $($Elise knew some shares had been sold at a $$profit$$ and some at a $$loss$).$ Elise made a conscious decision to not seek any advice $($from anybody, including any tax professional$)$ in relation to the income tax consequences of her asset sales. Elise thought that, due to her fame, it would be unlikely for the ATO to question the tax return she lodged. For the income years prior to $30$ June $2023($before she became famous$),$ Elise had not made any errors in any of her income tax returns lodged. Required $($a$)$ Ignoring the application of any capital gains tax discount, for the income year ended $30$ June $2024$: i$.$ explain the CGT treatment of the sale of each of the assets sold by Chiara, and ii$.$ calculate the capital gain$/$loss that arises for Chiara on each asset sold $($including nil amounts$).($b$)$ Assume that it$$s now October $2024$ and if the share disposals were recorded in Elise$$s income tax return it would result in a tax shortfall. Advise Elise of the following: i$.$ The distinct component of the uniform administrative penalty regime may apply to her. ii$.$ The base rate penalty percentage the ATO would likely apply in the situation and why. iii. The two actions she could take to minimise any potential penalties.