During the 2018/19 tax year, resident taxpayer, Sammy-Jo received salary income of $86,000 and a franked dividend of $4,800 (with $1,200 franking credits attached). She had no allowable deductions. A total of $21,250 PAYG withholding payments have been made by her employer. (Ignore Medicare Levy)

Required: Calculate Sammy-Jo's tax payable or refundable.

Show calculations (no need to refer to sections/ cases)

Template is a suggestion only, you can delete it if you want

Step 1: Taxable Income = Assessable Income - Deductions

Step 2: BITL

Step 3: Deduct Offsets

Step 4: Deduct PAYG

RESULT:

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Which of the following benefits will attract FBT? (You must refer to law and briefly explain the legal rule)

• Protective clothing provided to employees
• Interest-free loan provided to an employee that will be used to buy shares

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During the 2018/19 income year, Tammy-May received a bottle of expensive champagne from a client. She is unsure whether she is required to include the cost of the champagne in her tax return.

Select ALL of the statements you would consider relevant tax considerations?

Select one or more:

Whether Lulu had been paid in full for her services

Whether Lulu had a personal relationship with the client

Whether it was Lulu's birthday

ITAA36 s 21A

None of these statements are relevant

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During the 2017/18 income year, resident taxpayer ABC Pty Ltd received a franked dividend of $5000 (with $2,500 franking credits attached). It had no other income and no allowable deductions.

What are the tax implications for ABC Pty Ltd?

Select one:

$7,500 Payable

$0

-$1,000 (Refund)

-$250 (Refund)

Companies can only pay dividends, they cannot receive dividends

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Gianni, an Italian citizen, has spent the past 11 months in Australia. During this time, he rented a house in Sydney whilst researching his family history. To support himself, Gianni earned a weekly wage from his job at a local coffee shop. He also received monthly rent payments from tenants currently renting his house in Italy.

Analyze Gianni's tax residency status. Based on his tax residency, which of his two income streams will be assessable income? (You must refer to relevant law)

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During the 2018/19 income year, resident taxpayer Angelina, earned $33,000 from her employment as an actress. She has allowable deductions of $500. A total of $2,500 PAYG instalments have been made on her behalf by her employer. (Ignore Medicare Levy)

Required: Calculate Angelinas tax payable or refundable.

Note: Do not refer to sections in the ITAAs.

Show calculations/ formulas relied on

You can delete the template provided

Step 1: Taxable Income = Assessable Income less Deductions

Step 2: (BITL)

Step 3: (Deduct Offsets)

Step 4: (Deduct PAYG)

Result:

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Luna, a sole trader, operates a flower delivery business. On the weekends, she uses the business van to transport her children to soccer practice. She does not keep a logbook.

In relation to FBT, select the correct statement:

Select one:

a. FBT is payable because Luna uses the business vehicle for private purposes

b. No FBT payable because a van is an exempt vehicle

c. Because Luna failed to keep a logbook, she is limited to using the Statutory Method to calculate the FBT payable on the van

d. (a) and (c) are both correct

e. None of these choices are correct

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Which of the following is NOT one of the indicators for conducting a business?

Select one:

The size or scale of activities carried out by the enterprise

Whether or not the activity is profit driven

All of these statements are relevant

Whether or not the activity is illegal

None of these statements are relevant