Felix Gomez, an Australian resident individual, is employed by a large engineering company. At the end of the 20192020 income year, his employer issues him with a Payment Summary detailing the following:

Gross salary, $160,000

PAYG withheld and remitted to the ATO, $40,000

Reportable fringe benefits, $12,000.

During the 20192020 income year, Felix also received $4,000 in cash from a sports club. The receipt relates to royalties on a mobile phone app that Felix developed during 2003 in his spare time, and patented. The app allows members of the sports club to book their tennis courts and squash courts in advance. The sports club is the only registered user of the patent, and Felix has no other patents registered in his name, and has not devoted any other time to similar developments.

The value of the two invoices that he issued to the sports club during the 20192020 income year totalled $5,000. He also received an equivalent $3,000 in interest from a bank term deposit that he held with a bank in Antigua. This amount was paid into his bank account on 1 June 2020 after the bank in Antigua deducted withholding tax equivalent to $700 as full and final tax settlement of his tax obligations in Antigua. There is no tax treaty/double taxation agreement between Australia and Antigua. During the income year, Felix also received a fully franked dividend of $18,200 from a private company. Felix and his three brothers are the shareholders of the company. The company operates a computer repair shop in Bulimba with a turnover of $360,000 during the current income year. You are required to:

4.1 Calculate Felixs taxable income for the 20192020 income year. Show all your calculations and provide reasons for your answers, referencing relevant sections of the Income Tax Assessment Acts, relevant case law or rulings from the ATO.

4.2 Calculate Felixs tax offsets for the 20192020 income year. Show all your calculations and provide reasons for your answers.