Fresh Pty Ltd $($Fresh$),$ a company owned by the Jones family, amongst other investments, owns and operates a profitable supermarket in Newtown. Fresh$$s supermarket is independent from, and is not associated with, the major supermarkets such as Coles and Woolworths. Fresh also has a small number of investments. Fresh is an Australian resident company for tax purposes.

$($a$)$ Fresh owns commercial premises in a busy retail$-$shopping mall. The premises are

currently leased out to a company that operates a computer store. The tenant has

complained for a while about how hot it becomes in the summer period in the store, and

that this has adversely affected sales in summer. The tenant has regularly requested

Fresh to install air$-$conditioning. Fresh eventually agrees and on $30$ November $2022,$ a

new single room air$-$conditioning unit is installed at the premises at a cost of $$1000.$

$($b$)$ Fresh has a $50\%$ interest in a partnership with an unrelated party, PartnerCo. The

partnership carries on the business of providing travel consulting services. Due to the

recent rise in the incidence of natural disasters at popular travel destinations, there has

been a decline in demand for travel consulting services. The partnership made a

partnership loss of $$60,000$ for the $2022/23$ income year. The Partnership Agreement

provides that Fresh and PartnerCo are each entitled to $50\%$ of any profits. Fresh also

received its $50\%$ of the profits for the previous income year $2021/22,$ on $5$ December

$2022.$ The amount received was $$70,000.$

$($c$)$ During the $2022/23$ income year, Fresh incurs advertising expenditure of $$50,000$ in

placing advertisements on digital screens displayed in public $($this is consistent with the

advertising expenditure in previous years$).$

$($d$)$ Fresh is also the trustee of a family discretionary trust which carries on a

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business of providing nutrition advice to various clients. In the $2022/23$ income year, the

trust estate earned income calculated under trust law principles of $$100,000.$ The net

income of the trust estate, calculated under s $95$ ITAA$36$ was $$97,000.$ On $29$ June

$2023,$ the directors of Fresh resolved to distribute the trust law income as follows:

$$ $$20,000$ to Bob, who has been a resident throughout the $2022/23$ income year

and who is not under a legal disability.

$$ $$20,000$ to Buck who has been a foreign resident throughout the $2022/23$ income

year and who is not under a legal disability

$$ $$10,000$ to Brian who has been a resident throughout the $2022/23$ income year

and is aged $12$ years $($the directors have resolved to hold the remaining $$10,000$

in the trust, until Brian turns $18$ years of age$).$

$($e$)$ Fresh owns $20\%$ of the shares in a medium$-$sized $($Australian resident$)$ company that

refurbishes old car engines and sells them at a profit. Fresh received two dividends from

the company during the $2022/23$ income year. The first dividend was $$40,000$ and it was

franked $60\%.$ The second dividend was $$60,000$ and it was franked $70\%.$

$($f$)$ During the $2022/23$ income year, Fresh also made three frankable distributions. The first distribution $($$$1$ million$)$ is franked at $50\%,$ the second distribution $($$$2$million$)$ is $40\%.($Assume a corporate tax rate for imputation purposes of $30\%).$

question:

Fresh$$s accountant, Jerry, is in the process of preparing the companys income tax return for the $2022/23$ income year. Advise Jerry regarding the income tax implications to Fresh, arising from the above facts, in relation to the $2022/23$ year of income. In your answer, make sure you refer to any relevant cases, legislative provisions, tax rulings and principles of tax law.