I You are working as a tax agent at Rocket Tax Pty Ltd (456 George Street Sydney NSW 2000) and one of your clients (Julie Palmer: Unit 15/69 Small Street Ultimo NSW 2007) has come to you for assistance. Julle is a self-employed web designer and due to her heavy work load and unpredictable working hours has not had the time to sort out her tax matters. Julle spends a lot of time organising her business expenses for tax, however she has lost a few receipts and tax invoices for the last quarter of the financial year. She sald that she has already lodged the tax retum based on the details provided in Table 1 (she estimated Income & expenses for the June quarter 2020, as listed in the table 1 below). Table 1: estimated Income & expenses Business Income Education expenses Software subscription Internet expenses Telephone expenses Rent Income tax expense (PAYG instalment) Travel to work (city rail) Health insurance Child care Uniform Depreciation on Computer 3 years useful life) $10,000 $2,000 $800 $225 $240 $6,000 $1,200 $500 $300 $1,000 $200 $567 During December 2020, Julie advises you that she found the missing bank statement and receipts, which list the business income and expenses & other payments for the period June quarter 2020. Assume all amounts were correctly reported for other periods. Julie asked you to review the following Bank statement and identify discrepancies in the income/expense claims made versus the actual income/expenses incurred. Details of the Bank statement are as follows: Period: 01 April 2020 to 30 June 2020 Date Transaction details Withdrawal Deposit Balance Opening balance (April 2020) 1/04/2020 Paid for workshop webinar - Design course 3/04/2020 Storage boxes for shoes 4/04/2020 Monthly city rail (home to work) 9/04/2020 Fitness first (direct debit) 160 255 150 99 7,500 7.340 7 085 6.935 6.836 4/04/2020 Monthly city rall (home to work) 150 6,935 9/04/2020 Fitness first (direct debit) 99 6,838 13/04/2020 Vodafone (direct debit) 80 6,756 12/04/2020 Services Income 4500 611258 15/04/2020 Electricity (Enemy Australla Home 375 10.8811 14/04/2020 Medi Bank Private (Health) 95 10,786 16/04/2020 Telstra Internet 75 110711 17/04/7020 Office rent 2,000 8711 23/04/2020 Bavarian caf - cake for birthday 255 8.456 25/04/2020 Interest charges on her personal loan 125 8,331 28/04/2020 March quarter PAYG Instalment tax paid 8331 1/05/2020 Paid for workshop webinar-Design course 60 8.271 Page 2 Kaplan Business School Assessment 3 Outline KI 150 3,000 4/05/2020 Monthly city rail (home to work) 8/05/2020 Jobkeeper payments - Business participant 9/05/2020 Fitness first (direct debit) 13/05/2020 Vodafone (direct debit) 14/05/2020 Medi Bank Private (Health) 15/05/2020 Gas (Energy Australia) Home 16/05/2020 Telstra Internet 17/05/2020 Office rent 23/05/2020 Dodo Coffee 1/06/2020 Yearly software subscription 4/06/2020 Monthly city rail 7/06/2020 Cash Boost from the ATO 9/06/2020 Fitness first (direct debit) 10/06/2020 Jobkeeper payments - Business participant 13/06/2020 Vodafone (direct debit) 14/06/2020 Medi Bank Private (Health) 15/06/2020 Apple computer for 100% work purposes 99 80 95 155 75 2.000 80 800 150 8.121 11,121 11,022 10.942 10.847 10,692 10.617 8,617 8.537 7.737 7.587 12.587 12.488 16.988 16.908 16.813 15,113 5,000 99 4.500 80 95 1.700 Aaaa- alou Draw High 80 800 150 99 23705720200000 Coree 1/06/2020 Yearty software subscription 4/06/2020 Monthly city rall 7/06/2020 Cash Boost from the ATO 9/06/2020 Fitness first direct debit) 10/06/2020 Jobkeeper payments - Business participant 13/06/2020 Vodafone (direct debit) 14/06/2020 Medi Bank Private (Health) 15/06/2020 Apple computer for 100% work purposes 16/06/2020 Telstra Internet 17/06/2020 Office rent 23/06/2020 HBA Learning Institute for Design course 25/06/2020 Services income 28/06/2020 Jumbo Child care 30/06/2020 Blouse and black pants Closing income (Month ending June 2020) 80 95 1,700 75 2,000 1,200 8,551 7,737 7,587 5,000 12,587 12,488 4,500 18,988 16,908 16,813 15,113 15,038 13,038 11,838 5,500 17,338 16,358 16,208 16,208.00 980 150 Additional information: Julie's business is not registered for GST as her annual income is less than $75,000. Julie uses her phone and internet 40% for work purposes. Julie pays child care fees so that she can go to work. Julie purchased blouse and black pants only to wear at work Task: You are required to: Draft a business letter to Julie Palmer. In the letter, students must 1) Identify any discrepancies by reconciling the bank statement against the claims made by Julie Palmer (table 1 provided). 2) Recalculate the assessable income and allowable deductions with explanations. Include section numbers and/or cases in your explanations, 3) Advise any further actions required due to the discrepancies. I You are working as a tax agent at Rocket Tax Pty Ltd (456 George Street Sydney NSW 2000) and one of your clients (Julie Palmer: Unit 15/69 Small Street Ultimo NSW 2007) has come to you for assistance. Julle is a self-employed web designer and due to her heavy work load and unpredictable working hours has not had the time to sort out her tax matters. Julle spends a lot of time organising her business expenses for tax, however she has lost a few receipts and tax invoices for the last quarter of the financial year. She sald that she has already lodged the tax retum based on the details provided in Table 1 (she estimated Income & expenses for the June quarter 2020, as listed in the table 1 below). Table 1: estimated Income & expenses Business Income Education expenses Software subscription Internet expenses Telephone expenses Rent Income tax expense (PAYG instalment) Travel to work (city rail) Health insurance Child care Uniform Depreciation on Computer 3 years useful life) $10,000 $2,000 $800 $225 $240 $6,000 $1,200 $500 $300 $1,000 $200 $567 During December 2020, Julie advises you that she found the missing bank statement and receipts, which list the business income and expenses & other payments for the period June quarter 2020. Assume all amounts were correctly reported for other periods. Julie asked you to review the following Bank statement and identify discrepancies in the income/expense claims made versus the actual income/expenses incurred. Details of the Bank statement are as follows: Period: 01 April 2020 to 30 June 2020 Date Transaction details Withdrawal Deposit Balance Opening balance (April 2020) 1/04/2020 Paid for workshop webinar - Design course 3/04/2020 Storage boxes for shoes 4/04/2020 Monthly city rail (home to work) 9/04/2020 Fitness first (direct debit) 160 255 150 99 7,500 7.340 7 085 6.935 6.836 4/04/2020 Monthly city rall (home to work) 150 6,935 9/04/2020 Fitness first (direct debit) 99 6,838 13/04/2020 Vodafone (direct debit) 80 6,756 12/04/2020 Services Income 4500 611258 15/04/2020 Electricity (Enemy Australla Home 375 10.8811 14/04/2020 Medi Bank Private (Health) 95 10,786 16/04/2020 Telstra Internet 75 110711 17/04/7020 Office rent 2,000 8711 23/04/2020 Bavarian caf - cake for birthday 255 8.456 25/04/2020 Interest charges on her personal loan 125 8,331 28/04/2020 March quarter PAYG Instalment tax paid 8331 1/05/2020 Paid for workshop webinar-Design course 60 8.271 Page 2 Kaplan Business School Assessment 3 Outline KI 150 3,000 4/05/2020 Monthly city rail (home to work) 8/05/2020 Jobkeeper payments - Business participant 9/05/2020 Fitness first (direct debit) 13/05/2020 Vodafone (direct debit) 14/05/2020 Medi Bank Private (Health) 15/05/2020 Gas (Energy Australia) Home 16/05/2020 Telstra Internet 17/05/2020 Office rent 23/05/2020 Dodo Coffee 1/06/2020 Yearly software subscription 4/06/2020 Monthly city rail 7/06/2020 Cash Boost from the ATO 9/06/2020 Fitness first (direct debit) 10/06/2020 Jobkeeper payments - Business participant 13/06/2020 Vodafone (direct debit) 14/06/2020 Medi Bank Private (Health) 15/06/2020 Apple computer for 100% work purposes 99 80 95 155 75 2.000 80 800 150 8.121 11,121 11,022 10.942 10.847 10,692 10.617 8,617 8.537 7.737 7.587 12.587 12.488 16.988 16.908 16.813 15,113 5,000 99 4.500 80 95 1.700 Aaaa- alou Draw High 80 800 150 99 23705720200000 Coree 1/06/2020 Yearty software subscription 4/06/2020 Monthly city rall 7/06/2020 Cash Boost from the ATO 9/06/2020 Fitness first direct debit) 10/06/2020 Jobkeeper payments - Business participant 13/06/2020 Vodafone (direct debit) 14/06/2020 Medi Bank Private (Health) 15/06/2020 Apple computer for 100% work purposes 16/06/2020 Telstra Internet 17/06/2020 Office rent 23/06/2020 HBA Learning Institute for Design course 25/06/2020 Services income 28/06/2020 Jumbo Child care 30/06/2020 Blouse and black pants Closing income (Month ending June 2020) 80 95 1,700 75 2,000 1,200 8,551 7,737 7,587 5,000 12,587 12,488 4,500 18,988 16,908 16,813 15,113 15,038 13,038 11,838 5,500 17,338 16,358 16,208 16,208.00 980 150 Additional information: Julie's business is not registered for GST as her annual income is less than $75,000. Julie uses her phone and internet 40% for work purposes. Julie pays child care fees so that she can go to work. Julie purchased blouse and black pants only to wear at work Task: You are required to: Draft a business letter to Julie Palmer. In the letter, students must 1) Identify any discrepancies by reconciling the bank statement against the claims made by Julie Palmer (table 1 provided). 2) Recalculate the assessable income and allowable deductions with explanations. Include section numbers and/or cases in your explanations, 3) Advise any further actions required due to the discrepancies