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It is New Zealand's Tax, could you please try to upload ASAP please. Question 6: Individual Income Tax Return (IR 3) (TOTAL: 8 Marks) Bruce

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It is New Zealand's Tax, could you please try to upload ASAP please.

Question 6: Individual Income Tax Return (IR 3) (TOTAL: 8 Marks) Bruce is a New Zealand tax resident client who provides you with the following information for the year ended 31 March 2020. All figures given are in New Zealand dollars. 1 Bruce is a chef employed by the Counties Manukau District Health Board. From this employment he has earned a gross salary of $80,000 from which tax of $17,320 has been withheld. The Counties Manukau District Health Board owns a Gym and membership fees are $1,500. Gym membership is waived for all the staff employed. 2 The Counties Manukau District Health Board had employed Bruce from Southland and paid him a work related relocation allowance of $10,000 to take up employment with them from 1 April 2019. 3 Bruce has a small rural property in Southland. He receives rent from his neighbour who uses the land for grazing. The rental after deducting all expenses amounted to $5,200 for the year. 4 Bruce owns shares in three New Zealand registered companies. All three companies paid out fully imputed dividends during the year ending 31 March 2020. Bruce received into his bank account $5,025 in dividends on these shares. 5 Bruce has a term deposit with Westpac Bank. During the year his account was credited with $1,675 after the deduction of resident withholding tax at the top marginal tax rate. 6 Bruce has a bank account in the Sydney branch of the Commonwealth Bank of Australia. From this he earned NZ$3,000 gross interest. Australian non-resident withholding tax (10%) had been deducted from this amount as required by the Double Taxation Relief (Australia) Order 1995. 6 During the 2020 tax year Bruce was selected as a member of the Olympic Games "A" squad and during this year he participated in the Goodwill Games and won prize money totalling NZ$5,000. 7 In appreciation of his performance at the Goodwill Games the employer paid his sports club membership fees amounting $2,000. 8 Bruce is a trustee of a local community trust and derived income amounting to $3,000 9 Bruce enjoys catering for special wedding and 21" birthday party events throughout the year. He received from these events catering $25,000 during the year. Bruce purchased materials for catering costing $12,000 during the year. The room at his home is used to store these supplies and other catering gear. The room occupies 10% of the total house. Bruce provides receipts for house outgoings amounting to $22,000 for the year. In April 2019, Bruce purchased a van to use for the catering events, and for his own private use. The logbook shows that the van usage is 60:40 between catering purposes and private use. The van costs $26,000 excluding GST (Inland Revenue's SL depreciation rate 13.5%) and he is able to provide you with receipts for van outgoings amounting to $3,000 for the year. 10 Proceeds of $2,925 during the year from the sale of a case of Bollinger champagne which he bought for $1,795 for his 40th Birthday in 2016 but failed to drink. 11 Your fee for preparing Bruce's tax return is $500. Required: Calculate Bruce's income tax liability for the year ended 31 March 2020, showing all workings and indicating clearly the appropriate taxation treatment of all items 1-11 including, statutory references. Round all calculations to the nearest dollar, Question 6: Individual Income Tax Return (IR 3) (TOTAL: 8 Marks) Bruce is a New Zealand tax resident client who provides you with the following information for the year ended 31 March 2020. All figures given are in New Zealand dollars. 1 Bruce is a chef employed by the Counties Manukau District Health Board. From this employment he has earned a gross salary of $80,000 from which tax of $17,320 has been withheld. The Counties Manukau District Health Board owns a Gym and membership fees are $1,500. Gym membership is waived for all the staff employed. 2 The Counties Manukau District Health Board had employed Bruce from Southland and paid him a work related relocation allowance of $10,000 to take up employment with them from 1 April 2019. 3 Bruce has a small rural property in Southland. He receives rent from his neighbour who uses the land for grazing. The rental after deducting all expenses amounted to $5,200 for the year. 4 Bruce owns shares in three New Zealand registered companies. All three companies paid out fully imputed dividends during the year ending 31 March 2020. Bruce received into his bank account $5,025 in dividends on these shares. 5 Bruce has a term deposit with Westpac Bank. During the year his account was credited with $1,675 after the deduction of resident withholding tax at the top marginal tax rate. 6 Bruce has a bank account in the Sydney branch of the Commonwealth Bank of Australia. From this he earned NZ$3,000 gross interest. Australian non-resident withholding tax (10%) had been deducted from this amount as required by the Double Taxation Relief (Australia) Order 1995. 6 During the 2020 tax year Bruce was selected as a member of the Olympic Games "A" squad and during this year he participated in the Goodwill Games and won prize money totalling NZ$5,000. 7 In appreciation of his performance at the Goodwill Games the employer paid his sports club membership fees amounting $2,000. 8 Bruce is a trustee of a local community trust and derived income amounting to $3,000 9 Bruce enjoys catering for special wedding and 21" birthday party events throughout the year. He received from these events catering $25,000 during the year. Bruce purchased materials for catering costing $12,000 during the year. The room at his home is used to store these supplies and other catering gear. The room occupies 10% of the total house. Bruce provides receipts for house outgoings amounting to $22,000 for the year. In April 2019, Bruce purchased a van to use for the catering events, and for his own private use. The logbook shows that the van usage is 60:40 between catering purposes and private use. The van costs $26,000 excluding GST (Inland Revenue's SL depreciation rate 13.5%) and he is able to provide you with receipts for van outgoings amounting to $3,000 for the year. 10 Proceeds of $2,925 during the year from the sale of a case of Bollinger champagne which he bought for $1,795 for his 40th Birthday in 2016 but failed to drink. 11 Your fee for preparing Bruce's tax return is $500. Required: Calculate Bruce's income tax liability for the year ended 31 March 2020, showing all workings and indicating clearly the appropriate taxation treatment of all items 1-11 including, statutory references. Round all calculations to the nearest dollar

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