Note 4) As per the ledger balances on 30 June 2022, Superannuation payable for June quarter was amounted to $1,727. The payment is due by 28 July 2022. Note 5) As per the ledger balances on 30 June 2022, PAYG instalment liabilities payment and payable information are as follows. 24/8/2021 PAYG instalment paid for June quarter 2021 $ 860 25/11/2021 PAYG instalment paid for September quarter 2021 $1,450 28/2/2022 PAYG instalment paid for December quarter 2021 $1,450 26/5/2022 PAYG instalment paid for March quarter 2022 $1,450 June quarter 2022 was amounted to $1,450. The payment will be paid on 25 August 2022. Note 6) The tax refund was received on 25 February 2022. Note 7) The motor vehicle (Toyota Hatchback) was purchased on 1 March 2022 and used to deliver coffee machines. Bothdirectors wish to use the taxation effective life to depreciate the Motor vehicle. Required 1) John wishes to minimise the income tax for 2021/22. Calculate Smart Solutions Pty Ltds net tax liability in respect of the income that it derived in the tax year 2021/22. 2) Advise assessability of receipts and deductibility of payments with explanations (Sales, Dividend income, Trading Stock, PAYG withholding, PAYG instalment, Superannuation guarantee, fringe benefits, Dividend paid and motor vehicle purchase). Include section numbers and/or cases in your explanations. Statement of Advice 2 Advice on company franking account and distributions (10 marks for technical and calculation accuracy; refer to marking rubric for more guidance) Julia and John seeking your advice regarding Smart Solutions Pty Ltds franking account. (Please note: use all figures/information provided from Statement of Advice 1 above to construct the franking account for 2021/22. Opening balance is provided below). Required 1) 1 July 2021, the balance in Smart Solutions Pty Ltds franking account was $18,721. Construct Smart Solutions Pty Ltds franking account for the 2021/22 financial year. You also need to calculate the franking account balance as at 30 June 2022. 2) Smart Solutions Pty Ltd wishes to pay a final fully franked dividend of $40,000 on 30 June 2022. However, Julia and John are concerned about the franking account to go into deficit. Calculate and advise the maximum frankable distribution amounts that Smart Solutions Pty Ltd can pay as fully franked dividend. What are the tax consequences if Smart Solutions Pty Ltd goes ahead and pays $40,000 fully franked dividend on 30 June 2022? 3) Assuming Smart Solutions Pty Ltd paid $40,000 fully franked dividend on 30 June 2022 (only dividend paid for the year), comment on the tax treatment of the dividend to the following four (4) shareholders: Julia and John Smart receive a dividend of $15,000 each. They are Australian residents at Page 4 Kaplan Business School Assessment Outline the highest marginal tax rate. $5,000 to Justin Smart, the son of Julia and John, who has been studying in London for three years and is a foreign resident. $5,000 to Leaf Pty Ltd, an Australian private company with a 30% company income tax rate. Advise how each of the above four shareholders of Smart Solutions Pty Ltd would be taxed on the distribution received in 2021/22. Statement of Advice 3 Advice on net capital gains (10 marks for technical and calculation accuracy; refer to marking rubric for more guidance.) Since 1997 John and Julia have invested in various Australian shares. Julia acquired the shares in her own name whereas John had his company Smart Solutions Pty Ltd acquire his share portfolio. On 29 June 2022 both Julia and John made a decision to dispose of their Australian shares and the proceeds and purchase prices information are as follows. Julias share portfolio Shares Purchase date Costs Proceeds Mega Mining Ltd 1 April 1997 $8,000 $12,400 Global Media Ltd 10 June 2000 $15,000 $90,000 Watson Tel Ltd 17 May 2013 $34,000 $33,500 Qantas Ltd 8 January 2022 $17,900 $21,000 Smart Solutions Pty Ltd share portfolio Shares Purchase date Costs Proceeds Xero Ltd 28 March 2018 $45,000 $62,000 Qantas Ltd 26 June 2022 $21,600 $28,800 Other information Julia has a capital loss of $600 carried forward from sale of painting during 2018. Required 1) Advise both Julia and John on the CGT consequences of their share sales. 2) Calculate net capital gains for the 2021/22 tax year. You must provide all methods available for her and choose the best method to minimise net capital gains for Julia and John (Smart Solutions Pty Ltd)