Question 1. The question is related to the Australian tax 2018

(a) Private Health Pty Ltd derives $400,000 net trading income from Australian

sources during the current tax year. The company also earns the following:

$56,000 - Franked dividend from public companies with an imputation credit

of $24,000.

$50,000 - Unfranked dividend from resident private companies.

$20,000 - Interest income.

Assume Private Health Pty Ltd is a small business entity.

Calculate the net tax payable of Private Health Pty Ltd Ltd for the year ending

30 June 2017.

(b) Discuss the circumstances under which a tax benefit will arise under Part IVA

Income Tax Assessment Act 1936 (Cth).