Question 3 15 Marks Personal Income tax Li earned a salary of $75,000 for the year ended 30 June 2018. She also received additional income and paid expenses as follows: Fully franked dividends of $2,500 Un-franked dividends of $20,000 Net rental income of $9,000 Capital losses on sale of shares $8,000 Bank charges of $150 on her investment account where the dividends were banked Tax agents fees of $500 Purchase of a raffle ticket for $100 from the Royal Childrens Hospital. The prize was a motor vehicle REQUIRED: Calculate Lis taxable income and tax payable including Medicare levy for the year ended 30 June 2018. State any assumptions that you make. Where possible questions should be answered with reference to legislation, case law and/or principles of tax law. Term 2 Standard Examination 2018 Taxation Law of Australia LAWS20060 Page 4 of 4 Question 4 5 Marks Taxation of trusts Give a short explanation of who is assessed under the following sections of the Income Tax Assessment Act 1936 when calculating tax payable on trust net income: (a) s97 (1 mark) (b) s98 (1 mark) (c) s99 (2 marks) (d) s99A (1 mark) Question 5 10 Marks Fringe Benefits Tax (a) Who is liable to pay Fringe Benefits Tax? (1 mark) (b) What rate is Fringe Benefits Tax calculated at? (1 mark) (c) If the wife of an employer were to provide a fringe benefit to an employee would the benefit be liable to Fringe Benefits Tax? (2 marks) (d) What type of fringe benefit is it when an employer pays an employees child school fees? (2 marks) (e) What are the two methods for calculating the taxable value of a car fringe benefit? (2 marks) (f) Martha is employed by an accounting firm. Her employer provides her with a stereo system, which it purchased from a third party at arms length for $2000. Martha contributes $500 towards the stereo system. i. What type of fringe benefits is this? (1 mark) ii. What is the taxable value of the fringe benefit? (1 mark