Sarah is employed as a Business Manager by a large IT firm also works for home for the company two days a week. Due to her heavy work commitments has not organised her tax documents and matters. She currently earns $85 500 per annum and has had $18 250 PAYG withheld from her gross income. Rebecca also received an unfranked dividend from her personal BHP shares of $7500.

After sorting through the shoebox that holds all of Rebeccas paperwork, you have uncovered the following receipts and expenses;

Professional association membership $480 Phones used for business purposes $650 PR and client relationship $900 Home office expenses (stationery, electricity, $2,800 internet, printer consumables)

Bank interest earned from deposits $1,200

Sarah also advised that she had additional self-education expenses of $2,800, but could not locate the receipts.

Sarah had private health insurance for three months during the assessment period.

Sarah is single and has no dependents.

Sarah often works from her home office and she is also required to travel on a daily basis to various

work clients to service their computer systems. Sarah has not kept a log book with her kilometres. She

drives a Toyota Corolla which has a 1300-cc engine.

Among her papers, you find a daily work log which details her client appointments, times and

Require

Appropriately collated and organised all given information for taxation purpose

Derived assessable income

Calculated franking credit on share income

Derived applicable decutions under the current law or ruling from the data

Assuming that Sarah has accepted your assessment and is ready to lodge her return, prepare her return using ATOs e-tax application. Use fictitious information to set up the tax file. E-tax application can be downloaded from ATO website at: http://www.ato.gov.au/etax. Your assessor may ask you to change/modify some information in the return.