tax return for an entity (Australian private company) (10 marks for technical and calculation accuracy and relevance and 10 marks for writing style; refer to marking rubric for more guidance.)
In your current role, you are responsible for providing taxation services to individual/business clients. You conducted an initial meeting with two (2) clients (Julia and John Smart, both Australian residents) to obtain and document all the relevant information which is required to prepare the relevant tax documentation.
Both Julia and John are directors of Smart Solutions Pty Ltd, an Australian resident private company with a corporate tax rate for imputation purposes of 30% for the 2021/22 income year.
The clients have requested that you evaluate their tax position and provide recommendations relating to income tax liability and the optimum tax treatment.
Smart Solutions Pty Ltd sells coffee machines using accrual basis accounting for tax purposes. Receipts and payment details as at 30 June 2022 are as follows (ignore GST and small business concessions).

   Required
1) John wishes to minimise the income tax for 2021/22. Calculate Smart Solutions Pty Ltd's 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 installment, Superannuation guarantee, fringe benefits, Dividend paid, and motor vehicle purchase). Include section numbers and/or cases in your explanations.

Receipts Cash received for Sales (note 1) Dividend received (note 2) Income tax refund (note 6) Payments Purchases of inventory (note 3) Net wages paid to employees PAYG withholding paid to the ATO Superannuation paid (note 4) PAYG instalment paid the ATO (note 5) Fringe benefit tax paid to the ATO Purchase of motor vehicle (note 7) Other deductible expenses $278,000 $8,720 $10,000 $97,000 $57,890 $12,780 $4,987 $5,210 $11,210 $52,000 $26,900