TAXATION LAW

In grading both tasks, examiners will focus on your referencing to case law, appropriate sections of the ITAA 1936 and ITAA 1997 and income tax rulings issued by the Australian Taxation Office. A list of references used to answer all assignment tasks should be attached to the assignment.

Ronald Knight is an Australian resident taxpayer, is single and aged 34 years old. Ronald is employed full-time as a high school History teacher with the NSW Department of Education and has also recently purchased a rental property that he intends to rent to tenants in the near future. In relation to his 2021 income tax return, Ronald is unsure of the income tax implication for a number of receipts and payments throughout the year and is seeking your professional advice. In the form of a letter of advice (directed to Ronald as your client) advise him of the income tax implications for the following receipts and payments relating to the year ended 30 June 2021. Calculation of taxable income is NOT required. Receipts 1. $10,000 as his share of his deceased Aunty's estate." 2. $5,500 compensation for an injury to his leg caused by slipping on a dangerous surface at his school. Ronald was also absent from work for two weeks due to the injury and received $1,000 per week in workers compensation payments. He paid $520 in medical expenses in relation to his injury that was reimbursed by the Department of Education. 3. Ronald was voted "Most Innovative Teacher 2021" by the Department of Education and was awarded a cash prize of $3,000.- 4. Ronald's 2021 Payment Summary issued by his employer showed an amount of $3200 as a Reportable Fringe Benefit 5. $1800 (AUD equivalent) net interest received from a New Zealand bank deposit. $200 (AUD equivalent) tax was deducted by the NZ bank and forwarded to the NZ tax authorities Ronald Knight is an Australian resident taxpayer, is single and aged 34 years old. Ronald is employed full-time as a high school History teacher with the NSW Department of Education and has also recently purchased a rental property that he intends to rent to tenants in the near future. In relation to his 2021 income tax return, Ronald is unsure of the income tax implication for a number of receipts and payments throughout the year and is seeking your professional advice. In the form of a letter of advice (directed to Ronald as your client) advise him of the income tax implications for the following receipts and payments relating to the year ended 30 June 2021. Calculation of taxable income is NOT required. Receipts 1. $10,000 as his share of his deceased Aunty's estate." 2. $5,500 compensation for an injury to his leg caused by slipping on a dangerous surface at his school. Ronald was also absent from work for two weeks due to the injury and received $1,000 per week in workers compensation payments. He paid $520 in medical expenses in relation to his injury that was reimbursed by the Department of Education. 3. Ronald was voted "Most Innovative Teacher 2021" by the Department of Education and was awarded a cash prize of $3,000.- 4. Ronald's 2021 Payment Summary issued by his employer showed an amount of $3200 as a Reportable Fringe Benefit 5. $1800 (AUD equivalent) net interest received from a New Zealand bank deposit. $200 (AUD equivalent) tax was deducted by the NZ bank and forwarded to the NZ tax authorities