This question is regarding Australian Taxation Law

Part B requires each group to provide a written group reflection on how the group researched both of the following two (2) specific tax issues contained in Part A of this project, namely:

(i) Item 12(d) page 33, being the gifts provided to audit clients totalling $174. You are to advise Rick exactly how much is tax-deductible (if any) and reasons why (or why not)? (500 Words) - Part A below.

(d) Gifts to Audit Clients

Rick advises you that during December 2020 he gave several Christmas gifts to the major audit clients of the firm. He does not consider these clients friends but in keeping with the Christmas spirit, he purchased these gifts as a thank you for being good faithful clients during the year.

The breakdown of his gifts totalling $174 was as follows:

• Christmas hamper 50
• Several bottles of wine (unopened) 124

Rick was not reimbursed for any of these expenses by his employer, Binder Hamlyn.

(ii) Item 14 - page 36, being the tax-deductibility of the $32 credit card fee charged by the ATO when Rick used his credit card to pay his 2020 income tax owing to the ATO as per his 2020 income tax assessment notice. (500 Words) - Part A below

14. Tax Agent's Fees, Late Lodgement Penalty and GIC imposed by the ATO

On 13 June 2021, Rick received and paid the professional services invoice from his previous registered tax agent in Ascot for the preparation and lodgment of his 2020 income tax return. The tax agent's fee was $620.

Rick also informs you that as his tax agent lodged his 2020 income tax return more than three weeks late, the Australian Taxation Office charged Rick a general interest charge (GIC) of $24. The ATO also charged Rick one penalty unit, being $210. Rick paid both of these amounts (totalling $234) directly to the ATO on 26 June 2021.

According to his 2020 income tax assessment notice, Rick owed income tax of $3,156. He paid this amount to the ATO via his Mastercard on 26 June 2021. A credit card fee of $32 was charged by the ATO in relation to this credit card payment on this date.