Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

took a job in Vanuatu three years ago on 1 st July 2017, as Trade liaison officer with the Australian High Commission in Vanuatu. She

took a job in Vanuatu three years ago on 1st July 2017, as Trade liaison officer with the Australian High Commission in Vanuatu. She has retuned on 30th June, 2020. Before leaving Tracy lived with her mother in a house owned by her mother. Tracy has returned to that house to live.

Tracy tells you the following:

  • She has a group certificate from the Department of Trade of the Commonwealth of Australia (DT)for the year 2019/2020 showing that she earned $70,000 on which her employer, the DT deducted $14,670.
  • She worked part time at a weekend coaching school in Vanuatu coaching children in English. She was paid $2,500 for this work. Vanuatu does not have taxation of individuals.
  • She also received a transfer allowance from the DT to move back to Australia that amounted to $2564. Her airfare and the cost of taxis and freight on her personal effects came to $2,664.
  • She earned $3500 in fully franked dividends from Australian Listed Public Companies.
  • She earned $500 in an unfranked dividend from one Australian Listed Public Company.
  • When she returned to Australia, she sold a sports car she had put on blocks when she left. The car had cost her $5000 in 2010, and when she sold it, she received $6,500 for it.
  • On 20th June, 2020, she sold for $10,000 a block of shares that she had purchased in 2014 for $12,000.

Tracy asks you to advise her on her tax situation for the 2019/2020 tax year.

Required:

(a) Draw up a table showing the tax effect of these transaction, and calculating Tracys tax liability or refund based on her being a resident. (7 x 1 = 7 Marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A User Perspective

Authors: Robert E. Hoskin, Maureen R. Fizzell, Donald C. Cherry

4th Canadian Edition

0470834455, 978-0470834459

More Books

Students also viewed these Accounting questions