Word length: 2,500 words/excluding references References: Yes using either APA or AGLC style and include a reference list

Scenario:

James Strong is a managing director of ABC Pty Ltd, a large private Company that specialises in accounting services.

For the current income year, James has the following receipts and expenses:

a) Salary of $500,000

b) Rent from his apartment in London that derives $600 (equivalent) per week

c) An amount of $20,000 received by James for personal injury, $5,000 of this amount was for loss of salary

d) $5,000 incurred by James for undertaking a Graduate Certificate in Accounting.

e) Reimbursement of his telephone bill by ABC Pty Ltd.

f) Dividends of $20,000 received on his Telstra Share portfolio

g) A bottle of wine worth $2,000 he receives from the CEO of ABC Pty Ltd at Easter

Task: Your firm has been approached by James Strong to provide a letter of advice in relation to the tax implications of these amounts. You are to write a letter of advice that addresses these issues citing the relevant cases and legislation. At this time, you are not required to perform any calculations.