Your client Andrew Chang has attended your office to have his 2022 year end tax return prepared Andrew is 38 years old, single resident taxpayer employed as an IT specialist by Great IT Pty Ltd (ABN 11 222 333 444) The expenditure and receipts for Andrew Chang for 2021 22 comprise the following Receipts Net salary received from employer $57,000 I Gift money from his fellow workers on birthday $120 Allowances from employer travel $500 Fully franked dividend received from Qantas $1,200 (company tax rate 30 )80 franked dividend received from Elderton Homes Pty Ltd $800 (company tax rate 25 Robert Thomas Unfranked dividend received from Lake Resources $1, 100 (company tax rate 30 ) Interest from CBA bank in Sydney $400 Interest received from Hongkong bank in Hong Kong (AUD $900 tax withheld in Hong Koi $1500 Fringe benefit received from employer $17,89 Payments (all substantiated) Suits (Andrew must wear a business suit as per the company policy when he visits clients) $1 200 Work related telephone stationery $370 Cost of meals when required to work overtime $120 Computer purchased on 31 March 2022 and Andrew estimated 20 is used for work purposes $2,800 Donation made to Arthritis foundation (ABN 67 002 598 594) $200 Donations made to Hillsong church in Sydney $350 Income protection insurance $680 Travel costs between one to another work places for installing software program $520 Other Information PAYG Tax withholding deducted from gross salary $10,540 Andrew does not have a private health insurance Required Calculate Andrew's taxable income including income and deductions details in the answer sheet provided Advise tax payable or refundable for Andrew Chang including Medicare levy and all available tax offsets (you must show all workings) 1) Advise assessability of receipts and deductibility of payments with explanations (Wages, Gift, Allowance, Dividends, Interest, Fringe benefits, Suits, Telephone Stationery, Computer, Donation, Insurance and Travel costs) Include section numbers in the legislation and or cases in explanation

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Posted on Aug 05, 2024

Your client Andrew Chang has attended your office to have his 2022-year end tax return prepared. Andrew is 38 years old, single resident taxpayer employed

Your client Andrew Chang has attended your office to have his 2022-year end tax return prepared.

Andrew is 38 years old, single resident taxpayer employed as an IT specialist by Great IT Pty Ltd (ABN 11 222 333 444).

The expenditure and receipts for Andrew Chang for 2021/22 comprise the following:

Receipts

Net salary received from employer $57,000

Gift money from his fellow workers on birthday $120
Allowances from employer - travel $500
Fully franked dividend received from Qantas $1,200 (company tax rate 30%)80% franked dividend received from Elderton Homes Pty Ltd $800 (company tax rate 25% Robert Thomas
Unfranked dividend received from Lake Resources $1, 100 (company tax rate 30%)
Interest from CBA bank in Sydney $400
Interest received from Hongkong bank in Hong Kong (AUD $900 tax withheld in Hong Koi $1500
Fringe benefit received from employer $17,89
Payments (all substantiated)
Suits (Andrew must wear a business suit as per the company policy when he visits clients) $1.200
Work related telephone & stationery $370
Cost of meals when required to work overtime $120
Computer purchased on 31 March 2022 and Andrew estimated 20% is used for work purposes $2,800
Donation made to Arthritis foundation (ABN 67 002 598 594) $200
Donations made to Hillsong church in Sydney $350
Income protection insurance $680
Travel costs between one to another work places for installing software program $520

Other Information

PAYG Tax withholding deducted from gross salary $10,540
Andrew does not have a private health insurance.

Required

Calculate Andrew's taxable income including income and deductions details in the answer sheet provided
Advise tax payable or refundable for Andrew Chang including Medicare levy and all available tax offsets (you must show all workings)

1) Advise assessability of receipts and deductibility of payments with explanations (Wages, Gift, Allowance, Dividends, Interest, Fringe benefits, Suits, Telephone/Stationery, Computer, Donation, Insurance and Travel costs). Include section numbers in the legislation and/or cases in explanation