SUPP ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below) HA3042 TAXATION LAW final assessmeNt Trimester 1, 2021 Assessment Weight: 50 total marks Instructions:...

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SUPP ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below) HA3042 TAXATION LAW final assessmeNt Trimester 1, 2021 Assessment Weight: 50 total marks Instructions: · All questions must be answered by using the answer boxes provided in this paper. · Completed answers must be submitted to Blackboard by the published due date and time. Submission instructions are at the end of this paper. Purpose: This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit HA3042 Final Assessment T1 2021 Question 1(7 marks) Sanjay is a new recruit in a consulting company and after few months he realised that in order to secure his promotion within the company, Sanjay must keep up the good standard and gaining the master degrees in business will boost his chance. So, Sanjay enrols as a part time student at Holmes College in Melbourne for MBA program. Sanjay subsequently incurs the following expenses:     $ Enrolment Fees   499 Text Books   200 Travelling expenses from Work to College   300 Tuition Fees (assuming Sanjay didn’t utilise HELP)   6000 Please advise how much deductions that Sanjay are entitled to claim. Please give short explanations and section of the laws when applicable ANSWER: ** Answer box will enlarge as you type Question 2(7 marks) Karanjit runs a delivery/courier business and had to replace the motor in one of his delivery vans. The original petrol motor had seized and need to be replaced. Karanjit decided to replace the petrol motor with aa diesel motor since it is more fuel efficient. The cost of replacing the motor was $25,000. If Karanjit replace it with the petrol motor, it will only cost $18,000. Please discuss the deductibility of the outgoing under S25-10 ANSWER: Question 3(7 marks) Manpreet Kaur a 45 years old employee (Resident Individual) that have annual salary of $98,000 during Tax Year 20-21, where she also received a fully franked dividend from resident public company for the amount of $6,300. Manpreet got some eligible deductions for the year to the amount of $5,800. Manpreet has private insurance cover during the year. Manpreet has paid tax during the year on Manpreet’s salary for the amount of $27,500 (PAYG). Manpreet also still have HELP loan balance ($15,000) that Manpreet still needs to pay. Based on the above information, what will be Manpreet tax payable/refund for the year 20-21 tax year? Please take account on Medicare Levy, Medicare Levy Surcharge, PAYG, and HELP’s repayment ANSWER: Question 4(11 marks) Navneet and Rohit are partners in small accounting consultancy firm. Both partners contributed $80,000 as capital at the beginning of the partnership. Navneet also transferred the ownership of her office as an additional capital into the partnership. (where the market value of the office at that time was $150,000). The partnership agreement stated that Navneet will receive 65% distribution of Net Partnership Income while Rohit will be received 35%. The partnership also going to pay 9% interest on introduced capital for each partner. Both Navneet and Rohit will receive $35,000 salaries. During the year, due to COVID 19 the partnership short of working capital hence Rohit provided $50,000 loan toward the partnership where the partnership will give 15% interest on this loan. For the year ended 30 June 2021, the partnership has an income of $350,000 and total expenditure of $185.000 (including salary and interest payments toward the partners) Additional Information: Navneet and Rohit are resident single taxpayer with no private health insurance Required: 1. Calculate the Net Income of Partnership 2. Calculate the Amount available for Distribution 3. Calculate Rohit tax payable (Please consider Medicare and Medicare levy surcharge as well) ANSWER: Question 5(11 marks) Maharaj Pty Ltd is an Indian restaurant that specialised in lamb and chicken biryani, Maharaj cater both dine in and take away, Maharaj located in Melbourne CBD where the company pay rents to the landlord that own the space. Maharaj employs 5 salaried staffs and registered for GST. Maharaj also own 3-bedrooms apartments (residential) that the company rent out for the amount of $750/week ($39,000/year) For the period ending 30 June 2021, the company recorded the following transactions Amount Included GST where applicable Income $ Sales of Lamb Biryani 252,000 Sales of Chicken Biryani 151,200 Sales of Drinks 88,000 Rental income (Residential Property) 39,000     Expenses   Purchase of Ingredients (Raw Chicken, Lambs) 35,000 Spices 10,000 Cutlery (plates, spoons, forks) 5,500 Electricity 19,800 Bookkeeping/Accounting 6,600 Rental expense (Restaurant) 110,000 Depreciation expense (Furniture, fit outs) 31,500 Interest expense 4,650 Wages (Staffs) 160,000     Rental Property expenses   Management Fee (Payable to real estate agency) 2,145     Assume that valid tax invoices are available for all of these transactions, determine how much Net amount of GST which is payable to ATO for this period by Maharaj Pty Ltd. You need to provide short explanation for each components and legislation where its applicable. ANSWER: Question 6(7 marks) As Covid 19 created havoc in the world’s economy, it also restricts people’ movement that created a headache for most “Multi National Corporation” as some of their overseas employees stranded within Australia for much longer than their intended stay. Please review below article and analyse what causing this particular issues and how MNC/accounting firms try to handle the situation https://home.kpmg/xx/en/home/insights/2020/12/flash-alert-2020-487.html In your answer, you should discuss about the 4 residency tests as well ANSWER: END OF FINAL ASSESSMENT Submission Instructions: · Save submission with your STUDENT ID NUMBER and UNIT CODE e.g. EMV54897 HA3042 · Submission must be in MICROSOFT WORD FORMAT ONLY · Upload your submission to the appropriate link on Blackboard · Only one submission is accepted. Please ensure your submission is the correct document. · All submissions are automatically passed through SafeAssign to assess academic integrity. SUPP ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below) HA3042 TAXATION LAW final assessmeNt Trimester 1, 2021 Assessment Weight: 50 total marks Instructions: · All questions must be answered by using the answer boxes provided in this paper. · Completed answers must be submitted to Blackboard by the published due date and time. Submission instructions are at the end of this paper. Purpose: This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit HA3042 Final Assessment T1 2021 Question 1(7 marks) Sanjay is a new recruit in a consulting company and after few months he realised that in order to secure his promotion within the company, Sanjay must keep up the good standard and gaining the master degrees in business will boost his chance. So, Sanjay enrols as a part time student at Holmes College in Melbourne for MBA program. Sanjay subsequently incurs the following expenses:     $ Enrolment Fees   499 Text Books   200 Travelling expenses from Work to College   300 Tuition Fees (assuming Sanjay didn’t utilise HELP)   6000 Please advise how much deductions that Sanjay are entitled to claim. Please give short explanations and section of the laws when applicable ANSWER: ** Answer box will enlarge as you type Question 2(7 marks) Karanjit runs a delivery/courier business and had to replace the motor in one of his delivery vans. The original petrol motor had seized and need to be replaced. Karanjit decided to replace the petrol motor with aa diesel motor since it is more fuel efficient. The cost of replacing the motor was $25,000. If Karanjit replace it with the petrol motor, it will only cost $18,000. Please discuss the deductibility of the outgoing under S25-10 ANSWER: Question 3(7 marks) Manpreet Kaur a 45 years old employee (Resident Individual) that have annual salary of $98,000 during Tax Year 20-21, where she also received a fully franked dividend from resident public company for the amount of $6,300. Manpreet got some eligible deductions for the year to the amount of $5,800. Manpreet has private insurance cover during the year. Manpreet has paid tax during the year on Manpreet’s salary for the amount of $27,500 (PAYG). Manpreet also still have HELP loan balance ($15,000) that Manpreet still needs to pay. Based on the above information, what will be Manpreet tax payable/refund for the year 20-21 tax year? Please take account on Medicare Levy, Medicare Levy Surcharge, PAYG, and HELP’s repayment ANSWER: Question 4(11 marks) Navneet and Rohit are partners in small accounting consultancy firm. Both partners contributed $80,000 as capital at the beginning of the partnership. Navneet also transferred the ownership of her office as an additional capital into the partnership. (where the market value of the office at that time was $150,000). The partnership agreement stated that Navneet will receive 65% distribution of Net Partnership Income while Rohit will be received 35%. The partnership also going to pay 9% interest on introduced capital for each partner. Both Navneet and Rohit will receive $35,000 salaries. During the year, due to COVID 19 the partnership short of working capital hence Rohit provided $50,000 loan toward the partnership where the partnership will give 15% interest on this loan. For the year ended 30 June 2021, the partnership has an income of $350,000 and total expenditure of $185.000 (including salary and interest payments toward the partners) Additional Information: Navneet and Rohit are resident single taxpayer with no private health insurance Required: 1. Calculate the Net Income of Partnership 2. Calculate the Amount available for Distribution 3. Calculate Rohit tax payable (Please consider Medicare and Medicare levy surcharge as well) ANSWER: Question 5(11 marks) Maharaj Pty Ltd is an Indian
Answered Same DayJun 15, 2021HA3042

Answer To: SUPP ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below)...

Riddhi answered on Jun 15 2021
140 Votes
1. Self-education expense shall be allowed as tax deduction under section 8-1 of ITAA 1997, if the expense is related to his career or profession. The expenses that shall be allowed to be claimed shall include tuition if paid by assesse, textbooks, stationery, journals of trade professionals, travel cost between the place of education and place of workplace or home, fees payable under the program of HELP etc.
The whole objective and motive of Sanjay for joining the course is secure a promotion in his present work profile and hence, enroll for the master’s degree in business in the Holmes college in Melbourne. According to Sec 8-1 of the ITAA 1997, any employee can claim deduction of expense that are related to earning assessable income and is not personal in nature and the expense incurred is not related to the income that is exempt or nontaxable. Deduction can be claimed for an outgoing or loss which is incurred for earning assessable income for employees as well as proprietors.
As per the rule under TR98/9 of the ITAA 1997, Self-education expenses are deductible wherever the expense is related to the current profession. If the employee is working as a skilled labor and further education shall be relevant for earning promotion or to maintain the desired skill such expense shall be allowed as deduction. If the profession in the given if related to learning painting or cooking classes or driving may not be considered as enhancement or related to the profession.
The expenses that can be claimed as deduction in the given case are textbooks expenses, travelling expense from work to college and tuition fees of $200, $300, and $6000, respectively. In the given case, since the expense are related to the current profession and will help in earning promotion shall be the relation for allowability of deduction.
2. According to the Sec 25-10 of ITAA 1997, Deduction for the expenditure shall be allowed regarding repairs of depreciable asset which had been used for the purpose of earning assessable income. If the expense is incurred only for part repairs in such case only part of the amount shall be allowed as deduction. The expenditure shall not be allowed as tax deductible expense if the nature of expense is a capital expenditure. Any expense related to earning assessable income shall be allowed as tax deductible expense as per Sec 8-1 of ITAA 1997 and the repairs if necessary for earning higher assessable income shall be allowed as tax deduction.
The expenditure if necessary for earning assessable income in the form of replacement shall be allowed as tax deductible. In the given case, Karanjit is engaged in the business of delivery and courier services wherein the delivery vans play a very crucial and important role. Since, the motor of the vehicle is seized and needs replacement, this is necessary for putting the delivery van to use to earn the income from delivery services. The assessee is considering replacing the motor wherein the motor for petrol cost $18,000 and diesel cost $25,000. Diesel is considered as more fuel efficient and the cost per kilometer will reduce which will eventually reduce the cost of per delivery in the Van. The outgoing may not result in earning extra assessable income but result in reducing cost of delivery which will assist in cost reduction, and which will assist in earning better profitability. Because of the advantage of the cost per delivery, it is advisable to replace the motor that is diesel efficient instead of petrol as they are cost benefit analysis as per the provisions of Sec 25-10 of ITAA 1997.
3. Tax payable/ refundable for the year 2020-21 tax year is as follows –
    Particulars
    Amount ($)
    Annual salary
    98,000
    Fully franked dividend
    9000
    Taxable Income
    1,07,000
    (-) Deductions
     
    Eligible deduction
    5,800
    Taxable Income after deductions
    1,01,200
    Tax
     
    Tax
    23,357
    Medicare Levy
    2,024
    Total Tax
    25,381
    (-) PAYG
    27,500
    (-) Franking credit
    2,700
    Tax...
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