ACC311 : Taxation Law and Practice : Case Study Report – Law Assignment

Internal Code : MAS463

Law Assignment

Practical Details –

Dan Brown, aged 35, is a single father with a 2 year old son – Ryan – of whom he has shared care. Ryan had $100 assessable income for the current tax year.

Dan is an eligible beneficiary of the Fibonacci Family Discretionary Trust. The trustees decided to distribute a cash amount of $15,000 to Dan for the current tax year.

Dan also receives $5,000 fully franked dividends. Dan has a $36,000 HELP debt.

Dan received $98,000 (gross income) from employment at ABC Pty Ltd for the period 1 July 2015 to 30 June 2016. The correct amount of PAYG has been withheld.

Dan did not receive a Parenting Payment from Centrelink.

Dan reports interest income of $675.

Dan advises of investment expenses of $300.

Dan receives rental income of $20,800 from an investment property. The associated expenses are:

  • Mortgage repayments: $15,000
  •  Repairs: $2,000
  •  Rates: $2,000
  • Insurance: $200

Dan sold a parcel of 100 Telstra shares on 1 January 2015 for $1,500. He had purchased these shares on 1 January 2005 for $500. His brokerage costs of buying and selling were $100 in total.

Dan made donations (for which he presents tax invoices and receipts) to the value of $500.

Dan does wear a uniform to work.

Dan salary sacrificed $2,000 to Superannuation.

Dan pays premiums on an income protection insurance policy equivalent to $900 per year.

Dan does not have Private Health Insurance.

Question :

1.Calculate the net tax payable/ refund situation for Dan for the current tax year (include references, calculations & assumptions)

2.Complete the current year Income Tax Return for Dan

3.Prepare a letter of advice to Dan explaining his current year Income Tax Result.

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