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.