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BACC318: Peter and Jill are in a Partnership as Retailers of Electrical Goods - Taxation Law and Compliance Assignment Help
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Internal Code: 1AJCDJ
Taxation Law and Compliance Assignment
REQUIRED: In answering the question students are required to refer to relevant case law, sections of the Income Tax Assessment Act 1936 and 1997 and Tax Rulings issued by the Tax Office. An analysis of the key issues is required. PRESENTATION: Students are required to include a bibliography of reference materials. Reference materials must be more than the lecture notes and prescribed textbook. Students are required to follow the University guidelines on referencing material. Students are also required to sign and hand in a declaration that the work is their own and that they have not collaborated with another student in answering the question. ASSIGNMENT QUESTIONS: Question 1 Peter and Jill are in a partnership as retailers of electrical goods. The partnership records, exclusive of GST, for this income year disclose: Receipts ($): 300,000 Gross receipts from trading Payments ($): 100,000 Purchases of trading stocks 30,000 Partners' salaries (each) 2,000 Interest on cash advance made to the partnership by Peter 60,000 Salaries for employees and rent paid 2,000 Legal expenses in recovering bad debts Other details:- Peter and Jill share partnership profits equally
- Trading stock on hand 1 July: $10,000
- Trading stock on hand 30 June: $20,000
- Peter's personal records disclose:
- Gambling winnings: $2,000
- Net salary as a part-time instructor (excluding PAYG tax instalments of $2,000): $5,000
- Subscription to professional journals: $500
- Peter is a member of a private health fund
- Purchased a Mercedes Benz motor vehicle for a cost of $128,000 on 10 October 2017. The car is used by the managing director 72% of the time for work purposes. The effective life of the car is 6 years. On 16 May 2018 the car was crushed by a forklift. The insurance company wrote off the car and paid the company $87,000.
- $78,562 was spent on hiring additional fire equipment to fight a fire at
- $583,412 was spent on legal fees and advertising to represent the
- The company also made a provision in the company accounts for
- It also donated $55,000 to the local community SES Fire services.