Mary-Ann Case Study - Law Assignment Help

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Assume that you are a Tax Counsel within the Australian Taxation Office. The Chief Tax Counsel sends you the following memorandum. Write a memorandum of advice responding to this request.

Mary-Ann is a 40-year-old pastry cook. She is not married and has no health insurance. Over the last 4 years, she has owned a pie factory in Sydney, called ‘Pie Island’, which specializes in supplying healthy gourmet pies to restaurants. Mary-Ann also provides baking classes to her customers at their restaurants. During the 2018/19 income year, she earned $44,000 for providing these classes and incurred taxi fares of $700 for traveling directly from her factory to the restaurants. She also incurred $500 in taxi fares travelling from her home to restaurants to provide quotes to potential customers for jobs. To help run her business, Mary-Ann recently completed a three-year business hospitality degree at Monash University and has a HELP debt of $30,000 relating to this course. During the 2018/19 income year, Mary-Ann paid Woolworths $1,100,000 to purchase fruit, vegetables, meat, salt, flour, yeast and oil for baking pies at her factory. She derived $3,300,000 from sales of pies to customers during the 2018/19 income year. The value of her stock on hand at 30 June 2018 was $22,000 and the value of her stock on hand at 30 June 2019 was $55,000.

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