a) Is income earned from illegal means (e.g. drug-dealing,insider trading or theft) assessable income? 3 marks
b) Calculate the assessable income of a resident taxpayer inthe current year if
they were to be in receipt of $500 bank interest from theirsavings account, $10,000 won at the Crown Casino, $2,000 rentearned from a boarder sharing a house. Give reasons, considerationsand quote reference to sections of the ITAA in your answer. 3marks
c) Would a $500 allowance paid to an employee by an employerbe assessable income to the employee. Explain your answer. 3marks
d) Calculate the Medicare payable for a resident individualwith a taxable income of $20,000, $24,900 and $100,000 3marks
e) Calculate the gross tax payable for the taxable income of$25,000, $40,000 and $95,000. (Note Gross tax payable is the amountof tax due before Medicare levy and tax offsets) 3 marks
REQUIRED:
Answer each question above giving consideration to theallocated marked.
Total 15 marks
