Part 2a –Tax Return Information Jake Smith is an Australian resident andalso one of...Part...

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Accounting

Part 2a –
Tax Return Information Jake Smith is an Australian resident andalso one of your clients. Jake has the following events during theyear.
1. During the entire 2018 income year, Jake worked for MD &A Architects. Jake was provided with his PAYG Payment Summary forthe period 1 July 2017 to 30 June 2018. Gross salary was $86,000.Payg tax withheld was $19,820.
2. Jake uses his car for work. Jake was reimbursed for 6,000kilometers travelled during the year at 75 cents per kilometer.PAYG withholding of $1,500 was deducted during the year.
3. Jake earns interest of $100 during the year (gross). Jake didnot provide the bank with his tax file number.
4. Jake received an unfranked divided of $3,500 on 18 June 2018.Jake participated in a dividend reinvestment scheme so that hereceived an additional 198 shares in the company.
5. Jake purchased 1,000 ANZ bank share on 1 March 2015 at $22each. Brokerage costs on purchase were $50. Jake sold 500 ANZ bankshares on 1 June 2018 for $24 each. Brokerage costs on sale were$55.
6. On 12 May 2018, Jake sold his “cricket bat” collection. Thisconsisted of 5 cricket bats that were signed by famous people. Thegreat “Sahin Tendulkar” has signed one of the bats. Ricky pointinghad signed one of the bats which was worth considerably less than 3ACC304 Assignment Assessment 3 the bat signed by Tendulkar. Jakepurchased the bats between 1999 and 2004 for a total cost of$2,600. He sells the entire collection for $900.
7. Jake failed to keep a log book but wishes to claim his Mazda3 motor car if possible. Jake’s diary notes indicate he travelled7,420 kilometers. Total car expenses including depreciation are$6,200. He estimates (has a guess) that his business percentage is95 percent. Jake does not have a second motor car.
8. Jake owns a mobile phone which he uses for work. His mobiletelephone call costs for the 2018 income year totalled $1,400. Jakeestimates that 60% of these calls were workrelated. Jake failed tokeep his receipts and can’t provide any material documentation.
9. On 1 May 2018, Jake paid the invoice which he received fromhis previous tax agent for the preparation and lodgement of hisincome tax return for last year. The tax agent's fee was $400.
10. Jake is not married and does not have health cover.
Advise Jake as to the tax implications of each of these 10 itemsand the impact it will have on his tax return. Students shouldquote sections of law where appropriate. In addition, studentsshould calculate Taxable income only (showing brief workings).
700 words (1 paragraph on each item)

Answer & Explanation Solved by verified expert

4.3 Ratings (827 Votes)

As Per Indian Income Tax Act 1961 The answer of the Que is as follows As Per Income Tax Laws Prevail in India the income which is accrues and arise in India is Taxbale in India Therefore rather Mr Jack is an austrilian Resident Income Earn by him in India See Answer

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In: AccountingPart 2a –Tax Return Information Jake Smith is an Australian resident andalso one of...Part 2a –Tax Return Information Jake Smith is an Australian resident andalso one of your clients. Jake has the following events during theyear.1. During the entire 2018 income year, Jake worked for MD &A Architects. Jake was provided with his PAYG Payment Summary forthe period 1 July 2017 to 30 June 2018. Gross salary was $86,000.Payg tax withheld was $19,820.2. Jake uses his car for work. Jake was reimbursed for 6,000kilometers travelled during the year at 75 cents per kilometer.PAYG withholding of $1,500 was deducted during the year.3. Jake earns interest of $100 during the year (gross). Jake didnot provide the bank with his tax file number.4. Jake received an unfranked divided of $3,500 on 18 June 2018.Jake participated in a dividend reinvestment scheme so that hereceived an additional 198 shares in the company.5. Jake purchased 1,000 ANZ bank share on 1 March 2015 at $22each. Brokerage costs on purchase were $50. Jake sold 500 ANZ bankshares on 1 June 2018 for $24 each. Brokerage costs on sale were$55.6. On 12 May 2018, Jake sold his “cricket bat” collection. Thisconsisted of 5 cricket bats that were signed by famous people. Thegreat “Sahin Tendulkar” has signed one of the bats. Ricky pointinghad signed one of the bats which was worth considerably less than 3ACC304 Assignment Assessment 3 the bat signed by Tendulkar. Jakepurchased the bats between 1999 and 2004 for a total cost of$2,600. He sells the entire collection for $900.7. Jake failed to keep a log book but wishes to claim his Mazda3 motor car if possible. Jake’s diary notes indicate he travelled7,420 kilometers. Total car expenses including depreciation are$6,200. He estimates (has a guess) that his business percentage is95 percent. Jake does not have a second motor car.8. Jake owns a mobile phone which he uses for work. His mobiletelephone call costs for the 2018 income year totalled $1,400. Jakeestimates that 60% of these calls were workrelated. Jake failed tokeep his receipts and can’t provide any material documentation.9. On 1 May 2018, Jake paid the invoice which he received fromhis previous tax agent for the preparation and lodgement of hisincome tax return for last year. The tax agent's fee was $400.10. Jake is not married and does not have health cover.Advise Jake as to the tax implications of each of these 10 itemsand the impact it will have on his tax return. Students shouldquote sections of law where appropriate. In addition, studentsshould calculate Taxable income only (showing brief workings).700 words (1 paragraph on each item)