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Your client, Tom Murphy, started his Solicitor practise on the 1st of September 2017. He prepared his first set of accounts for the 7-month accounting period ended 31 March 2018. His profit for that 7-month accounting period was 25,025. He had the following profits for each of the following accounting periods: 45,000 profit for the 12-month accounting period ended 31 March 2019. 75,000 profit for the 12-month accounting period ended 31 March 2020. In 2021 , Tom changed his accounting period end to the 30th of June. He had a profit in the amount of 105,000 for the 15-month accounting period ended 30 June 2021. Tom received professional fees from Filte Ireland in the amount of 40,000 (net) during the 12-month accounting period ended 30 June 2022. This is the first period he provided services to Filte Ireland. His total profit (including this 40,000 ) for the 12 -month accounting period ended 30 June 2022 was 100,000. Tom's wife, Anna, is an employee of Pharma limited. She only works part-time for the company as she cares for her 85-year-old widowed father. Her father lives with Tom and Anna and is maintained at their expense. Anna has income in the amount of 10,200 in respect of the tax year 2022. Tom and Anna are jointly assessed for Income Tax purposes. Requirement: 1. Explain how Tom's assessable profits are arrived at for each of the tax years 2017 to 2021. Provide details, in monetary terms, of all assessable profits. 2. Explain how Tom's assessable profit is arrived at for the tax year 2022, taking into consideration his new source of income from providing professional services to Filte Ireland. 10 Marks 3. Discuss what non-refundable and refundable tax credits would be available to Tom and Anna and whether they should avail of all tax credits, where they can. Provide monetary amounts/calculations, where applicable. 20 Marks Your client, Tom Murphy, started his Solicitor practise on the 1st of September 2017. He prepared his first set of accounts for the 7-month accounting period ended 31 March 2018. His profit for that 7-month accounting period was 25,025. He had the following profits for each of the following accounting periods: 45,000 profit for the 12-month accounting period ended 31 March 2019. 75,000 profit for the 12-month accounting period ended 31 March 2020. In 2021 , Tom changed his accounting period end to the 30th of June. He had a profit in the amount of 105,000 for the 15-month accounting period ended 30 June 2021. Tom received professional fees from Filte Ireland in the amount of 40,000 (net) during the 12-month accounting period ended 30 June 2022. This is the first period he provided services to Filte Ireland. His total profit (including this 40,000 ) for the 12 -month accounting period ended 30 June 2022 was 100,000. Tom's wife, Anna, is an employee of Pharma limited. She only works part-time for the company as she cares for her 85-year-old widowed father. Her father lives with Tom and Anna and is maintained at their expense. Anna has income in the amount of 10,200 in respect of the tax year 2022. Tom and Anna are jointly assessed for Income Tax purposes. Requirement: 1. Explain how Tom's assessable profits are arrived at for each of the tax years 2017 to 2021. Provide details, in monetary terms, of all assessable profits. 2. Explain how Tom's assessable profit is arrived at for the tax year 2022, taking into consideration his new source of income from providing professional services to Filte Ireland. 10 Marks 3. Discuss what non-refundable and refundable tax credits would be available to Tom and Anna and whether they should avail of all tax credits, where they can. Provide monetary amounts/calculations, where applicable. 20 Marks

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