Taxation

Taxation

Q1)

Data

Income from JJ personal contribution $20000

Income received from employer contribution $1000

Dividend received from Australian company $22000 - 140000 = $8000

Dividend received from foreign company $ 14000

Income earned from increase in investment value $ 24480

Income received from government contribution $1000

Income received from sale of investment $146000

Total expense

Fees expense on Audit of company $700

Penalty expanse $500

Loss on capital $48000

Solution

Computation of taxable income OSF

For the Year 2012

Income receive business operations$119520

Capital gain$28480

Income from other sources$1900

Gross total Income$149900

Less deduction

Audit fees$700

Lodgment penalty$500

Capital losses$48000

$49200

Total Income $100700

Computation of tax

Tax on short-term capital gains from sales of shares

@ 15% (2000*0.15)300

Tax on business income

(100700* 0.1 )10070

Income tax payable$10370

Less: ...