Tax law questions and answers in June 2021

Max Kalba has employment income in excess of $200,000 per year. Because of this, any additional income that he received will be subject to acombined federal/provincial tax rate of 42 percent. Several ...
On January 1, 20x1, Dimitri Mishkin owns a group of shares with an adjusted cost base of $ 421165. None of these investments are eligiblefor the lifetime capital gains deduction. While these shares to...
The following information is provided by Exemplar Pty Ltd (tax rate 30%).  Date Transaction Amount ($) 07.07.19 Franking deficit tax relating to 2018/19 7,000 28.07.19 PAYG instalment paid for June q...
Jessica Sampson is running a small consultancy business. For the current year, she had the following transactions: She collected fees from clients of $125,000 She had debtors at the start of the tax y...
Simpson loves restoring old boats as a hobby. On 1 July 2015, Simpson bought an old boat in very run-down condition for $8,000. On 30 June 2020, Simpson sold the boat for $55,000. Which of the followi...
John, an individual resident taxpayer, acquired an investment property for $340,000, plus $10,000 in stamp duty on 1 July 2003. He sold it for $550,000 on the 30 June 2020. John's net capital gain for...
Expenditure incurred by an employee in performing their employment may be deductible under s 8-1. Which of the following is correct (ignoring any substantiation requirements)? Select one: 1 Laundry co...
can i please get help with these two questions Question 1 Which of the following is a deductible medical expense? Funeral, burial, or cremation expenses. Medicare Part B premiums withheld from the tax...
1.    The following contributions and donations were made by a taxpayer.       To Christ the King Catholic Church                          P 250,000       To B...
Sam is your client and has come to you to prepare his tax return. During the 2019-20 financial year ,  Sam has disposed of the following assets:   Sam purchased a yacht in May 2017 from an auction w...
Tanya is a pharmacist. The following events, relating to herself and her son, occurred in the current tax year. Tanya's Rottweiler Tanya owns a pharmacy retail store as a sole proprietor. Lately, ther...
Sanjay is a new recruit in a consulting company and after few months he realised that in order to secure his promotion within the company, Sanjay must keep up the good standard and gaining the master ...
Navneet and Rohit are partners in small accounting consultancy firm. Both partners contributed $80,000 as capital at the beginning of the partnership. Navneet also transferred the ownership of her off...
The uniform administrative penalties regime in Pt 4-25, Sch 1 of TAA consists of some of the following administrative penalties: a.    A taxpayer makes a false or misleading statement to the Commi...
The types of double taxation that can arise when the tax rules of 2 or more countries overlap and impose double taxation on the same types of income include: a.    Juridical double taxation whereb...
Andrew and Piter are paterners, carrying on a business as a partnership. The partnership agreement provides that Andrew is to be paid an annual salary of $40,000. The balance is to be distributed equa...
The Pay As You Go system of collecting income tax in Australia has the following two strands: A.    PAYG withholding whereby the payer deducts amounts from others and remits these payments to the ...
Andrew and Piter are paterners, carrying on a business as a partnership. The partnership agreement provides that Andrew is to be paid an annual salary of $40,000. The balance is to be distributed equa...
Manpreet Kaur a 45 years old employee (Resident Individual) that have annual salary of $98,000 during Tax Year 20-21, where she also received a fully franked dividend from resident public company for ...
Karanjit runs a delivery/courier business and had to replace the motor in one of his delivery vans. The original petrol motor had seized and need to be replaced. Karanjit decided to replace the petrol...
A.          RK Co purchased a machine on 1st November 2020 at the cost of $110,000 (inclusive of GST) and exclusively used it to manufacture for the Co's production. The machine's effective ...
Mr. And Mrs. Claus have two children. The ages of the children are 3 and 14. All the children are in good mental and physical health. During the current year, Mr. Claus has net employment income of $9...
  STY (inter vivos) trust derived $25,000 of interest income and $7,000 in a fully franked dividends during the income year 2020/21.   The net trust income was distributed accordingly to the followi...