INDIVIDUAL ASSIGNMENT 2 ACC00717 Taxation law and Practice [email protected] Description: Case Study requiring preparation of workpapers, calculation of taxable income and income tax payable, preparation of an individual tax return, and a letter of advice. Weighting: 35% Course Content:Focus on Topics 5-10, with knowledge of previous topics expected. Due: Week 11 Remember: The purpose of an assignment is for you to demonstrate your knowledge and understanding of the topic. Make sure your answers are comprehensive enough to achieve this. NOTE: THIS IS AN INDIVIDUAL ASSIGNMENT. YOU SHOULD WRITE ALL WORK SUBMITTED YOURSELF AND IT SHOULD BE BASED ON YOUR OWN RESEARCH . EVIDENCE OF COPYING FROM OTHER STUDENTS WILL BE TAKEN SERIOUSLY AND REPORTED. ASSIGNMENT INSTRUCTIONS EMPLOYMENT: Your client (use your own name as the client name) is the sole director of FinForensics Pty Ltd. The business employs five staff members, including your client who holds the position of managing director. FinForensicsanalyses financial information andprovides investment advice to registered clients. The payment summary from FinForensics Pty Ltd shows the following: § ABN 84 111 122 223 § Gross Payments $130,000 § Tax Withheld $38,376 FinForensics also paid $99 a month for your client’s mobile phone account and additional superannuation contributions of $10,000 under a salary sacrifice arrangement. This amount is in addition to superannuation guarantee requirements.The phone payments related to a fixed monthly contract in the employee’s name and payments were made directly to the phone company by the employer. Your client owns an Audi Q5. They purchased the car on 1 June 2016 for $85,000. The car travelled 38,500 kms during the year and your client has indicated that about 75% is work related but they have not kept a log book. Your client pays for all the running costs for the vehicle. During the year these costs included: Fuel & Oil $5,950 Servicing $1,200 Registration $ 760 Insurance $1,800 Tyres $2,400 Excess on insurance claim. The insurance company paid for the balance of the cost of repairs. $ 500 Car Washing $1,300 DIVIDENDS& INVESTMENTS: FinForensics Pty Ltd is a large company with two (2) shareholders, your client and their spouse. Your client owns 60% of the issued shares in the company. The shareholders were paid a lump sum of $140,000 in April. They explained that the company had been very successful over the last couple of years and had accumulated significant cash reserves. They described this payment as a fully franked dividend. The proceeds were used to reduce the line of credit that was taken out to purchase the home in which they live.Interest paid on the home loan for the year was $15,000. The client also has a portfolio of shares that were inherited from their father. The father passed away on July 15, 2016. On finalisation of the estate the following shares were transferred to y ...