Irene Abbott operates a small business as a sole trader selling jewellery, and receives investment income, but
Question:
Irene Abbott operates a small business as a sole trader selling jewellery, and receives investment income, but is not registered for GST. She is required to pay PAYG Withholding quarterly and PAYG Instalments and uses Option 2. During the September quarter Irene paid wages of $2,000 (net of $500 PAYG withheld) and paid a subcontractor $3,650, from which $730 was withheld. Details of Cash Receipts for the September quarter were as follows:
Trading income $17,650 Rental income $ 2,200 Sales of shares $ 4,500 Dividend income $3,450 PAYG Instalment rate notified by ATO 19.6% Irene has had a downturn in her business due to other competition and wishes to amend her PAYG Instalment amount. She now expects her annual PAYG instalment income to be $67,000 and her annual PAYG income tax to be $8,700. Irene has also been having cash flow problems and is concerned about her ability to pay her BAS obligations on time. Currently she pays the ATO through the mail. | |
Required:
The completed IAS form must have answers printed clearly using a black pen and you should sign and dateusing the due date for lodgement | |
11.1 Calculations (showing all workings): | |
W1 | |
W2 | |
T1 | |
T3 | |
T11 |
11.2 Memo to Irene, that includes your three (3) suggestions: |
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Concepts In Federal Taxation 2018
ISBN: 9781337386074
25th Edition
Authors: Kevin E. Murphy, Mark Higgins