You are a graduate tax advisor, employed by Tax Advisors Pty Ltd. Your partner has assigned you
Question:
You are a graduate tax advisor, employed by Tax Advisors Pty Ltd. Your partner has assigned you the following client file after attending a meeting with the client.
Client Background
Judy Somerville is employed by Ansett Airways Limited (‘Ansett’) since 2003 as a long-haul flight attendant based in Melbourne, Australia. The nature of Judy’s position with Ansett sees her flying to
international ports where she spends 183 days away from her home base each calendar year. The remaining days of each calendar year are spent in Australia and Judy uses non-flying time to organise the importation of textiles into Australia from Textiles Inc. (a company registered in the USA). Until recently, Judy was the exclusive distributor of textiles to retailers in Australia.
Client File Contents
The client file has the following relevant documents:
- Extract of bank statement for selected transactions during the financial year ended 30 June 2020 togetherwith its accompanying notes from Judy (see Annexure A);
- Income statement 2020 from Ansett (see Annexure B);
- Fixed assets register (see Annexure C)
- File note prepared by your partner who had a meeting with Judy (see Annexure D)
Questions:
Required:
Judy Somerville has engaged Tax Advisors Pty Ltd to advise her of all her tax issues which will arise from the documents provided in respect of the tax year ending 30 June 2020. Your partner has requested that you: Under Australian Taxation;
- show the calculation of Judy’s taxable income and tax payable for the tax year ending 30 June 2020.