Broader Patrol Pty Ltd is a trading company which conducts a security agency business using drones...

    

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Broader Patrol Pty Ltd is a trading company which conducts a security agency business using drones to monitor the streets. Which it commenced on 1 July 2019, prior to that it run a restaurant business? The business incurred tax losses of $45,000 and $11,000 in the years ended 30 June 2018 and 30 June 2019 respectively. Current year trading information: Income Gross revenue from security agency Sale of shares The shares had been acquired in a public float on 15 July 2015 for $9,860. Franked dividend received 3 November 2019 Franking credits attached $429 Partly franked dividend received 8 March 2020 Franking credits attached $2,743 Interest on investments Expenses Purchases - all allowable under sec 8- 1 Salaries and wages (including Directors' salaries of $60,000) 1,200,000 325,000 1,100 8,000 12,000 700,000 450,000 Lease rental for business premises Other allowable expenses and depreciation Provision for Annual Leave Superannuation Rent prepaid on new premises, 11 months of rent were paid in advance on 28th June 2020 80,000 13,000 12,590 40,500 56,000 Additional information 2. 3. 4. 5. 6. 1. The shareholders of Broader Control Pty Ltd and their shareholdings were: Shareholders at 30 June 2018 60 Jason Bourne Austin Powers 40 James Bond Maxwell Smart 100 200 30 June 2019 120 80 30 0 500 30 June 2020 100 100 30 0 40 0 900 Voting and dividend rights are held in direct proportion to shareholdings. The Commissioner of Taxation considers that $20,000 of the Directors' salaries is unreasonable. Broader Control Pty Ltd paid a franked dividend of $160,000 on 5 November 2019 the dividend was franked to 65%, and a dividend of $113,400 which was franked to 100% was paid on 10 March 2020. The directors wish to use SBE elections Annual leave actually paid during year was $9,800. 7 1 PAYG Instalments for the year were paid as follows: 28 July 2019 28 October 2019 Required: 2 28 February 2020 28 April 2020 28 July 2020 $6,100 $7,000 $9,000 $7,000 $4,000 Calculate the taxable income and net tax payable for the year ended 30 June 2020. Provide brief reasons for the omission of any items from your calculations. The company is a BRE for tax purposes (32 marks) Assuming an opening balance of $123,567 at 1 July 2019 prepare the franking account for the current year, and calculate any tax and/or penalty payable. (10 marks) Broader Patrol Pty Ltd is a trading company which conducts a security agency business using drones to monitor the streets. Which it commenced on 1 July 2019, prior to that it run a restaurant business? The business incurred tax losses of $45,000 and $11,000 in the years ended 30 June 2018 and 30 June 2019 respectively. Current year trading information: Income Gross revenue from security agency Sale of shares The shares had been acquired in a public float on 15 July 2015 for $9,860. Franked dividend received 3 November 2019 Franking credits attached $429 Partly franked dividend received 8 March 2020 Franking credits attached $2,743 Interest on investments Expenses Purchases - all allowable under sec 8- 1 Salaries and wages (including Directors' salaries of $60,000) 1,200,000 325,000 1,100 8,000 12,000 700,000 450,000 Lease rental for business premises Other allowable expenses and depreciation Provision for Annual Leave Superannuation Rent prepaid on new premises, 11 months of rent were paid in advance on 28th June 2020 80,000 13,000 12,590 40,500 56,000 Additional information 2. 3. 4. 5. 6. 1. The shareholders of Broader Control Pty Ltd and their shareholdings were: Shareholders at 30 June 2018 60 Jason Bourne Austin Powers 40 James Bond Maxwell Smart 100 200 30 June 2019 120 80 30 0 500 30 June 2020 100 100 30 0 40 0 900 Voting and dividend rights are held in direct proportion to shareholdings. The Commissioner of Taxation considers that $20,000 of the Directors' salaries is unreasonable. Broader Control Pty Ltd paid a franked dividend of $160,000 on 5 November 2019 the dividend was franked to 65%, and a dividend of $113,400 which was franked to 100% was paid on 10 March 2020. The directors wish to use SBE elections Annual leave actually paid during year was $9,800. 7 1 PAYG Instalments for the year were paid as follows: 28 July 2019 28 October 2019 Required: 2 28 February 2020 28 April 2020 28 July 2020 $6,100 $7,000 $9,000 $7,000 $4,000 Calculate the taxable income and net tax payable for the year ended 30 June 2020. Provide brief reasons for the omission of any items from your calculations. The company is a BRE for tax purposes (32 marks) Assuming an opening balance of $123,567 at 1 July 2019 prepare the franking account for the current year, and calculate any tax and/or penalty payable. (10 marks)

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