Akari is a chef. He resides in Brisbane. Akira is also an equal partner in a partnership with his brother Riko. The partnership bakes gourmet cakes to sell at local markets.

Akari provides you with the following information:

Information on Akari's 2021 PAYG Payment Summary for his employer:

• Gross income: $151,000
• PAYG withholding deductions: $8,000
• Reportable fringe benefits: $40,000

Information from the partnership for the 2021 income tax year:

Gross receipts from trading: $100,000

• Purchase of trading stock: $50,000
• Partners salaries

1. Akari: $20,000
2. Riko: $10,000

• Interest on cash advance made to the partnership by Akari: $1,000
• Trading stock on hand at 1 July 2020; $10,000
• Trading stock on hand at 30 June 2021: $20,000

Other information

• Akari made donations to the Animal Welfare League of $1,000 in September 2020.
• On 1 January 2021, Akari received a dividend from a listed public company (not a base rate entity). The accompanying dividend statement disclosed the following information:

1. Franked amount: $450
2. Unfranked amount: $20
3. Imputation amount: $100

• Akari was covered by private health insurance for the entire 2021 income tax year.
• Akari also has his invalid mother, Mei, living with him and supports her throughout the income year. In the 2021 income tax year, Mei receives a disability support pension, and has an adjusted taxable income of $1,000.

Required:

Calculate Akari's taxable income and net tax payable for the 2021 income tax year. You can assume, for the purposes of this question, that the partnership is not a small business entity.

Answer rating: 100% (QA)

1 Akari taxable income statement Gross income 151000 Fringe benefits 40000 Total income and benefits ... View the full answer