Background Amity Holdings Pty Limited (Amity) is an Australian resident company that was incorporated during 2022. After
Question:
Background Amity Holdings Pty Limited (Amity) is an Australian resident company that was incorporated during 2022. After purchasing several investments including real estate and shares, in 2023 Amity commenced business as a golf equipment wholesaler with both Australian and overseas clients. Katy Mahon, the Managing Director of Amity, has terminated Kurt Aild, the company's accountant, as she is concerned that there are several errors in the returns prepared.
Katy has provided the following information produced by Kurt: a)2023 Income Tax Return b) Additional notes accompanying the income tax return including franking account c) June 2023 Business Activity Statement (BAS) d) Additional notes accompanying the BAS e) 2023 Fringe Benefits Tax Return f) Notes and workings accompanying the FBT return
Requirements
Katy has requested that you make a statement of advice including:
i) Any necessary corrections to Amity's Income Tax Return that impacts taxable income, income tax liability or the franking account. Each correction should be supported by a brief explanation and correct referencing from legislation, along with any workings and calculations.
ii) Any necessary corrections to Amity's Fringe Benefits Tax Return that impacts the taxable value of benefits and fringe benefits tax liability. Each correction should be supported by a brief explanation and correct referencing from legislation, along with any workings and calculations.
iii) Any necessary corrections to Amity's Business Activity Statement that impacts GST on sales, GST on purchases and net GST payable. Each correction should be supported by a brief explanation and correct referencing from legislation, along with any workings and calculations
PLEASE FILL THE ANSWERS HERE IN
tax liability or the franking account. Each correction should be supported by a brief explanation and correct referencing from legislation, along with any workings and calculations.
ii) Any necessary corrections to Amity's Fringe Benefits Tax Return that impacts the taxable value of benefits and fringe benefits tax liability. Each correction should be supported by a brief explanation and correct referencing from legislation, along with any workings and calculations.
iii) Any necessary corrections to Amity's Business Activity Statement that impacts GST on sales, GST on purchases and net GST payable. Each correction should be supported by a brief explanation and correct referencing from legislation, along with any workings and calculation
COMPANY TAX RETURN
ITEM | DETAILS | SECTION REF. | $ |
Difference between opening stock and closing stock not calculated Cost of Sales | |||
Additional income xxxx |
This has not been added | s | |
Non deductible items xxx | |||
Taxable income Net profit per income statement Add Less Taxable Income |
REQUIREMENT-
CORRECT THE FRANKING ACCOUNT
CORRECTED FRANKING ACCOUNT
DATE | DESCRIPTION | DR | CR | BAL |
CORRECTED TAX CALCULATION
WORKINGS | $ | |
Tax on taxable income
| ||
Less: tax offsets or tax credits | ||
NET TAX PAYABLE |
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty