CLWM4100 Case Study Information (Assessment 2)

Assessment Instructions

This case study must be completed and submitted to

during class time. This case study

must be prepared as a group effort that requires collaboration and effective teamwork. All

students must take part and research the relevant legislation, including cases, and available via

the Australian Taxation Office website.

Read the following case study carefully and answer all required questions in the Answer Booklet

provided in LMS in Assessment 2 folder. Only one person from the group needs to submit the

answer booklet. Make sure you include all group members' names and student IDs on the cover

page.

Case Study

Apply the fundamentals of tax law, including the concepts of source of income, assessable income,

and deductions to determine taxable income.

Your client Chad Somesh has attended your office to have his 2022-year end tax return prepared.

Chad is 28 years old, single resident taxpayer employed as an IT specialist by Big Tree IT Pty Ltd

(ABN 11 222 333 444).

The expenditure and receipts for Chad Somesh for 2021/22 comprise the following:

Receipts

Salary from employer $67,000

Job seeker payment from Centrelink for July 2021 $840

Allowances from employer - travel $400

Fully franked dividend received from QBE $1,200

Unfranked dividend received from BKL $1,100

Payments (all substantiated)

Suits (Chad must wear a business suit as per the company policy when he visits clients) $1,200

Work related telephone & stationery $370

Computer purchased on 31 March 2022 and Chad estimated 20% is used for work purposes $2,800

Donation made to Arthritis foundation (ABN 67 002 598 594) $200

Other Information

1) PAYG Tax withholding deducted from Salary $10,540

2) Chad does not have a private health insurance.

Required

1) Calculate Chad's taxable income including income and deductions details in the answer sheet

provided.

2) Advise tax payable or refundable for Chad Somesh including Medicare levy and all available tax

offsets (you must show all workings)

3) Complete the 2022 Individual tax return form.