James Strong is a managing director of ABC Pty Ltd, a large private Company that specializes in
Question:
James Strong is a managing director of ABC Pty Ltd, a large private Company that specializes in accounting services.
For the current income year, James has the following receipts and expenses:
a). Salary of $500,000
b). Rent from his apartment in London that derives $600 (equivalent) per week
c). An amount of $20,000 received by James for personal injury, $5,000 of this amount was for loss of salary
d). $5,000 incurred by James for undertaking a Graduate Certificate in Accounting.
e). Reimbursement of his telephone bill by ABC Pty Ltd.
f). Dividends of $20,000 received on his Telstra Share portfolio
g). A bottle of wine worth $2,000 he receives from the CEO of ABC Pty Ltd at Easter
Task:
Your firm has been approached by James Strong to provide a letter of advice in relation to the tax implications of these amounts. You are to write a letter of advice that addresses these issues citing the relevant cases and legislation. At this time, you are not required to perform any calculations.
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina