John and Keren are doctors and holding equal equity to operate a medical practice and a...

  

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John and Keren are doctors and holding equal equity to operate a medical practice and a charter boat business in northern New South Wales as a partnership ( the partnership is registered for GST). The relevant income and expenses of the Partnership for 2020/21 tax year are as follows: Income Gross income from patient consultations $220,000 Gross income from charter boat business: $66,000 Fully franked dividend-CBA $1,600 Interest revenue $400 Less Expenses: Rent, electricity and telephone expenses - medical practice $44,000 Wages paid to nurse and reception staff – medical practice $60,000 Fresh fruit and salad vegetables for catering on charter $12,000 boat Fuel and repairs and maintenance relating to charter $8,800 boat Wages paid to part-time staff – charter boat $20,000 Bank fees on businesses account $650 Wages - John $30,000 Wages - Keren $25,000 Additional information: The charter boat business made a net loss of $30,000 while the medical practice made a net income of $95,000 for 2019/2020 tax year. John and Keren share profit and losses equally after the payment of salaries of $30,000 and $25,000 to John and Keren respectively. REQUIRED 1) Assuming the above figures where applicable, are GST inclusive, for the two business activities. EXPLAIN AND CALCULATE the GST payable on supplies made and GST input tax credit claimable for the 2020/2021 tax year. Please show all workings citing relevant authorities. (15 Marks) Assuming the above figures where applicable, are GST exclusive 2) for two business activities. Please show all workings citing relevant authorities. Calculate the net income of the partnership for the 2020/2021 tax year. (5 Marks) Advise each partner (John and Keren) on the tax treatment of their share of partnership net income for the 2020/2021 tax year. (10 Marks) John and Keren are doctors and holding equal equity to operate a medical practice and a charter boat business in northern New South Wales as a partnership ( the partnership is registered for GST). The relevant income and expenses of the Partnership for 2020/21 tax year are as follows: Income Gross income from patient consultations $220,000 Gross income from charter boat business: $66,000 Fully franked dividend-CBA $1,600 Interest revenue $400 Less Expenses: Rent, electricity and telephone expenses - medical practice $44,000 Wages paid to nurse and reception staff – medical practice $60,000 Fresh fruit and salad vegetables for catering on charter $12,000 boat Fuel and repairs and maintenance relating to charter $8,800 boat Wages paid to part-time staff – charter boat $20,000 Bank fees on businesses account $650 Wages - John $30,000 Wages - Keren $25,000 Additional information: The charter boat business made a net loss of $30,000 while the medical practice made a net income of $95,000 for 2019/2020 tax year. John and Keren share profit and losses equally after the payment of salaries of $30,000 and $25,000 to John and Keren respectively. REQUIRED 1) Assuming the above figures where applicable, are GST inclusive, for the two business activities. EXPLAIN AND CALCULATE the GST payable on supplies made and GST input tax credit claimable for the 2020/2021 tax year. Please show all workings citing relevant authorities. (15 Marks) Assuming the above figures where applicable, are GST exclusive 2) for two business activities. Please show all workings citing relevant authorities. Calculate the net income of the partnership for the 2020/2021 tax year. (5 Marks) Advise each partner (John and Keren) on the tax treatment of their share of partnership net income for the 2020/2021 tax year. (10 Marks)

Answer rating: 100% (QA)

1 Gross Income from Patient consultations 220000 Gross Income from charter boat business 66000 Fully ... View the full answer