Lisa (45) and Patrick (48) were divorced on 1 May 2017. The couple have two children;...

  

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Lisa (45) and Patrick (48) were divorced on 1 May 2017. The couple have two children; John (22) is at university and Amy (15) is still at school. The children live with Lisa during the school year and with Patrick during the holidays. Lisa is the primary carer for the children. Lisa works full-time as a marketing assistant and her gross salary for the tax year 2021 was €35,000 (PAYE €5,000). Her job is based in the city but she spends 80% of her time out of the office. Her employer provides her with a company car, which has a current market value of €19,000 but cost her employer €25,000 when it was purchased new in 2019. Lisa drives 10,000 business kilometres annually. In August 2021, Lisa's employer replaced the television in the office's reception area and gave Lisa the old television. The television had been bought in 2016 for €1,000 but its market value in August 2021 was €300. Lisa receives annual legally enforceable maintenance payments from Patrick of €12,000 in respect of the children and €6,000 for herself. Lisa's outgoings in the tax year 2021 were as follows: 1. Permanent health insurance of €1-500. 2. Donation of €600 to the Irish Cancer Society. 3. Private medical insurance of €1,600 (net). 4. Third level college fees of €8,000 for John who is studying on a qualifying postgraduate degree course. Required: Compute Lisa's income tax liability for the tax year 2021 on the basis that she is taxed as a single person. Note: You should indicate by the use of zero (0) any item referred to in the question which is not included in the computation. (25 marks) (b) Lisa is a very creative person and, as a pastime, she knits soft toys. Her friends and work colleagues often buy these soft toys from her as gifts for others Advise Lisa on how the badges of trade may be used to determine whether she is carrying on a trade in respect of the sales of the soft toys she knits. Lisa (45) and Patrick (48) were divorced on 1 May 2017. The couple have two children; John (22) is at university and Amy (15) is still at school. The children live with Lisa during the school year and with Patrick during the holidays. Lisa is the primary carer for the children. Lisa works full-time as a marketing assistant and her gross salary for the tax year 2021 was €35,000 (PAYE €5,000). Her job is based in the city but she spends 80% of her time out of the office. Her employer provides her with a company car, which has a current market value of €19,000 but cost her employer €25,000 when it was purchased new in 2019. Lisa drives 10,000 business kilometres annually. In August 2021, Lisa's employer replaced the television in the office's reception area and gave Lisa the old television. The television had been bought in 2016 for €1,000 but its market value in August 2021 was €300. Lisa receives annual legally enforceable maintenance payments from Patrick of €12,000 in respect of the children and €6,000 for herself. Lisa's outgoings in the tax year 2021 were as follows: 1. Permanent health insurance of €1-500. 2. Donation of €600 to the Irish Cancer Society. 3. Private medical insurance of €1,600 (net). 4. Third level college fees of €8,000 for John who is studying on a qualifying postgraduate degree course. Required: Compute Lisa's income tax liability for the tax year 2021 on the basis that she is taxed as a single person. Note: You should indicate by the use of zero (0) any item referred to in the question which is not included in the computation. (25 marks) (b) Lisa is a very creative person and, as a pastime, she knits soft toys. Her friends and work colleagues often buy these soft toys from her as gifts for others Advise Lisa on how the badges of trade may be used to determine whether she is carrying on a trade in respect of the sales of the soft toys she knits. Lisa (45) and Patrick (48) were divorced on 1 May 2017. The couple have two children; John (22) is at university and Amy (15) is still at school. The children live with Lisa during the school year and with Patrick during the holidays. Lisa is the primary carer for the children. Lisa works full-time as a marketing assistant and her gross salary for the tax year 2021 was €35,000 (PAYE €5,000). Her job is based in the city but she spends 80% of her time out of the office. Her employer provides her with a company car, which has a current market value of €19,000 but cost her employer €25,000 when it was purchased new in 2019. Lisa drives 10,000 business kilometres annually. In August 2021, Lisa's employer replaced the television in the office's reception area and gave Lisa the old television. The television had been bought in 2016 for €1,000 but its market value in August 2021 was €300. Lisa receives annual legally enforceable maintenance payments from Patrick of €12,000 in respect of the children and €6,000 for herself. Lisa's outgoings in the tax year 2021 were as follows: 1. Permanent health insurance of €1-500. 2. Donation of €600 to the Irish Cancer Society. 3. Private medical insurance of €1,600 (net). 4. Third level college fees of €8,000 for John who is studying on a qualifying postgraduate degree course. Required: Compute Lisa's income tax liability for the tax year 2021 on the basis that she is taxed as a single person. Note: You should indicate by the use of zero (0) any item referred to in the question which is not included in the computation. (25 marks) (b) Lisa is a very creative person and, as a pastime, she knits soft toys. Her friends and work colleagues often buy these soft toys from her as gifts for others Advise Lisa on how the badges of trade may be used to determine whether she is carrying on a trade in respect of the sales of the soft toys she knits. Lisa (45) and Patrick (48) were divorced on 1 May 2017. The couple have two children; John (22) is at university and Amy (15) is still at school. The children live with Lisa during the school year and with Patrick during the holidays. Lisa is the primary carer for the children. Lisa works full-time as a marketing assistant and her gross salary for the tax year 2021 was €35,000 (PAYE €5,000). Her job is based in the city but she spends 80% of her time out of the office. Her employer provides her with a company car, which has a current market value of €19,000 but cost her employer €25,000 when it was purchased new in 2019. Lisa drives 10,000 business kilometres annually. In August 2021, Lisa's employer replaced the television in the office's reception area and gave Lisa the old television. The television had been bought in 2016 for €1,000 but its market value in August 2021 was €300. Lisa receives annual legally enforceable maintenance payments from Patrick of €12,000 in respect of the children and €6,000 for herself. Lisa's outgoings in the tax year 2021 were as follows: 1. Permanent health insurance of €1-500. 2. Donation of €600 to the Irish Cancer Society. 3. Private medical insurance of €1,600 (net). 4. Third level college fees of €8,000 for John who is studying on a qualifying postgraduate degree course. Required: Compute Lisa's income tax liability for the tax year 2021 on the basis that she is taxed as a single person. Note: You should indicate by the use of zero (0) any item referred to in the question which is not included in the computation. (25 marks) (b) Lisa is a very creative person and, as a pastime, she knits soft toys. Her friends and work colleagues often buy these soft toys from her as gifts for others Advise Lisa on how the badges of trade may be used to determine whether she is carrying on a trade in respect of the sales of the soft toys she knits. Lisa (45) and Patrick (48) were divorced on 1 May 2017. The couple have two children; John (22) is at university and Amy (15) is still at school. The children live with Lisa during the school year and with Patrick during the holidays. Lisa is the primary carer for the children. Lisa works full-time as a marketing assistant and her gross salary for the tax year 2021 was €35,000 (PAYE €5,000). Her job is based in the city but she spends 80% of her time out of the office. Her employer provides her with a company car, which has a current market value of €19,000 but cost her employer €25,000 when it was purchased new in 2019. Lisa drives 10,000 business kilometres annually. In August 2021, Lisa's employer replaced the television in the office's reception area and gave Lisa the old television. The television had been bought in 2016 for €1,000 but its market value in August 2021 was €300. Lisa receives annual legally enforceable maintenance payments from Patrick of €12,000 in respect of the children and €6,000 for herself. Lisa's outgoings in the tax year 2021 were as follows: 1. Permanent health insurance of €1-500. 2. Donation of €600 to the Irish Cancer Society. 3. Private medical insurance of €1,600 (net). 4. Third level college fees of €8,000 for John who is studying on a qualifying postgraduate degree course. Required: Compute Lisa's income tax liability for the tax year 2021 on the basis that she is taxed as a single person. Note: You should indicate by the use of zero (0) any item referred to in the question which is not included in the computation. (25 marks) (b) Lisa is a very creative person and, as a pastime, she knits soft toys. Her friends and work colleagues often buy these soft toys from her as gifts for others Advise Lisa on how the badges of trade may be used to determine whether she is carrying on a trade in respect of the sales of the soft toys she knits. Lisa (45) and Patrick (48) were divorced on 1 May 2017. The couple have two children; John (22) is at university and Amy (15) is still at school. The children live with Lisa during the school year and with Patrick during the holidays. Lisa is the primary carer for the children. Lisa works full-time as a marketing assistant and her gross salary for the tax year 2021 was €35,000 (PAYE €5,000). Her job is based in the city but she spends 80% of her time out of the office. Her employer provides her with a company car, which has a current market value of €19,000 but cost her employer €25,000 when it was purchased new in 2019. Lisa drives 10,000 business kilometres annually. In August 2021, Lisa's employer replaced the television in the office's reception area and gave Lisa the old television. The television had been bought in 2016 for €1,000 but its market value in August 2021 was €300. Lisa receives annual legally enforceable maintenance payments from Patrick of €12,000 in respect of the children and €6,000 for herself. Lisa's outgoings in the tax year 2021 were as follows: 1. Permanent health insurance of €1-500. 2. Donation of €600 to the Irish Cancer Society. 3. Private medical insurance of €1,600 (net). 4. Third level college fees of €8,000 for John who is studying on a qualifying postgraduate degree course. Required: Compute Lisa's income tax liability for the tax year 2021 on the basis that she is taxed as a single person. Note: You should indicate by the use of zero (0) any item referred to in the question which is not included in the computation. (25 marks) (b) Lisa is a very creative person and, as a pastime, she knits soft toys. Her friends and work colleagues often buy these soft toys from her as gifts for others Advise Lisa on how the badges of trade may be used to determine whether she is carrying on a trade in respect of the sales of the soft toys she knits.

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a Lisas income tax liability for the tax year 2021 is 5000 EXPLANATION Lisas ta... View the full answer