Question: Please help me with this case study: Your client Sam Chen has attended your office to have his 2022-year end tax return prepared. Sam is

Please help me with this case study:

Your client Sam Chen has attended your office to have his 2022-year end tax return prepared. Sam is 24 years old and arrived in Australia on 1 June 2021 to take up a position with a bank and was a resident for tax purposes from that time.

Before coming to Australia, Sam Chen was a full-time student in Singapore. He is single and took out private health insurance when he arrived in Australia.

During 2021/22, Sam earned the following amounts:

$70,000 salary - $21,500 tax was withheld by her employer during the year and remitted to the ATO

fully franked dividends of $11,000 from Australian company (tax rate 30%)

unfranked dividends of $800 from Australian company (tax rate 30%)

rent of $18,000 from an investment property in Singapore (AUD $2,000 tax has been withheld in Singapore) and

interest of $750 from Australian bank

Sams expenditure during 2021/22 is:

self-education expenses $3,800 (studying banking at university)

gifts to deductible gift recipients $6,500

work expenses $300.

Required

1) Calculate Sams taxable income including income and deductions details in the answer sheet provided.

2) Advise tax payable or refundable for Sam including Medicare levy and all available tax offsets (you must show all workings)

3) Advise assessability of receipts and deductibility of payments with explanations (Salary, Dividends, Rent and Interest, Self-education expense, Gifts, and Work expenses). Include section numbers in the legislation and/or cases in your explanations

Thank you

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!