Question 1 & 2

QUESTION 1 Quan has obtained a private ruling from the ATO which states that he is entitled to a deduction for various expenses incurred while overseas. The ruling is binding upon: O a. All taxpayers in Quan's position O b. Australian Taxation Office O c Quan O d. The Federal Court of Australia QUESTION 2 The Byron Family Trust has a number of investments. During the current income year the trust has received $80,000 in fully franked dividends from Australian resident investments companies (with 30%% tax rates). Bill and Ben are the beneficiaries of the Byron Family Trust. The trustee has resolved to specifically distribute the dividend to Bill. Assuming this is the only income derived by the trust in the current income year, which of the following statements is most correct? 2. Bill will include $80,000 in his assessable income as a result of the distribution. O b. The Byron Family Trust will have a s 95 Net Income of $80,000. O C Bill will include $114,285 in his assessable income as a result of the distribution. O Q. Bill has received a trust distribution which is ordinary assessable income as the character of the dividend is lost