On 1 July 2017, Crunch Pty Ltd was owned by the following shareholders. Felicity (46%); Gabbi(29%), Howard(18%) and Ingrid(7%). On 7 July 2018, both Felicity and Ingrid sold all of their shares in Crunch Pty Ltd to Jorge. Does Crunch Pty Ltd satisfy the continuity of ownership test between the following tax years? ? 2017/18 and 2020/21? ? 2018/19 and 2020/21? ? 2019/20 and 2020/21?

Question 2 Gold Nugget Pty Ltd is a private company that undertakes gold mining activities in North Queensland. The company was incorporated in 2009. The company had previously carried out exploration activities that revealed gold ore and traces of copper. The mining lease permitted the mining of gold and copper but as the copper prices and demand for copper was low the copper was extracted but wasted. The company has had the following results for the past three years: Note - the above figures comprise only assessable income and deductions (excluding losses of previous years). On 1 August 2018, 60% of the company's shares changed ownership. On 27 June 2020, copper prices had increased so the company purchased new equipment to process the copper. However, the processing of copper was only a small part of the overall core business. Required Can the company utilise any of its tax losses against its 2020/21 taxable income?

Question 3 How is the tax paid by a company associated with the dividends received by shareholders?

Question 4 Singha Ltd had the following transactions for the year ended 30 June 2021: 1 July Opening balance $3 000 credit 1 October Fully franked dividend received $15 000 15 December 2019 / 20 Balance income tax paid $20 000 10 February Unfranked dividend received $2 000 27 March Payment of fully franked dividends $30 000 31 March Payment of 80% franked dividends $25 000 2 April Payment of GST $11,000 Complete a franking account for 2020/21

Question 5 Frankly Awful Pty Ltd, a corporate tax entity, has the following transactions for the 2020/21 tax year. Note - the benchmark franking percentage is 75%. The commissioner has not been notified of any variation. Prepare the franking account for the 2020/21 tax year.

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Date Transactions Amount 30/06/20 Credit Balance $11 000 15/07/20 PAYG Instalment $8.900 29/08/20 Received 60% Franked Dividend $16 100 11/10/20 PAYG Instalment $8.900 24/12/20 Refund of 2013/14 company tax $19 950 14/02/21 Paid 75% Franked Dividend $11 200 19/02/21 Received Dividend from Chile ($1 000 tax withheld) $ 9000 03/05/21 Paid Unfranked Dividend $6 650 Date Transactions Amount 30/06/20 Credit Balance $11 000 15/07/20 PAYG Instalment $8.900 29/08/20 Received 60% Franked Dividend $16 100 11/10/20 PAYG Instalment $8.900 24/12/20 Refund of 2013/14 company tax $19 950 14/02/21 Paid 75% Franked Dividend $11 200 19/02/21 Received Dividend from Chile ($1 000 tax withheld) $ 9000 03/05/21 Paid Unfranked Dividend $6 650

Answer rating: 100% (QA)

ANSWER Lets address each question Continuity of Ownership Test for Crunch Pty Ltd Between 201718 and 202021 Yes as the sale of shares by Felicity and ... View the full answer