Read the information supplied and complete the required tasks listed. Callum Zoker holds part-time employment as both
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Read the information supplied and complete the required tasks listed.
Callum Zoker holds part-time employment as both a flight attendant and a bus driver. Callum has received a letter from the ATO dated 31 December 2018 asking him to explain his income and deductions on his 2017/18 tax return. He has 30 days to respond. The return lodged by Callum included the following:
Assessable Income | $ |
Gross Salary - Streamer Airlines | 36,500 |
Gross Salary - East Coast Buses | 19,500 |
Travel Allowance (within reasonable limits) | 4,800 |
Fully franked dividend (Imputation credit $150) -cash amount received | 350 |
Total | 61,150 |
Deductions | |
Laundry of airline uniform (estimate) | 175 |
Laundry of bus uniform | 110 |
Skincare products used during flights (hydration expenses) (receipts kept) | 215 |
Hairdresser and grooming costs (receipts kept) | 450 |
Travel luggage used during flights (receipt has been lost) | 250 |
Car expenses for travel between jobs | 1,450 |
(total of 800km in his 1,800cc Toyota based on logbook maintained for 4 weeks) | |
Travel costs within Australia relating to allowance ($700 of receipts held) | 5,500 |
8,150 | |
Taxable Income | 53,000 |
NOTE: Callum has received an evening shift allowance of $3,000 that he has not included as he does not believe that it is assessable.
Required tasks:
- Briefly list each error that Callum has made in his 2017/18 income tax return that he should disclose in his reply to the ATO. Your list must include an explanation of each error identified and the amount to be adjusted.
- Recalculate the correct Taxable Income after each of the errors identified and the amounts need to be adjusted (You may use the suggested template provided)
ASSESSABLE INCOME | ||
DEDUCTIONS | ||
- While you do not believe he knowingly made any of these errors, briefly explain to Callum the specific and general anti-avoidance tax rules for individuals.
- By what date must Callum respond to the ATO enquiries?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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