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:

1. 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.
2. 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

1. 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.
2. By what date must Callum respond to the ATO enquiries?