The Snapdragon Family Trust derives income from a variety of investments. During the 2021/22 tax year,...

   

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The Snapdragon Family Trust derives income from a variety of investments. During the 2021/22 tax year, the Trust had the following transactions: RECEIPTS Gross interest from investments Rent received PAYMENTS Distributions paid to beneficiaries Deductible expenses relating to rental property $ 27,900 42,500 QUESTION 4.1 (Base Rate Entity) A company has the following income during 2021/22: Trading Income $ 100,000 and deductions $ 20,000. Rental income Interest 50,000 12,820 Tax Agent's fee 750 Calculate the Snapdragon Family Trust's Net Income for the 2021/22 tax year. $ 30,000 and deductions $10,000. $ 70,000. The company's aggregate turnover during the year was $20,000,000. Advise whether the company is entitled to the 25% income tax rate as a base rate entity. A company has the following income during 2021/22: Trading Income $ 100,000 and deductions $ 20,000. $ 30,000 and deductions $10,000. Rental income Interest $70,000. The company's aggregate turnover during the year was $20,000,000. Advise whether the company is entitled to the 25% income tax rate as a base rate entity. QUESTION 4.3 (Continuity of ownership test) On 1 July 2018, Followup Pty Ltd was owned by the following shareholders: Felicity - 46%; Gabbi - 29%; Howard - 18% ; and Ingrid - 7%. On 7 July 2019, both Felicity and Ingrid sold their shares in Followup Pty Ltd to Jorge. Does Followup Pty Ltd satisfy the continuity of ownership test between the following tax years: 2018/19 and 2021/22? 2019/20 and 2021/22? 2020/21 and 2021/22? If Followup Pty Ltd generated tax losses in 2018/19, 2019/20, 2020/21 and had taxable income in 2021/22, would it be able to claim a deduction for any of the tax losses (assuming it passes the same business test)? The Snapdragon Family Trust derives income from a variety of investments. During the 2021/22 tax year, the Trust had the following transactions: RECEIPTS Gross interest from investments Rent received PAYMENTS Distributions paid to beneficiaries Deductible expenses relating to rental property $ 27,900 42,500 QUESTION 4.1 (Base Rate Entity) A company has the following income during 2021/22: Trading Income $ 100,000 and deductions $ 20,000. Rental income Interest 50,000 12,820 Tax Agent's fee 750 Calculate the Snapdragon Family Trust's Net Income for the 2021/22 tax year. $ 30,000 and deductions $10,000. $ 70,000. The company's aggregate turnover during the year was $20,000,000. Advise whether the company is entitled to the 25% income tax rate as a base rate entity. A company has the following income during 2021/22: Trading Income $ 100,000 and deductions $ 20,000. $ 30,000 and deductions $10,000. Rental income Interest $70,000. The company's aggregate turnover during the year was $20,000,000. Advise whether the company is entitled to the 25% income tax rate as a base rate entity. QUESTION 4.3 (Continuity of ownership test) On 1 July 2018, Followup Pty Ltd was owned by the following shareholders: Felicity - 46%; Gabbi - 29%; Howard - 18% ; and Ingrid - 7%. On 7 July 2019, both Felicity and Ingrid sold their shares in Followup Pty Ltd to Jorge. Does Followup Pty Ltd satisfy the continuity of ownership test between the following tax years: 2018/19 and 2021/22? 2019/20 and 2021/22? 2020/21 and 2021/22? If Followup Pty Ltd generated tax losses in 2018/19, 2019/20, 2020/21 and had taxable income in 2021/22, would it be able to claim a deduction for any of the tax losses (assuming it passes the same business test)?

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For QUESTION 41 Determine if the company is entitled to the 25 income tax rate as a base rate entity In Australia a base rate entity is a company that meets certain criteria including Having an aggreg... View the full answer