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    Presentation Questions - 10

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    gabrielkee120

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    Presentation Questions - 10

    Uploaded by

    gabrielkee120
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    5 views2 pages

    Presentation Questions - 10

    Uploaded by

    gabrielkee120

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    © All Rights Reserved
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    Presentation questions relating to Lecture Ten material to be presented at the beginning of

    ALL week 11 classes:

    Question 1: Damien and Linda are residents of Australia for tax purposes. They carry on
    business as a partnership together in Sydney. According to the partnership agreement, Damien
    and Linda share profits and losses as follows: • Damien: 60 per cent • Linda: 40 per cent.

    During the year ended 30 June 2023, their trial balance showed the following.

    Stock on hand at 1 July 2022 was $68 000. Stock on hand at 30 June 2023 was $97 000. For the
    year ended 30 June 2022, the partnership made a tax loss of $26 000.

    (a) Calculate the net income of the partnership for the year ended 30 June 2023.

    (b) Calculate the amount to be included in the assessable income of each partner’s personal
    income tax return for the year ended 30 June 2023.

    Question 2: The Ball Family Trust was set up in 2014 as a discretionary family trust. Roger Ball is
    the head of the Ball family and arranged for a Trust Deed setting up the Ball Family Trust
    appointing him as sole trustee of this Trust. The beneficiaries of the Ball Family Trust are Roger
    and Dina Ball and their children, grandchildren and other descendants. For the 2023 year, the
    Ball Family Trust had a net income of $120 000. Roger produced written Trustee Minutes in
    which he, as trustee, exercised his discretion to distribute $20 000 of that net income to
    himself; $20 000 to Dina (his wife); $20 000 to Nick (his adult resident son, aged 23 who was
    recently declared bankrupt); $20 000 to James (his adult non-resident son, who now lives in
    Singapore) and $10 000 to AXZ Pty Ltd (a private company that has only two shareholders,
    Roger and Dina Ball). Roger miscalculated and forgot to distribute the remaining $10 000 to
    anyone.

    Please advise Roger Ball as to the tax consequences of these intended distributions, indicating
    which party has the responsibility to pay the relevant tax and which tax rates would apply to
    each distribution.

    Question 3: The Zebra Superannuation Fund is a complying superannuation fund set up by an


    employer company, Zebra Ltd, to provide retirement benefits for its employees. Revenue and
    expenditure for 2022/23 is as follows.

    Revenue
    Contributions received from Zebra Ltd for its employees -- $810,000

    Voluntary after tax (non-deductible) contributions received from employees of Zebra Ltd --
    $135,000

    Interest:

    from Australian sources -- $25,000

    from New Zealand sources (after tax of $1,000 was withheld) -- $9,000

    Proceeds on sale of an office block -- $1,765,000

    the building was acquired in July 1984 for $110,000 and its market value at 30 June 1988 was
    $800,000

    Expenditure

    Retirement benefits paid -- $99,000

    Trustee's administration fee -- $33,000

    Accounting and audit fees -- $52,000

    Cost of collecting contributions -- $82,000

    Calculate the taxable income and tax payable of the Zebra Superannuation Fund for the year
    ended 30 June 2023, making reference to the relevant statutory provisions.

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