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Question Calculate Sarah's taxable income. Calculate Sarah's tax payable/refundable for the 2011/12 financial year, using the rates provided below....

Question

 Calculate Sarah's taxable income.

 Calculate Sarah's tax payable/refundable for the 2011/12 financial year, using the rates provided below.


Description:

In this assessment task, you will play the role of a tax agent and non-complex income tax return

for an individual client in accordance with statutory requirements. Task will include gathering and verifying data,

calculating taxable income and reviewing compliance.

Assume that you are a tax agent and at the end of the current financial year one of your clients,

Sarah Smith, has come to you for assistance with preparing and filing a tax return.

Sarah is employed as a Business Manager by a large IT firm also works for home for the company two days a week.

Due to her heavy work commitments has not organised her tax documents and matters.

She currently earns $85 500 per annum and has had $18 250 PAYG withheld from her gross income.


Rebecca also received an unfranked dividend from her personal BHP shares of $7500.

After sorting through the shoebox that holds all of Rebecca's paperwork, you have uncovered the

following receipts and expenses;

Professional association membership $480

Phones used for business purposes $650

PR and client relationship $900

Home office expenses (stationery, electricity, $2,800 internet, printer consumables)

Bank interest earned from deposits $1,200


 Sarah also advised that she had additional self-education expenses of $2,800, but could not locate the receipts.

 Sarah had private health insurance for three months during the assessment period.

 Sarah is single and has no dependents.

 Sarah often works from her home office and she is also required to travel on a daily basis to various work clients to

service their computer systems. Sarah has not kept a log book with her kilometres. She drives a Toyota Corolla which has a 1300-cc engine.

 Among her papers, you find a daily work log which details her client appointments, times and locations.

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