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PAYG Payment Summary Individual Non-Business Payment Summary for the year ending 30June 2018 Payee Details NOTICE TO PAYEE Emily Baff If this payment...

This question is based on Australian tax law


Case study

Emily Baff is a 43 year-old marketing director employed by Rockwood Pty Ltd in Melbourne. Emily engages your services for the preparation of her 2017/18 tax return. On 04 August 2018 Emily sends you the email below.

From: Emily Baff <Required

  1. A) Prepare Emily Baff's statement of taxable income and calculate her total tax liability (including Medicare Levy) for the year ending 30 June 2018. State all calculations and include any necessary explanatory notes and supporting schedules, applying legislation and case law. (15 marks)
  2. B) Write a letter of advice outlining the tax consequences related to the legal fees incurred and the lump sum payment received by Emily in connection with the lawsuit for the year ending 30 June 2018, applying legislation and case law to support your letter. (15 marks) 

PAYG summary.png

PAYG summary.png

PAYG Payment Summary — Individual Non-Business Payment Summary for the year ending 30June 2018 Payee Details NOTICE TO PAYEE
Emily Baff If this payment summary shows an amount in
00 ABC Avenue the total tax withheld box you must lodge a
Suburbia/VIC 3001 tax return. If no tax was withheld, you may still have to lodge a tax return.
For more information on whether you have to
lodge or about this payment and how it is
taxed, you can: - Visit www.ato.gov.au - Refer to TaxPack - Phone 11 11 11 between 8:00am and 6:00pm (EST) Monday to Friday. Day/Montleear DaylMonth/Year
Period of payment 01/07/2017 to 30/06/2018
Payee’s tax file number 111 111 111 TOTAL TAX WITHHELD - 26,73 Type Lump sum payments Type Grass payments 5 99.920 IE l:l El
Reportable fringe benefits amount 5 4,960 I:l l:| FBT year 1 April to 31 March No El Yes 1:]
Is the employer exempt from FBT under section 57A of the FBTAA 1986? Reportable employer sl:l S D superannuation contributions Total Allowances 5 Total allowances are not included in Grass Payments above. This amount neetk to be shown separately in your tax return. Payer details Payer’s ABN or withholding payer number 11 111 111 111 Branch number 111
Payer‘s name Rockwood Ltd
Privacy — for information about your privacy, go to ato.gov.au/privacy Signature of Authorised Person JOHN DOE Date 02/07/2018 Employee number: 111111

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