MBS614: Taxation Assignment Help 

 

 

Question 

 

MBS614: This taxation assignment is based on Clara’s case study, who needs assistance with her taxation needs. It is remarked that Clara is a doctor and she is planning to move to Scotland for a new job for some time period. The students are required to use Clara’s tax returns related information provided in the case study, and help her through addressing her questions. 

 

Solution

Our experts have approached the first part of the assignment by clearly highlighting the issue for Clara’s case study. Read half of this introductory paragraph below. 

 

The case study report focuses on calculation of Clara’s 2022 taxable income, tax payable or tax refund based on details provided.

 

Wish to know more about Clara’s case? Give us a call at +61 871501720.

 

Question 1

 

Following this, the assignment requires the students to calculate Clara’s income which was taxable for the year 2022. Our experts have created a comprehensive table to calculate her income. The solutions are not just limited to this as the experts also provide working notes for assistance in understanding the table, which you can find below. 

Part 1

Clara’s 2022 taxable income
Income component	Amount	Working Note
Salary as a doctor from RPH	_________	1
After hours GP work fees	_________	2
Savings account interest	_________	3
Un-franked dividend income from BHP	_________	4
Rental Income	_________	12
Deduction:
Medical course fees	_________	5
Medical membership fees	_________	6
RSPCA donation	_________	7
Work related expenditure for scrubs	_________	8
Fashion magazines expenses	_________	9
Mobile phone expense (99*12*80%)	_________	10
Home to RPH travel expense	_________	11
RPH to Fiona Hospital travel expense (0.72*500) (ATO, n.d.)	_________	12
Taxable income	_________

 

Working notes

1. 1. The salary from RPH Hospital was earned directly by virtue of the Clara’s personal services and constitutes ordinary income under Section 6-5, ITAA 1997 as per Brown v FCT (2002) 49 ATR 301. The connection between the receipt and the personal service for the income-earning activity is clear as it has been received as reward for services.

• After hours GP work earnings also constitute earnings from personal services for Clara. Wages, salaries, fees for services and similar payments are reward for service and ordinary income under Section 6-5, ITAA 1997. The nexus between the activity and the benefit exist despite absence of regular employment contract which constitutes income for the tax payer as per Brent v FCT (1971) 125 CLR 418.

1. Interest is ordinary income under Section 6-5, ITAA 1997 as it is flowing from the investment of capital.
2. Dividend income is treated as income on actual payment by the company in the hands of the taxpayer as per s 44(1) and Brookton Co-operative Society v FCT (1981) 147 CLR 44. So BHP un-franked dividend will be taxable income of Clara.

 

We have provided just four of the working notes here. If you also need assistance with your taxation assignment, don’t hesitate to whatsapp us at +447700174710.

Question 2

 

Secondly, assignment requires calculation of the tax which is payable for Clara as well as the tax refund. We have provided a snippet of how our experts have answered the question with the help of a detailed table. 

 

Part 2

Clara’s 2022 tax payable /tax refund	Amount	WN
Gross tax payable	_______________
__________________________________
Add
Medicare levy at 2% of taxable income (ATO, 2022)	_______________	14
Medicare levy surcharge	_______________	15
_________________________
	_______________
Add
10% Deduction for HECS Debt repayment (ATO, n.d.)	_______________	13
Tax payable	_______________

 

13. Higher Education Loan Program or HELP aids eligible students for higher studies and was known as “HECS” before 2005. The debt has to be settled through the Australian taxation system if the repayment income is above the threshold. The compulsory repayment threshold for the 2022 income year is $47014. 10% will be deducted based on the taxable income and relevant slab $137,898 and above (ATO, n.d.).

 

Confused about Clara’s tax revenue? Let us help you. Reach out today- onlineassignmentservices1@gmail.com.

 

Question 3 

 

Next, Clara’s residency needs to be explained in detail with reasonings for the year 2023. Read our expert’s comprehensive explanations and appropriate reasonings below. 

Part 3

In the 2023 financial year, Clara’s residency is based on the Australian taxation law.  A taxpayer’s residency is determined annually and may be reviewed after year-end for the determination. As per decision in FCT v Applegate (1979) 9 ATR 899, FCT v Jenkins (1982) 12 ATR 745 and Ruling IT 2650, factors which are considered in ascertaining whether a taxpayer has a permanent place of abode outside Australia include

1. the intended and actual period of  stay abroad,
2. whether the intention was to stay abroad temporarily and then  to return to Australia at some definite point in time;
3. whether the taxpayer has established a dwelling place abroad. 

 

This is only 50% of the solution. To know more, reach out to us at +447956859420.

 

 

 

Question 4

 

The fourth part requires a list of the Clara’s income sources which will be taxed for the year 2023, which our experts have elaborated on meticulously.

Part 4

Sources of Clara’s income to be taxed in Australia in 2023 will be based on the taxation law in Australia. As per ss 6-5 and 6-10 ITAA 1997 residents are taxed on income from all sources, while foreign resident are taxed only on ordinary income and statutory income sourced in Australia. The following will be assessable:

1. Salary income is usually sourced at the place of performance of service. The principle that the source of services income is where the service is performed needs to factor the place of contract and payment as per FCT v Mitchum (1965) 113 CLR 401. Services rendered in Scotland may therefore be taxed in Scotland also but will attract Double taxation Avoidance agreement of Australia with UK and may therefore be taxed at reduced rates in Australia. Salary earned in Australia for 8 months beginning with 1 July 2022 till the date of departure will be taxed in Australia. 
2. After hours GP work will also be sourced in Australia similar to the treatment of salaries.

 

This is only a snippet of the answer written by our expert. Call us at +61871501720 to read more. 

 

Question 5

 

The fifth question demands student’s advise on Clara’s tax residency if Clara eventually chooses to reside in Scotland till 30/06/2024. You can read half of the answer written by our experts below. 

Part 5

If Clara decides to stay in Scotland until 30/06/2024, her tax residency for 2024 will be non-resident. The Domicile test of residency stipulates the intended and actual period of stay of the individual abroad; whether the taxpayer has established a dwelling place abroad; the duration and continuity of the taxpayer’s presence abroad and the durability of association in Australia. A period of two years or longer is regarded significant for staying abroad but cannot be automatically relied upon.

 

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In order to provide a brief summary to the findings of the study, our experts also provide a concluding paragraph, half of which you can read below.

 

Conclusion

 

Clara’s taxable income for 2022 is $1, 68,079.60. Tax payable be her for 2022 is $69,318.63.Clara will be resident in Australia for the financial year 2023.

 

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