Job
Question 1
Henry, a tax resident of Australia, was a well-known jazz singer who handed away not too way back. Jack, a author was on Henry’s life story and wanted to jot down a bibliography on Henry’s life. Jack approached Henry’s partner, Jenny (moreover a tax resident of Australia) to interview her on Henry’s life story. She was offered $1 million for Henry story. Jenny was paid $500,000 deposit sooner than the interview. After the interview she was paid the stability of the money.
Would the tax penalties have modified if Jenny had written the e-book herself?
Required
Advise Jenny on her tax penalties.
You will want to quote the associated case laws and legal guidelines
(10 marks)
Question 2
Sally is a single guardian who’s employed as an accountant. In order to attend employment she ought to put her youthful infant in a day-care centre. Sally considers the expense is basically incurred in gaining her income. Would she be entitled to a tax deduction beneath s8-1?
Required
Advise Sally of her tax penalties
(10 marks)
Question three
Joseph conducts an plumbing enterprise. With a view to future retirement he purchases 20ha of land and vegetation native wildflowers that he plans to reap and promote. As a preliminary measure he arranges to clear the land and plough in compost. It is anticipated that the first industrial crop shouldn’t be going to be harvested for five years. He incurs curiosity on a mortgage to finance the land purchase, land preparation costs, fertilizer costs and costs of shopping for native seedlings.
Advise Joseph of the tax penalties of the enterprise.
You will want to quote the associated case laws and legal guidelines
(15 marks)
