Question 1Henry, a tax resident of Australia, was a well-known jazz singer who handed away currently. Jack, a author was on Henry’s life story and wished to place in writing 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 e book herself?
RequiredAdvise Jenny on her tax penalties.You have to to quote the associated case regulation and legal guidelines(10 marks)
Question 2
Sally is a single dad or mum who’s employed as an accountant. With a view to attend employment she ought to put her youthful teenager in a day-care centre. Sally considers the expense is actually 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 crops 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 enterprise crop just isn’t 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 have to to quote the associated case regulation and legal guidelines
(15 marks)
