Assignment Task
Case Study
You are currently employed as a Tax Agent for a local Accounting FirmYour clients include individuals (salary & wage earners and sole traders) as well as companies, trusts and partnerships.The ATO website should be used to verify current tax legislation and to seek advice and guidance. All client communications should be via email.Client details required to complete the Individual Tax Return are recorded on a new client details form.
Task
1. Makeit Pty Ltd is a local manufacturer. The company wishes to use all available small business concessions to minimise taxable income. Makeit Pty Ltd has prepared the following Profit & Loss Statement for the 2023 financial year:
Gross Sales $Less Cost of Goods Sold33,0001,900,000Opening Stock750,000 Purchases and Manufacturing Costs783,000 Closing Stock-300,000 Gross Profit 483,000Add Other Income 1,417,000Foreign Income: Rent Italy (Net)11,50013,500Interest Income2,000
1,430,500
EXPENSES650,000Gross Wages92,000Superannuation3,500Interest on Loan to purchase rental property in Italy Provisions for30,000Customer Warranty Claims – Note 231,000Truck Expenses60,000Accounting Depreciation – Note 39,500Share of Loss from Partnership with Al Insulation Pty Ltd24,000Tax Related Expenditure – Note 4400,000Other Deductible Expenses1,300,000NET PROFIT BEFORE INCOME TAX130,500
