Prepare a tax return for an entity and Calculate taxes for

Assignment Detail:- CLWM4100 Taxation Law - Kaplan Business School Assessment - Statement of Advice Learning Objective 1: Research information about each question using tax cases and tax legislation- Learning Objective 2: Determine the main issues and make recommendations for each case- Learning Objective 3: Calculate taxes for an individual, a trust and a company- Your Part Your task is to analyse client information outlined in the three different case studies below and present the findings in three Statement of Advice -approximately 2,000 words-- You are required to prepare Border Pty Ltd's taxation return- 1- You are required to provide advice and tax calculations to Cynthia and Andreas -directors of Border Pty Ltd- regarding the tax payable by the company-2- You are required to calculate the capital gains tax for Cynthia and Border Pty Ltd-3- You are required to complete the franking account and tax implications on dividend received by Border Pty Ltd shareholders- For each question you are expected to:1- identify the facts and issues for each case2- apply the relevant legislation and/or case law- Assessment Instructions Statement of Advice 1 - Prepare a tax return for an entity -Australian private company- In your current role, you are responsible for providing taxation services to individual/business clients- You conducted an initial meeting with two -2- clients -Cynthia and Andreas Rafter, both Australian residents- to obtain and document all the relevant information which is required to prepare the relevant tax documentation- Both Andreas and Cynthia are directors of Border Pty Ltd, an Australian resident private company with a corporate tax rate for imputation purposes of 30% for the 2020/21 income year- The clients have requested that you evaluate their tax position and provide recommendations relating to income tax liability and the optimum tax treatment- Border Pty Ltd sells coffee machines using accrual basis accounting for tax purposes- Receipts and payment details as at 30 June 2021 are as follows -ignore GST and small business concessions-- Receipts   Cash received for Sales -note 1- $278,000 Dividend received -note 2- $8,720 Payments   Purchases of inventory -note 3- $97,000 Net wages paid to employees $57,890 PAYG withholding paid to the ATO $12,780 Superannuation paid -note 4- $4,987 PAYG instalment paid the ATO -note 5- $5,210 Fringe benefit tax paid to the ATO $11,210 Fully franked Dividend paid -note 6- $30,000 Purchase of motor vehicle -note 7- $52,000 Other deductible expenses $26,900 Notes   Note 1- All sales during 2021 income year were on credit- Account receivable balances were as follows- Date                                                          1 July 2020                                        30 June 2021 Accounts receivable                                                 $17,600                                 $19,800 Note 2- Dividend income received by Border Pty Ltd for the year included: • On 30/8/2020, a dividend of $3,600 received from Australian Bank Ltd -an Australian resident public company for tax purposes- franked to 60%-• On 28/2/2021, an unfranked dividend of $5,120 from Lowest Ltd -an Australian resident public company for tax purposes-- Note 3- All inventory purchases during 2021 tax year were on credit- Account payable and inventory balances were as follows- Date 1 July 2020 30 June 2021 Accounts payable $5,280 $5,830 Inventory -trading stock- on 1 July 2020 $7,100 Inventory -trading stock- on 30 June 2021   -    at cost $8,400 -    at market selling $8,600 -    at replacement $8,500 Note 4- As per the ledger balances on 30 June 2021, Superannuation payable for June quarter was amounted to $1,727- The payment is due by 28 July 2021- Note 5- As per the ledger balances on 30 June 2021, PAYG instalment liabilities payment and payable information are as follows- 24/8/2020 PAYG instalment paid for June quarter 2020 $ 860 25/11/2020 PAYG instalment paid for September quarter 2020 $1,450 28/2/2021 PAYG instalment paid for December quarter 2020 $1,450 26/5/2021 PAYG instalment paid for March quarter 2021 $1,450 June quarter 2021 was amounted to $1,450- The payment will be paid on 25 August 2021- Note 6- The fully franked dividend was paid on 25 February 2021- Note 7- The motor vehicle was purchased on 1 March 2021 and used to deliver coffee machines- Andreas wishes to use the taxation effective life to depreciate the machine- Required 1- Andreas wishes to minimise the income tax for 2020/21- Calculate Border Pty Ltd's net tax liability in respect of the income that it derived in the tax year 2020-2021- 2- Advise assessability of receipts and deductibility of payments with explanations -Sales, Dividend income, Trading Stock, PAYG withholding, PAYG instalment, Superannuation guarantee, fringe benefit tax, Dividend paid and motor vehicle purchase-- Include section numbers and/or cases in your explanations- Statement of Advice 2 - Advice on company franking account and distributions Cynthia and Andreas seeking your advice regarding Border Pty Ltd's franking account- -Please note: use all figures/information provided from Statement of Advice 1 above to construct the franking account for 2020/21- Opening balance is provided below-- Required1- 1 July 2020, the balance in Border Pty Ltd's franking account was $7,158- Construct Border Pty Ltd's franking account for the 2020/21 financial year- You also need to calculate the franking account balance as at 30 June 2021- 2- Border Pty Ltd wishes to pay a final fully franked dividend of $40,000 on 30 June 2021- However, Andreas and Cynthia are concerned about the franking account to go into deficit- Calculate and advise the maximum frankable distribution amounts that Border Pty Ltd can pay as fully franked dividend- What are the tax consequences if Border Pty Ltd goes ahead and pays $40,000 fully franked dividend on 30 June 2021???? 3- Assuming Border Pty Ltd paid $40,000 fully franked dividend on 30 June 2022 -only dividend paid for the year-, comment on the tax treatment of the dividend to the following four -4- shareholders:• Cynthia & Andreas Rafter receive a dividend of $15,000 each- They are Australian residents at the highest marginal tax rate-• $5,000 to Justin Rafter, the son of Cynthia & Andreas, who has been studying in London for three years and is a foreign resident-• $5,000 to Leaf Pty Ltd, an Australian private company with a 30% company income tax rate-Advise how each of the above four shareholders of Border Pty Ltd would be taxed on the distribution received in 2021/22- Statement of Advice 3 - Advice on net capital gains Since 1997 Andreas and Cynthia have invested in various Australian shares- Cynthia acquired the shares in her own name whereas Andreas had his company Border Pty Ltd acquire his share portfolio- On 20 August 2021 both Cynthia and Andreas made a decision to dispose of their Australian shares and the proceeds and purchase prices information are as follows- Cynthia's share portfolio Shares Purchase date Costs Proceeds Mega Mining Ltd 1 April 1997 $8,000 $12,400 Global Media Ltd 10 June 2000 $15,000 $90,000 Watson Tel Ltd 17 May 2013 $34,000 $33,500 Qantas Ltd 8 January 2021 $17,900 $21,000 Border Ptv Ltd share aortfolio Shares Purchase date Costs Proceeds Xero Ltd 28 March 2018 $45,000 $62,000 Qantas Ltd 26 June 2021 $21,600 $28,800 Other informationCynthia has a capital loss of $600 carried forward from sale of painting during 2018- Required 1- Advise both Cynthia and Andreas on the CGT consequences of their share sales- 2- Calculate net capital gains for both Cynthia and Border Pty Ltd the 2021/22 tax year- You must provide all methods available for her and choose the best method to minimise net capital gains- Note: Use harvard refrencing style Attachment:- Taxation Law-rar

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