Visit the ATO website- www.ato.gov.au Explain what information is available to assist 'Tax Professionals '. Topics covered should include under SEPARATE headings: 1. Law, rulings and policy 2. Forms 3. Tax rates and codes 4. Calculators and tools PART B – 25 MARKS Ethan Jones a Medical Registrar in a Melbourne Public Hospital earned a gross salary of $220,000 during the year ended 30 June 2014. He had PAYGW deducted of $73,000 from this salary. He 'salary sacrificed' $10,000 of his gross salary to an ATO regulated superannuation fund. He received interest income paid by the bank of $4,500 into his bank account. However he did not provide a Tax File Number and tax of was deducted of $3,682 from the interest derived for the year. He received dividends of $7,000 from fully franked distributions for the year ended 30 June 2014. He received additional income and paid expenses as follows: § Unfranked dividends of $30,000 § Partially franked dividends (franked to 20%) of $10,000. § Capital losses on sale of shares of $15,000. § Net loss from carrying on a small business of $25,000. § Bank charges of $50 on his investment account into which he banked his dividends and interest. § Tax Agents Fees of $800. § General Interest Charge of $550 on late payment of his income tax bill for the year ended 30 June 2013. Amount was not demanded until December 2013. § Purchase of a raffle ticket for $150 from the Salvation Army. The prize was a motor vehicle. § Gift to Royal Children's Hospital of $1. § Subscription to the Professional Cooks Association of $300. § Laundry of $200 – no receipts § Parking meter fees on visiting clients $190 – no receipts § Protective clothing $290 – no receipts § Parking fine of $170 on expired meter while visiting a client § Payment of $5,000 to ANR superannuation fund. § Purchase of a medical brief case costing $600 for work. The brief case was purchased on 2/7/2014. FURTHER INFORMATION: RENTAL PROPERTY Ethan Jones purchased a Motel during the 2014 taxation year and received rental income from the motel business operator during the year ended 30 June 2014. Details of the financial transactions for the year ended 30 June 2014 were as follows: Motel Purchased 1/9/2013 - land and buildings 500,000 Motel Building Construction cost – construction in 2002 200,000 Mortgage - Period of loan is 30 years 450,000 Motel was listed by the Real Estate Agency available for Rent on 1/9/2013 Carport - built 15/05/2014 18,000 Rented from 1/10/2013 13,000 Net loss on rent from main residence – see below* 10,000 Survey fees – on purchase of property 800 Stamp Duty on Transfer of Land 32,000 Stamp Duty on Loan 500 Valuation fees – re loan application 500 Loan Application Fees 600 Loan Mortgage Insurance (LMI) 8,000 Loan Establishment fees 700 Conveyancing fees on transfer of land 10,000 Mortgage documentation - Bank 2,000 Mortgage broker commission 3,500 Bank fees on Transfer of Land 1,400 Bank fees - investment account 120 Ethan also travels to inspect his rental property as follows: Travelling to inspect rental property using 6cylinder V6 - 3000 kms ? CAPITAL GAIN Ethan has capital assets but decided to dispose of the following assets due to his debt levels due to the purchase of the motel Asset Cost Purchase Date Date of Disposal Proceeds House in Toorak 500,000 15/03/2009 16/05/2014 700,000 Shares in Coles Ltd 17,200 18/06/1997 17/03/2014 23,200 Shares in BHP Billiton 16,000 18/11/2008 19/04/2014 6,800 Ultralight aircraft