Question 1

Which of the following is a private company for tax purposes?

Accepted Answer

A)  A company listed on a stock exchange where, at any time during the income year, 20 or fewer persons held 75 per cent or more of the company's capital, voting or dividend rights 
B)  A subsidiary of a listed public company 
C)  A non-profit company 
D)  A company whose shares were listed on a stock exchange (anywhere in the world) on the last day of the income year 
A)  A company listed on a stock exchange where, at any time during the income year, 20 or fewer persons held 75 per cent or more of the company's capital, voting or dividend rights 
B)  A subsidiary of a listed public company 
C)  A non-profit company 
D)  A company whose shares were listed on a stock exchange (anywhere in the world) on the last day of the income year

Question 2

VKC Enterprises Pty Ltd had Australian assessable income of $260,000 and received some foreign income, which consisted of the following: a cash dividend from a Singaporean company for $9,000 (net of $1,000 Singaporean tax that had been withheld from that payment) and interest from a US bank of $4,500 (net of $500 in US withholding tax withheld from it). What is the assessable income of VKC Enterprises?

Accepted Answer

A)  $260,000 
B)  $275,000 
C)  $273,500 
D)  $274,500 
A)  $260,000 
B)  $275,000 
C)  $273,500 
D)  $274,500

Question 3

On 15 September 2019, Balloon Overflights Ltd made a frankable distribution of $2,000 that was franked to 40%. On 15 March 2020, the company made another distribution, this time of $2,600 that was franked to 80%. Balloon Overflights Ltd is not a base rate entity and has a tax rate of 30%. Does the company have any issue with the change in the franking percentages used?

Accepted Answer

A)  $445.71 franking shortfall would apply 
B)  $891.43 franking shortfall would apply 
C)  $445.71 franking deficit tax would be payable 
D)  $891.43 franking deficit tax would be payable 
A)  $445.71 franking shortfall would apply 
B)  $891.43 franking shortfall would apply 
C)  $445.71 franking deficit tax would be payable 
D)  $891.43 franking deficit tax would be payable

Question 4

During the 2019-20 tax year TRS Ltd (which is not a base rate entity) made an operating profit of $20,000 and received a fully franked dividend of 5,000. Assuming it has no other income or deductions, TRS Ltd's income tax payable for 2019-20 would be:

Accepted Answer

A)  $2,143 
B)  $6,000 
C)  $8,143 
D)  $7,464 
A)  $2,143 
B)  $6,000 
C)  $8,143 
D)  $7,464

Question 5

During the 2019-20 tax year, Top Shelf Services Pty Ltd (which is not a base rate entity and which accounts on a cash basis) received payments from customers of $340,000. The company made payments for various business operating expenses (not of a capital nature) of $210,000. The company also received a fully franked dividend of $70,000 and had paid PAYG instalments for the 2019-20 year of $45,000. Assuming it has no other income or deductions, would Top Shelf Services Pty Ltd have further tax to pay or could it expect to receive a tax refund for the 2019-20 tax year?

Accepted Answer

The company's assessable income (for tax

Which of the following is a private company for tax purposes?

During the 2019-20 tax year TRS Ltd (which is not a base rate entity) made an operating profit of $20,000 and received a fully franked dividend of 5,000. Assuming it has no other income or deductions, TRS Ltd's income tax payable for 2019-20 would be:

The Australian Taxation System and the Tax Formula

Residency and Source of Income

Assessable Incomeincome Tax

Capital Gains Tax

Fringe Benefits Tax

General Deductions

Specific Deductions Andapplications Ofdeductibility

Capital Allowances

Tax Accounting and Trading Stock

Taxation of Individuals

Taxation of Partnerships, Joint Ventures, Trusts and Superannuation

Goods and Services Tax

Ethics, Tax Avoidance and Evasion

Filters

Exam 11: Taxation of Companies

Which of the following is a private company for tax purposes?

During the 2019-20 tax year TRS Ltd (which is not a base rate entity) made an operating profit of $20,000 and received a fully franked dividend of 5,000. Assuming it has no other income or deductions, TRS Ltd's income tax payable for 2019-20 would be:

The Australian Taxation System and the Tax Formula

Residency and Source of Income

Assessable Incomeincome Tax

Capital Gains Tax

Fringe Benefits Tax

General Deductions

Specific Deductions Andapplications Ofdeductibility

Capital Allowances

Tax Accounting and Trading Stock

Taxation of Individuals

Taxation of Partnerships, Joint Ventures, Trusts and Superannuation

Goods and Services Tax

Ethics, Tax Avoidance and Evasion

Filters