Question 1

Georgina Polo and her husband have formed a partnership to run the family business. The partnership will only be effective for income tax purposes if:

Accepted Answer

A)  The ATO considers that the partners salaries are reasonable 
B)  The partnership agreement is in writing and witnessed by a solicitor 
C)  The partners have contributed an equal amount of funds into the partnership 
D)  A partnership requires two or more people to enter into a contract to carry on a business in common with a view to profit.

Question 2

For the year ended 30 June 2020 the MKY Self-Managed Superannuation Fund (a complying superannuation fund) received $50?000deductible concessional contributions (for two eligible members) and fully franked dividends of14?000received. One member contributed30?000non-concessional contributions to the Fund. The Fund also paid $1 000 in accounting fees and $800 in auditing fees. What will be the tax liability of this Fund for the year ended 30 June 2020 (ignore any SMSF Supervisory levy)?

Accepted Answer

The answer of For the year ended 30 June 2020...

Question 3

Which of the following statements is true?

Accepted Answer

A)  The taxable income of a non-complying fund is taxed at 47% 
B)  The taxable income of a non-complying fund is taxed at 15% 
C)  The taxable income of a complying fund is taxed at 47% 
D)  The taxable income of a complying fund is taxed at 30%

Question 4

Anne Rose and Ellen Fenny carry on a partnership together. Gross receipts for the 2019-20 tax year are $80,000 Expenses included: purchases of trading stock $18,000, wages paid to employees $10,000, and the lease on the car used in the business. The car travelled 4,000 kilometres for business use and the partnership didn't keep a log book for the car. Stock on hand at the start of the year was $3,000 and at year end $3,400.
Anne will receive 75% and Ellen 25% of the net partnership income.
What is Anne's assessable income?

Accepted Answer

A)  $48,400 
B)  $24,200 
C)  $37,260 
D)  $12,440

Question 5

Edward is 58 years old and he receives a lump sum from his superannuation fund of $180,000. If Edward has not previously used any of his low rate cap amount and if the lump sum payment is paid from a taxed element in the fund, what rate of tax (plus Medicare levy) would Edward pay on this lump sum for the year ended 30 June 2020?

Accepted Answer

A)  15% 
B)  0% on the whole payment as he is under 60 
C)  0% on the first $210,000 and so 0%. 
D)  47% on the whole payment as he is under 60.

Exam 12: Taxation of Partnerships, Joint Ventures, Trusts and Superannuation

Georgina Polo and her husband have formed a partnership to run the family business. The partnership will only be effective for income tax purposes if:

Which of the following statements is true?