Reference no: EM132716364

Question: Salvador Ryan is an accountant and the Director of his accounting practice, Taxation Services Pty Ltd. The company receipts and payments for the year ended 30 June 2018 are as follows. The following figures do not include GST.

Receipts $

600,000 Professional accounting fees

15,000 Interest on Bank Deposits

20,000 Rental income from an investment property

Payments $

14,000 Office rent

38,000 Salary paid to employee secretary

1,000 Train fare for travel to and from work

1,000 Legal fees for preparing a new lease of the office

2,000 Rates paid on above mentioned investment property

15,000 Interest paid on loan to acquire the investment property

5,000 Cost of painting the investment property immediately after purchasing the property 136,000 Cost of a new BMW for Salvador to use 100% for business purposes

Notes: (1) The company has a carry forward past year tax loss of $42,000.

(2) The company has made PAYG Instalments of $150,000 during the year.

Required: Calculate Company's tax payable for the year ended 30 June 2018. Provide justification for your calculations using legislation and case law.