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In: Accounting

Gary Goodman is your client, for the 2018/19 tax year. Gary along with Donya and Gisele...

Gary Goodman is your client, for the 2018/19 tax year. Gary along with Donya and Gisele are equal partners in a fashion design business– trading as “De la Mode”. De la Mode received $750,400 from fees for design services provided

this year and collected a further $210,200 from invoices outstanding
from last financial year’s services.
De la Mode paid a salary to the secretary Olivia of $55,000 per annum, paid $26,000 in rent for the business premises and a further $185,000 in
other business expenses. As a mark of recognition for Gary’s pivotal
role in securing a government contract for the business the partnership agreed to give Gary a $70,000 bonus payment.

Explain with appropriate discussion of relevant case law, legislation and calculations the tax consequences of this arrangement for Gary.

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ekkarill92 answered 1 year ago
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