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  • August 2010
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Distribution Y
Resident1.The accessable y of an entity for a yr of income includes the ordinary y n statutory y of entity for that yr s6-1(1)ITAA97,ordinary y is y according to ordinary concepts(s6-5(1)(y from personal exertion property,business).statutory Y is the label given 2 gains that r included in assessable y by specific sections.In this case,the xx is ordinary Y(No but statisy a specific assessing provision)and satisfy the residence n source rules in ITAA97 s6-5(2),(3) and 6-10(4)(5),in addition not exempt Y,therefore the amount is assessable y. 2.s44(1) is a statutory y provison that includes certain dividends n non-share div in a SH’s accessable y.s44(a) includes a resident SH’s assessable Y div paid 2 the SH out of a co’s profit(irrespective of whether the co paying the div is a resident or non-resident and irrespective of the source of the profit) Since xx is Au resident,the distribution received is assessable.Therefore the unfully franking distribution is xxx,the fully franking distribution amount is xxx,they r both assessesble. 3co n SH r under the imputation system,which provides the members w/ credit 4 tax paid by the corporate tax entity,under s207-20(1) an amount equal to the franking credit on the distribution is included in the assessable y of the entity whch is xx*30/70=xx,thus the taxble y=… 4.gross tax payble on taxable y is..(xxx-6000)*xx

5.An offset is available under s159N ITAA36 2 individual w/ low taxable y.for 08/09 the maiximun offset is 1200 and is reduced by 4cents 4 every $1>30,000,the threshold is 60,000. 6.most individuals resident in Au during the y yr r liable 2 pay a Medicare levy based on taxable y full or s251S(1)(a) ITAA36( full or partial exemption from the levy is granted to certain low y earners, “senior aus”,defence force members,a 1%medicare levy surcharge is imposed on individuals if taxable y n reportable FB>70,000 n do not have proivate hosiptal cover through private health insurance) 7.In addition,xx is...

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