The assignment consists of four parts. The main Part (“Part A”) requires the preparation and lodgement of a 2016/17 individual (“I”) income tax return for Percy Grainger (“Percy”) using GovReports.

The completion of Part A will require the input of data either contained in the following attachments to this document, or which you determine as a consequence of completing the other three parts of the assignment:

1. background information and Percy’s personal financial transactions for tax purposes (Attachment 1);
2. the financial records of his business Music While You Work(Attachment 2)
3. the financial records of the partnership Musicale(Attachment 3); and
4. extracts from the financial records of The Grainger Family Trust(Attachment 4).

The other three parts of the assignment are:

• Part B – the calculation of the net income ofMusic While You Work;
• Part C – the calculation of and the distribution of the net income ofMusicale; and
• Part D – the calculation of the tax payable by the trustee ofThe Grainger Family Trust.

Each of these parts is to be completed as separate exercises which will require students to show their workings, where necessary, and describe the reasoning behind their treatment of the items of data for taxation purposes. It is recommended that these parts be completed prior to the commencement of Part A.

The completion of Percy’s “I” return using the GovReports system will require students researching the ATO’s internet sites for instructions regarding the completion of an ‘I’ return.

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