PAYG Payment Summary Individual Non-Business Payment Summary for the year ending 30June 2018 Payee Details NOTICE TO PAYEE Emily Baff If this payment...

This question is based on Australian tax law

Case study

Emily Baff is a 43 year-old marketing director employed by Rockwood Pty Ltd in Melbourne. Emily engages your services for the preparation of her 2017/18 tax return. On 04 August 2018 Emily sends you the email below.

From: Emily Baff <Required

1. A) Prepare Emily Baff's statement of taxable income and calculate her total tax liability (including Medicare Levy) for the year ending 30 June 2018. State all calculations and include any necessary explanatory notes and supporting schedules, applying legislation and case law. (15 marks)
2. B) Write a letter of advice outlining the tax consequences related to the legal fees incurred and the lump sum payment received by Emily in connection with the lawsuit for the year ending 30 June 2018, applying legislation and case law to support your letter. (15 marks)