Question

23. Derek Goldfinger, a resident taxpayer of Australia, commences business operations on 1 July Year 1 and the table of his operations is as follows:

:                                                                                                                                                                             Yr 1 $ Yr 2$    Yr 3 $ PY $ CY $

Exempt pension                                                                                                                                                    2500                  2500             2500         2500          500

Net Income/Loss                                                                                                                                                   loss                     loss              profit         profit         profit

from Business                                                                                                                                                       8000                   1000             1200         1000         2200

Gifts to charities listed in Division                                                                                                                         30300                   350              400            400         420

Prepare a statement setting out Goldfinger’s taxable income for the years shown.

Answer 1

Statement of computation of taxable income for Mr. Derek Goldfinger for various years

Particulars	Year 1	Year 2	Year 3	P. Year	C. Year
Exempt Pension	0	0	0	0	0
Net Income / (Loss) from Business	-8000	-1000	1200	1000	2200
Gifts to charities listed in Division	0	0	0	0	0
(Gifts to charities are allowed only if it is for public and not for specific group or individual) In this case as it is to own business division it won't be allowed as deduction from business income.
Total Taxable Income for the years	-8000	-1000	1200	1000	2200