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Your client, Tom Murphy, started his Solicitor practise on the 1st of September 2017

Sociology

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Your client, Tom Murphy, started his Solicitor practise on the 1st of September 2017. He prepared his first set of accounts for the 7-month accounting period ended 31 March 2018. His profit for that 7- month accounting period was 625,025. He had the following profits for each of the following accounting periods: (45,000 profit for the 12-month accounting period ended 31 March 2019. > (75,000 profit for the 12-month accounting period ended 31 March 2020. In 2021, Tom changed his accounting period end to the 30th of June. He had a profit in the amount of E105,000 for the 15-month accounting period ended 30 June 2021. Tom received professional fees from Failte Ireland in the amount of E40,000 (net) during the 12-month accounting period ended 30 June 2022. This is the first period he provided services to Failte Ireland. His total profit (including this (40,000) for the 12-month accounting period ended 30 June 2022 was E100,000. 2. Explain how Tom's assessable profit is arrived at for the tax year 2022, taking into consideration his new source of income from providing professional services to Failte Ireland. 10 Marks