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BUS303 Taxation Final Examination Revision Questions Companies Q1: Antipodes Pty Ltd earns Australian sourced non-dividend income of $300,000 and American sourced non- dividend income of AUD$400,000 for the current income year

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BUS303 Taxation Final Examination Revision Questions Companies Q1: Antipodes Pty Ltd earns Australian sourced non-dividend income of $300,000 and American sourced non- dividend income of AUD$400,000 for the current income year. During the current year, Antipodes has paid a PAYG income tax instalment of $40,000 relating to the previous year and PAYG income tax instalments of $115,000 in respect of the current year. Antipodes wants to distribute the maximum possible dividend to its shareholders before making the next PAYG tax instalment. It has 600,000 $1 shares of paid-up capital. It has three shareholders Angus, who holds 1,000 shares and has no other income; Barry, who has 10,000 shares and other income of $20,000; and Jane, who holds the remaining shares. Assume that the American-sourced income is assessable in Australia and that US tax was AUD$120,000. Required: Calculate the total tax payable by Antipodes for the current year, and its franking account balance, and the tax payable by Angus and Barry. Ignore any rebates or offsets other than those generated directly by the dividends. Assume a corporate tax rate of 30%.