Reference no: EM132998623

QUESTION - Sportsperson with professional and other income - Shaun Mender is a resident taxpayer engaged as a professional basketball player for the South-Eastern Frill Necks. He is covered by adequate private health insurance. During the 2019/20 tax year, Shaun had the following transactions:

Shaun commenced the year on a contract for an annual salary of $120,000.

On 31 December 2019, the coach of the team was sacked following 15 successive losses. Shaun was offered, and accepted, an additional $50,000 to coach the team for the remainder of the season as well as continue playing.

Shaun's 2020 Income Statement disclosed the following:

Gross Salary $170,000

PAYG tax withheld 65,800

Shaun incurred the following deductions during the year:

Deductions for equipment costs incurred as a player - $6,000.

Deductions for seminars, travel and home study incurred as a coach - $11,000.

Shaun's average taxable professional income from previous years is $80,000.

Required -

1. Calculate Shaun's taxable professional income for the 2019/20 tax year.

2. Calculate Shaun's other taxable income for the 2019/20 tax year.

3. Calculate Shaun's net tax payable or refundable for the 2019/20 tax year.