Paraphrasing - Assignment Questions

Question Four (20 marks)  

Part A   

RTS Pty Ltd, a resident private company, was incorporated on 1 July 2018. From 1 July 2018 until 30 June 2020, it conducted a newsagency business. The company incurred the following trading losses for tax purposes: 

• $30,000—year ended 30 June 2019, and 
• $40,000—year ended 30 June 2020. 

In July 2020, the company discontinued its newsagency business, restructured and acquired a family restaurant business. The company’s shareholdings of ordinary shares at the close of each financial year were as follows: 

For the tax year ended 30 June 2021, the company reported a taxable income of $70,000. 

Required: 

Discuss the tax implications of the above events for RTS Pty Ltd. for the year ended 30 June 2021, citing relevant legislation and showing all calculations.