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Thomas Hawks is a tax accountant who operates his taxation and accounting business “Hawks Tax”, which has multiple unrelated client Thomas primarily works from his home office located in Bundoora

Thomas Hawks is a tax accountant who operates his taxation and accounting business “Hawks Tax”, which has
multiple unrelated clients. Thomas primarily works from his home office located in Bundoora, and occasionally
works at the premises of his client Jenny Pty Ltd. He employs an administrative assistant on a part time basis to
take phone calls and manage appointments, and he is also assisted by an intern – a taxation student who is
undertaking a work placement subject. The intern provides basic data entry services but does not prepare or
finalise any returns, major taxation and accounting work or advices (estimated as more than 80% of the
principal workload) are all prepared and finalised by Thomas. Neither the administrative assistant nor taxation
intern is the associate of Thomas.
In 2019/20 Hawks Tax earned a total of $648,000 in client fees, 70% of which it received from its main client
Jenny Pty Ltd, to whom Thomas has provided on-going general taxation and accounting services for many
years including the preparation and lodgement of monthly business activity statements, general and specific
taxation advices, management of accounts and other accounting services required from time to time. Jenny
Pty Ltd regards Thomas as almost being one of its staff members as he is regarded as being its in-house
taxation and accounting resource. The remaining 30% of fees comes from several minor clients for whom
Hawks Tax is contracted to provide specific advices on engagements.
The growth in the business of Hawks Tax has been fully due to word of mouth referrals and the firm has not
ever advertised its services, participated in tender arrangements or maintained a website.
At as 30 June 2020 Thomas has invoiced fees of $648,000 but only received payment of $576,000. He also paid
PAYG quarterly instalments totalling $113,680 in the current year.
The following expenses were incurred by Thomas Hawks in relation to his business during the current income
year:

Apr 04 2020 View more View Less

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