Question 4 Holiday Fun Pty Ltd is an Australian resident private company that was incorporated...
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Question 4 Holiday Fun Pty Ltd is an Australian resident private company that was incorporated on 1 July 2015 and until 30 June 2018 it ran a caravan park leisure resort. During this period, the company's trading results were as follows: $10,000 taxable income for the year ended 30 June 2016; $20,000 taxable income for the year ended 30 June 2017; and $25,000 loss for the year ended 30 June 2018. The company's shareholdings at the close of each financial year were: 2016 2017 2019 50 50 50 Shareholders Alice Bob Cheryl David 2018 50 200 100 150 200 200 100 360 710 200 250 350 Each share in the company is an ordinary share and as such each share has the same voting, dividend and capital rights. In July 2018, the company discontinued its caravan park leisure resort business, restructured and acquired a public hotel in the country. In the year ended 30 June 2019, the company had a taxable income of $50,000 before deducting any of its prior year loss. Required Can Holiday Fun Pty Ltd claim a tax deduction in the year ended 30 June 2019 for any of its prior year loss? What is the company's taxable income for 2019? Give reasons for your answers. Marks 4
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