australian taxation assignment

HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 1

HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION

Assessment Details and Submission Guidelines Trimester T2 2019

Unit Code HI6028

Unit Title Taxation Theory, Practice & Law

Assessment Type Assignment

Assessment Title Individual Assignment

Purpose of the assessment (with ULO Mapping)

Students are required to follow the instructions by your lecturer to

confirm any relevant information. You also need to follow any relevant

announcement on Blackboard to confirm the due date and time of the

assignment.

The individual assignment will assess students on the following learning outcomes:

1. Demonstrate an understanding of the Australian income tax system, the concepts of income and deductions, CGT, FBT, GST general anti-avoidance provisions and income tax administration. (ULO 1).

2. Identify and critically analyse taxation issues. (ULO 2). 3. Interpret the relevant taxation legislations and case law. (ULO 3). 4. Apply taxation principles to real life problems. (ULO 4).

Weight This assignment task accounts for 20 % of total marks in this unit.

Total Marks This assignment task accounts for 20 marks of total marks in this unit.

Word limit Max 2000 words (acceptable to be 10% above or below this word limit).

Due Date Refer to the Unit Outline, as Normal Mode & Block Mode have different due dates.

Submission Guidelines

• All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page.

• The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.

• Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style.

HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 2

Individual Assignment Specifications

Purpose:

This assignment aims at assessing students on the Learning Outcome from 1 to 4 as

mentioned above.

Instructions: Please read carefully to avoid mistakes.

• Answer all questions.

• This assignment along with a completed Assignment Cover Page is to be submitted on

Blackboard by the due date in soft-copy only (via Safe assign – Blackboard).

• The assignment is to be submitted in accordance with assessment policy stated in the

Subject Outline and Student Handbook.

• It is the responsibility of the student submitting the work to ensure that the work is in

fact his/her own work. Incorporating another’s work or ideas into one’s own work

without appropriate acknowledgement is an academic offence. Students should submit

all assignments for plagiarism checking (Via SafeAssign) on Blackboard before final

submission in the subject. For further details, please refer to the Unit Outline and

Student Handbook.

• Late submissions will be subject to Holmes Institute policy on student assessment

submission and late penalties (please refer to subject outline and Student handbook).

• The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm

margins on all four sides of your page with appropriate section headings and page

numbers.

• Reference sources must be cited in the text of the report, and listed appropriately at the

end in a reference list using Harvard referencing style. You also must refer to relevant

legislation and/or case law in your answer. Reference sources must be cited in the text

of the report, and listed appropriately at the end in a reference list using Harvard

referencing style.

• All assignments are expected to strictly follow Holmes Institute’s Academic Conduct

and Integrity Policy and Procedures. A copy of the Policy is available on the Holmes

Institute home page. (About Holmes > Policies) This policy is also explained in your

Student Handbook.

• Plagiarism and contract cheating in any form will not be tolerated and will have severe

consequences for the groups found committing the same, including receiving zero (0)

for the entire assignment and possible failure in the entire unit.

• For further details, please refer to the Subject Outline and Student Handbook.

• Note: Assessment task is set around the work that you have done in class. You are not

expected to go outside the content of the unit but you are expected to explore it.

HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 3

Assignment Structure should be as the following:

Question 1: The goods and services tax (GST) Weighting Identification of material facts regarding The City Sky Co goods and services tax (GST) consequences discussed in the assignment question.

1 %

Identification and analysis of legal issues / legal question and relevant laxation law.

2 %

Thorough yet succinct application of tax law to material facts.

3 %

Detailed and accurate conclusions are reached from the discussion. 1 % Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

2 %

Shows excellent understanding of the cases and/or section of legislation, its context and application of taxation law.

1 %

QUESTION 1 TOTAL MARKS: 10 % Question 2: Capital gains tax (CGT) Weighting Identification of material facts regarding the capital gain tax (CGT) consequences of Emma’s transactions discussed in the assignment question.

1 %

Identification and analysis of legal issues / legal question and relevant laxation law.

2 %

Thorough yet succinct application of tax law to material facts.

3 %

Detailed and accurate conclusions are reached from the discussion. 1 % Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

2 %

Shows excellent understanding of the cases and/or section of legislation, its context and application of taxation law.

1 %

QUESTION 2 TOTAL MARKS: 10 %

HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 4

Assignments’ Instructions and Requirements

QUESTION 1- (10 MARKS)

The City Sky Co is a property investment and development company. Recently the

company purchased a vacant piece of land south of Brisbane on which it is planning to

build 15 apartments to sell. The City Sky Co has engaged the services of the local lawyer,

Maurice Blackburn, to provide the legal services required for the development for $33,000.

Maurice Blackburn runs an established sole trader business and turns over revenue of

$300,000 per year.

Advise The City Sky Co of the input tax credit entitlements that they may be entitled to.

Assume that The City Sky Co is registered for GST purposes.

QUESTION 2 - (10 MARKS)

Emma has provided to you a listing of the transactions she has undertaken throughout the

financial year to assist you in completing her 2015 income tax return.

Sale of a block of land for $1,000,000: Emma purchased the land as an investment in

1991. The purchase price was $250,000, plus $5,000 in stamp duty, $10,000 in legal fees.

To fund the purchase, she took out a loan on which she paid interest totalling $32,000.

During the period of ownership her council rates, water rates and insurance totalled

$22,000. In January 2005 a dispute occurred with a neighbour over the use of the land and

legal fees incurred amounted to $5,000 in resolving this dispute. Before putting the property

on the market $27,500 was spent to remove a number of large dangerous pine trees that

were on the land. Advertising, legal fees and agent’s fees on the sale of the land were

$25,000.

Sale of Emma’s 1000 shares in Rio Tinto for $50.85 per share: Emma paid brokerage

fee of 2% on the sale. Emma initially purchased the shares for $3.5 per share in 1982.

Sale of a stamp collection Emma had purchased, from a private collector, in January

2015 for $60,000: Emma sold the collection at auction for $50,000. Auction fees totalled

$5,000 for the sale.

Sale of a grand piano for $30,000: It was initially bought for $80,000 in 2000.

HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 5

Advise Emma of the capital gain tax (CGT) consequences of her transitions. Ignore

indexation. Your answer must include references to relevant tax law and or cases.

Assignment Structure should be as the following (students’ responses involves calculations, and students must refer to the relevant legislation and/or cases whenever required according to the questions).

Marking criteria

Marking criteria Weighting Question 1 Identification of material facts regarding The City Sky Co goods and services tax (GST) consequences discussed in the assignment question.

1 Mark

Identification and analysis of legal issues / legal question and relevant laxation law.

2 Marks

Thorough yet succinct application of tax law to material facts. 3 Marks Detailed and accurate conclusions are reached from the discussion. 1 Mark Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

2 Marks

The work shows excellent understanding of the cases and/or section of legislation, its context and application of taxation law.

1 Mark

QUESTION 1 TOTAL MARKS: 10 MARKS Question 2 Identification of material facts regarding Emma’s capital gain tax (CGT) consequences discussed in the assignment question.

1 Mark

Identification and analysis of legal issues / legal question and relevant laxation law.

2 Marks

Thorough yet succinct application of tax law to material facts. 3 Marks Detailed and accurate conclusions are reached from the discussion. 1 Mark Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

2 Marks

The work shows excellent understanding of the cases and/or section of legislation, its context and application of taxation law.

1 Mark

QUESTION 2 TOTAL MARKS: 10 MARKS

HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 6

Marking Rubric

Excellent Very Good

Good Satisfactory Unsatisfactory

Demonstrated ability to

identify issues relating to

taxation law : Knowledge and understanding.

Comprehensive identification of key issues. Frequent links drawn across topics or to extraneous materials. Student property generates questions and problems around a case.

Very good identificatio n and discussion of issues. Several links drawn across topics or to extraneous materials.

Majority of relevant issues identities and discussed. Some links drawn across topics or to extraneous materials.

Some relevant issues overlooked or misunderstood. Few links made drawn across topics or to extraneous materials.

Failure to identify and discuss relevant issues. No links made drawn across topics or to extraneous materials.

Ability to synthesise material in

order to raise issues or

construct a persuasive argument. Ability to

engage in a reflective

discourse: Synthesis

analysis and argument.

Thorough analysis and synthesis of issues. Persuasively argued throughout, contrary arguments anticipated. Excellent critical evaluation of other metrical and appropriate response. Detailed conclusion is reached from the discussion.

Very good analysis, argument well- developed and supported, some critical evaluation of other material and appropriate response. Conclusion is reached from the discussion.

Some analysis of issues: argument may be under- developed or unpersuasive. Limited critical evaluation and response to other material. Conclusion is reached but do not supports the analysis.

Mainly descriptive with little analysis of issues basic argument is unclear or use undeveloped or not well supported. Limited reference to other material. The response shows some understanding of the case, its context and application of tax law.

Insufficient analysis argument is lacking or unsound, failure to use relevant materials, or use of materials may indicate confusion or misunderstanding. No response to other material. No conclusion is given.

Writing presentation

and referencing

Clear and logical organisation; precise and concise writing. Minimal errors in expression, grammar, spelling or punctuation. Excellent and complete referencing. Grammar and spelling are correct.

Very good structure and organisatio n. Generally well- written. Occasional minor flaws in expression, grammar, spelling or punctuatio n. Correct and complete referencing .

Generally coherent structure a with occasional deficiencies; reasonably well written. Some flaws in expression, grammar, spelling or punctuation

Some defects in structure and organisation; writing may be difficult to follow in parts. Flaws in expression, grammar, spelling or punctuation; a number of missing, incomplete or incorrect footnote citations. Referencing omissions.

Structure and organisation incoherent or lacking; poorly written, difficult to follow. Frequent or repeated flaws in expression, grammar, spelling or punctuation; inadequate citation of sources. Errors in referencing.