taxation law

HA3042 Taxation Law Individual Assignment T3.2019

HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION

Assessment Details and Submission Guidelines

Trimester T3 2019 Unit Code HA3042 Unit Title Taxation 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. Practical skills and knowledge of tax law concepts (e.g. Income and deductions and CGT) (ULO 1). 2. Ability to analyse tax law issues (ULO 2). 3. Ability to apply legal tax principles (ULO 3).

Weight This assignment task accounts for 25 % of total marks in this unit. Total Marks This assignment task accounts for 25 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

 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.

 The self-check links are no longer available as a separate link in each unit’s

assessment. Students are now limited to attempt any given assignment

submission a maximum of three times. After every attempt you will receive

a SafeAssign originality report with Blackboard Learning Management

System. This will provide detailed information about the matches found

between your submitted works and existing sources.

 The assignment is to be submitted in accordance with assessment policy

stated in the Unit 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

HA3042 Taxation Law Individual Assignment T3.2019

offence.

 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.

 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.

Individual Assignment Specifications

Purpose: This assignment aims at assessing students on the Learning Outcome from 1 to 3 as mentioned above.

Assignment structure should be as the following:

Question 1: Capital Gains Tax Weighting Identification of material facts regarding Sophia’s capital gains tax (CGT) concerns in the given scenario, and the critical discussion of CGT consequences relevant to the assignment question.

2 Marks

Identification and analysis of legal issues / legal question and relevant taxation law in regards to Sophia’s capital gains tax (CGT) (e.g. ITAA 1936 and ITAA 1997).

5 Marks

Thorough yet succinct application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in Sophia’s capital gains tax (CGT) scenario.

3 Marks

Correct information and taxation law regarding the capital gains tax (CGT) have been used and properly cited. A detailed analysis has been performed.

2.5 Marks

Detailed and accurate capital gains tax (CGT) conclusions are reached from the discussions.

2.5 Marks

QUESTION 1 TOTAL MARKS: 15 MARKS Question 2: Income and deductions Weighting Issue: The issue to be discussed is whether Ava’s outgoings are an allowable deduction or expenses of a private and domestic nature. Students should be able to show their understanding of the character of the outgoings being examined.

2 Marks

Law and Application: Discussion of the nature of each of the different types of outgoings and apply them to the relevant law. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation.

3 Marks

HA3042 Taxation Law Individual Assignment T3.2019

Law and Application: Students need to discuss whether: - There is a connection between the outgoings and the assessable income so

that the outgoings are incidental and relevant to the gaining of assessable income.

- Or whether the outgoings have the character of being a private or domestic expense.

- Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation.

3 Marks

Conclusion: Stand back and play ‘the judge.’ Choose the arguments and conclusions you think are the strongest and articulate what you believe to be the appropriate answer to the given scenarios.

2 Marks

QUESTION 2 TOTAL MARKS: 10 MARKS

Assignments’ Instructions and Requirements

QUESTION 1 (15 MARKS)

Sophia has visited her accountant, John and has provided him a listing of the transactions she has

undertaken throughout the financial year to assist John in completing Sophia’s 2018 income tax

return. The listing of the transactions is as follows:

a) Sale of a block of land in Ninety Mile Beach for $800,000: Sophia purchased the land for

$130,000 as an investment in 1991. She also paid $800 in stamp duty, $1,200 in legal fees.

Before purchasing the land Sophia had to secure a bank loan and paid interest totalling

$27,000. During the period of ownership her council rates, water rates and insurance totalled

$18,500. In January 2008 a dispute occurred with a neighbour over the use of the land and

legal fees incurred amounted to $8,000 in resolving this dispute. Before putting the property

on the market $1,500 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.

b) Sale of Sophia’s shares in ABC Co for $32.20 per share. Sophia had 2000 share: Sophia paid

1% brokerage fee on the sale. She initially purchased the shares for $1.50 per share in 1983.

c) Sale of a stamp collection Sophia had purchased, from a private collector, in January 2018

for $33,000: she sold the collection at auction for $23,000. Auction fees totalled $3,000 for

the sale.

d) Sale of a Bob Marley Guitar for $45,000: It was initially bought for $70,000 in 2003.

Advise Sophia of the capital gains tax consequences of the above transactions. Ignore indexation.

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

HA3042 Taxation Law Individual Assignment T3.2019

QUESTION 2 (10 MARKS) Ava visits his accountant David and asks him whether the following outgoings incurred by her are

allowable deductions. Ava has recently completed her medical degree and taken up employment in

Sunshine Hospital. Ava incurred the following outgoings:

(a) Travel expenses to Sunshine Hospital for the job interview $320

(b) Ava moving expenses from her home in Darwin to relocate in Sunshine, Victoria $1800

(c) Payment of white’s uniform which are compulsory for doctors to wear at work $200

(d) Ava paid $18,200 childcare expenses for her two-year-old daughter.

(e) Ava made phone calls from her home phone to Sunshine Hospital after hours to check on patients

this costs Ava $200

(f) When working evening shifts, Ava purchased $570 food from the hospital café bar.

(g) Ava received a $207 speeding fine when she was running late to Sunshine Hospital for an

emergency visit.

(h) Ava incurred $330 travel expense to and from work.

Advise Ava of the deductibility of the above-mentioned transactions. 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 cases whenever required according to the questions).

For question 1, address the following elements:

Identification of material facts regarding Sophia’s capital gains tax (CGT) concerns in the given scenario, and the critical discussion of CGT consequences relevant to the assignment question. Identification and analysis of legal issues / legal question and relevant taxation law in regards to Sophia’s capital gains tax (CGT) (e.g. ITAA 1936 and ITAA 1997). Thorough yet succinct application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in Sophia’s capital gains tax (CGT) scenario. Correct information and taxation law regarding the capital gains tax (CGT) have been used and properly cited. A detailed analysis has been performed. Detailed and accurate capital gains tax (CGT) conclusions are reached from the discussions.

For question 2, address the following parts:

Issue: The issue to be discussed is whether Ava’s outgoings are an allowable deduction or expenses of a private and domestic nature. Students should be able to show their understanding of the character of the outgoings being examined.

HA3042 Taxation Law Individual Assignment T3.2019

Law and Application: Discussion of the nature of each of the different types of outgoings and apply them to the relevant law. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. Law and Application: Students need to discuss whether:

- There is a connection between the outgoings and the assessable income so that the outgoings are incidental and relevant to the gaining of assessable income.

- Or whether the outgoings have the character of being a private or domestic expense. - Set out the legal principles that will be used to address the problem. Source legal principles from

cases and legislation. Conclusion: Stand back and play ‘the judge.’ Choose the arguments and conclusions you think are the strongest and articulate what you believe to be the appropriate answer to the given scenarios.

Marking criteria

Marking criteria Weighting For Question 1, students need to answer the following elements correctly: Students should be able to identify the material facts regarding Sophia’s capital gains tax (CGT) transactions in the given scenario, and the critical discussion of CGT consequences relevant to the assignment question.

2 Marks

Students should identify and analyse the legal issues / legal question and relevant taxation law in regards to Sophia’s capital gains tax (CGT) (e.g. ITAA 1936 and ITAA 1997).

5 Marks

Students should be able to apply the relevant laws (e.g. ITAA 1936 and ITAA 1997) to material facts in Sophia’s capital gains tax (CGT) scenario.

3 Marks

Students should refer to the correct information and taxation law regarding the capital gains tax (CGT) have been used and properly cited. A detailed analysis has been performed.

2.5 Marks

Detailed and accurate capital gains tax (CGT) conclusions are reached from the discussions.

2.5 Marks

Question 1 Weight 15 MARKS For Question 2, students need to answer the following elements correctly: Students should be able to identify and discuss whether Ava’s outgoings are an allowable deduction or expenses of a private and domestic nature. Students should be able to show their understanding of the character of the outgoings being examined.

2 Marks

Students must utilise and discussion of the nature of each of the different types of outgoings and apply them to the relevant law. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation.

3 Marks

Students need to discuss whether: - There is a connection between the outgoings and the assessable income so

that the outgoings are incidental and relevant to the gaining of assessable income.

- Or whether the outgoings have the character of being a private or domestic expense.

- Set out the legal principles that will be used to address the problem.

3 Marks

HA3042 Taxation Law Individual Assignment T3.2019

Source legal principles from cases and legislation. Students make a correct conclusion: Stand back and play ‘the judge.’ Choose the arguments and conclusions you think are the strongest and articulate what you believe to be the appropriate answer to the given scenarios.

2 Marks

Question 2 Weight 10 MARKS TOTLA WEIGHT: 25 MARKS

Marking Rubric

Excellent Very Good Good Satisfactory Unsatisfactory

Marks

Allocation

For Question 1, students need to answer the following elements correctly

Identification of material facts regarding Sophia’s capital gains tax (CGT) concerns in the given scenario.

Student knows how to use the ITAA 1997, know how to apply the law in a real scenario and understand the different CGT consequences in relation to the given scenario.

Very good identification of the CGT consequences of the given scenario and discussion of the issues.

Majority of relevant issues identified and discussed in relation to the given scenario.

The area of CGT law is correctly identified but the statement does not clearly describe the legal problem/s and conclusions that need to be addressed in relation to the given scenario.

The relevant area of law in relation to the given scenario is not identified.

2 Marks

Identification and analysis of legal issues / legal question and relevant taxation law in regards to Sophia’s capital gains tax (CGT) (e.g. ITAA 1936 and ITAA 1997).

All relevant CGT legal principles in relation to the gain or loss made from the given scenario are clearly explained and their correct source of authority is given.

All or most of the relevant CGT legal principles in relation to the gain or loss made from the given scenario are explained and their correct source of authority is given.

Most of the relevant CGT legal principles in relation to the gain or loss made from the given scenario explained and their correct source of authority is given.

Some identification of relevant CGT legal principles in relation to the gain or loss made from the given scenario but the correct source of authority (section of Act or relevant case) has not been cited.

No relevant legal principles in relation to the gain or loss made from the given scenario have been identified.

5 Marks

Thorough yet succinct application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in Sophia’s capital gains tax (CGT) scenario.

The discussion is a clear and comprehensive analysis of the relevant CGT legal principles in relation to the given scenario is given.

Very good discussion and analysis of the relevant CGT legal principles in relation to the given scenario and their application to the facts to support logical

Good discussion and analysis of the relevant CGT legal principles in relation to the given scenario and their application to the facts to

The discussion considers some of the relevant legal principles but does not apply those principles to the key facts to support logical

The discussion of the facts does not refer to any relevant capital gain legal principles in relation to the given scenario.

3 Marks

HA3042 Taxation Law Individual Assignment T3.2019

arguments given.

support logical arguments given.

arguments in relation to the given scenario.

Correct information and taxation law regarding the capital gains tax (CGT) have been used and properly cited. A detailed analysis has been performed.

All relevant CGT legal principles in relation to the given scenario are clearly explained and their correct source of authority is given.

All or most of the relevant CGT legal principles in relation to the given scenario are explained and their correct source of authority is given.

Most of the relevant CGT legal principles in relation to the given scenario are explained and their correct source of authority is given.

Some identification of relevant CGT legal principles in relation to the given scenario, but the correct source of authority (section of Act or relevant case) has not been cited.

No relevant legal principles in relation to the given scenario have been identified.

2.5 Marks

The correct conclusion is made in relation to Sophia’s CGT transactions.

Student knows how to use the ITAA 1997 in relation to the given scenario, and know how to apply the law in a real scenario and understand the different CGT consequences in relation to the given scenario.

Very good identification of the CGT consequences in relation the given scenario and discussion of the issues.

Majority of relevant issues identified and discussed in relation to the given scenario.

The area of CGT law in relation to the given scenario is correctly identified but the statement does not clearly describe the legal problem/s and conclusions that need to be addressed.

The relevant area of law in relation to the given scenario is not identified.

2.5 Marks

For Question 2, students need to answer the following parts correctly

Correct discussed is whether Ava’s outgoings are an allowable deduction or expenses of a private and domestic nature.

The area of law and the legal problem/s regarding the given scenario that needs to be addressed are identified and completely described.

Very good identification and discussion regarding the elements of the given scenario.

Majority of relevant issues regarding the element of the given scenario identified and discussed.

The area of law is correctly identified but the statement does not clearly describe the legal problem/s regarding the given scenario that need to be addressed.

The relevant area of law regarding the given scenario is not identified.

2 Marks

Discussion of the nature of each of the different types of outgoings and apply them to the relevant law.

All relevant legal principles regarding the given scenario are clearly explained and their correct source of authority is given.

All or most of the relevant legal principles regarding the given scenario are explained and their correct source of authority is given.

Most of the relevant legal principles regarding the given scenario are explained and their correct source of authority is given.

Some identification of relevant legal principles regarding the given scenario, but the correct source of authority (section of Act or relevant

No relevant legal principles regarding the given scenario have been identified.

3 Marks

HA3042 Taxation Law Individual Assignment T3.2019

case) has not been cited.

Identification and discussion of a connection between the outgoin gs and the assessable income s o that the outgoings are incidental and relevant to the gaining of assessabl e income.

The discussion is a clear and comprehensive analysis of the relevant legal principles regarding the given scenario and their application to the facts to support logical arguments about how the issue/s will be resolved.

Very good discussion and analysis of the relevant legal principles regarding the given scenario and their application to the facts to support logical arguments about how the issue/s will be resolved.

Good discussion and analysis of the relevant legal principles regarding the given scenario and their application to the facts to support logical arguments about how the issue/s will be resolved.

The discussion considers some of the relevant legal principles but does not apply those principles to the key facts to support logical arguments about how the issue/s will be resolved.

The discussion of the facts does not refer to any relevant legal principles regarding the given scenario.

3 Marks

Conclusion: Students’ ability in choosing logical argument and conclusions they think are the strongest and articulate what they believe to be the appropriate answer to the given scenarios.

The discussion regarding the given scenario are very well supported by arguments in this section and clearly explains how those arguments address the question.

Very good discussion regarding the given scenario, are clearly explains.

Good argument and discussion, which is supported by most of the arguments, but the explanation of how those arguments address the issue is not clear or is incomplete.

The argument in this part is supported by some of the relevant law, but does not explain how they address the issue.

Concluding discussion regarding the given the given scenario is missing and is not supported.

2 Marks