taxation law

1

Assessment Task – Tutorial Questions Assignment 1

Unit Code: HA3042

Unit Name: Taxation Law

Assignment: Tutorial Questions Assignment 1

Due: 11:30pm 15th May 2020

Weighting: 25%

Total Assignment Marks: 50 Marks

Purpose: This assignment is designed to assess your level of knowledge of the key topics covered

in this unit

Assignment word limit: 1000 words (acceptable to be 10% above or below this word limit).

Unit Learning Outcomes Assessed:

1. Gain a broad understanding of tax law 2. Demonstrate ability to analyse and synthesise complex tax law issues 3. Demonstrate ability to apply principles of tax law to complex legal problems

Description: Each week students were provided with three tutorial questions of varying degrees of

difficulty. These tutorial questions are available in the Tutorial Folder for each week on Blackboard.

The Interactive Tutorials are designed to assist students with the process, skills and knowledge to

answer the provided tutorial questions. Your task is to answer a selection of tutorial questions from

weeks 1 to 5 inclusive and submit these answers in a single document.

The questions to be answered are:

Week 1 Question (10 marks)

Alex is resident of the UK for tax purposes. He lives in Australia and had $90,000 assessable income

from Australian sources in 2019/2020. He does not have any allowable deductions.

Required:

a- What is Alex’s taxable income?

b- Calculate Alex’s tax payable.

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Week 2 Question (10 marks)

Anna is a fitness consultant operating as a sole trader. Anna recently completed two fitness contracts

for two of her clients.

In her first contract, Anna provided a 10-hour fitness training course to her client, Sam. Anna charged

$1,000 for her fitness training course. This included fitness training materials that cost Anna $100.

In her second contract, Anna provided fitness video tutorials for a client, Lilly. Anna charged $1,000 in

total. This included $200 to cover the cost of the video recording materials.

With reference to the relevant legislation and/or case law, discuss whether or not these receipts are

Anna’s income from personal services.

Week 3 Question (10 marks)

Alex is a musician who is also interested in collecting old golden gramophones. He is not collecting

these old golden gramophones for business purposes. On 20 February 2020, Alex sold one of these

old golden gramophones for $3,000. The gramophone cost him $500 when he acquired it on 1 June

2000. With reference to the relevant legislation, discuss Alex’s net capital gain or net capital loss for

the year ended 30 June.

Week 4 Question (10 marks)

Sam is a property investor. He purchased a small commercial building in Sydney for $2,000,000. Sam

had to take out a loan from the ANZ Bank to purchase this property and Sam is charged interest on

that loan. In order to rent the property, he met William, who is an experienced real estate agent. Sam

and William agreed that an upfront lump-sum payment of $8,100 as a management fee is to be paid

to William. With reference to the relevant legislation and case law, discuss the issue as to the

deductibility of the management fee to William and the bank interest charges.

3

Week 5 Question (10 marks)

John purchased new machinery for his small business factory on 1st June 2018 for $8,000. The

effective life of the machinery is determined to be five years. John sold his old business machinery for

$4,000 on 31 August 2019. John used this machinery 90% for business purposes. With reference to

the relevant legislation and case law, discuss the tax consequences arising from the disposal of the old

machinery under the prime cost method.

Submission Directions:

The assignment has to be submitted via Blackboard. Each student will be permitted one submission

to Blackboard only. Each student needs to ensure that the document submitted is the correct one.

Academic Integrity

Academic honesty is highly valued at Holmes Institute. Students must always submit work that

represents their original words or ideas. If any words or ideas used in a class posting or assignment

submission do not represent the student’s original words or ideas, the student must cite all relevant

sources and make clear the extent to which such sources were used. Written assignments that include

material similar to course reading materials or other sources should include a citation including source,

author, and page number.

In addition, written assignments that are similar or identical to those of another student in the class is

also a violation of the Holmes Institute’s Academic Conduct and Integrity Policy. The consequence for

a violation of this policy can incur a range of penalties varying from a 50% penalty through to

suspension of enrolment. The penalty would be dependent on the extent of academic misconduct

and the student’s history of academic misconduct issues. All assessments will be automatically

submitted to Safe-Assign to assess their originality.

Further Information:

For further information and additional learning resources, students should refer to their Discussion

Board for the unit.