Value: 15% Due Date: 19-Apr-2021 Length: 1800 words Group Assessment: No The major assessment task for this subject is designed to be submitted in two parts to enable you to benefit from feedback...

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i attached the book as well in which MUST read chapter 10 and chapter 18.Talk about both perspective either it would be consider as an (ORDINARY INCOME OR CGT).AND in conclusion choose one which one we should choose.
text me if you need any thing or query.PLEASE give some examples of the CASE LAWS in the book only. ONLY in the book. just give 1 or 2 examples like marker knows we know everything.





Value: 15% Due Date: 19-Apr-2021 Length: 1800 words Group Assessment: No The major assessment task for this subject is designed to be submitted in two parts to enable you to benefit from feedback provided on Part A (Assessment task 2). Assessment tasks 2 and 3 relate to the tax affairs of Bill. The information presented in this first task will be relevant, to both Part A and Part B, along with the feedback provided when your submission is returned. PART A Bill owns and has operated a bicycle shop in a major regional town since 1 July 2011. He lives 15 minutes from town on 5 hectares with his spouse. The property is on two titles. The 4 hectare block has their home and was purchased in joint names. The adjacent 1 hectare has a large shed and workshop/studio apartment that existed when the blocks were purchased and in which they lived while building the house and was purchased only in Bill’s name. Both properties were purchased at the same time, on 1 November 2009, and the home was completed and they moved in on 1 December 2010. The annual gross turnover from the bicycle shop last year was $1,200,000 and he expects this to increase by around 10% in the current year. Each year he arranges for the storage of bicycles purchased, if required by customers, in the shed for pick up in the week before Christmas. Generally these start to be stored from July. In addition he has stored some second hand trade-in bikes acquired mostly in February to October which he drops off at the Mens’ Shed every month. These are reconditioned by the Mens’ Shed members and donated to charity. He has undertaken these activities since July 2015. During the current year he has undertaken an extension to the shop premises which was finished in April costing $200,000. This additional space will discontinue the need for storage away from the shop.   This assignment has two parts, both must be submitted and your submission should adopt the ILAC decision model. Ensure you note relevant legislation, case law or other supporting information as well as any additional information you may require. The report should follow the style guide below.  Each part has a different submission date. The Part A response is to be based on the data provided below under the heading Assessment item 2. Part A Question As a result of the additional storage space Bill is considering the option to sell the 1 hectare containing the shed and workshop/studio apartment. The property was purchased for $300,000 and Bill has made no improvements during the time he has held the property and while he borrowed 80% of the purchase price he has now repaid 60% of his borrowings. He neighbor who is a Real Estate Agent has indicated he believes he could sell the property for $500,000. Required Determine the tax consequences of the sale? (You are NOT required to calculate any possible tax payable but should provide some indication of the amount of any possible assessable component). Your advice is to take the form of a report (adopting ILAC style) which will form part of the client work papers and should include a recommendation based on the known facts provided above as well as identifying any additional information that should be requested prior to providing any advice to the client (15 marks) This assignment must be submitted through Turnitin.  RATIONALE This assessment task will assess the following learning outcome/s: · be able to identify and explain the rules of law relating to taxation law topics covered in the subject. · be able demonstrate a capacity to engage in legal research. · be able to use legal research skills to apply the law to legal problems relating to taxation so as to reach a solution. · be able to analyse legal rules so as to differentiate between possible outcomes to the legal issues arising from novel fact situations. Covering topics 1 to 8, this assignment has been designed to ensure that students are able to identify and apply legislation, rulings and case law to the issues identified as well as demonstrate the ability to analyse the issues fully and apply this knowledge to a hypothetical, practical situation. Barkoczy, Stephen. Foundations of Taxation Law 2020 eBook, Oxford University Press Australia, 2020. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/csuau/detail.action?docID=5979420. Created from csuau on 2020-03-05 05:36:21. C op yr ig ht © 2 02 0. O xf or d U ni ve rs ity P re ss A us tra lia . A ll rig ht s re se rv ed . FOUNDATIONSOF TAXATIONLAW 12thEdition STEPHENBARKOCZY Barkoczy, Stephen. Foundations of Taxation Law 2020 eBook, Oxford University Press Australia, 2020. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/csuau/detail.action?docID=5979420. Created from csuau on 2020-03-05 05:36:30. C op yr ig ht © 2 02 0. O xf or d U ni ve rs ity P re ss A us tra lia . A ll rig ht s re se rv ed . OxfordUniversityPressisadepartmentoftheUniversityofOxford. ItfurtherstheUniversity’sobjectiveofexcellenceinresearch,scholarship,andeducationbypublishingworldwide.Oxford isaregisteredtrademarkofOxfordUniversityPressintheUKandincertainothercountries. PublishedinAustraliaby OxfordUniversityPress Level8,737BourkeStreet,Docklands,Victoria3008,Australia ©OxfordUniversityPress2020 Themoralrightsoftheauthorshavebeenasserted. FirsteditionpublishedJanuary2009 SecondeditionNovember2009 ThirdeditionDecember2010 FourtheditionOctober2011 FiftheditionOctober2012 SixtheditionOctober2013 SeventheditionNovember2014 EightheditionJanuary2016 NintheditionJanuary2017 TentheditionJanuary2018 EleventheditionJanuary2019 TwelftheditionJanuary2020 Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmitted,inanyformor byanymeans,withoutthepriorpermissioninwritingofOxfordUniversityPress,orasexpresslypermittedbylaw,by licence,orundertermsagreedwiththeappropriatereprographicsrightsorganisation.Enquiriesconcerningreproduction outsidethescopeoftheaboveshouldbesenttotheRightsDepartment,OxfordUniversityPress,attheaddressabove. Youmustnotcirculatethisworkinanyotherformandyoumustimposethissameconditiononanyacquirer. Reproductionandcommunicationforeducationalpurposes TheAustralianCopyrightAct1968(theAct)allowseducationalinstitutionsthatarecoveredbyremunerationarrangements withCopyrightAgencytoreproduceandcommunicatecertainmaterialforeducationalpurposes.Formoreinformation,see copyright.com.au. TextdesignbySardineDesign Coverimage:Alamy/IngoOeland PrintedbySheckWahTongPrintingPressLtd Links to third party websites are provided by Oxford in good faith and for information only. Oxford disclaims any responsibilityforthematerialscontainedinanythirdpartywebsitereferencedinthiswork. Barkoczy, Stephen. Foundations of Taxation Law 2020 eBook, Oxford University Press Australia, 2020. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/csuau/detail.action?docID=5979420. Created from csuau on 2020-03-05 05:36:37. C op yr ig ht © 2 02 0. O xf or d U ni ve rs ity P re ss A us tra lia . A ll rig ht s re se rv ed . FOREWORDTOTHEFIRSTEDITION Foundations of Taxation Law is an impressively ambitious project impressively executed. The aimof thebook is said in thepreface tobe toprovide a ‘concise’ introduction to the policy,principlesandpracticeoftheAustralianfederaltaxationsystem.Anyoneacquainted withthatsystemwillappreciatehowlargeanddifficultataskthatis.StephenBarkoczyhas brought to bear many years of teaching and practice in tax in the production of this substantial contribution to the literature on tax law, policy and practice in Australia. His teachingskillsareevident in theexpositionofcomplexanddifficult issues inasystematic and clear language reflecting the kinds of questionswhich studentsmight frequently have asked him. The text, however, is thoroughly informed by many years of practice and experienceintaxlaw,policyandpractice.Thevalueofthisbookliesnotonlyinitsclarity andbreadthofcoverage.Readerswillfindthroughoutthebookfurtherreferencestopursue inmoredetail themanyconceptsandissuesconsideredbytheauthor.Teachers in taxation willundoubtedly findusefulasa teaching toolboth the textand themanydetailed further references. They will also find particularly useful the study questions helpfully provided throughoutthetextattheendofvarioussections.Theyaredesignedtoassiststudentsintheir understandingoftheissuesexplainedinthetextand,asateachingtool,willbeveryusefulto the other teachers of taxation in Australia as a vehicle for discussion and application of principles. Itisparticularlyhearteningtoseeatextofthiskinddirectedtothestudent.Therearemany texts on tax law for practitioners designed, with varying degrees of success, to provide practicalanswerstodifficultproblems.Somepublicationsforpractitionerscandolittlemore toassist thepractitioner thangather togetherasmuch relevant informationaspossibleand provide some statement of the law.FoundationsofTaxationLaw is directed to a different kindofenquiry,namely,thatofthestudentwishingtounderstandwhattherulesareabout. Taxlawhasdevelopedovertheyearstobecomeacomplexsystemofmanyinteractingrules. The complexity and size of the rulesmakes its teaching as a system a difficult task. The practitioner consulting a practice text or commentarymay be presumed to have sufficient knowledgebeforelookingupthetext.Forthestudentthetaskisdifferentandmoredifficult. ItisthatenterprisethatStephenBarkoczyhasundertakenwithimpressiveresultsinthistext. Onapersonalnote,itisparticularlygratifyingthatthistextshouldbewrittenbyone’sown formerstudentofmanyyearsago.ThetextisagreatcredittotheauthorandIcommenditto studentsoftaxationinAustralia. TheHon.TonyPagoneQC Barkoczy, Stephen. Foundations of Taxation Law 2020 eBook, Oxford University Press Australia, 2020. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/csuau/detail.action?docID=5979420. Created from csuau on 2020-03-05 05:36:45. C op yr ig ht © 2 02 0. O xf or d U ni ve rs ity P re ss A us tra lia . A ll rig ht s re se rv ed . PREFACE AIMSANDOBJECTIVES Taxation law is a vast and complex area of law that is continually evolving. As a consequence,itcanbeanoverwhelmingandchallengingsubjecttostudyandresearch.The aimofthisbookistoprovideaconciseintroductiontothepolicy,principlesandpracticethat underpintheAustraliantaxationsystem.Thebookfocusesonthekeycomponentscoveredin manyintroductoryandadvancedtaxationlawcoursesstudiedatAustralianuniversities.Itis designed to be used by undergraduate and postgraduate students as well as students undertaking professional qualifications with accounting bodies, law societies and the Taxation Institute of Australia. The book is also intended to serve as a general reference guidefortaxationacademicsandresearchers,aswellaspractisinglawyersandaccountants whorequireasuccinctanduser-friendlyexplanationoffundamentaltaxationlawconcepts. CONTENTANDSTRUCTURE ThemainemphasisofthebookisonCommonwealthtaxes,particularlygoodsandservices tax,incometaxandfringebenefitstax.Italsoexaminesanumberofothertaxes,includinga rangeof superannuation taxesandvarious leviesandcharges.Thebook isdivided into15 parts containing 46 chapters. The more fundamental material is covered in the earlier chapters, so that students who are undertaking basic courses are able to focus on those chapters.Studentswhoareundertakingadvancedcourses,ontheotherhand,willhavemore useforthelaterchapters,whicharemorespecialisedanddealwithmoretechnicallycomplex issues. As the book is designed to be an introductory guide, I have adopted the approach of focusingongeneralprinciplesandhavenot coveredallof theexceptions to the rules.My objectiveistoprovideabroadoverviewofthefoundationsofthetaxationsystemratherthan anexhaustiveexplanationofallitsintricateprinciples.Inthisregard,Ihavebeenselectivein thetopicscoveredandhaveintentionallydividedtheminto‘consumablechunks’thatcanbe easilydigestedbyareader.Atthesametime,Ihavetriedtoensurethatthebookaddresses mostareasofgeneralimportanceanddoesnotover-simplifythelaworskirtaroundharder issues. I have, therefore, purposely tackled difficult areas of law that I believe are of significantpracticalimportance.Forinstance,thebookhaschaptersdealingwithtopicssuch as superannuation, employee share schemes, consolidated groups, double taxation agreements,accrualstaxationandthetaxationoffinancialtransactions.Althoughtheseareas areoutsidethescopeofmostbasictaxcourses,theyarerelevanttoadvancedcoursesandare criticaltoabroadunderstandingoftheAustraliantaxationregime.Theyarealsoparticularly importantareasforpractitioners. Barkoczy, Stephen. Foundations of Taxation Law 2020 eBook, Oxford University Press Australia, 2020. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/csuau/detail.action?docID=5979420. Created from csuau on 2020-03-05 05:36:57. C op yr ig ht © 2 02 0. O xf or d U ni ve rs ity P re ss A us tra lia . A ll rig ht s re se rv ed . While thebookdoesnotpurport toprovideacompletepictureofAustralia’s tax laws, it coversalotofground,includingdiscussionofhundredsoflegislativeprovisions,casesand rulings.Thediscussioninthechaptersshouldserveasasolidsetofprinciplesaroundwhich readerscanprogressivelybuildtheirgeneralunderstandingofthelaw.Thediscussionshould alsoprovideauseful‘roadmap’fornavigatingthecomplexwebofinterconnectedprovisions in the tax legislation and formaking sense of the extensive bodyof case law in the field. Hopefully,byusingthisbook,readerswillbeabletotreadmoreconfidentlythroughthetax lawmazeandbeabletobetter‘seethewoodfromthetrees’. Thebookistheproductofmanyyearsofresearching,practisingandlecturinginthefield of taxation law, and it undoubtedly demonstrates my own biases about what I think is important for students to understand about the subject. I have tried to blendpolicy issues, taxation theory, technical ‘black letter law’ and commercial practice into a succinct, principled text. Although the book is a legal text, it does not focus exclusively on legal issues. The discussion in the chapters also touches on a wide range of social, economic, political and international comparative issues. Taxation law, perhaps more than any other areaoflaw,isaffectedbythesebroaderconsiderations,andIfirmlybelievethatitneedsto beapproachedwiththeseperspectivesinmind. In writing the book, I have been conscious of the pressures placed on students and practitioners who have to grapple with large amounts of complex information located in differentplaces inshort timeframes.For thisreason,Ihavenotonlyendeavouredtowrite succinctlyanddirectly,butIhavealsotriedtodeveloptopicsinalogicalandstructuredorder fromthegroundup.Inthisregard,Ihavetriedtoclearlysignpostandbreakupcoreconcepts into their constituent elements. I have also cross-referenced the discussion in the topics to specificprovisionsinthelegislationandrelevantcasessothatreadersareabletoeasilyfind the source of the law. The book is peppered with examples, diagrams and tables that condense the law and help clarify difficult concepts. It has been designed to be used in conjunction with Core Tax Legislation and Study Guide (which contains extracts of the legislativeprovisionscoveredinthebook)andtheAustralianTaxCasebook(whichcontains summariesofthecasescoveredinthebook). STUDYQUESTIONS,SOLUTIONSANDADDITIONALREFERENCES Toassiststudentswiththeirexampreparation,thebookcontainsasetofstudyquestionsat theendofeachchapterlinkedtothespecifictopicscoveredinthatchapter.Thesequestions focusonfundamentalissuesthatstudentsneedtounderstandinordertoproperlygraspkey concepts.Thequestionscanalsobeusedbylecturersasabasisfortutorialdiscussions.The questions have been designed in such a way that they examine core issues from both a practical (calculation and problem based) perspective and a conceptual (theoretical and policy based) perspective. Online solutions to these questions, which have been independently prepared byTomDelany andToniChardon, are available free of charge to lecturerswhousethebookfromtheirOxfordUniversityPresssalesconsultant.Studentscan alsoaccesssolutionstoselectedquestionsusingthecodeprovidedontheinsidecoverofthis Barkoczy, Stephen. Foundations of Taxation Law
Answered 4 days AfterApr 15, 2021

Answer To: Value: 15% Due Date: 19-Apr-2021 Length: 1800 words Group Assessment: No The major assessment task...

Jyoti answered on Apr 19 2021
128 Votes
ASSESSMENT TASK 2
PART- A
Tax Consequences of Sale of Property
Table of Contents
1. Executive Summary
2. Issue
3. Law
4. Application/Analysis
5. Conclusion
1. Executive Summary
The report consists detailed analysis in respect of tax consequences of sale of 1 hectare land owned by Mr Bill which is adjacent to his main land used
as main residence. While 1 hectare land is partially used for residence in initial time.
Mr Bill operates his own bicycle shop in the town. He has his home spread in 4 hectare block along with an adjacent 1 hectare land having large shed and workshop/studio apartment. Mr Bill uses shed for the purpose of storage of bicycles required by customers.
In current year, Mr Bill made an extension in the bicycle shop in order to make additional space for storage purposes. With this, he no more requires adjacent 1 hectare land, therefore, he considers an option to sell this part of land for $ 5, 00,000.
We are making analysis of aforesaid transactions with the help of relevant statutory provisions and judicial pronouncements to decide the nature of transaction of sale i.e. ordinary income by way of business receipts or statutory income by way of capital gain.
Looking to the analysis, we recommend Mr Bill to consider sale of adjacent 1 hectare land as capital gains due to the fact that it attracts CGT event 1 for disposal of capital asset. The assessable income (capital gain) being $ 1, 00,000 will attract tax of $19, 822 + 37% on excess over $87000 amounting to $24,632.
Assignment Task 2- Part A
2. Issue
The issue under consideration is whether the sale of adjacent 1 hectare property having a shed and studio apartment owned by Mr. Bill will be in the nature of ordinary income or capital gain transaction attracting capital gain tax in Australian taxation system. The material facts relating to this issue are as follows:
· Mr Bill operates his own bicycle shop in the town and had turnover of $ 13, 20,000 in the current year.
· He has his home in 4 hectare block which was purchased in joint name with his spouse and also owns an another adjacent 1 hectare land having large shed and workshop/studio apartment purchased in his own name. Both the properties were purchased on 1st November, 2009.
· The adjacent 1 hectare land was purchased for $ 3, 00,000 for which he took loan of $ 2, 40,000. He repaid 60% of the borrowing amount and now, the remaining loan in current year is $ 96,000.
· Every year, Mr Bill stores bicycles required by customers in the shed which gets picked up in a week before Christmas.
· In the current year, he made an extension in the bicycle shop which cost him $2, 00,000. This extension creates additional space for storage purposes.
· Now, Mr Bill has additional storage space and therefore, he desires to sell adjacent 1 hectare land for $ 5, 00,000.
3. Law
Taxable income of a person in Australia is determined under Income Tax Assessment Act, 1997 (hereinafter referred to as ‘ITAA, 1997’). Section 4-5 of ITAA, 1997 provides that when deductions are subtracted from an assessable income of a taxpayer, the resultant figure is taxable income. Now, the assessable income has two elements, ordinary income (e.g. salary, business receipts, etc.) and statutory income (e.g. annuities, royalties, net capital gains, etc). Deductions are also detailed out in division 8 of ITAA, 1997...
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