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Microsoft Word - HI6028 Individual Assignment T1 2020 ( FACULTY OF HIGHER EDUCATION HOLMES INSTITUTE ) Assessment Details and Submission Guidelines Trimester T1 2020 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 concept of deductions, CGT, 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 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 & Block Modes have different due dates. Submission Guidelines 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. · 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. ( HI6028 Taxation Theory, Practice and Law Individual Assignment T1.2020 ) ( 1 ) · 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 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. Purpose: Individual Assignment Specifications This assignment aims at assessing students on the Learning Outcome (LO) from 1 to 4 as mentioned above. Assignment Structure should be as the follows: QUESTION 1: DIFFERENCE BETWEEN CAPITAL AND REVENUE EXPENDITURE Weighting Identification of material facts (issues) regarding John’s prepaid rent. 2 % Identification and analysis of legal issues / legal question and relevant taxation law in regards to casino’s rental (e.g. ITAA 1936 and ITAA 1997). 2 % Thorough yet succinct application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in John’s case. 2 % Detailed and accurate identification of the lump sum rental payment are reached. 3 % Correct information and taxation law have been used and properly cited. A detailed analysis has been performed. 3 % Ability to show excellent understanding of the cases and/or section of legislation, its context and application of taxation law. 3 % QUESTION 1 TOTAL MARKS: 15 % QUESTION 2: TRAVELLING BETWEEN TWO PLACES OF WORK Weighting Identification of material facts regarding the deductibility of Alex’s travelling expenses discussed in the assignment question. 1 % Identification and analysis of legal issues / legal question and relevant taxation law. 2 % Thorough yet succinct application of ITAA 1997 to material facts. 2 % Detailed and accurate conclusions are reached from the scenario discussion. 1 % Correct information and taxation law have been used and properly cited. A detailed analysis has been performed. 2 % Students are able to demonstrate understanding of the cases and/or section of legislation, its context and application of taxation law. 2 % QUESTION 2 TOTAL MARKS: 10 % Assignments’ Instructions and Requirements QUESTION 1- (15 MARKS) John has applied and been approved a licence to operate a casino in Melbourne, which later on he named it The Casino East. John has received 10-year licence from Victorian Government to operate the casino. He also received approval for Casino’s building for a long period of time (90 years). John was instructed by the relevant Government agency to pay $180 million for the approved casino’s licence and $80 million as prepaid rent covering the first 10 years of casino’s rental. John has negotiated to pay $400,000 rental per year for the remaining 80 years of the lease. With reference to relevant legislation and case law discuss whether casinos prepaid rent is considered a revenue expense or a capital expense. QUESTION 2 - (10 MARKS) Alex Kingsford is a mechanical engineer working for ABC Engineering in Melbourne. Alex owns a property in Dandenong, Victorian where he and his family are residing. He also runs a home- based food catering business, preparing food for local residents and school canteens. Catering business is well-structured. Alex works 15 days a month and earns a substantial income from the catering services business. He is travelling from ABC Engineering workshop to his home- based business by car or sometimes Uber. When he lodged his tax return in July 2019, he has requested a deduction for a substantial amount of travelling expenses between the ABC Engineering workshop and home-based food business. Alex is now seeking your advice. With reference to relevant legislation and case law discuss whether Alex’s travelling expenses between the ABC Engineering workshop and his home- based catering business is an allowable deduction. 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 (issues) regarding John’s prepaid rent. 2 marks Identification and analysis of legal issues / legal question and relevant taxation law in regards to casino’s rental (e.g. ITAA 1936 and ITAA 1997). 2 marks Thorough yet succinct application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in John’s case. 2 marks Detailed and accurate identification of the lump sum rental payment are reached. 3 marks Correct information and taxation law have been used and properly cited. A detailed analysis has been performed. 3 marks Ability to show excellent understanding of the cases and/or section of legislation, its context and application of taxation law. 3 marks QUESTION 1 TOTAL MARKS: 15 marks Question 2 Identification of material facts regarding the deductibility of Alex’s travelling expenses discussed in the assignment question. 1 mark Identification and analysis of legal issues / legal question and relevant taxation law. 2 marks Thorough yet succinct application of ITAA 1997 to material facts. 2 marks Detailed and accurate conclusions are reached from the scenario discussion. 1 mark Correct information and taxation law have been used and properly cited. A detailed analysis has been performed. 2 marks Students are able to demonstrate understanding of the cases and/or section of legislation, its context and application of taxation law. 2 marks QUESTION 2 TOTAL MARKS: 10 marks Marking Rubric Criteria Excellent Very Good Good Satisfactory Unsatisfactory Demonstratedability Comprehensive Very good Majority of Some relevant Failure to identify and toidentifyissues identification of key identification relevant issues issues overlooked discuss relevant relatingtotaxation issues. Frequent and identities and or misunderstood. issues. No links made law: Knowledge and links drawn across discussion of discussed. Few links made drawn across topics understanding of the topics or to issues. Some links drawn across or to extraneous casinos prepaid rent. extraneous Several links drawn across topics or to materials. materials. Student drawn across topics or to extraneous property generates topics or to extraneous materials. questions and extraneous materials. problems around a materials. case. Ability to synthesise Thorough analysis Very good Some analysis Mainly descriptive Insufficient analysis material in order to and synthesis of analysis, of issues: with little analysis argument is lacking or raiseissuesor issues. argument argument may of issues basic unsound, failure to construct a persuasive Persuasively well- be under- argument is use relevant argument. Ability to argued throughout, developed developed or unclear or use materials, or use of engage in a reflective contrary arguments and unpersuasive. undeveloped or materials may discourse:Synthesis anticipated. supported, Limited critical not well indicate confusion or analysisand Excellent critical some critical evaluation and supported. misunderstanding. No argument. evaluation of other evaluation of response to Limited reference response to other metrical and other other material. to other material. material. No appropriate material and Conclusion is The response conclusion is given. response. Detailed appropriate reached but do shows some conclusion is response. not supports the understanding of reached from the Conclusion is analysis. the case, its discussion. reached from context and the application of tax discussion. law. Writingpresentation Clear and logical Very good Generally Some defects in Structure and and referencing organisation; structure and coherent structure and organisation precise and concise organisation. structure a with organisation; incoherent or lacking; writing. Minimal Generally occasional writing may be poorly written, difficult errors in well- written. deficiencies; difficult to follow to follow. Frequent or expression, Occasional reasonably well in parts. Flaws in repeated flaws in grammar, spelling minor flaws written. Some expression, expression, grammar, or punctuation. in flaws in grammar, spelling spelling or Excellent and expression, expression, or punctuation; a punctuation; complete grammar, grammar, number of inadequate citation of referencing. spelling or spelling or missing, sources. Errors in Grammar and punctuation. punctuation. incomplete or referencing. spelling are correct. Correct and incorrect footnote complete citations. referencing. Referencing omissions.