Microsoft Word - HA3042 Individual Assignment T3.2019 HA3042 Taxation Law Individual Assignment T3.2019 HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION Assessment Details and Submission Guidelines...

must refer to relevant legislation and/or case law in your answer.Reference sources must be cited in the text of the report, and listedappropriately at the end in a reference list using Harvard referencing style.


Microsoft Word - HA3042 Individual Assignment T3.2019 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).