Part 1 is the only requirement for this!
ACC3TAX Assignment S1 2021 Group Assignment Instructions Carefully read the instructions below before submitting your assignment Due date: 11:59 pm on Monday 17 May 2021. Weight: 20% of the total ACC3TAX assessment (marked out of 40 marks, then halved). Word Limit : 1,200 – 1400 words, a slight increase to accommodate multi issues - 10% tolerance. Groups: Groups of 2 students. Assignments submitted individually will NOT be accepted (Learning Access Plan requirement excepted). Submission: One assignment per group must be submitted once only electronically via LMS link. Submit your group assignment in one single Word or PDF file. No hard copy required. Late Submissions will be penalised in accordance with the Late Submissions Policy. (https://policies.latrobe.edu.au/document/view.php?id=148). Referencing and assignment format: Given this assignment is a report style format, there is no requirement for referencing to advise the source of any materials. Your research of the law will be reflected in your answers. A model solution of a previous assignment has been made available so students clearly understand the format of the assignment that must be followed. The format for this assignment is report style in a table of 3 columns addressing, 1. the broad issue, 1. discussion of the issue, identifying the relevant statute / common law and explaining how the tax law applies to the facts, that clarifies the treatment of the issue for tax purposes, and 1. importantly, calculate the correct amount. Assessment criteria: Assignments will be assessed against the SILOs for the assessment. Assignments will be assessed based on objective demonstration of the following, when working as a team: 1. Engagement of critical thinking and interpretation skills to correctly identify the issues to be analysed in the case study. 1. Application of critical thinking, interpretation and analytical skills of tax law / case law to develop a meaningful analysis of the issues identified. 1. Correct application of tax law / case law to calculate tax liability relevant to the tax entity. Calculations must be explained / supported by applicable law. Graduate capabilities: The main Graduate Capabilities assessed in this assignment: · Critical Thinking / Creative Problem-Solving – These skills are assessed based on the student’s demonstrated capacity to research the law and make a correct and coherent position of how taxation law applies grounded on legal provisions and case law precedents. · Writing – These skills are assessed following the report style format, but should be clear, concise and correct and easily understandable. Students are to present a well organised report written in plain English, with proper application of legislation and case law. · Quantitative Literacy – These skills are assessed based on the demonstrated capacity to correctly interpret the law and apply it to the facts provided in the question. Feedback: Specific written feedback will be provided via LMS. General verbal feedback will be provided in workshops. Academic Integrity: All assignments are electronically checked for similarity, plagiarism and collusion. Assignments are also checked for contract cheating (where a student submits an assignment which is not of their own authorship, e.g. purchase of assignments through specialised websites). For explanation of the plagiarism policy refer to: https://www.latrobe.edu.au/library/assignment-thesis-support/referencing. Suspected cases of academic misconduct will be reported to the Academic Integrity Adviser for the appropriate measures. Refer further to the Academic Integrity policy in the SLG. Special Consideration and Extensions: Extensions to the deadline will be granted only in exceptional and unforeseen circumstances in accordance with the Special Considerations policy and procedures. (https://policies.latrobe.edu.au/document/view.php?id=205). Marking: This is a broad-based enquiry seeking out student’s understanding of multiple taxation issues. This assessment covers the contents of weeks 1- 9 and the format required is a 3 column research report, that is clear, concise and correct. Such a report would be useful for example, if a partner was required to examine how a client’s taxation liability was calculated and could easily review all the issues and quickly identify any specific issue. The ACC3TAX assignment is designed so that students can demonstrate their taxation knowledge and show how they have determined the taxable income of an entity and calculated required taxation liabilities. The assignment is worth 20% of your assessment, and is based on 40 marking points, that will then be divided by 2. Allocating Marks: · Bonus marks – markers can use discretion if a student has done excellent research – but maximum of 40 marks overall. · Zero mark – where a group’s answer does not address an issue or is incorrect. · Full Mark – where a group’s answer has: · 1. correct law (statutory / case law), · 2. correct reason (applying facts including supporting references such as ATO Rulings etc), and · 3. correct calculation. · Half a mark, where a group’s answer is partially correct. That is, answer is not fully correct given incorrect law references / incorrect reason / incorrect calculation. Rubric – Marks allocated per Issue As a guide to assist the weighting of your deliberations and to help identify the number of different sub-issues within each main issue, the marking allocation, not including bonus marks, is: Issue 1 -4 marks Issue 2 -2 marks Issue 3 -6 marks Issue 4 -5 marks Issue 5 -3 marks Issue 6 -3 marks Issue 7 -4 marks Issue 8 - 3 marks Issue 9 -10 marks Total 40 marks worth 20% of the assessment Group Assignment Question – ACC3TAX S1 2021 This group assessment broadly covers the contents of weeks 1-9, and specifically focuses on the overall calculation of tax impacts for a trust (including derivation of income and incurrence of expenses, and application of the net trust income to the beneficiaries, and resultant impact on tax liability to the beneficiaries.) It is designed to simulate a client-advisor real life scenario, where students are required to apply teamwork, interpretation of tax law, taxation rulings, and case law, critical analysis and numeracy skills in order to provide supporting evidence for advice to either a tax partner or client. The basis of advice is documented through a 3 column preliminary research report, which will support future communications as required. Part 1 is the basis for determining the trust’s net income Part 2 You will then calculate the trust net income and advise the impact of the distribution to the beneficiaries. You will need to calculate the tax liability of nominated beneficiaries. Case study: Joe’s Mobile Gourmet Pizza & Pasta (JMGPP) Giuseppe Gioia, his wife Giulietta and mother Giovanna, operate a mobile gourmet pizza business, through a family discretionary trust trading as Joe’s Mobile Gourmet Pizza & Pasta (JMGPP). JMGPP operates in Melbourne and sometimes country Victoria based on suitable bookings, specialising in traditional flavoursome pizza and pasta, that have a gourmet edge. In addition, JMGPP creates special menus of pizza and pasta that specifically cater to clients’ festivities and national holidays. Giuseppe Gioia, the trustee of JMGPP engages your services for the preparation of the 2019/20 trust tax return. On 24 April 2021 Giuseppe sent you the following email: From: Giuseppe Gioia
Sent: Saturday, 24 April 2021, 9.30 am To: Tax Accountant Subject: The JMGPP Trust - Tax return 2019/20 Dear Tax Accounting Team, Thank you for catching up with us last week. We ask that you please prepare our family trust tax return. You see, we intend to lodge our own personal tax returns on my.gov.au, so we will wait your advice about our trust distribution of income to be included in our tax returns. We can then include this amount to calculate our tax liability. This is because, we already know how to use taxcalc.com.au and should have a reasonable approximation of our tax liability. In addition, the Commissioner of Taxation issues a Notice of Assessment, so our tax liability will be confirmed when we receive that. Please advise the amounts to be distributed to each of the beneficiaries and their consequent tax impact. But just in my mum’s case, could you please calculate her tax liability because we understand it will be impacted by the SAPTO, but not sure how you calculate that. (It is not addressed on taxcalc.com.au) Accordingly, the relevant details below should be of assistance to you. Details relevant to the JMGPP Trust Tax Return 1. Inheritance - family home, furniture and car Dear papa passed on 21 Feb 2019, and in his will, he left me everything, which was essentially our family home, the household effects and his car. Naturally of course, papa requested I take care of my mamma who receives an old aged pension. ($24,770 for 2020). After the funeral, it took some time to go through all the household effects while also dealing with the grief and emotional issues. Mamma eventually accepted that I should sell everything (but she kept her favourite kitchen appliances and some sentimental things like photos), and as I was sorting things, it gave me time to also locate the appropriate paperwork. Mamma now lives with me and my family. We love her with us, and she loves Giorgio, our son. I used the money generated from the inheritance to create the family trust business including investing in BHP Shares and bought a rental property. I sold the following assets I received from my inheritance. Please confirm if there is a tax impact as I figure I must include a lot for the capital gains. · House - Dad purchased our family home in 1990 for $135,000 and there were $5,000 of costs to buy and register it in his name. Its market value at the date of death was $800,000 I sold it in October 2019 for $835,000 and there were $15000 costs for sale. So that is a massive gain, but I heard I am eligible for 50% discount - right? · Household furniture and goods – I reckon the cost of these was in the order of $11,000, and I was so surprised that I sold them for $12,500 in July 2019. So that’s $1,500 gain - right? · Dad’s Alpha Romeo - Back in 1990 dad purchased a new Alpha Romeo for $46,990 drive away price. But I only sold it for $9,990 in August 2019. A big loss, right? 2. Creating the business I took up a redundancy offer in early December 2018. But I still needed to make some money for the family, so after papa died, I thought to myself, why not start up my own small business and I could have mamma working with me, and we could share that lovely time together.