T XXXXXXXXXXUnit CodeHA3042 Unit Title Taxation Law Assessment Type Assignment Assessment Title Individual Assignment Purpose of the assessment (with ULO Mapping)Students are required to follow the...

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T2 2019 Unit CodeHA3042 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 (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 20 % of total marks in this unit. Total Marks This assignment task accounts for 20 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 tobe submitted on Blackboard by the due date in soft-copy only (via Safeassign – Blackboard). The assignment is to be submitted in accordance with assessmentpolicy stated in the Subject 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. Students should submit all assignments for plagiarism checking (Via SafeAssign) on Blackboard before final submission in the subject. For further details, please refer to the UnitOutline and Student Handbook. The assignment must be in MS Word format, no spacing, 12-pt Arialfont and 2 cm margins on all four sides of your page with appropriatesection headings and page numbers. Reference sources must be cited in the text of the report, and listed HA3042 Taxation Law Individual Assignment T2.2019

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. For further details, please refer to the Subject Outline and Student Handbook. 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 SpecificationsThis 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 WeightingA. The capital gain in relation to the family home 2 MarksB. Capital gain or loss made from the car 1 MarkC. The capital gain in relation to the sale of the business 3 MarksD. The capital gain in relation to selling the furniture 2 MarksE. The capital gain in relation to selling the paintings 2 MarksQUESTION 1 TOTAL MARKS: 10 MARKS Question 2: Capital Allowance WeightingIssue: Identify and discuss the problem. 1 MarkLaw and Application: Discussion of the first element of the cost of the CNC machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. 3 MarksLaw and Application: Discussion of the second element of the asset’s cost, i.e. the start time for calculating the decline in the value of the CNC machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. 3 MarksConcluding discussions: Concluding discussions regarding the exact start time of holding the CNC machine for depreciation purposes, and the total cost of the machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. 2 MarksConclusion: Stand back and play ‘the judge.’ Choose the argument and conclusions you think is the strongest and articulate what you believe to be the appropriate answer. 1 MarkQUESTION 2 TOTAL MARKS: 10 MARKS HA3042 Taxation Law Individual Assignment T2.2019
QUESTION 1(10 MARKS)Assignments’ Instructions and RequirementsJasmine is an Australian resident. She is 65 years old and born in the UK, is now selling her Australian assets as she is retiring from her business as a cleaner and going back to the UK. Jasmine is selling the following assets:A. Jasmine’s home was purchased in 1981 for $40,000 and now worth $650,000. This home was Jasmine’s main residence since she purchased the house.B. Jasmine purchased a car in 2011 for $31,000 and is now worth around $10,000.C. Jasmine commenced her ‘small cleaning business’ herself and now found a buyer to take over the cleaning business for $125,000. The sale price includes $65,000 for allof the business equipment, which cost $75,000, and $60,000 for goodwill.D. Jasmine is also selling her furniture for $5,000. No single item offered for sale costmore than $2,000.E. Jasmine has several paintings and is now selling them all for $35,000. All of herpaintings were purchased in second hand shops or markets and no single painting cost more than $500. The one exception was a painting she purchased direct from an artist for $1,000. This painting is being sold for $5,000.Advise Jasmine of the CGT consequences of the above sales. Include relevant legislative references to support your answer.QUESTION 2 (10 MARKS)John owns a motor vehicle parts and accessories manufacturing company. The business produces certified BMW parts. John purchased an industrial computer numerical control (CNC) machine imported from Germany on 1 November 2014 for $300,000. John visited the CNC factory to inspect the CNC machines and place his order. The only reason for his visit to Germany was to purchase the CNC machine. The trip to Germany cost John $12,000. The CNC machine needed to be installed by specialists and bolted to his factory floor. The installation of the CNC machine was completed on 15 January at a cost of $25,000. Once the CNC machine was installed and John started using the CNC machine he discovered that the CNC machine required an additional guiding rod to make it more effective. This guiding rod was installed on 1 February at a cost of $5,000. Calculate the cost of the CNC machine for the purpose of calculating the capital allowance. What is theHA3042 Taxation Law Individual Assignment T2.2019
start time for calculating the decline in value of the asset? Include relevant legislative references to support your answer.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:For question 2, address the following parts: A. The capital gain in relation to the family home B. Capital gain or loss made from the car C. The capital gain in relation to the sale of the business D. The capital gain in relation to selling the furniture E. The capital gain in relation to selling the paintings Issue: Identify and discuss the problem. Law and Application: Discussion of the first element of the cost of the CNC machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. Law and Application: Discussion of the second element of the asset’s cost, i.e. the start time for calculating the decline in the value of the CNC machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. Law and Application: Concluding discussions regarding the exact start time of holding the CNC machine for depreciation purposes, and the total cost of the machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. Conclusion: Stand back and play ‘the judge.’ Choose the argument and conclusions you think is the strongest and articulate what you believe to be the appropriate answer.Marking criteria Marking criteria WeightingFor Question 1, students need to answer the following elements correctly: A. The capital gain in relation to the family home 2 MarksB. Capital gain or loss made from the car 1 MarkC. The capital gain in relation to the sale of the business 3 MarksD. The capital gain in relation to selling the furniture 2 MarksE. The capital gain in relation to selling the paintings 2 Marks Question 1 Weight 10 MARKSIssue: Identify and discuss the problem. 1 MarkLaw and Application: Discussion of the first element of the cost of the CNC machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. 3 MarksLaw and Application: Discussion of the second element of the asset’s cost, i.e. the start time for calculating the decline in the value of the CNC machine. Set out the legal principles that will be used to address the 3 Marks HA3042 Taxation Law Individual Assignment T2.2019

problem. Source legal principles from cases and legislation. Law and Application: Concluding discussions regarding the exact start time of holding the CNC machine for depreciation purposes, and the total cost of the machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. 2 MarksConclusion: Stand back and play ‘the judge.’ Choose the argument and conclusions you think is the strongest and articulate what you believe to be the appropriate answer. 1 Mark Question 2 Weight 10 MARKSTOTLA WEIGHT: 20 MARKS Marking RubricExcellent Very Good Good Satisfacto Unsatisfac Marks ry toryAllocation For Question 1, students need to answer the following elements correctly The capital gain in relation to the family home.Student knows how to use the ITAA 1997, know how to apply the law in a real scenario and understand the different CGT consequenc es in relation to the family home. Very good identificatio n of the CGT consequenc es of the family home and discussion of the issues. Majority of relevant issues identified and discussed in relation to the family home. The area of CGT law is correctly identified but the statement does not clearly describe the legal problem/s and conclusion s that need to be addressed in relation to the family home.The relevant area of law in relation to the family home is not identified. 2 Marks Capital gain or loss made from the car. All relevant CGT legal principles in relation to the gain or loss made from the car are clearly explained and their correct source of authority is given. All or most of the relevant CGT legal principles in relation to the gain or loss made from the car are explained and their correct source of Most of the relevant CGT legal principles in relation to the gain or loss made from the car are explained and their correct source of authority is Some identificatio n of relevant CGT legal principles in relation to the gain or loss made from the car but the correct source of authority No relevant legal principles in relation to the gain or loss made from the car have been identified. 1 Mark HA3042 Taxation Law Individual Assignment T2.2019

authority is given. given. (section of Act or relevant case) has not been cited. The capital gain in relation to the sale of the business. The discussion is a clear and comprehensi ve analysis of the relevant CGT legal principles in relation to the sale of the business is given. Very good discussion and analysis of the relevant CGT legal principles in relation to the sale of the business and their application to the facts to support logical arguments given. Good discussion and analysis of the relevant CGT legal principles in relation to the sale of the business and their application to the facts to support logical arguments given. The discussion considers some of the relevant legal principles but does not apply those principles to the key facts to support logical arguments in relation to the sale of the business. The discussion of the facts does not refer to any relevant capital gain legal principles in relation to the sale of the business. 3 Marks The capital gain in relation to selling the furniture.All relevant CGT legal principles in relation to selling the furniture are clearly explained and their correct source of authority is given. All or most of the relevant CGT legal principles in relation to selling the furniture are explained and their correct source of authority is given. Most of the relevant CGT legal principles in relation to selling the furniture are explained and their correct source of authority is given. Some identificatio n of relevant CGT legal principles in relation to selling the furniture, but the correct source of authority (section of Act or relevant case) has not been cited.No relevant legal principles in relation to selling the furniture have been identified. 2 Marks The capital gain in relation to Student knows how to use the ITAA 1997 in Very good identificatio n of the CGT Majority of relevant issues identified The area of CGT law in relation to selling The relevant area of law in relation 2 Marks HA3042 Taxation Law Individual Assignment T2.2019

selling the paintings. relation to selling the paintings, and know how to apply the law in a real scenario and understand the different CGT consequenc es in relation to selling the paintings. consequenc es in relation to selling the paintings and discussion of the issues. and discussed in relation to selling the paintings. the paintings is correctly identified but the statement does not clearly describe the legal problem/s and conclusion s that need to be addressed. to selling the paintings is not identified. For Question 2, students need to answer the following parts correctly Identify and discuss the problem.The area of law and the legal problem/s regarding the CNC machine that needs to be addressed are identified and completely described. Very good identificatio n and discussion regarding the elements of the cost of the CNC machine. Majority of relevant issues regarding the element of the cost of the CNC machine identified and discussed. The area of law is correctly identified but the statement does not clearly describe the legal problem/s regarding the first element of the cost of the CNC machine that need to be addressed.The relevant area of law regarding the given capital allowance question is not identified. 1 Mark Law and Applicatio n: The first element of the cost of the CNC machine. All relevant legal principles regarding the element of the cost of the CNC machine are clearly explained and their correct source of authority is given. All or most of the relevant legal principles regarding the element of the cost of the CNC machine are explained and their correct source of Most of the relevant legal principles regarding the first element of the cost of the CNC machine are explained and their correct source of Some identificatio n of relevant legal principles regarding the first element of the cost of the CNC machine, but the correct source of No relevant legal principles regarding the given capital allowance question have been identified 3 Marks HA3042 Taxation Law Individual Assignment T2.2019

authority is given. authority is given. authority (section of Act or relevant case) has not been cited. Law and Applicatio n: The second element of the asset’s cost.The discussion is a clear and comprehensi ve analysis of the relevant legal principles regarding the element of the cost of the CNC machine and their application to the facts to support logical arguments about how the issue/s will be resolved. Very good discussion and analysis of the relevant legal principles regarding the element of the cost of the CNC machine and their application to the facts to support logical arguments about how the issue/s will be resolved. Good discussion and analysis of the relevant legal principles regarding the element of the cost of the CNC machine and their application to the facts to support logical arguments about how the issue/s will be resolved. The discussion considers some of the relevant legal principles but does not apply those principles to the key facts to support logical arguments about how the issue/s will be resolved.The discussion of the facts does not refer to any relevant legal principles regarding the given capital allowance question. 3 Marks Concludin g discussio ns regarding the exact start time of holding the CNC machine, and the total cost of the machine. The discussion regarding the exact start time of holding the CNC machine, and the total cost of the machine are very well supported by arguments in this section and clearly explains how those arguments address the Very good discussion regarding the exact start time of holding the CNC machine, and the total cost of the machine in this section are clearly explains. Good argument and discussion, which is supported by most of the arguments, but the explanatio n of how those arguments address the issue is not clear or is incomplete . The argument in this part is supported by some of the relevant law, but does not explain how they address the issue. Concluding discussion regarding the given capital allowance question is missing and is not supported. 2 Marks HA3042 Taxation Law Individual Assignment T2.2019

question. The conclusio n that is very well supported by argument s and clearly explains how those argument s address the issue/s. The conclusion is very well supported by arguments in the application section and clearly explains how those arguments address the given capital allowance question. Very good conclusion regarding the given capital allowance question, which is supported by arguments in the application section and clearly explains how those arguments address the given capital allowance question. The conclusion is supported by most of the arguments but the explanatio n of how those arguments address the issue/s is not clear or is incomplete . The conclusion is supported by some of the arguments but does not explain how they address the given capital allowance scenario. The conclusion is not stated or is not supported. 1 Mark HA3042 Taxation Law Individual Assignment T2.2019
Answered Same DaySep 10, 2021HA3042

Answer To: T XXXXXXXXXXUnit CodeHA3042 Unit Title Taxation Law Assessment Type Assignment Assessment Title...

Pulkit answered on Sep 17 2021
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TASK
QUESTION 1)
In the present case Jasmine an Australian resident, 65 years old is now retiring from the business and selling her business in the U.S. and now going back to the U.K. has to pay capital gain tax on the assets in the U.S. which is calculated as follows. As per Australian taxation, on capital gain (ITAA997 section 104-5) all assets are subject to capital gain tax except few such as house, car and other personal assets.
A. As per Australian taxation there will be no capital gain tax on Jasmines’s home as it was her main residence and was purchased in 1981 and in order to avail the exemption the property must have a dwelling on it and the person resides in it in order to avail the exemption and there is no exemption available of vacant block.
The other conditions also states in order to claim for tax benefit of residential house which is it has been used as home for the whole period for the time period owned by the taxpayer and has not been used it as for commercial purpose like run a business, rent it out and which in the present case is fully satisfied so the taxpayer is able to claim full tax exemption on home.
B. Jasmines purchase the car in 2011 for $ 31000 and is of now worth around $10000 which is the market value of the car as in the present case it has been assumed that the car has been used for personal purpose and as capital gain tax according to Australian taxation there will be no capital gain tax or treatment of capital losses on the sale of car so there will be no tax treatment on the sale of car. As per Australian taxation, there will be no capital gain tax on the sale of personal assets as well as depreciable assets.
C. In the present situation Jasmine has found a buyer which is ready to take over her cleaning business for $125000 which includes $65000 for assets and $60000 for goodwill of the business and the capital gain tax implication on this transaction will be that the taxpayer business has been assumed as small business and four capital gain tax concession for small business are that the business must be carried on by owner for 15 years and is selling business due to retirement , when the person is selling the business and he is not above age of 55 then Capital gain tax will not be payable on the amount paid into a superannuation fund and there is lifetime limit of $500000, another way of exemption is the gain from the sale of assets is spent on replacement them all the above measures helps to claim Capital gain tax exemption on the sale of the running business and the small business has been defined as the business with net assets of up to $6 million with one person having 50% or more voting power along with 50% or more economic interest or it can be two all these conditions must be satisfied in order to avail exemption.
In Jasmine case there will be no capital gain tax as the business has been run for 15 years or above and the reason for selling the...
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