this is group assignment i got two tasks to do and i already highlighted my tasks that i have to do
Microsoft Word - BTC3150 S1 2012 Assignment Question.docx Faculty of Business and Law Swinburne Business School ACC30005 Taxation Semester Two 2020 Group Assignment DETAILS DUE DATE MONDAY 12 TH OCTOBER 2020 5PM Required: Length: Weighting: Submission: Case Study 2000 to 2500 words Maximum. Any assignment exceeding this by greater than 10% (i.e. 250 words) will receive a zero grade. The assignment marks total 20 and it is worth 20% of the unit’s total assessment On-line via Canvas site (Late assignments –penalty 10% per day) INSTRUCTIONS 1. The Assignment must be prepared in groups of three students. Please keep a copy. 2. Students are required to submit a ‘Statement and Declaration of Authorship’ which can be found in canvas and attached with the assignment submitted. (See the Group Assignment instruction details in canvas) 3. Assignments are to be written in the candidates own words. The use of unacknowledged directly copied material may result in zero marks. See the Unit Outline re Plagiarism. 4. Marks will be awarded to the candidate based on the detail provided and correctness of their response. 5. Candidates must apply the IRAC principle when addressing the relevant issues (i.e. I= Identify the key issues, R= Cite the relevant legislative provisions and case law (rules) where appropriate, A = apply the relevant rules to the facts presenting arguments for and against and C = form a conclusion based on your stronger argument). 6. If candidates need to make assumptions when responding to any question, the assumption and the reason for the assumption must be clearly specified in their response. GOOD LUCK ACC30005 Taxation – Semester Two 2020 Case Study / Assignment – Page 2 of 20 1. CASE STUDY SCENARIO You are a Graduate Tax Advisor, employed by Tax Advisors Pty Ltd. Your Partner has assigned you the following client file after attending a meeting with the client. Client Background Judy Somerville is employed by Ansett Airways Limited (‘Ansett’) since 2003 as a long-haul flight attendant based in Melbourne, Australia. The nature of Judy’s position with Ansett sees her flying to international ports where she spends 183 days away from her home base each calendar year. The remaining days of each calendar year are spent in Australia, and Judy uses this non- flying time to organise the importation of textiles into Australia from Textiles Inc. (a company registered in the USA). Until recently, Judy was the exclusive distributor of textiles to retailers in Australia. Client File Contents The client file has the following relevant documents: • Extract of bank statement for selected transactions during the financial year ended 30 June 2020 (together with accompanying notes from Judy), as attached at Annexure A; • Income Statement (2020) from Ansett, as attached at Annexure B; • Dividend Statement from Westfields Ltd, as attached at Annexure C; • Extract of ‘Contract of Sale of Real Estate’ between Judy Somerville (the vendor) and the purchaser, as executed on 1 May 2020, as attached at Annexure D; • Extract of ‘Exclusive Distributor Termination Agreement’ between Judy Somerville and Textiles Inc, as executed on 30 June 2020, as attached at Annexure E; • Fixed asset register as at 30 June 2019, as attached at Annexure F; • Internal file note from your Partner that provides details of the discussions with the client at the meeting, as attached at Annexure G. Scope of Engagement between Tax Advisors Pty Ltd and Judy Somerville Your Partner has requested that you review the file in its entirety (as below) in order to undertake the engagement work as agreed between Tax Advisors Pty Ltd and Judy Somerville, as outlined in the ‘Required’ section of this document. ACC30005 Taxation – Semester Two 2020 Case Study / Assignment – Page 3 of 20 ANNEXURE A BANK STATEMENT EXTRACT (ANNOTATED & SELECTED TRANSACTIONS ONLY) Date Transaction Note Debit Credit Balance 1 Apr 20 Norman Harvey Ltd Debit Card Transaction 1 14,128.00 7,293.00 1 Apr 20 Myer Coles Pty Ltd Invoice 65 Textiles 2 2,345.00 4,948.00 15 Apr 20 Ansett Airways Ltd Salary Deposit - 5,203.00 10,151.00 3 May 20 Real Property Pty Ltd Early Deposit Release 3 54,000.00 64,151.00 6 May 20 Textiles Inc. Textiles Purchase 4 1,920.00 62,231.00 15 May 20 Stillwell Bib Pty Ltd Debit Card Transaction - 10,000.00 52,231.00 15 May 20 Skin Care Australia Debit Card Transaction 5 629.00 51,602.00 15 May 20 Tim Rivers Salary Payment 6 1,008.00 50,594.00 17 May 20 Traffic Infringement Office Speeding Fine 7 220.00 50,374.00 20 May 20 Abel & Abel Solicitors Invoice 13129 8 5,950.00 44,424.00 25 May 20 Maze Restaurant Debit Card Transaction 9 450.00 43,974.00 21 May 20 First Newspapers Advertising Invoice 39221 10 2,550.00 41,424.00 10 Jun 20 Institute of Aviation Course Fees - 6,300.00 35,124.00 30 Jun 20 Victoria State Bank Interest Charge - 430.00 34,694.00 30 Jun 20 Australian Taxation Office PAYG Instalment 11 3,000.00 31,694.00 30 Jun 20 Textiles Inc. Damages 8 49,950.00 81,644.00 30 Jun 20 Westfields Ltd Dividend 12 700.00 82,344.00 30 Jun 20 Woodlands Pty Ltd Serviced Office Rent 13 1,500.00 80,844.00 30 Jun 20 Tim Rivers Redundancy 6 7,500.00 73,344.00 ACC30005 Taxation – Semester Two 2020 Case Study / Assignment – Page 4 of 20 Notes Regarding Bank Statement Extract Note Description / Further Information $ AUD 1 Acquisition of Furniture & Office Equipment • Desks and Chairs (acquired 1 July 2019) 9,865 • Partitions (acquired 20 August 2019) 4,263 2 Outstanding debtors at 30 June 2019 23,000 Debts written off > 12 months old 20,000 Judy provisions bad debts equal to 3% of the outstanding debtors. 3 Obtained an Early Release of Deposit for Property Sold. 72,000 Net of Agents Commission of $18,000. (18,000) 4 Stock Purchase of Textiles (USD $2,000.00 = AUD $1,920.00) 1,920.00 Stock at Start 25,500.00 Stock at End 12,500.00 5 Skin care products purchased due to flight attendant role. 629.00 6 Salary Payment for Employee Tim Rivers 1,008.00 Redundancy Payment for Employee Tim Rivers 7,500.00 Note the minimum superannuation guarantee contribution is included in the above amounts, where relevant. 7 Speeding fine incurred whilst travelling from Melbourne Airport to Retailer for Textiles business. 220.00 8 Legal fees incurred in relation to distributor agreement. 5,950.00 Settlement sum received in relation to distributor agreement. 49,950.00 9 Client dinner at Gordon Ramsey’s Maze Restaurant. 450.00 10 Advertising contract payment. Paid one month in arrears and prepaid up to 30 September 2020. 2,550.00 11 PAYG instalments (quarterly equal payments). 3,000.00 12 Fully-franked dividend received (refer Dividend Statement) 700.00 13 Office rent paid for 1 June 2020 to 31 July 2020. 1,500.00 ACC30005 Taxation – Semester Two 2020 Case Study / Assignment – Page 5 of 20 ANNEXURE B Income Statement 2020 FOR Judy Somerville Income Statement – individual non-business Income Statement for year ending 30 June 2020 Payee details Ms Judy Somervile 10 Diamond Avenue Waverley Vic 3150 NOTICE TO PAYEE If this income statement shows an amount in the total tax withheld box you must lodge a tax return. If no tax was withheld you may still have to lodge a tax return. For more information on whether you have to lodge, or about this payment and how it is taxed, you can: ■ refer to TaxPack ■ phone 13 28 61 between 8.00am and 6.00pm (EST), Monday to Friday, or ■ visit www.ato.gov.au Day/Month/Year Day/Month/Year Period during which payments were made 01/07/2019 to 30/06/2020 Payee’s tax file number 564 335 771 TOTAL TAX WITHHELD $ 1 9 8 1 2 Gross payments CDEP payments Other income Reportable fringe benefits amount FBT year 1 April to 31 March $ 82,252 $ $ $ Lump sum payments A $ B $ D $ E $ Allowances Total $3,321.00 - comprising of: - Laundry: $2,080.00 - Uniform: $1,241.00 Payer details Payer’s ABN or withholding payer number 90111222333 Payer’s name ANSETT AIRWAYS LIMITED Branch number Signature of authorised person DIRECTOR, HUMAN RESOURCES 22,581 http://www.ato.gov.au/ ACC30005 Taxation – Semester Two