Australian Taxation Law
Order Description
You NEED to havelatest edition of this book for referencing “Principles of taxation law 2016, 9th edn, Thomson Reuters” <- MUST HAVE book do not attempt without this book’s latest edition. Other books for referencing are: “Fundamental Tax Legislation 2016, Thomson Reuters” “Australian taxation law cases 2016, Thomson Reuters”. Also use https://www.austlii.edu.au/ for at least as 1 or more source reference. ALL THE REFERENCED ARTICLES, JOURNAL,BOOKS etc MUST BE AUSTRALIAN EDITIONS ONLY. DO NOT USE ANY FOREIGN EDITION/MATERIAL.
Questions to answer in this assignment after reading given info:
a) Homework help – Discuss with reference to appropriate legislation, case law and/or rulings whether X & Y are carrying on a business for taxation law purposes in either the 2015 or 2016 income
years.
b) Homework help – Discuss with reference to appropriate legislation, case law and/or rulings whether any amounts
received in relation to the sale of the design are ordinary income in the 2016 income year
c) Briefly discuss with reference to appropriate legislation, case law and/or rulings whether the
cash or accruals basis of accounting would apply to X & Y
The front style for your answer should be set to “Time New Roman” size 12 with 1.5 line spacing, 2.5cm margin & A4 page layout
– Assignment 2
LAW6001 Assessment Brief 3 Case Study
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ASSESSMENT BRIEF
Subject Code and Title LAW 6001 Taxation Law
Assessment Assessment 3: Case Study
Individual/Group Individual
Length 2500 – 3000 words +/_ 10%
Learning Outcomes Thiscasestudymustbepresentedasanindividualeffort. The case
study requires individual research. The course manual andset
textsareintendedtobethestartingpointofthe research. Itis
expectedthestudentwillsurveytherelevant literature, including
decided cases, and select appropriate additionalresources.
Thecasestudyisdesignedtoincorporateuncertainty. The
studentisexpectedtodevelopapieceofworkwhichis written
advicefortheirclient. Itmustthereforeidentifythe factsandissues
presentedbyeachaspectofthecasestudy, identifyandapplythe
relevantlegislationand/orcaselaw, cometoaconclusionand
makearecommendationtothe client.
Specific learning outcomes
b) Write my Essay Online Writing Service with Professional Essay Writers – Explainethicalandprofessionalresponsibilitiesoftax agents
undertheincludingobligationsundertheTaxAgent ServicesAct
2009(TASA)andTaxAgentServicesRegulations 2009 (TASR).
c) InterpretandapplyselectedsectionsoftheIncomeTax
AssessmentActITAA36andITAA97.
d) Identifyandanalysethetaxtreatmentofvarioustypesof
income anddeductions.
e) Effectively apply taxation law in determining tax outcomes in
variousscenarios andstructures.
Submission By 11:55pm AEST/AEDT Sunday of Week 9
Weighting 20%
Total Marks 100 marks
LAW6001 Assessment Brief 3 Case Study
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Context:
This assessment assesses your research skills, your ability to synthesise an original piece of work to specific
content requirements and your ability to produce a comprehensible piece of advice which addressing the
client’s needs.
It also assesses your written communication skills. The ability to deliver to a brief is an essential skill in the
workplace. Clients may well approach advisors seeking a combination of specific information needs and
advice on the tax implications of a particular arrangement in the Australian tax jurisdiction. It is therefore
important to be able to identify all the issues presented by an arrangement and to think about the
potential consequences of different approaches to addressing the client’s needs.
Instructions:
Your case study needs to identify and discuss the tax implications of the various issues raised. In order to
produce your case study, you will need to review relevant case law and legislation. The subject manual and
set texts are starting points only, you will be expected to use these initial materials to identify potential
useful resources. You will then need to review your selected resources to see if they value add to your
analysis.
Your case study is not just a list of answers. Your reasons for your conclusions and recommendations must
be based on your research into the relevant cases and legislation.
LAW6001 Assessment Brief 3 Case Study
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Question 1 (20 marks)
Yvonne Merrick, the holder of a British passport and a relevant working visa, arrived in Australia from the
UK in January 2009 and started work as an administrator in a Brisbane hospital. On 10 July 2017 she
travelled back to the UK for personal reasons and worked in odd jobs until 1 April 2018 when she returned
to Brisbane and resumed her position at the hospital. While in the UK she continued to maintain the
apartment she had bought in Brisbane and her Australian bank account. She was on “leave without pay”
from her job at the hospital.
During the 2017/18 year Yvonne was paid $25,000 for her work in the UK and $15,000 for her work as an
administrator in Australia. UK tax of $3,000 was deducted from her salary. She was paid a bonus of
$12,000 on 15 February 2018 for her work in 2017. She also received $2,000 interest on the savings in her
Australian bank account and a fully franked dividend of $700 from her share investments in the Australian
company HAL Corporation Ltd. On 1 July 2018 Yvonne left Australia indefinitely to take up a full-time
position as a senior administrator in a UK hospital. In the 2018/19 income year, she was paid a salary of
$70,000 for her work in the UK hospital. Tax amounting to $7,000 was deducted from her UK salary. For
the 2018/19 year Yvonne received interest of $2,400 on her Australian bank account and a fully franked
dividend of $900 on her shares.
Upon leaving Australia, Yvonne sold all of her furniture and leased the apartment she owns for $600 per
week. For the 2018/19 year she received $23,400 rental income.
Required
Advise Yvonne as to her Australian assessable income and tax payable for the 2017/18 and 2018/19 tax
years.
Question 2 (20 marks)
Gordon Haddad is employed by Hardware and Software Technologies Ltd (HSTL) as an information
technology engineer. The company’s head office is in Melbourne City and Gordon’s employment requires
him to travel to regional areas and interstate. Gordon has negotiated a salary package comprising: an
annual salary of $95,000, an entertainment allowance of $7,500, a mobile phone and internet allowance
of $10,000, a living away from home allowance of $12,000, reimbursement of car expenses for use of his
own vehicle (based on kilometers travelled) at $1.20 per kilometer, and a car parking space at the
company’s head office in the city.
Required
Advise Gordon on the tax treatment of each component of the salary package and the items that are
included in Gordon’s assessable income.
Question 3 (20 marks)
Belinda Choy is a doctor previously employed by State Wide Medical (SWM) and currently working in sole
practice. On 25 June 2016, while Belinda was employed by SWM, a bonus was declared for all employees.
Belinda’s bonus was $7,500 which was paid to her bank account on 1 July 2016. For the 2016/17 year of
income Belinda received an annual salary of $75,000 from SWM. She requested that she be paid $50,000
over the course of 2016/17 and the remaining $25,000 in September 2017. On 1 June 2017 Belinda
qualified for long service leave and received a lump sum payment of $18,000. On 1 July 2017 Belinda
resigned from SWM and established her own sole medical practice. Belinda employed a receptionist and a
LAW6001 Assessment Brief 3 Case Study
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nurse. Belinda’s income and expenditure for 2017/18 and 2018/19 were as follows:
2017/18
Cash payments received from patients — $80,000
Unpaid patient accounts and Medicare reimbursements as at 30 June 2018 — $45,000
Medicare reimbursements — $30,000
Salary and wages for receptionist and practice nurse — $65,000
Sundry expenses — $8,500
2018/19
Cash payments received from patients — $120,000
Unpaid patient accounts and Medicare reimbursements as at 30 June 2019 — $34,000
Medicare reimbursements — $48,000
Receipt of unpaid patient accounts and Medicare reimbursements as at 30 June 2018 — $45,000
Salary and wages for receptionist and practice nurse — $72,000
Sundry expenses — $9,800
Required
Advise Belinda Choy on her assessable income for the 2016/17, 2017/18 and 2018/19 income years.
Question 4 (20 marks)
Multimedia Systems Pty Ltd (MSPL) is the manufacturer and supplier/retailer of home media and
entertainment systems. MSPL not only manufactures and sells home media and entertainment systems
but is also available to install the systems in customer’s homes. For the 2017/18 income year MSPL’s
financial position was:
Cash Sales revenue $260,000
Credit Sales – Accounts receivable as at 30 June $85,000 (included in Sales revenue for 2017/18)
For the 2018/19 income year MSPL’s financial position was:
Cash Sales revenue $290,000
Credit Sales – Accounts receivable as at 30 June $95,000
During 2018/19, MSPL received instalment payments in advance that amounted to $40,000, although
installations completed by the end of the year totaled $25,000. MSPL is required to provide a one-year
guarantee/warranty. Industry experience has shown that guarantee/warranty claims amount to 5% of
sales revenue.
Required
Calculate the assessable income for MSPL for the 2017/18 and 2018/19 income years.
Question 5 (20 marks)
LAW6001 Assessment Brief 3 Case Study
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Ryan Saunders purchased an apartment from Anna Lowe in April 2010 for use as an investment property.
The property was acquired by Anna off-the-plan in 2002 and was used as her main residence. Anna left for
overseas soon after the sale to Ryan. Ryan rented the apartment to tenants until he sold it in March 2019.
As the relevant information was not available to him, Ryan did not claim deductions for capital works
deductions under ITAA97 Div 43 for the income years in which the property was used to produce
assessable income. Ryan also did not obtain a building cost estimate from a quantity surveyor as he did
not want to incur the expense.
Ryan has become aware that broadly, the CGT provisions require a taxpayer to reduce the cost base or
reduced cost base of a CGT asset to the extent that the taxpayer has deducted or can deduct expenditure
in an income year under Div 43.
Required
Advise Ryan if he is still required to reduce the cost base or reduced cost base of the property in working
out his capital gain or loss, even though he is unable to obtain the relevant information to do so?
LAW6001 Assessment Brief 3 Case Study Page 6 of 10
Learning Paper Writing Service – Topic Examples – Rubrics
Assessment
Attributes Fail (Unacceptable) Pass
(Functional)
Credit
(Proficient)
Distinction
(Advanced)
High Distinction
(Exceptional)
Grade Description
(Grading Scheme)
Evidence of unsatisfactory
achievement of one or more of the
learning objectives of the course,
insufficient understanding of the
course content and/or unsatisfactory
level of skill development.
Evidence of
satisfactory
achievement of
course learning
objectives, the
development of
relevant skills to a
competent level, and
adequate
interpretation and
critical analysis skills.
Evidence of a good
level of
understanding,
knowledge and skill
development in
relation to the content
of the course or work
of a superior quality
on the majority of the
learning objectives of
the course.
Demonstration of a
high level of
interpretation and
critical analysis skills.
Evidence of a
high level of
achievement of
the learning
objectives of the
course
demonstrated in
such areas as
interpretation and
critical analysis,
logical argument,
use of
methodology and
communication
skills.
Evidence of an
exceptional level of
achievement of
learning objectives
across the entire
content of the
course
demonstrated in
such areas as
interpretation and
critical analysis,
logical argument,
creativity, originality,
use of methodology
and communication
skills.
Knowledge and
understanding
Limited understanding of required
concepts and knowledge
Key components of the assignment
are not addressed.
Knowledge or
understanding of the
field or discipline.
Resembles a recall or
summary of key
ideas.
Often
conflates/confuses
assertion of personal
opinion with
information
Thorough knowledge
or understanding of
the field or
discipline/s. Supports
personal opinion and
information
substantiated by
evidence from the
research/course
materials.
Demonstrates a
capacity to explain
Highly developed
understanding of
the field or
discipline/s.
Discriminates
between
assertion of
personal opinion
and information
substantiated by
robust evidence
from the
A sophisticated
understanding of the
field or discipline/s.
Systematically and
critically
discriminates
between assertion
of personal opinion
and information
substantiated by
robust evidence
from the
LAW6001 Assessment Brief 3 Case Study Page 7 of 10
30%
Points for this
criteria
0-2
substantiated by
evidence from the
research/course
materials.
3-4
and apply relevant
concepts.
5-6
research/course
materials and
extended
reading.
Well
demonstrated
capacity to
explain and apply
relevant
concepts.
7-8
research/course
materials and
extended reading.
Mastery of concepts
and application to
new
situations/further
learning.
9-10
Critical reasoning,
presentation and
defence of an
argument and/or
position
30%
Points for this
criteria
Specific position (perspective or
argument) fails to take into account
the complexities of the issue(s) or
scope of the assignment.
Makes assertions that are not
justified.
0-2
Specific position
(perspective or
argument) begins to
take into account the
issue(s) or scope of
the assignment.
Justifies any
conclusions reached
with arguments not
merely assertion.
3 -4
Specific position
(perspective or
argument) takes into
account the
complexities of the
issue(s) or scope of
the assignment.
Others’ points of view
are acknowledged.
Justifies any
conclusions reached
with well-formed
arguments not merely
assertion.
5-6
Specific position
(perspective or
argument) is
expertly
presented and
accurately takes
into account the
complexities of
the issue(s) and
scope of the
assignment.
Justifies any
conclusions
reached with
well-developed
arguments.
7-8
Specific position
(perspective or
argument) is
presented expertly,
authoritatively and
imaginatively,
accurately taking
into account the
complexities of the
issue(s) and scope
of the assignment.
Limits of position are
acknowledged.
Justifies any
conclusions reached
with sophisticated
arguments.
9-10
LAW6001 Assessment Brief 3 Case Study Page 8 of 10
Point range
Formation of
recommendations
based on the
identification of the
issues and the
application of case
law principles and
relevant legislation
identified in the
research process.
20%
Points for this
criteria
Difficulty in formulating own opinion
and a lack of recognition of the
various issues. A lack of application
of the relevant case law and/or
relevant legislation
0-2
Difficulty in justifying
own opinion. Some
recognition and
discussion of the
various issues.
Some application of
the relevant case law
and/or relevant
legislation
3 – 4
Own opinion is partly
justified with
reference to case law
and/or relevant
legislation.
Recognition and
discussion of the
various issues
identified in the
question Application
of the relevant case
law and/or relevant
legislation to these
issues
5-6
Own opinion is
justified with
reference to case
law and/or
relevant
legislation.
Recognition and
discussion of the
various issues
identified in the
question plus
others identified
by the student
Application of the
relevant case law
and/or relevant
legislation to
these issues
7- 8
Sophisticated
arguments
supporting own
opinion is justified
with reference to
case law and/or
relevant legislation.
Recognition and
discussion of the
various issues
identified in the
question plus others
identified by the
student and
problems identified
Application of the
relevant case law
and/or relevant
legislation to these
issues
9-10
Use of academic
and discipline
conventions and
sources of evidence
Poorly written with errors in spelling,
grammar.
Demonstrates inconsistent use of
good quality, credible and relevant
research sources to support and
develop ideas.
Is written according to
academic genre (e.g.
with introduction,
conclusion or
summary) and has
accurate spelling,
grammar, sentence
and paragraph
Is well-written and
adheres to the
academic genre (e.g.
with introduction,
conclusion or
summary).
Demonstrates
Is very wellwritten and
adheres to the
academic genre.
Consistently
demonstrates
expert use of
Expertly written and
adheres to the
academic genre.
Demonstrates
expert use of highquality, credible and
relevant research
LAW6001 Assessment Brief 3 Case Study Page 9 of 10
10%
Points for this
criteria
There are mistakes in using the APA
style.
0-2
construction.
Demonstrates
consistent use of
credible and relevant
research sources to
support and develop
ideas, but these are
not always explicit or
well developed.
There are no
mistakes in using the
APA style.
3-4
consistent use of high
quality, credible and
relevant research
sources to support
and develop ideas.
There are no
mistakes in using the
APA style.
5-6
good quality,
credible and
relevant research
sources to
support and
develop
appropriate
arguments and
statements.
Shows evidence
of reading
beyond the key
reading
There are no
mistakes in using
the APA style.
7-8
sources to support
and develop
arguments and
position statements.
Shows extensive
evidence of reading
beyond the key
reading
There are no
mistakes in using
the APA Style.
9-10
Effective
communication
10%
Points for this
criteria
The reader has difficulty following
the points being made, lack of
logical/clear
Structure, poor flow of ideas,
argument lacks supporting evidence
0-2
The arguments and
supporting evidence
are not always
presented in clear
and logical manner.
Spelling errors and
sentence structure
makes meaning
unclear
3-4
Information,
arguments and
evidence are well
presented, relevant
and show a clear flow
of ideas with logical
development
5-6
The information,
arguments and
evidence are very
well presented,
with clear logical
development of
ideas which
answer the issue
as set, with some
consideration of
related or flow
issues
7-8
Excellent
presentation with
clear and logical
arguments
supported by
relevant and varied
evidence. The
student answers the
issue and considers
in detail some
related or flow
issues with possible
ramifications.
9-10
LAW6001 Assessment Brief 3 Case Study Page 10 of 10
