Demonstrate an understanding of the Australian income tax system, the concepts of income and deductions, CGT, FBT, GST general anti-avoidance provisions and income tax administration. (ULO 1)

Hii, please check the all instructions like no space , text style and many more mention in first page of assignment and there should be no plagiarism

 

HOLMES INSTITUTE

FACULTY OF

HIGHER EDUCATION

HI6028 Taxation Theory, Practice and Law Individual Assignment T1 2019

Assessment Details and Submission Guidelines

Trimester T1 2019

Unit Code HI6028

Unit Title Taxation Theory, Practice & Law

Assessment Type Individual Assignment

Assessment Title Questions of Taxation Law

Purpose of the

assessment (with ULO

Mapping)

The individual assignment will assess students on the following learning outcomes:

1. Demonstrate an understanding of the Australian income tax system, the

concepts of income and deductions, CGT, FBT, GST general anti-avoidance

provisions and income tax administration. (ULO 1)

2. Identify and critically analyse taxation issues. (ULO 2)

3. Interpret the relevant taxation legislations and case law. (ULO 3)

4. Apply taxation principles to real life problems. (ULO 4)

Weight 20% of the total assessments

Total Marks 20

Word limit Not more than 2,000 words (acceptable to be 10% above or below this word limit)

Due Date Week 10 at 11:59PM

Submission

Guidelines

 This assignment along with a completed Assignment Cover Page is to be

submitted by the due date in soft-copy only (Safe assign – Blackboard).

 The assignment is to be submitted in accordance with assessment policy 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. Ensure that when incorporating the works of others

into your submission that it is appropriately acknowledged.

 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.

 It is the responsibility of the student who is submitting the work, to ensure that

the work is in fact her/his 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 on Blackboard

before final submission in the subject. For further details, please refer to the

Subject Outline and Student Handbook.

 Proper referencing in accordance with school regulations.

Page 2 of 5

HI6028 Taxation Theory, Practice and Law Individual Assignment T1 2019

Individual Assignment Specifications

Purpose:

This assignment aims at assessing students on the Learning Outcome from 1 to 4 as mentioned above.

Assessment task:

Question 1 (10 marks)

Your client Helen wants to fund her business as a fashion designer, therefore she has sold some of the assets

as follows:

1- An antique impressionism painting Helen’s father bought in February 1985 for $4,000. Helen sold the

painting on 1 December 2018 for $12,000. (2.5 marks)

2- Helen sold her historical sculpture on 1 January 2018 for $6,000. She has purchased the piece on

December 1993 for $5,500. (2.5 marks)

3- An antique jewellery piece purchased in October 1987 for $14,000. Helen sold the antique jewellery

piece on 20 March 2018 for $13,000. (2.5 marks)

4- Helen sold a picture for $5,000 on 1 July 2018. Her mother purchased the picture in March 1987 for

$470. (2.5 marks)

Advise the Capital Gain Tax consequences of the above transactions.

Question 2 (5 marks)

Barbara is an economist researcher and commentator. The Eco Books Ltd offers her $13,000 for writing a book

about economics principles. Barbara has never written a book about economics principles, but accepts the

offer and writes the economics book called ‘Principles of Economics’. She assigns the book’s copyright for

$13,400 to The Eco Books Ltd. The book is published and she is paid. She also sells the book’s manuscript to

the Eco Books Ltd’s library for $4,350 plus several interview manuscripts she has collected while writing the

economics book for which she receives $3,200.

Discuss each of the above payments to Barbara separately and states if these are income from Barbara’s

personal exertion. (2.5 marks) Would your answer differ if Barbara wrote the Principles of Economics’ book

before signing a contract with The Eco Books Ltd in her spare time and only decided to sell it later? (2.5

marks) Support your answer by referring to relevant statutory and case law.

Question 3 (5 marks)

Patrick paid $52,000 to his son David to provide some assistance in his newly started business. They agreed

that David repay his father $58,000 at the end of five years. Patrick provided this loan to David without any

formal agreement or security deposit for the sum lent. Patrick told his son that he need not pay interest.

However, David repaid the full amount after two years through a cheque, which was included an additional

amount equal to 5% on the amount borrowed.

By referring to relevant statutory and case law, you need to discuss the effect of these arrangement on the

assessable income of Patrick. (5 marks)

Page 3 of 5

HI6028 Taxation Theory, Practice and Law Individual Assignment T1 2019

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).

Questions 1:

Capital Gain Tax regarding antique impressionism painting

Capital Gain Tax regarding historical sculpture

Capital Gain Tax regarding antique jewellery piece

Capital Gain Tax regarding picture

Questions 2:

Discuss Barbara ‘s income under the case scenario

Discuss Barbara ‘s income under the alternative scenario

Questions 3:

Discuss the effect of these arrangement on the assessable income of Patrick

Marking criteria

Marking criteria Weighting

Question 1

Capital Gain Tax regarding antique impressionism painting 2.5%

Capital Gain Tax regarding historical sculpture 2.5%

Capital Gain Tax regarding antique jewellery piece 2.5%

Capital Gain Tax regarding picture 2.5%

Question 2

Discuss Barbara ‘s income under the case scenario 2.5%

Discuss Barbara ‘s income under the alternative scenario 2.5%

Question 3

Discuss the effect of these arrangement on the assessable income of Patrick 5%

TOTAL WEIGHT: 20%

Page 4 of 5

HI6028 Taxation Theory, Practice and Law Individual Assignment T1 2019

Marking Rubric

Excellent Very Good Good Satisfactory Unsatisfactory

Question 1

Capital Gain Tax

regarding

antique

impressionism

painting

Advised the

Capital Gain Tax

consequences

regarding the

antique painting

correctly.

Supported the

answer by

accurate

referencing.

Student

demonstrates

very good

knowledge by

giving the

exempt capital

gain figure

regarding the

antique painting

accurately.

Student

demonstrates

good

knowledge of

CGT regarding

the antique

painting, the

response

needs more

elaborations.

Student

demonstrates

sound

knowledge of

CGT regarding

the antique

painting. Missed

to support the

answer by

proper

referencing.

Student failed

to identify the

Capital Gain

Tax

consequences

regarding the

antique

painting.

Capital Gain Tax

regarding

historical

sculpture

Advised the

Capital Gain Tax

consequences

regarding the

historical

sculpture

correctly. Correct

CGT calculation

method has been

chosen. Correct

CGT figures and

clear final

comments are

present.

Student

demonstrates

very good

knowledge of

Capital Gain Tax

consequences

regarding the

historical

sculpture.

Correct CGT

calculation

method has

been chosen.

Minor error in

calculation of

the CGT figures

are present.

Final comments

are clear.

Student

demonstrates

good

knowledge of

Capital Gain

Tax

consequences

regarding the

historical

sculpture.

Correct CGT

calculation

method has

been chosen.

Minor error in

calculation of

the CGT

figures are

present. Final

comments

need more

elaborations.

Student

demonstrates

sound

knowledge of

Capital Gain Tax

consequences

regarding the

historical

sculpture.

However,

student missed

to missed to

selects the right

CGT calculation

method. As a

result, the

calculation of

the CGT figures

are incorrect.

Final comments

are not

relevant.

Student failed

to identify

Capital Gain

Tax

consequences

regarding the

historical

sculpture.

Capital Gain Tax

regarding

antique

jewellery piece

Capital gain or

loss of the

antique

jewellery has

been identified

correctly. Clear

final comments

are present.

Student

demonstrates

very good

knowledge of

CGT by referring

to capital gain

or loss of the

antique. Clear

final comments

are present.

Minor error is

evidenced in the

answers.

Capital gain or

loss of the

antique

jewellery has

been

identified

correctly. But

fails to present

clear final

comments.

Student

demonstrates

sound

knowledge of

CGT by referring

to capital gain

or loss of the

antique but not

all parts of the

questions.

Failed to

identify the

capital gain or

loss of the

antique

jewellery.

Capital Gain Tax

regarding picture

An excellent

response

presented and

identified the

Responded the

question very

good. Identified

the Capital Gain

Student

demonstrates

good

knowledge of

Sound

knowledge of

CGT is

presented

Student failed

to identify the

Capital Gain

Tax

Page 5 of 5

HI6028 Taxation Theory, Practice and Law Individual Assignment T1 2019

Capital Gain Tax

consequences

regarding the

picture correctly.

Supported the

answer by

accurate

referencing.

Tax

consequences

regarding the

picture

correctly.

Supported the

answer by

accurate

referencing.

CGT regarding

the picture,

the response

needs more

elaborations.

regarding the

picture. Missed

to support the

answer by

proper

referencing.

consequences

regarding the

picture.

Question 2

Discuss Barbara’s

income under the

case scenario

An excellent

response is

present. Proper

reference to the

relevant tax law

(case and

statutes) are

given throughout

the response.

Correct and clear

conclusions are

given.

Student

demonstrates

very good

knowledge by

giving expected

answers to all

questions,

minor error is

evidenced in the

answers.

Student

demonstrates

good

knowledge by

giving

expected

answers to all

questions, but

fails to

elaborate.

Student

demonstrates

sound

knowledge by

giving expected

answers to

most, but not all

parts of the

questions.

There is no

discussion

regarding the

payments to

Barbara. No

reference has

been given.

Discuss Barbara’s

income under the

alternative

scenario

All of the

scenarios

regarding Barbara

‘s personal

exertion has been

responded

accurately.

Relevant section

of the taxation

law is referenced.

Very good

discussion of

the scenarios

given in the

question.

Student has

identified the

most relevant

sections of the

law.

The answer to

the questions

is well

organised, but

demonstrates

illogical at

some points.

Referencing is

good but to

complete

reference is

given.

Some detailed

conclusions in

regards to the

Barbara ‘s

personal

exertion are

reached from

the evidence

offered.

There is no

discussion

regarding the

payments to

Barbara. No

reference has

been given.

Question 3

Discuss the effect

of these

arrangement on

the assessable

income of Patrick

The effect on the

assessable

income of

Patrick has been

answered and

referenced (cases

and statutory)

accurately.

Very good

demonstration

of the effect on

the assessable

income of

Patrick has been

answered and

referenced

accurately,

minor error is

referencing is

evidenced.

Good

demonstration

of the effect

on the

assessable

income of

Patrick has

been

answered.

Some

references are

given,

however they

not all

accurate.

Student

demonstrates

sound

knowledge by

giving expected

answers

regarding the

effect on the

assessable

income of

Patrick

The assessable

income of

Patrick is not

discussed.

Relevant

sections of law

are not

referenced.

 

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