Question 1

Henry, a tax resident of Australia, was a famous jazz singer who passed away recently. Jack, a publisher was interested on Henry’s life story and wanted to write a bibliography on Henry’s life. Jack approached Henry’s wife, Jenny (also a tax resident of Australia) to interview her on Henry’s life story. She was offered $1 million for Henry story. Jenny was paid $500,000 deposit before the interview. After the interview she was paid the balance of the money.Would the tax consequences have changed if Jenny had written the book herself?
Required

Advise Jenny on her tax consequences.You must cite the relevant case law and legislation(10 marks)

Question 2

Sally is a single parent who is employed as an accountant. In order to attend employment she must put her young child in a day-care centre. Sally considers the expense is necessarily incurred in gaining her income. Would she be entitled to a tax deduction under s8-1?

Required

Advise Sally of her tax consequences

(10 marks)

Question 3

Joseph conducts an plumbing business. With a view to future retirement he purchases 20ha of land and plants native wildflowers that he plans to harvest and sell. As a preliminary measure he arranges to clear the land and plough in compost. It is expected that the first commercial crop will not be harvested for five years. He incurs interest on a loan to finance the land purchase, land preparation costs, fertilizer costs and costs of acquiring native seedlings.

Advise Joseph of the tax consequences of the venture.
You must cite the relevant case law and legislation

(15 marks)

Rationale

This assessment task covers topics from week 1 to 10 and has been designed to ensure that you are engaging with the subject content on a regular basis. :

This assignment has been designed to assess your ability to

• be able to identify and explain the rules of law relating to taxation law topics covered in the subject
• be able demonstrate a capacity to engage in legal research
• be able to use legal research skills to apply the law to legal problems relating to taxation so as to reach a solution
• be able to analyse legal rules so as to differentiate between possible outcomes to the legal issues arising from novel fact situations.

Students should be able to identify and apply legislation and case law to the issues identified as well as demonstrate the ability to analyse the issues fully and discuss the application of taxation principles

PresentationYour answer should not exceed the 3,000 word limit, excluding the bibliography. The assignment must be typed in Times New Roman, 12 point font, 1.5 spaced and with at least a 2.5cm margin on each side. You must use APA referencing system. Case and statute names should be italicised.Please comply with the following style guide:1. Do not re-state the question.2. Use in-text referencing. Do not use footnotes.3. Names of statutes should be italicised, and followed by the jurisdiction not in italics, for example: Acts Interpretation Act1901 (Cth). Note the abbreviation for ‘Commonwealth’ is ‘Cth’ not ‘Cwlth’.4. The names of the parties must be italicised, but the citation must not, for example:Smith v Jones(1967)345 CLR 34.5. An in-text reference to a book should be structured as follows: (Latimer, 2010, p. 75). There is no need to put the author’s initial. Note the positioning of brackets, stops and commas. You use ‘pp.’ only if referring to more than one page. If you are referring to a book with more than one author, the in-text reference would be as follows: (Smith et al, 2002, p. 78).6. An in-text reference to the subject’s Modules should be structured in brackets as per the following example – obviously you will alter the reference depending on the subject, year of study and Module number: (CSU LAW505 Modules, 2015, Topic 7).7. Do not start a new line simply because you are starting a new sentence.8. Be careful of apostrophes: director’s = of a director, directors’ = of many directors, directors = many directors. Also particularly prevalent is confusion between its (it possessive) and it’s (contraction of “it is”).9. The following words always start with a capital letter: Commonwealth, State, Act, Bill, Regulation, Constitution, Parliament. Do not unnecessarily capitalise other words.10. Do not use terms such as can’t, won’t, don’t and shouldn’t, neither should one use “i.e.” and “e.g.” in formal writing.11. A sentence must always begin with a full word and a capital letter – so a sentence would start ‘Section 55 says…’, not ‘S 55 says…’ or ‘s 55 says…’12. Start each paragraph on a new line, and leave a clear line gap after the preceding paragraph.13. You must put page numbers on your assignment.14. Quotations, and excerpts from legislation should be indented from the rest of the text in a separate paragraph. The text in quotations should not be in italics.15. You must end your assignment with a bibliography that is divided into three separate parts, listing statutes, cases and books / articles / on-line Modules.16. A listing of a book in a bibliography should appear in accordance with the following format: Barkoczy, S (2015). Foundation of Taxation Law 2015, (7th edition), North Ryde: CCH. If listing a book with multiple authors, do so as follows:Sadiq, K, Coleman, C, Hanegbi, R, Jogarajan, S, Krever, R, Obst, W, and Ting, A (2015), Principles of Taxation Law 2015, (8th edition), Pymont: Thomson Reuters17. When listing statutes at the end of your assignment you should conform to the format: Income Tax Assessment Act 1997(Cth). List the statute only once – you do NOT list individual section numbers relied on. You should not list textbooks as the source of Acts – the Act itself is its own source.18. When listing cases conform to the format: Allied Mills Industries Pty Ltd v FC of T89 ATC 4365.19. When listing article conform to the format: Jones, J ‘The new analysis of law’ (2010) 4 Journal ofRecent Law34.20. When listing CSU Modules conform to the following format: CSU LAW505 Modules.21. Make sure that your sentences are grammatical – it may be useful to read your assignment out loud if you have any doubts about this.PLEASE NOTE THAT YOU WILL LOSE MARKS IF YOU DO NOT COMPLY WITH THIS STYLE GUIDE.