taxation law
HA3042 Taxation Law Individual Assignment T2.2020
HOLMES
INSTITUTE
FACULTY OF
HIGHER
EDUCATION
Assessment Details and Submission Guidelines
Trimester T2 2020
Unit Code HA3042
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 three learning
outcomes, as listed below:
1. Practical skills and knowledge of tax law concepts (e.g. Income and
Deductions and CGT) (ULO 1).
2. Ability to analyse tax law issues (ULO 2).
3. Ability to apply legal tax principles (ULO 3).
Weight This assignment assessment accounts for 25% of the total marks in this unit.
Total Marks This assignment assessment accounts for 25 marks of total marks in this unit.
Word limit Maximum 2,000 words (acceptable to be 10% above or below this word limit)
Due Date Friday 25th September, 23:59 pm
HA3042 Taxation Law Individual Assignment T2.2020
Submission
Guidelines
Instructions: Please read the following information carefully to avoid
mistakes.
Answer all questions.
This assignment along with a completed Assignment Cover Page is to be
submitted on Blackboard by the due date in soft-copy only.
The self-check links are no longer available as a separate link in each units
assessment. Students are now limited to attempt any given assignment
submission a maximum of three times. After every attempt you will receive a
SafeAssign originality report with Blackboard Learning Management System.
This will provide detailed information about the matches found between your
submitted works and existing sources.
The assignment is to be submitted in accordance with assessment policy stated
in the Unit 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 anothers work or ideas into ones own
work without appropriate acknowledgement is an academic offence.
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. You
also must refer to relevant legislation and/or case law in your answer.
* 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.
HA3042 Taxation Law Individual Assignment T2.2020
Individual Assignment Specifications
Purpose:
This individual assignment aims to assess students on learning outcomes 1 to 3 as mentioned
above. This assignment covers the following key topics: Specific Deductions, Individual Income Tax
and Fringe Benefits Tax (FBT). Students need to research these three topics, as stated above, and
apply their knowledge from the relevant weeks 1 8, before attempting these questions.
The Assignment Structure should be as follows:
QUESTION 1 DEDUCTIBILITY / NON-DEDUCTIBILITY IMPLICATIONS Weighting
General Deductibility Rules for Repairs 1 Mark
Identification of the case assisting in the decision making of this question. 1 Mark
Thorough yet succinct discussion of the considerations required for repairs 1 Mark
Thorough yet succinct discussion on cases where expenses are not
considered as repairs and therefore, no deduction is available.
1 Mark
Apply the rules and cases above and provide a conclusion on the deductibility
of expenses.
1 Mark
QUESTION 1 TOTAL MARKS
5 MARKS
QUESTION 2 CALCULATION OF TAXABLE INCOME AND NET TAX PAYABLE Weighting
QUESTION 2 TOTAL MARKS
(Marks as per the table provided in the question)
10 Marks
QUESTION 3 FBT IDENTIFICATION 10 MARKS
FBT identification and reasoning for each option (5 cases)
5 x 2 Marks
QUESTION 3 TOTAL MARKS 10 MARKS
HA3042 Taxation Law Individual Assignment T2.2020
HA3042 Assignments Instructions and Requirements
QUESTION 1 (5 MARKS)
Furnaces Pty Ltd was advised by a local building inspector that one of the chimneys on its premises
was unsafe and, unless it was repaired, the factory would have to be closed. Furnaces decided that
it was not feasible to stop operations to repair the chimney, so they gained permission to build an
alternative chimney adjacent to the old chimney, thereby allowing production to continue. They found
that although the new chimney was substantially the same size and make as the old one, it was
cheaper to build than it would have been to repair the old one. Also, the new chimney can better
ventilate the weather, which was not available in the previous one. After the new chimney was
erected, the old chimney was demolished.
Is any amount allowable as a deduction for the cost of the new chimney?
QUESTION 2 (10 MARKS)
Anushka (an Australian Tax resident) works as an employee for a child care centre, Brilliant Kids
Pty Ltd, on a permanent part-time basis while she runs her business as a day carer for her own
customers. Meanwhile, she invested some of her extra cash in some shares on the ASX and in an
Australian private company. Listed below is the summary of her earnings for the year ended 30
June 2020.
Particulars $
Net Salary Received from Brilliant Kids for the year (Tax paid by company
to ATO during the year is $29,000)
81,000
Net Business Profit as a sole trader (Day Carer) 30,000
Allowable Deductions on Employment (Uniforms, Laundry, Shoes) 5,000
Fully Franked Dividend 7,000
Unfranked Dividend from a private company 1,200
HA3042 Taxation Law Individual Assignment T2.2020
Required:
Calculate Anushkas taxable income and net tax payable (Ignore Medicare Levy and Medicare
Levy Surcharge if any).
(Please use the following table to complete your response to this question in the spaces provided)
Particulars Answer Marks
Net Salary Received 0.5 mark
Add Back Tax Paid 0.5 mark
Net Business Profit 0.5 mark
Fully Franked Dividend 0.5 mark
Add Back Franking Credit 1 mark
Unfranked Dividend 0.5 mark
Assessable Income 1 mark
(Allowable Deductions) 0.5 mark
Taxable Income 1 mark
Tax Payable 2 marks
Less Refundable Tax Offsets
PAYG Withholding 0.5 mark
Franking Credits 0.5 mark
Net Tax Payable 1 mark
Total Marks 10 marks
QUESTION 3 (10 MARKS)
Discuss the Fringe Benefits Tax (FBT) implications of the following cases (a) (e):
(Note – No calculations are needed. Only answer whether the employer is liable for FBT or not and
why or why not)
(a) An employer provides a Christmas lunch at a local restaurant, costing $1,000, for 10 of its key
employees. (2 marks)
(b) A sporting club, which pays its honorary treasurer an honorarium of $5,000 per year, providing
a car to him. The car is used 90% for club business. The treasurer has a full-time job at the local
hospital. (2 marks)
(c) An employer gives each of its 15 staff a leg ham each valued at $60 for Christmas. (2 marks)
(d) An employer allows its staff to take home their laptop computers. It is estimated that only half
the work done at home is business related. (2 marks)
(e) A company director, not in receipt of any remuneration from the company, uses the companys
two-tonne truck while undertaking renovations to his own home. (2 marks)
HA3042 Taxation Law Individual Assignment T2.2020
HA3042 – Individual Assignment – Marking Rubric
Criteria Excellent Very Good Good Satisfactory Unsatisfactory
For Question 1, students need to answer the following elements correctly
General
Deductibility Rules
for Repairs
Student knows how
to use the ITAA
1997, know how to
apply the law to the
Furnaces
deductibility of the
commercial kitchen
expenditure.
Very good
identification of the
Furnaces
deductibility of the
commercial kitchen
expenditures and
discussion of the
issues.
Majority of relevant
issues identified
and discussed in
relation to the
given scenario.
The area of
deduction law is
correctly identified
but the statement
does not clearly
describe the legal
problem/s and
conclusions that
need to be
addressed in relation
to the given scenario.
The relevant area of
law in relation to the
given scenario is not
identified.
Identification of the
case assisting in
decision making in
this question.
The relevant legal
case in relation to
the Furnaces
deductibility of the
chimney
expenditures is
clearly explained
and their correct
source of authority is
given.
Similar yet relevant
legal case in
relation to the
Furnaces
deductibility of the
chimney
expenditures is
clearly explained
and their correct
source of authority is
given.
Close enough yet
relevant legal
case in relation to
the Furnaces
deductibility of the
chimney
expenditures is
clearly explained
and their correct
source of authority
is given.
Some identification
of legal case in
relation to the
Furnaces
deductibility of the
chimney
expenditures is
explained but their
correct source of
authority is not given.
No relevant legal
cases in relation to
the deductibility of
the given scenario
have been identified
and no correct
source of authority is
given.
Thorough yet
succinct discussion
on considerations
required for repairs
The discussion is a
clear and
comprehensive
analysis of the
relevant legal
principles in relation
to the Furnaces
deductibility of the
furnace
expenditures.
Very good
discussion and
analysis of the
relevant legal
principles in relation
to the Furnaces
deductibility of the
furnace
expenditures.
Good discussion
and analysis of the
relevant legal
principles in
relation to the
Furnaces
deductibility of the
furnace
expenditures.
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 given
scenario.
The discussion of
the facts does not
refer to any relevant
capital gain legal
principles in relation
to the given
scenario.
Thorough yet
succinct discussion
on occasions where
expenses are not
considered as
repairs and
therefore, no
deduction is
available.
All relevant legal
principles in relation
to the Furnaces
non-deductibility of
the chimney
expenses is clearly
explained and their
correct source of
authority is given.
Most of the relevant
legal principles in
relation to the
Furnaces
non-deductibility of
the chimney
expenses is clearly
explained and their
correct source of
authority is given.
Some of the legal
principles in
relation to the
Furnaces
non-deductibility of
the chimney
expenses is clearly
explained and their
correct source of
authority is given.
Few identifications of
the legal principles in
relation to the
Furnaces
non-deductibility of
the chimney
expenses is clearly
explained but the
correct source of
authority (section of
Act or relevant case)
has not been cited.
No relevant legal
principles in relation
to the given scenario
have been identified.
Apply the rules and
cases above and
provide conclusion
on deductibility of
expenses.
Student knows how
to use the ITAA
1997 in relation to
the Furnaces
deductibility of the
chimney
expenditures, and
know how to apply
the law in a real
scenario.
Very good
identification of the
consequences in
relation to the
Furnaces
deductibility of the
chimney
expenditures and
discussion of the
issues.
Majority of relevant
issues identified
and discussed in
relation to the
given scenario.
The area of law in
relation to the
Furnaces
deductibility of the
chimney
expenditures is
correctly identified
but the statement
does not clearly
describe the legal
problem/s and
conclusions that
need to be
addressed.
The relevant area of
law in relation to the
given scenario is not
identified.
HA3042 Taxation Law Individual Assignment T2.2020
For Question 3, students need to answer the following parts correctly for each part
FBT implications
and reasons
The response is
correct and accurate
discussion to
support the
response is provided
with reference to at
least one case.
The response is
correct and accurate
discussion to
support the
response is provided
but no reference to
at least one case is
provided.
The response is
correct and some
discussion to
support the
response is
provided but no
reference to at
least one case is
provided.
The response is
correct but no
reasoning and case
referral is provided.
The response is
incorrect and no
reasoning and case
referral is provided.
