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HI6028 Taxation Theory, Practice and Law T2 2019

HOLMES INSTITUTE

FACULTY OF HIGHER EDUCATION

Assessment Details and Submission Guidelines

Trimester

T2 2019

Unit Code

HI6028

Unit Title

Taxation Theory, Practice & 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 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

This assignment task accounts for 20 % of total marks in this unit.

Total Marks

This assignment task accounts for 20 marks of total marks in this unit.

Word limit

Max 2000 words (acceptable to be 10% above or below this word limit).

Submission Guidelines

All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page.

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.

Individual Assignment Specifications

Purpose:

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

Instructions: Please read 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 (via 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. 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 (Via SafeAssign) on Blackboard before final submission in the subject. For further details, please refer to the Unit Outline and Student Handbook.
  • Late submissions will be subject to Holmes Institute policy on student assessment submission and late penalties (please refer to subject outline and Student handbook).
  • 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. 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.
  • All assignments are expected to strictly follow Holmes Institute’s Academic Conduct and Integrity Policy and Procedures. A copy of the Policy is available on the Holmes Institute home page. (About Holmes > Policies) This policy is also explained in your Student Handbook.
  • Plagiarism and contract cheating in any form will not be tolerated and will have severe consequences for the groups found committing the same, including receiving zero (0) for the entire assignment and possible failure in the entire unit.
  • For further details, please refer to the Subject Outline and Student Handbook.
  • 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.

Assignment Structure should be as the following:

Question 1: The goods and services tax (GST)

Weighting

Identification of material facts regarding The City Sky Co goods and services tax (GST) consequences discussed in the assignment question.

1 %

Identification and analysis of legal issues / legal question and relevant laxation law.

2 %

Thorough yet succinct application of tax law to material facts.

3 %

Detailed and accurate conclusions are reached from the discussion.

1 %

Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

2 %

Shows excellent understanding of the cases and/or section of legislation, its context and application of taxation law.

1 %

QUESTION 1 TOTAL MARKS:

10 %

Question 2: Capital gains tax (CGT)

Weighting

Identification of material facts regarding the capital gain tax (CGT) consequences of Emma’s transactions discussed in the assignment question.

1 %

Identification and analysis of legal issues / legal question and relevant laxation law.

2 %

Thorough yet succinct application of tax law to material facts.

3 %

Detailed and accurate conclusions are reached from the discussion.

1 %

Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

2 %

Shows excellent understanding of the cases and/or section of legislation, its context and application of taxation law.

1 %

QUESTION 2 TOTAL MARKS:

10 %

Assignments’ Instructions and Requirements

QUESTION 1- (10 MARKS)

The City Sky Co is a property investment and development company. Recently the company purchased a vacant piece of land south of Brisbane on which it is planning to build 15 apartments to sell. The City Sky Co has engaged the services of the local lawyer, Maurice Blackburn, to provide the legal services required for the development for $33,000.

Maurice Blackburn runs an established sole trader business and turns over revenue of $300,000 per year.

Advise The City Sky Co of the input tax credit entitlements that they may be entitled to.

Assume that The City Sky Co is registered for GST purposes.

QUESTION 2 - (10 MARKS)

Emma has provided to you a listing of the transactions she has undertaken throughout the financial year to assist you in completing her 2015 income tax return.

Sale of a block of land for $1,000,000: Emma purchased the land as an investment in 1991. The purchase price was $250,000, plus $5,000 in stamp duty, $10,000 in legal fees. To fund the purchase, she took out a loan on which she paid interest totalling $32,000.

During the period of ownership her council rates, water rates and insurance totalled $22,000. In January 2005 a dispute occurred with a neighbour over the use of the land and legal fees incurred amounted to $5,000 in resolving this dispute. Before putting the property on the market $27,500 was spent to remove a number of large dangerous pine trees that were on the land. Advertising, legal fees and agent’s fees on the sale of the land were $25,000.

Sale of Emma’s 1000 shares in Rio Tinto for $50.85 per share: Emma paid brokerage fee of 2% on the sale. Emma initially purchased the shares for $3.5 per share in 1982.

Sale of a stamp collection Emma had purchased, from a private collector, in January 2015 for $60,000: Emma sold the collection at auction for $50,000. Auction fees totalled $5,000 for the sale.

Sale of a grand piano for $30,000: It was initially bought for $80,000 in 2000.

Advise Emma of the capital gain tax (CGT) consequences of her transitions. Ignore indexation. Your answer must include references to relevant tax law and or cases.

Assignment Structure should be as the following (students’ responses involves calculations, and students must refer to the relevant legislation and/or cases whenever required according to the questions).

Marking criteria

Marking criteria

Weighting

Question 1

Identification of material facts regarding The City Sky Co goods and services tax (GST) consequences discussed in the assignment question.

1 Mark

Identification and analysis of legal issues / legal question and relevant laxation law.

2 Marks

Thorough yet succinct application of tax law to material facts.

3 Marks

Detailed and accurate conclusions are reached from the discussion.

1 Mark

Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

2 Marks

The work shows excellent understanding of the cases and/or section of legislation, its context and application of taxation law.

1 Mark

QUESTION 1 TOTAL MARKS:

10 MARKS

Question 2

Identification of material facts regarding Emma’s capital gain tax (CGT) consequences discussed in the assignment question.

1 Mark

Identification and analysis of legal issues / legal question and relevant laxation law.

2 Marks

Thorough yet succinct application of tax law to material facts.

3 Marks

Detailed and accurate conclusions are reached from the discussion.

1 Mark

Correct information and taxation law have been used and properly cited. A detailed analysis has been performed.

2 Marks

The work shows excellent understanding of the cases and/or section of legislation, its context and application of taxation law.

1 Mark

QUESTION 2 TOTAL MARKS:

10 MARKS

Marking Rubric

Excellent

Very Good

Good

Satisfactory

Unsatisfactory

Demonstrated ability toidentify issues relating totaxation law : Knowledge and understanding.

Comprehensive identification of key issues. Frequent links drawn across topics or to extraneous materials. Student property generates questions and problems around a case.

Very good identificatio n and discussion of issues. Several links drawn across topics or to extraneous materials.

Majority of relevant issues identities and discussed. Some links drawn across topics or to extraneous materials.

Some relevant issues overlooked or misunderstood. Few links made drawn across topics or to extraneous materials.

Failure to identify and discuss relevant issues. No links made drawn across topics or to extraneous materials.

Ability to synthesise material in order to raise issues or construct a persuasive argument.

Ability to engage in a reflectivediscourse:

Synthesis analysis and argument.

Thorough analysis and synthesis of issues. Persuasively argued throughout, contrary arguments anticipated. Excellent critical evaluation of other metrical and appropriate response. Detailed conclusion is reached from the discussion.

Very good analysis, argument welldeveloped and supported, some critical evaluation of other material and appropriate response. Conclusion is reached from the discussion.

Some analysis of issues: argument may be underdeveloped or unpersuasive. Limited critical evaluation and response to other material. Conclusion is reached but do not supports the analysis.

Mainly descriptive with little analysis of issues basic argument is unclear or use undeveloped or not well supported. Limited reference to other material. The response shows some understanding of the case, its context and application of tax law.

Insufficient analysis argument is lacking or unsound, failure to use relevant materials, or use of materials may indicate confusion or misunderstanding. No response to other material. No conclusion is given.

Writing presentation and referencing

Clear and logical organisation; precise and concise writing. Minimal errors in expression,

grammar,

spelling or punctuation. Excellent and complete referencing. Grammar and

spelling are correct.

Very good structure and organisation. Generally well- written. Occasional minor flaws in expression, grammar, spelling or punctuation. Correct and complete referencing.

Generally coherent structure a with occasional deficiencies; reasonably well written.

Some flaws in expression, grammar, spelling or punctuation

Some defects in structure and organisation; writing may be difficult to follow in parts. Flaws in expression, grammar, spelling or punctuation; a number of missing, incomplete or incorrect footnote citations.

Referencing omissions.

Structure and organisation incoherent or lacking; poorly written, difficult to follow. Frequent or repeated flaws in expression, grammar, spelling or punctuation; inadequate citation of sources. Errors in referencing.