Assessment 3 Information
\nSubject Code: ACC304
\nSubject Name: Taxation Law
\nAssessment Title: Case Studies
\nAssessment Type: Statement of Advice
\nWeighting: 30 %
\nTotal Marks: 40 marks
\nSubmission: Via Turnitin on MyKBS
\nDue Date: Monday of Week 13 (professional nursing paper writing service, nursingscribe top experts) at 19:55 (AEST)
\nYour Task
\nYour task is to analyse client information outlined in the three different case studies below and present the findings in three Statement of Advice (approximately 1,500 words).
\n1) You are required to prepare Lucy\u2019s individual taxation return.
\n2) You are required to provide recommendations and tax calculations to Susan regarding the taxation implications and tax payable by the trustee for Megan and Isabel, the beneficiaries.
\n3) You are required to calculate the franking account and tax payable by Otago Pty Ltd.
\nFor each question you are expected to:
\n1) identify the facts and issues for each case 2) apply the relevant legislation and\/or case law.
\nLearning Objectives
\nAfter completing this Individual Assignment, you will be able to:
\n1) Research information about each question using tax cases and tax legislation.
\n2) Identify the main issues and make recommendations for each case.
\n3) Calculate taxes for an individual, a trust and a company.
\nAssessment Instructions
\nStatement of Advice 1 \u2013 Prepare a tax return for an individual taxpayer (10 marks for technical and calculation accuracy and relevance and 10 marks for writing style; refer to marking rubric for more guidance)
\nYour client Lucy has attended your office to have her 2021-year tax return prepared. Lucy is 52 years old, single resident taxpayer employed by Burwood Council as a clerk. Lucy is also a friend of yours.
\nShe has the following documentation and admits that she is not good at keeping her receipts and invoices:
\nPayment Summary for the period 1 July 2020 to 30 June 2021 from Burwood Council.
\nGross Wages $56,000
\nAllowances \u2013 Clothing $400
\nTax withholding Deducted $12,000
\nVarious receipts
\nDate Paid to Details Amount ($)
\n30 July 2020 Eastern Clothing Non-compulsory uniform
\n(registered design of Council) $380
\n1 September 2020 Foodbank Australia Donation $50
\n1 October 2020 Tax agent 2019 tax return fees $100
\n1 December 2020 Lim\u2019s Computer Computer (est. 50% work use with 3 years effective life) $1,200
\n1 February 2021 Corp Bookshop Textbooks for clerical course $500
\nOther Information
\n1) Lucy estimated total $490 annual train ticket used to travel to and from work.
\n2) Lucy advises you she spent $600 on personal grooming which was essential for her job and insists that she claims this amount.
\n3) Lucy held $2,000 for the whole year in an interest-bearing account but insists that she did not receive any interest during the year. Lucy has not supplied any bank statements.
\n4) Lucy sold various shares on 20 June 2021 as follows.
\n\u2022 Apricot Shares (Australian company): purchased in January 1998 for $20,000 and sold for $55,000.
\n\u2022 Pear shares (Italian company): purchased in March 2019 for $7,000 and sold for $5,000.
\n\u2022 Cherry shares (Australian company): purchased in May 2021 for $9,000 and sold for $14,000.
\nRequired
\n1) Calculate taxable income for Lucy. As the Tax Agent, what advice would you provide for the best outcomes in relation to depreciation, CGT method and general deductions for Lucy within Australian income tax law? You are required to explain all income & deduction details with section numbers and\/or cases in your explanations.
\n2) Advise Lucy on the CGT consequences of the share sales. You must provide all methods available for her and choose the best method to minimise Lucy\u2019s net capital gains.
\n3) As the Tax Agent, how would you handle the stance your client has taken in points 2 and 3,
\nPoint 2: Lucy advises you she spent $600 on personal grooming which was essential for her job and insists that she claims this amount.
\nPoint 3: Lucy held $2,000 for the whole year in an interest-bearing account but insists that she did not receive any interest during the year. Lucy has not supplied any bank statements.
\nYou should refer to the Code of Conduct from Tax Practitioners Board. What is the principle involved? What do you recommend in each point?
\nStatement of Advice 2 \u2013 Advice on Trust income and distributions (10 marks for technical and calculation accuracy and relevance)
\nYour client Susan has attended your office to have her 2021-year tax return prepared. Susan is the trustee of an Australian resident trust estate created by a Trust Deed. She created the trust for the benefit of her daughters, Megan aged 19 years and Isabel aged 15 years. They are both residents of Australia.
\nThe following information indicates the trading activities of the trust for the 2020\/21 income tax year.
\nReceipts
\nNet income from trading activities $80,000
\nFully franked dividend received $25,000
\nProceeds from shares in Hub Ltd on 12 June 2021 $60,000 (the shares were purchased in 2005 at a cost of $20,000) Rental income $65,000
\nExpenses
\nExpenses incurred in generating rental income $55,000
\nOther information
\nMegan derived a salary of $17,000 while working casually at McDonalds.
\nIsabel received interest income of $2,000 from her savings account (savings account was established two years ago from $40,000 deposited from her grandfather as a gift). Isabel also received a salary of $9,000 working at Hungry Jacks during school holidays.
\nRequired
\nAdvise Susan the taxation implications (tax payable by the trustee and\/or each beneficiary) under each of the alternatives (1) and (2) below.
\n1) Susan does not exercise any discretion as to the distribution of income during the year.
\n2) Susan distributes the trust net income to each beneficiary at 50% each.
\nStatement of Advice 3 – Calculate the franking account and tax payable by Otago Pty Ltd. (10 marks for technical and calculation accuracy; refer to marking rubric for more guidance)
\nFrank is a director of Otago Pty Ltd (Otago), an Australian resident private company, with a corporate tax rate for imputation purposes for the 2020\/21 income year of 30%.
\nFrank provided you with the following information regarding the company\u2019s franking account:
\n1 July 2020: Opening balance $500 credit.
\n29 July 2020: Paid 2020 tax year fully franked final dividend $7,000
\n28 February 2021: Paid 2021 tax year 60% franked interim dividend $9,000
\n30 April 2021: Received fully franked dividend from Australian company $4,500
\n28 June 2021: PAYG instalment paid relating 2020\/21 tax year totalled $1,200
\n30 June 2021: Declared a fully franked dividend of $10,000 Otago had a taxable income of $16,000 for 2020\/21.
\nRequired
\n1) Prepare Otago Pty Ltd\u2019s franking account for the 2020\/21 tax year and explain any consequences arising from the franking account balance at 30 June 2021.
\n2) Calculate net tax payable (refundable) for the company.<\/p>\n
Important Study Information
\nAcademic Integrity Policy
\nKBS values academic integrity. All students must understand the meaning and consequences of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct Policy.
\n\u2022 What is academic integrity and misconduct?
\n\u2022 What are the penalties for academic misconduct?
\n\u2022 What are the late penalties?
\n\u2022 How can I appeal my grade?
\nClick here for answers to these questions:
\nhttp:\/\/www.kbs.edu.au\/current-students\/student-policies\/.
\nStudy Helpance
\nStudents may seek study Helpance from their local Academic Learning Advisor or refer to the resources on the MyKBS Academic Success Centre page. Click here for this information.
\nACC304 Taxation Law
\nAssessment 3 Marking Rubric
\n\/40 marks
\nStatement of Advice 1 (10 marks)
\n0 \u2013 5 6 \u2013 10 Achieved marks ( \/10)
\nHas demonstrated limited achievement:
\nCorrectly calculated some taxable income and allowable deductions items.
\nStated some outcomes in relation to depreciation, capital gains tax methods and general deductions.
\nStruggled to articulate the correct capital gains tax consequences of the sale of shares.
\nFailed to address the tax practitioners code of conduct and principles involved. Has achieved all or most of:
\nCorrectly calculated the taxable income and allowable deductions.
\nStated the best outcomes in relation to depreciation, capital gains tax methods and general deductions.
\nArticulated the correct capital gains tax consequences of the share sales. Addressed the tax practitioners code of conduct and principles involved.
\nStatement of Advice 2 (10 marks)
\n0 \u2013 5 6 \u2013 10 Achieved marks ( \/10)
\nHas demonstrated limited achievement:
\nFailed to correctly address the taxation implications of Susan not distributing trustee income for 2020\/21.
\nFailed to correctly address the taxation implications of Susan distributing trust net income to each beneficiary at 50% each during 2020\/21. Has achieved all or most of:
\nCorrectly addressed the taxation implications of Susan not distributing trustee income for 2020\/21.
\nCorrectly addressed the taxation implications of Susan distributing trust net income to each beneficiary at 50% each during 2020\/21.
\nStatement of Advice 3 (10 marks)
\n0 \u2013 5 6 \u2013 10 Achieved marks ( \/10)
\nHas demonstrated limited achievement:
\nEither did not prepare or only partially prepared Otago Pty Ltd franking account for 2020\/21.
\nFailed to identify any consequences arising from Otago Pty Ltd franking account balance as at 30th June 2021.
\nEither did not correctly calculate or only partially calculated correctly Otago Pty Ltd net tax payable for 2020\/21. Has achieved all or most of:
\nCorrectly prepared Otago Pty Ltd franking account for 2020\/21.
\nCorrectly identified consequences arising from Otago Pty Ltd franking account balance as at 30th June 2021.
\nCorrectly calculated Otago Pty Ltd net tax payable for 2020\/21.
\nAll Statements of Advice Writing Style (10 marks overall)
\n0 \u2013 5 6 \u2013 10 Achieved marks ( \/10)
\nHas demonstrated limited achievement:
\nSome sentences contain grammatical errors and typos, there are noticeable inconsistencies in the formatting, and the syntax makes some of the answers difficult to follow.
\nHas achieved all or most of:
\nThe document does not contain any grammatical errors or typos, the formatting is consistent, and the syntax is articulate and legible.<\/p>\n
—-<\/p>\n
ACC304 ACC304 ACC304 ACC304 ACC304 ACC304 ACC304 ACC304<\/p>\n
Taxation Law is the subject of this paper.<\/p>\n
Case Studies is the title of the assessment.<\/p>\n
Statement of Advice is a type of assessment.<\/p>\n
30 percent weighting<\/p>\n
Marks allotted: 40<\/p>\n
Turnitin on MyKBS is used for submission.<\/p>\n
Due Date: Monday of Week 13 (professional nursing paper writing service, nursingscribe top experts) at 19:55 (AEST)<\/p>\n
Your Mission<\/p>\n
Your task is to analyse client information outlined in the three different case studies below and present the findings in three Statement of Advice (approximately 1,500 words).<\/p>\n
1) You are required to prepare Lucy\u2019s individual taxation return.<\/p>\n
2) You are required to provide recommendations and tax calculations to Susan regarding the taxation implications and tax payable by the trustee for Megan and Isabel, the beneficiaries.<\/p>\n
3) You are required to calculate the franking account and tax payable by Otago Pty Ltd.<\/p>\n
For each question<\/p>\n","protected":false},"excerpt":{"rendered":"
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