HOLMES INSTITUTE
\nFACULTY OF
\nHIGHER EDUCATION
\nHI6028 Taxation Theory, Practice and Law Individual Assignment T1 2019
\nAssessment Details and Submission Guidelines
\nTrimester T1 2019
\nUnit Code HI6028
\nUnit Title Taxation Theory, Practice & Law
\nAssessment Type Individual Assignment
\nAssessment Title Questions of Taxation Law
\nPurpose of the
\nassessment (with ULO
\nMapping)
\nThe individual assignment will assess students on the following learning outcomes:
\n1. Demonstrate an understanding of the Australian income tax system, the
\nconcepts of income and deductions, CGT, FBT, GST general anti-avoidance
\nprovisions and income tax administration. (ULO 1)
\n2. Identify and critically analyse taxation issues. (ULO 2)
\n3. Interpret the relevant taxation legislations and case law. (ULO 3)
\n4. Apply taxation principles to real life problems. (ULO 4)
\nWeight 20% of the total assessments
\nTotal Marks 20
\nWord limit Not more than 2,000 words (acceptable to be 10% above or below this word limit)
\nDue Date Week 10 at 11:59PM
\nSubmission
\nGuidelines
\n\uf0a7 This assignment along with a completed Assignment Cover Page is to be
\nsubmitted by the due date in soft-copy only (Safe assign \u2013 Blackboard).
\n\uf0a7 The assignment is to be submitted in accordance with assessment policy stated in
\nthe Subject Outline and Student Handbook.
\n\uf0a7 It is the responsibility of the student submitting the work to ensure that the work
\nis in fact his\/her own work. Ensure that when incorporating the works of others
\ninto your submission that it is appropriately acknowledged.
\n\uf0a7 The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2
\ncm margins on all four sides of your page with appropriate section headings and
\npage numbers.
\n\uf0a7 Reference sources must be cited in the text of the report, and listed appropriately
\nat the end in a reference list using Harvard referencing style.
\n\uf0a7 It is the responsibility of the student who is submitting the work, to ensure that
\nthe work is in fact her\/his own work. Incorporating another\u2019s work or ideas into
\none\u2019s own work without appropriate acknowledgement is an academic offence.
\nStudents should submit all assignments for plagiarism checking on Blackboard
\nbefore final submission in the subject. For further details, please refer to the
\nSubject Outline and Student Handbook.
\n\uf0a7 Proper referencing in accordance with school regulations.
\nPage 2 of 5
\nHI6028 Taxation Theory, Practice and Law Individual Assignment T1 2019
\nIndividual Assignment Specifications
\nPurpose:
\nThis assignment aims at assessing students on the Learning Outcome from 1 to 4 as mentioned above.
\nAssessment task:
\nQuestion 1 (10 marks)
\nYour client Helen wants to fund her business as a fashion designer, therefore she has sold some of the assets
\nas follows:
\n1- An antique impressionism painting Helen\u2019s father bought in February 1985 for $4,000. Helen sold the
\npainting on 1 December 2018 for $12,000. (2.5 marks)
\n2- Helen sold her historical sculpture on 1 January 2018 for $6,000. She has purchased the piece on
\nDecember 1993 for $5,500. (2.5 marks)
\n3- An antique jewellery piece purchased in October 1987 for $14,000. Helen sold the antique jewellery
\npiece on 20 March 2018 for $13,000. (2.5 marks)
\n4- Helen sold a picture for $5,000 on 1 July 2018. Her mother purchased the picture in March 1987 for
\n$470. (2.5 marks)
\nAdvise the Capital Gain Tax consequences of the above transactions.
\nQuestion 2 (5 marks)
\nBarbara is an economist researcher and commentator. The Eco Books Ltd offers her $13,000 for writing a book
\nabout economics principles. Barbara has never written a book about economics principles, but accepts the
\noffer and writes the economics book called \u2018Principles of Economics\u2019. She assigns the book\u2019s copyright for
\n$13,400 to The Eco Books Ltd. The book is published and she is paid. She also sells the book\u2019s manuscript to
\nthe Eco Books Ltd\u2019s library for $4,350 plus several interview manuscripts she has collected while writing the
\neconomics book for which she receives $3,200.
\nDiscuss each of the above payments to Barbara separately and states if these are income from Barbara\u2019s
\npersonal exertion. (2.5 marks) Would your answer differ if Barbara wrote the Principles of Economics\u2019 book
\nbefore signing a contract with The Eco Books Ltd in her spare time and only decided to sell it later? (2.5
\nmarks) Support your answer by referring to relevant statutory and case law.
\nQuestion 3 (5 marks)
\nPatrick paid $52,000 to his son David to provide some Helpance in his newly started business. They agreed
\nthat David repay his father $58,000 at the end of five years. Patrick provided this loan to David without any
\nformal agreement or security deposit for the sum lent. Patrick told his son that he need not pay interest.
\nHowever, David repaid the full amount after two years through a cheque, which was included an additional
\namount equal to 5% on the amount borrowed.
\nBy referring to relevant statutory and case law, you need to discuss the effect of these arrangement on the
\nassessable income of Patrick. (5 marks)
\nPage 3 of 5
\nHI6028 Taxation Theory, Practice and Law Individual Assignment T1 2019
\nAssignment structure should be as the following (students responses involves calculations, and
\nstudents must refer to the relevant legislation and cases whenever required according to the
\nquestions).
\nQuestions 1:
\nCapital Gain Tax regarding antique impressionism painting
\nCapital Gain Tax regarding historical sculpture
\nCapital Gain Tax regarding antique jewellery piece
\nCapital Gain Tax regarding picture
\nQuestions 2:
\nDiscuss Barbara \u2018s income under the case scenario
\nDiscuss Barbara \u2018s income under the alternative scenario
\nQuestions 3:
\nDiscuss the effect of these arrangement on the assessable income of Patrick
\nMarking criteria
\nMarking criteria Weighting
\nQuestion 1
\nCapital Gain Tax regarding antique impressionism painting 2.5%
\nCapital Gain Tax regarding historical sculpture 2.5%
\nCapital Gain Tax regarding antique jewellery piece 2.5%
\nCapital Gain Tax regarding picture 2.5%
\nQuestion 2
\nDiscuss Barbara \u2018s income under the case scenario 2.5%
\nDiscuss Barbara \u2018s income under the alternative scenario 2.5%
\nQuestion 3
\nDiscuss the effect of these arrangement on the assessable income of Patrick 5%
\nTOTAL WEIGHT: 20%
\nPage 4 of 5
\nHI6028 Taxation Theory, Practice and Law Individual Assignment T1 2019
\nMarking Rubric
\nExcellent Very Good Good Satisfactory Unsatisfactory
\nQuestion 1
\nCapital Gain Tax
\nregarding
\nantique
\nimpressionism
\npainting
\nAdvised the
\nCapital Gain Tax
\nconsequences
\nregarding the
\nantique painting
\ncorrectly.<\/p>\n
the scenarios
\ngiven in the
\nquestion.
\nStudent has
\nidentified the
\nmost relevant
\nsections of the
\nlaw.
\nThe answer to
\nthe questions
\nis well
\norganised, but
\ndemonstrates
\nillogical at
\nsome points.
\nReferencing is
\ngood but to
\ncomplete
\nreference is
\ngiven.
\nSome detailed
\nconclusions in
\nregards to the
\nBarbara \u2018s
\npersonal
\nexertion are
\nreached from
\nthe evidence
\noffered.
\nThere is no
\ndiscussion
\nregarding the
\npayments to
\nBarbara. No
\nreference has
\nbeen given.
\nQuestion 3
\nDiscuss the effect
\nof these
\narrangement on
\nthe assessable
\nincome of Patrick
\nThe effect on the
\nassessable
\nincome of
\nPatrick has been
\nanswered and
\nreferenced (cases
\nand statutory)
\naccurately.
\n—
\nCalculation of Capital Gain and its nature Serial No. 1 2 3 4 Asset Name Antique Impressionism Painting Historical Sculpture Antique Jewellery piece Picture Holding period (more than 1 year or not) Yes Yes Yes Yes Nature of Asset Long Term Capital Asset Long Term Capital Asset Long Term Capital Asset Long Term Capital Asset Sale Price (A) 12000 6000 13000 5000 Purchase Price (8) 4000 5500 14000 470 Gain\/(Loss) (A-B) 8000 500 -1000 4530 Nature of Gain\/(Loss) Long Term Capital Gain Long Term Capital Gain Long Term Capital Loss Long Term Capital Gain
\nCalculation of Tax on Net Capital Gain Capital Gain on : Antique Impressionism Painting 8000 Historical Sculpture 500 Antique Jewellery piece -1000 Picture 4530 Net Long Term Capital Gain 12030 Rate of Tax (see Note) 15% Estimated Capital Gain tax (12030 x 15%) 1804.5
\nNote: As per topic (sample nursing essay examples by the best nursing assignment writing service) no. 409 of Tax topic (sample nursing essay examples by the best nursing assignment writing service)s issued by IRS, Tax Rate on Most capital gains is no higher than 15% for most taxpayers but the tax rates vary according to the ordinary income tax brackets.
\nAdvise: On selling of Antique impressionism painting, Historical Sculpture and Picture, there will be a long term capital gain whereas on selling of jewellary, there will be a long term capital loss which can be set off with the long term capital gain to calculate the net long term capital gain for taxability.<\/p>\n","protected":false},"excerpt":{"rendered":"
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