TAXATION LAW
Problem solving question
Value: 15%
Due date: 02-May-2016
Return date: 24-May-2016
Length: 3,000 words
Submission method options
Alternative submission method
Task
Question

Charlie owns a block of three hectares of land in Yarra Valley on which a house is situated. That property was purchased in 1990 for $250,000 for the land and $300,000 for the house. He moved into the property as his main residence as soon as practicable. He lived there until 1997 before he migrated to Canada. At that time the land is worth $350,000 and house is worth $270,000.

In 2000, Charlie bought a house in Canada where he resided. He continued to rent out his property in the Yarra Valley before it was sold in 2015. The property was sold for $800,000, being land of $450,000 and house $350,000.

Required
Advise Charlie on his tax implications relating to the Yarra Valley property . ..
You are required to cite the relevant legislation and case law.

Rationale
This assessment task covers Topics 1 to 9 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
Marking criteria
In assessing your assignment the marker will expect you to:
• present an essay that is readable and coherent;
• use appropriate language, correct spelling and grammar;
• identify and analyse relevant issues;
• explain and apply relevant cases, rulings and legislation;
• reach a sound and well-reasoned conclusion;
• use appropriate referencing; and
• demonstrate time management skills.
Your mark will depend upon the degree in which you demonstrate your understanding of the topics covered thus far, and the overall presentation of your advice to your client. For guidance, please refer to the section. “Presentation”.
The following criteria will form the basis of assignment of marks for the problem solving question.

Criteria High Distinction Distinction Credit Pass Fail
Students are required to answer one problem type question in order to demonstrate: To meet this level you will achieve a cumulative mark of 85-100%. A mark in this range indicates that a student: To meet this level you will achieve a cumulative mark of 75-84%. A mark in this range indicates that a student: To meet this level you will achieve a cumulative mark of 65-74%. A mark in this range indicates that a student: To meet this level you will achieve a cumulative mark of 50-64%. A mark in this range indicates that a student: To meet this level you will achieve a cumulative mark of 50-64%. A mark in this range indicates that a student:
Identification of relevant legal issues
10% Comprehensive coverage and identification of all legal issues, which are discussed with consideration and evidence of all contextual factors and analysis of the relevant law. Correctly identifies legal issues and formulates them with consideration of contextual factors and analysis of relevant law, with only minor errors. Identifies and correctly formulates most major legal issues and supported by relevant law. Identifies some legal issues. May or may not formulate them correctly. Considers and links to relevant law. IIdentifies no relevant issues or only a few of them. Some of these may be unclearly formulated.
Explanation of law and citation of relevant legal authority
20% Provides a complete explanation of the law, justified by relevant law, with no errors. Discussion identifies key statute and case law stating relevant principles and shows insight in identification and discussion of potentially hidden issues. Research of relevant legal authority shows a breadth of investigation through detailed analysis and discussion. Provides a comprehensive explanation of the law of agency and partnership with few errors, substantiated by relevant case and statute law stating relevant principles.. Research of relevant legal authority shows a breadth of investigation through detailed analysis and discussion. Provides a substantial explanation of the law of agency and partnership but with some errors, substantiated by significant legal authority in the form of statute and case law. Provides a basic explanation of the law of agency and partnership, but with significant errors, substantiated by some legal authority. Provides incorrect or limited explanation of the law using no, or only a limited range of, authority.
Application of legal principles to the facts
25% Applies the law to the facts so as to reach a correct conclusion on all issues, with no errors. Argument discusses linkages between facts and the law and considers counter-arguments, completes tax computations correctly if required and evaluates the impacts of applying the law to the situation considering a broad range of factors that may affect the application. Conclusion draws together advice for client. Applies the law correctly to the facts so as to address all issues, with only minor errors. Argument discusses linkages between facts and the law, completes tax computations correctly if required and evaluates the impacts of applying the law to the situation considering factors that may affect the application. Conclusion draws together advice for client. Applies the law correctly to most issues arising from the facts, but with some errors. Argument discusses application of the law and completes tax computations correctly if required with some minor errors. Conclusion summarises advice for client. Makes a basic attempt to apply the law to the facts, but applies wrong law and / or contains significant errors in the application. Argument summarises application of the law, formula for computation tax identified and completed with errors. Advice to client is incomplete. Paper does not correctly apply law to the facts and / or applies incorrect law. May be descriptive, rather than putting forward a reasoned argument..
Compliance with the Style Guide and overall structure.
20% Uses Style Guide comprehensively, accurately and consistently. Uses ILAC model and tax computation format. Extremely well structured and organised, with one main argument introduced per paragraph, supported by well-written supporting sentences. Uses Style Guide accurately and with only minimal errors. Uses ILAC model and tax computation format. Well structured, with one main argument introduced per paragraph. Adequate use of Style Guide, with some errors or lapses. Uses ILAC model and tax computation format and is clearly structured. Limited or inconsistent use of Style Guide. Some attempt at use of ILAC model and tax computation format and at structuring of answer. Poor, inconsistent or inaccurate use of Style Guide. Poorly structured. Inadequate or no use of paragraphs. May have disregarded the ILAC model.
Written expression and editing.
15% Uses appropriate academic writing which is formal, impersonal and which contains no spelling, grammar and punctuation errors. Paper demonstrates careful proofreading. Uses appropriate academic writing which is formal, and impersonal with only very minor spelling, grammar and punctuation errors. Paper demonstrates careful proofreading. Uses appropriate academic writing which is formal and impersonal, with a few spelling, grammar and punctuation errors. Paper demonstrates evidence of proofreading. Significant spelling, grammar and punctuation errors but the paper is readable and demonstrates some attempt at proofreading. Poor grammar, spelling and/ or punctuation. Paper gives no evidence of having been proof-read.
Appropriate referencing
10% All work acknowledged and referenced correctly. Others’ work has been clearly acknowledged in the body of the work and in a reference list at the end. Few errors or omissions detected. Others’ work has been acknowledged in the body of the work and in a reference list at the end. Some errors or omissions evident. Others’ work has been acknowledged, although it does not comply with the required referencing style. Others’ work has not been acknowledged
The above rubic marking assessment was adopted from Bede Harris, Senior Lecturer of Law, Charles Sturt University.

Presentation
Your 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 Act 1901 (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 Reuters

17. 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 T 89 ATC 4365.

19. When listing article conform to the format: Jones, J 'The new analysis of law' (2010) 4 Journal of Recent Law 34.

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.