LAWS 20060 - Taxation Law of Australia TERM 1, 2018 ASSESSMENT 1 - INDIVIDUAL ASSIGNMENT
Marks: 40% of the overall assessment for the course
Submission: Online via Moodle
Format: One file in .doc or .docx (MSWord) format.
Submissions in any other file format (e.g. .zip) will be treated as a non-submission.
Week 8 Wednesday (2-May -2018) 11:45 PM AEST
Week 10 Friday (18-May-2018)
Word limit: 2500-3000 words Due date extended:
Return to students:

Extensions policy:
The university policy on extensions of time will be strictly enforced. Extensions will usually only be considered if made via the online system and based on medical or compassionate grounds. Any extension application should be made before the due date for submission. Medical conditions should be supported by a medical certificate, and, since students are expected to start the assignment early, temporary or lastminute conditions are usually not grounds for an extension. Professionals are expected to manage their time to meet their obligations, so work or personal commitments are insufficient grounds for an extension.
Plagiarism:
The university’s plagiarism policy will also be strictly enforced. If plagiarism is found, a minimum penalty is likely to be zero marks for the assessment. It could be worse.
This assignment is the only assignment for this course, and it carries a weighting of 40% of the total assessment for the course.
While the assignment is largely based on material covered, you are free to research and seek advice as widely as you find necessary—there are no limitations as to sources. However, you must make sure that sources are appropriately referenced.
Objectives
This assessment item links to the unit objectives as stated in the Unit Profile.
Details
This assignment is to be submitted in one (1) Word document only. This assignment is to be submitted online via Moodle by the due date stated. It is suggested that where necessary you put your calculations into columns or tables to improve readability in the assignment document
The method of referencing to be used in this assignment is the Australian Guide to Legal Citation (AGLC) 3rd Edition referencing method. Additional information regarding this method is available through the library and the Academic Learning Centre. When making a reference, cite the original source or authority in preference to a secondary source such as the textbook, especially when you are discussing various sections of legislation. This means you should make reference to legislation, cases and Tax Rulings as a priority to back up any arguments that you make in your assignment.
Students must complete all Parts of the Assignment.
To support the analysis in your answers refer where appropriate to the ITAA 1936, ITAA 1997, Tax Rulings and/or case law.
Question 1: 10 marks, 10% of the subject. Each sub-question is worth 2 marks .Use complete sentences.
Advise your client on how the following items, receipts or expenses, will be treated for tax purposes under Australian tax law:
a. A landlord owns a flat he leases to tenants. A new tenant pays the landlord before the start of the lease a lump sum of $15,000 as part of the lease negotiations.
b. Cheryl owned a warehouse destroyed by a fire. Her insurance company paid her compensation of $500,000 for the loss.
c. During the tax year 2016-17 Boris paid his tax agent $500 for the lodgement of his 2015-16 individual income tax return and $800 for the preparation and lodgement of the objection to the 2015-16 assessment.
d. James works at a hospital and when he is at work he buys his lunch at the cafe in the hospital. Over the course of a year he spends $2,000.
e. Frances started a new business and at the launch of the business she hired a restaurant and invited over one hundred potential clients for the business. The cost of hiring the venue and providing food and drink was $5,000.
To support the analysis in your answers refer where appropriate to the ITAA 1936, ITAA 1997, Tax Rulings and/or case law.
Question 2: 10 marks, 10% of the subject. Use complete sentences.
Usman held a French passport at all relevant times. From 2012 until the end of the 2016-17 income year he had an Australian visa which permitted him to live and work here.
During the time he was in Australia he worked as an engineer. For two months in 2015 he returned to France and worked there. At all times in the 2016-17 tax year he worked in Australia.
For the 2016-17 tax year is Usman a resident or non-resident?
To support the analysis in your answers refer where appropriate to the ITAA 1936, ITAA 1997, Tax Rulings and/or case law.
Question 3: 10 marks, 10% of the subject. Use complete sentences.
In April 2016 Norman, a hairdresser, bought his main residence in Melbourne for $700,000. Legal and stamp duty costs associated with the purchase were $70,000.
The home had six rooms.
In April 2017 Norman spent $100,000 in making part of his home suitable for his hairdressing business. The business used two of the rooms and he started working from home in May 2017.
Advise Norman of the capital gains tax implications of the above facts for the 201617 year.
To support the analysis in your answers refer where appropriate to the ITAA 1936, ITAA 1997, Tax Rulings and/or case law.
Question 4: 10 marks, 10% of the subject. Use complete sentences.
In your work as an accountant you advise a client, Avon Pty. Ltd. (Avon), on various matters. Avon entered into a $500,000 one year contract in June 2016 with Central Queensland University (a registered Research Service Provider) to undertake research and development for Avon. The contract was to run from July 2016 to June 2017. Avon wants your advice about tax offsets and how this expense could be treated by the ATO in the 2016-17 tax year.
Please advise.
To support the analysis in your answers refer where appropriate to the ITAA 1936, ITAA 1997, Tax Rulings and/or case law.
Assessment criteria Evaluation Criteria
These criteria are a general guide as to the standard expected at the various levels. Characteristics indicative of the respective levels of achievement in the assignment are as follows. It is not necessarily the case that all these criteria will be met at a particular standard as there may be a superior performance on one of the criteria and not so satisfactory performance on another. High distinction standard
• The answer is very well written and clearly expressed
• There is a demonstrated appreciation and understanding of the issues involved
• The answer is well structured and logically organised
• Demonstrated mastery of referencing system
• There is evidence of a comprehensive analysis of the issues
• Conclusions are backed by well-reasoned arguments demonstrating a detailed insight and analysis of issues
• Comprehensive coverage of all relevant issues
• References are made to the appropriated legislation for particular issues
• Statutory provisions are analysed and interpreted correctly
• The legislation is applied to the particular fact situation in a competent manner
• Consideration is given to the operation of the common law
• There may be consideration of issues not raised in the tutorials and answer guides
Distinction standard
• The answer is well written and expressed
• The answer is structured and logical
• The issues have been reasonably well identified and appreciated
• There is correct use of referencing
• Issues have been analysed
• Reference is made to all appropriate legislation, although the analysis and interpretation is not as detailed and reasoned as for the high distinction standard
• The effect of the common law is considered
• There is a comprehensive coverage of the issues
• Occasional errors of law and legal reasoning may still be present
Credit standard
• The answer is generally well written and expressed
• The answer is structured and sequential
• Referencing is satisfactory
• Issues are identified and addressed
• There has been an attempt to analyse some of the issues
• The coverage of issues is reasonably comprehensive often with a good treatment and analysis of particular points
• Errors of law and incorrect reasoning may sometimes be present
• Statutory interpretation may require improvement
• Depth of treatment is often lacking in some of the issues
• Pass standard
• The answer is able to be followed and understood
• The answer could perhaps be better organised and structured
• The referencing may need improvement
• Issues may need to be identified and addressed in more depth
• Analysis when present may be incorrect
• Some familiarity with the legislation and its application is demonstrated
• Sometimes the conclusions reached are simple
• There may be several errors of law
• There may be quantities of material of marginal relevance included in the answer
Fail standard
• The answer may be significantly short of the required length
• The written expression is poor and difficult to understand
• The answer is poorly organised
• There has been a failure to identify and address the issues in the question
• Referencing is generally inadequate
• There is a lack of familiarity with the legislation and its appropriate application
• The reasoning and application demonstrated is poor
• Frequently there is much irrelevant material
MARKING
All parts of the assignment will be marked in accordance with the university’s Grades procedure (which can be accessed via the Course Profile). The following marking rubric incorporates that procedure.

MARKING RUBRIC
GRADE MARK CRITERION
HD 85%+ Demonstrates proficiency in
all the learning outcomes of the unit; work is well read or scholarly.
COMMENT: Here, the student will have done everything well and formulated their answer in a tight, efficient, thoroughly professional manner. Their explanations and arguments will have a strong logical flow and be convincing. Their research will be thorough.
D 75-84% Demonstrates awareness
and understanding of deeper and less obvious aspects of the unit, such as ability to identify and debate critical issues or problems, ability to solve non-routine problems, ability to adapt and apply ideas to new situations.
COMMENT: The student will demonstrate this by achieving all the outcomes for a Credit, but also some of the higher level standards for a High Distinction.
C 65-74% Demonstrates ability to use
and apply fundamental concepts and skills of the unit, going beyond mere replication of content knowledge or skill to show understanding of key ideas, awareness of their relevance and some use of analytical skills.
COMMENT: Learning
involves not only knowing principles or concepts but also the ability to apply them to a real-life situation.
P 50-64% Demonstrates the learning
outcomes of the unit, such as knowledge of fundamental concepts and performance of basic skills; demonstrates sufficient quality of performance to be considered satisfactory or adequate or competent or capable in relation to the learning outcomes of the unit.
COMMENT: Students who
get a mark in this range usually demonstrate some knowledge of principles and concepts, but do not explain or apply them accurately. Answers often look like little more than a summary of what someone else has written.
F 40-49% Fails to demonstrate the
learning outcomes of the unit.
COMMENT: Students in this range usually make some effort to perform the assignment task but fail to achieve what is prescribed for a Pass.
Low F 40% COMMENT: Students in this
range usually fail to properly carry out the instructions or fully perform the tasks specified in the assessment.