Question
Megan is a mining engineer. Megan spends nearly 8 months of every year out of Australia for work. She is employed predominately by one (Australian based) mining company which issue her a Payment Summary on an annual basis and pay superannuation on her behalf. Megan earned $180,000 gross income from this mining company during the year and she also salary sacrificed $20,000 into superannuation. Megan has late this year accepted a one-off payment of $75,000 agreeing that next year she will not perform any mining services for any other mining company.
Megan performed some freelance services for a number of other mining companies (also Australian based) during the year on an ad hoc basis for which she provided an ABN and a tax invoice. These various invoices totaled $121,000 including GST. Megan also received a case of vintage champagne valued at $1,800 together with a cash amount of $5,000 as Christmas gifts from 2 of these mining companies.
During the year Megan together with a fellow mine engineering specialist designed a particularly useful item of mining equipment which one mining company paid $440,000 which included all rights to the equipment including its intellectual property. This is a one off venture and Megan has no intention of including her half share in her tax return as assessable income this year.
Megan also performs landscape painting activities. During the year her painting skills were recognised via an exhibition of her artwork to such an extent that people paid her $22,000 for the various works exhibited. Megan then won an award of $33,000 from an art industry representative entity for her exhibition. Megan has no intention of including these amounts in her next tax return as she has always enjoyed her painting as a hobby.
Required
You are to advise Megan of the assessability or non-assessability of the income earned in the current year for each of the activities in which she is involved. Your response will identify the key issues raised and provide a coherent argument for your conclusion based upon relevant legislation, case law and other material.
Rationale
This assessment task covers Topics 1 to 9. More specifically it tests your understanding of the tax forumla in relation to different types of income and the general rules relating to deductions. This assessment has been designed to ensure that you are engaging with the subject content on a regular basis and to assess your ability to:
• gather and integrate your knowledge on the Australian taxation system;
• describe and access the Australian regulatory taxation system;
• interpret legislation to compute taxable income and allowable deductions to determine taxation liabilities;
• investigate in depth the cases, rulings and legislation that are fundamental to taxation law;
• demonstrate your ability to apply that knowledge to a hypothetical, practical situation;
• exercise critical and reflective judgment;
• demonstrate your ability to conduct research using provided materials as well as other legal resources; and
• develop your written skills
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
15% 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
30% Provides a complete explanation of the taxation 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 taxation law 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 taxation law 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 taxation law but with significant errors, substantiated by some legal authority. Provides incorrect or limited explanation of the taxation law using no, or only a limited range of, authority.
Application of legal principles to the facts
30% 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.
5% 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
General Guidance for Law Assessment Tasks:
• Word-process or type your assignment clearly.
• Clearly show the subject name, your name and the date at the beginning of the assignment.
• Use size A4 paper and leave at least a 3 cm margin on the right-hand side of the page. (This is the best format for both marking and photocopying.)
• Retain a copy of each assignment. This overcomes any problems should your assignment be lost in transit, even though this rarely happens.
• Number each page of the assignment.
• The answers should be confined to 3,000 words in total, bibliography excluded. Both assignments should be neatly typed in Times New Roman, 12 point font.
• A consistent system of footnotes or the APA Referencing System is required. Case and statute names should be italicised.
• Answers must be original. They should demonstrate that students not only have read and understood the Study Guide and prescribed readings but also have broadened their knowledge by having read other reference works. Marks will not be awarded for duplication of paragraphs from the Modules or textbooks.
• Answers should have a complete bibliography listing all books and articles consulted. Beware of using the unacknowledged work of others. Plagiarism will result in zero marks and possible failure of the subject. (Refer to handbook rules).
• Students must, in the course of answering questions, refer to and discuss relevant case authorities and appropriate statutory provisions in order to support the propositions and submissions made
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