LAWS19033 - Taxation Law and Practice A
TERM 2, 2017
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.
Word limit: 2500-3000 words
Due date extended: Week 9 Wednesday (13-September -2017) 11:45 PM AEST
Return to students: Week 11 Friday (29-September-2017)
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 last-minute 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 course objectives as stated in the Course 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.
Naming protocol for your assignment submission is as follows: student surname_student number_LAWS19033_assignment
The method of referencing to be used in this assignment is the American Psychological Association (APA) 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.
Part A: 10 marks (estimated 750 words). Each question is worth 1 mark. Use complete sentences.
You have just started a new job as a graduate accountant. Your managing partner has to do a media interview and he asks you to provide answers to some questions that will be asked. He has given you a list of questions that he has to address in his interview and he needs you to provide him with short answers to these questions and provide references so that he can check the answer if required.
1. Where is the primary source of the Commonwealth Parliament’s taxation power found?
2. What are the primary sources of tax law?
3. Explain what topic Taxation Ruling TR 98/17 discusses?
4. How is the Medicare levy calculated?
5. Which Division of the Income Tax Assessment Act 1997 denies a company that has been fined under Commonwealth consumer legislation for engaging in misleading and deceptive conduct from deducting the costs of the fine?
6. Explain how Section 25-45 ITAA97 relates to specific deductions?
7. Explain the significance of the High Court case, W Thomas & Co Pty Ltd v FC of T (1965) 115 CLR 58, in the topic of deductions?
8. Explain the three ways that a taxpayer can choose to value each item of stock on hand at the end of the income year.
9. What is the applicable tax rate for a taxpayer who has $45,000 taxable income in 2016/17?
10. Explain the PAYG tax collection system?
Part B: case study 5 marks (estimated 350 words). Use complete sentences in the answer.
During the financial year Ram paid his tax agent $1,000 to complete the previous year’s income tax return. He also paid his solicitor $2,000 to draft an objection to an ATO assessment that he received two years ago. Ram also paid $50,000 in income tax.
Explain with supported reasons which of the three costs are deductible.
To support the analysis in your answers refer where appropriate to the ITAA 1936, ITAA 1997, Tax Rulings and/or case law.
Part C: case study 5 marks (estimated 350 words). Use complete sentences in the answer.
On November 11 Tina a twenty year old international student arrives in Brisbane to study at university. She works part time in a local supermarket to help with living expenses and study fees. Her earnings to 30 June are $12,000. Regrettably she does not do well in the assignments and exams and fails all subjects. With deep regret she returns to her home country.
Did the student become an Australian resident?
To support the analysis in your answers refer where appropriate to the ITAA 1936, ITAA 1997, Tax Rulings and/or case law.
Part D: case study 10 marks (estimated 750 words). Use complete sentences in the answer.
Jimmy is an Australian single full-time university student who works part time in a restaurant. During the year he has receipts as follows:
(a) Income from working in the restaurant $27,000;
(b) Tips from customers $750 cash;
(c) At Christmas time, a regular and satisfied customer gives Jimmy an expensive bottle of Scotch alcohol, worth $250. Jimmy does not drink and gives the bottle to his friend, Eva;
(d) Also at Christmas time, Jimmy’s parents give him as a gift $15,000;and
(e) Each month his employer at the restaurant takes all staff including Jimmy out for dinner and the total expense of the food that Jimmy eats on these nights is $645.
What is Jimmy’s assessable income for the year? To support the analysis in your answers refer where appropriate to the ITAA 1936, ITAA 1997, Tax Rulings and/or case law.
Part E: case study 10 marks (estimated 750 words). Use complete sentences in the answer.
Josie is a single Australian mortgage broker who obtains loans for her clients from various banks. She earns commission from the banks when she introduces a successful loan application to any of the banks.
Usually she works from home and at times she also visits her clients at their homes to arrange the documents for the applications. At times she visits the branches of the banks to drop in hard copies of the paperwork.
Her home office is where she does most of the work with these applications, stores client information and keeps hard copies of the various client applications.
Her home office occupies 15% of the total space in her home. Her outgoings in relation to her home for the current financial year are as follows:
(a) Council rates $4,900
(b) Interest on her home loan $18,900
(c) Electricity and heating costs $6,800
(d) Cleaning lady $3,400
(e) Home telephone (60% of which is for business use ) $2,700
(f) Mobile telephone bill (90% of which is for business use) $7,200
Calculate how much of the above outgoings are a deductible expense for Josie?
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.
THE MARKING RUBRIC IS ON THE FOLLOWING PAGE

4 GRADE MARK CRITERION
HD 85%+ Demonstrates imagination, originality or flair, based on proficiency in all the learning outcomes of the unit; work is interesting or surprisingly exciting, challenging, well read or scholarly.
COMMENT: Here, the student will have done everything well, provided some original insights, 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, and ability to invent and evaluate new ideas.
COMMENT: The student will demonstrate this by achieving all the outcomes for a Credit, but also some of the imagination, originality or flair required 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, some use of analytical skills, and some originality or insight.
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.