taxation law

HA3042Taxation Law Individual Assignment T3.2019

HOLMES
INSTITUTE

FACULTY OF
HIGHER
EDUCATION

Assessment Details and Submission Guidelines

Trimester T3 2019
Unit Code HA3042
Unit Title Taxation Law
Assessment Type Assignment
Assessment Title Individual Assignment
Purpose of the
assessment (with
ULO Mapping)

Students are required to follow the instructions by your lecturer to confirm any
relevant information. You also need to follow any relevant announcement on
Blackboard to confirm the due date and time of the assignment.

The individual assignment will assess students on the following learning outcomes:
1. Practical skills and knowledge of tax law concepts (e.g. Income and deductions
and CGT) (ULO 1).
2. Ability to analyse tax law issues (ULO 2).
3. Ability to apply legal tax principles (ULO 3).

Weight This assignment task accounts for 25 % of total marks in this unit.
Total Marks This assignment task accounts for 25 marks of total marks in this unit.
Word limit Max 2000 words (acceptable to be 10% above or below this word limit)
Due Date Refer to the Unit Outline, as Normal Mode & Block Mode have different due

dates.
Submission
Guidelines

 Answer all questions.

 This assignment along with a completed Assignment Cover Page is to be

submitted on Blackboard by the due date in soft-copy only.

 The self-check links are no longer available as a separate link in each unit’s

assessment. Students are now limited to attempt any given assignment

submission a maximum of three times. After every attempt you will receive

a SafeAssign originality report with Blackboard Learning Management

System. This will provide detailed information about the matches found

between your submitted works and existing sources.

 The assignment is to be submitted in accordance with assessment policy

stated in the Unit Outline and Student Handbook.

 It is the responsibility of the student submitting the work to ensure that the

work is in fact his/her own work. Incorporating another’s work or ideas into

one’s own work without appropriate acknowledgement is an academic

HA3042 Taxation Law Individual Assignment T3.2019

offence.

 The assignment must be in MS Word format, no spacing, 12-pt Arial font

and 2 cm margins on all four sides of your page with appropriate section

headings and page numbers.



Reference sources must be cited in the text of the report, and listed

appropriately at the end in a reference list using Harvard referencing style.

You also must refer to relevant legislation and/or case law in your answer.

Reference sources must be cited in the text of the report, and listed

appropriately at the end in a reference list using Harvard referencing style.

 Note: Assessment task is set around the work that you have done in class.

You are not expected to go outside the content of the unit but you are

expected to explore it.

Individual Assignment Specifications

Purpose:

This assignment aims at assessing students on the Learning Outcome from 1 to 3 as mentioned
above.

Assignment structure should be as the following:

Question 1: Capital Gains Tax Weighting
Identification of material facts regarding Sophia’s capital gains tax (CGT) concerns
in the given scenario, and the critical discussion of CGT consequences relevant to the
assignment question.

2 Marks

Identification and analysis of legal issues / legal question and relevant taxation law in
regards to Sophia’s capital gains tax (CGT) (e.g. ITAA 1936 and ITAA 1997).

5 Marks

Thorough yet succinct application of tax law (e.g. ITAA 1936 and ITAA 1997) to
material facts in Sophia’s capital gains tax (CGT) scenario.

3 Marks

Correct information and taxation law regarding the capital gains tax (CGT) have been
used and properly cited. A detailed analysis has been performed.

2.5 Marks

Detailed and accurate capital gains tax (CGT) conclusions are reached from the
discussions.

2.5 Marks

QUESTION 1 TOTAL MARKS: 15 MARKS
Question 2: Income and deductions Weighting
Issue: The issue to be discussed is whether Ava’s outgoings are an allowable
deduction or expenses of a private and domestic nature. Students should be able to
show their understanding of the character of the outgoings being examined.

2 Marks

Law and Application: Discussion of the nature of each of the different types of
outgoings and apply them to the relevant law. Set out the legal principles that will be
used to address the problem. Source legal principles from cases and legislation.

3 Marks

HA3042 Taxation Law Individual Assignment T3.2019

Law and Application:

Students need to discuss whether:
– There is a connection between the outgoings and the assessable income so

that the outgoings are incidental and relevant to the
gaining of assessable income.

– Or whether the outgoings have the character of being a private or domestic
expense.

– Set out the legal principles that will be used to address the problem. Source
legal principles from cases and legislation.

3 Marks

Conclusion: Stand back and play ‘the judge.’ Choose the arguments and conclusions
you think are the strongest and articulate what you believe to be the appropriate
answer to the given scenarios.

2 Marks

QUESTION 2 TOTAL MARKS: 10 MARKS

Assignments’ Instructions and Requirements

QUESTION 1 (15 MARKS)

Sophia has visited her accountant, John and has provided him a listing of the transactions she has

undertaken throughout the financial year to assist John in completing Sophia’s 2018 income tax

return. The listing of the transactions is as follows:

a) Sale of a block of land in Ninety Mile Beach for $800,000: Sophia purchased the land for

$130,000 as an investment in 1991. She also paid $800 in stamp duty, $1,200 in legal fees.

Before purchasing the land Sophia had to secure a bank loan and paid interest totalling

$27,000. During the period of ownership her council rates, water rates and insurance totalled

$18,500. In January 2008 a dispute occurred with a neighbour over the use of the land and

legal fees incurred amounted to $8,000 in resolving this dispute. Before putting the property

on the market $1,500 was spent to remove a number of large dangerous pine trees that were

on the land. Advertising, legal fees and agent’s fees on the sale of the land were $25,000.

b) Sale of Sophia’s shares in ABC Co for $32.20 per share. Sophia had 2000 share: Sophia paid

1% brokerage fee on the sale. She initially purchased the shares for $1.50 per share in 1983.

c) Sale of a stamp collection Sophia had purchased, from a private collector, in January 2018

for $33,000: she sold the collection at auction for $23,000. Auction fees totalled $3,000 for

the sale.

d) Sale of a Bob Marley Guitar for $45,000: It was initially bought for $70,000 in 2003.

Advise Sophia of the capital gains tax consequences of the above transactions. Ignore indexation.

Your answer must include

references to relevant tax law and or cases.

HA3042 Taxation Law Individual Assignment T3.2019

QUESTION 2 (10 MARKS)

Ava visits his accountant David and asks him whether the following outgoings incurred by her are

allowable deductions. Ava has recently completed her medical degree and taken up employment in

Sunshine Hospital. Ava incurred the following outgoings:

(a) Travel expenses to Sunshine Hospital for the job interview $320

(b) Ava moving expenses from her home in Darwin to relocate in Sunshine, Victoria $1800

(c) Payment of white’s uniform which are compulsory for doctors to wear at work $200

(d) Ava paid $18,200 childcare expenses for her two-year-old daughter.

(e) Ava made phone calls from her home phone to Sunshine Hospital after hours to check on patients

this costs Ava $200

(f) When working evening shifts, Ava purchased $570 food from the hospital café bar.

(g) Ava received a $207 speeding fine when she was running late to Sunshine Hospital for an

emergency visit.

(h) Ava incurred $330 travel expense to and from work.

Advise Ava of the deductibility of the above-mentioned transactions. Your answer must include

references to relevant tax law and or cases.

Assignment Structure should be as the following (students’ responses involves calculations, and
students must refer to the relevant legislation and cases whenever required according to the
questions).

For question 1, address the following elements:

Identification of material facts regarding Sophia’s capital gains tax (CGT) concerns in the given
scenario, and the critical discussion of CGT consequences relevant to the assignment question.
Identification and analysis of legal issues / legal question and relevant taxation law in regards to
Sophia’s capital gains tax (CGT) (e.g. ITAA 1936 and ITAA 1997).
Thorough yet succinct application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in
Sophia’s capital gains tax (CGT) scenario.
Correct information and taxation law regarding the capital gains tax (CGT) have been used and
properly cited. A detailed analysis has been performed.
Detailed and accurate capital gains tax (CGT) conclusions are reached from the discussions.

For question 2, address the following parts:

Issue: The issue to be discussed is whether Ava’s outgoings are an allowable deduction or expenses of a
private and domestic nature. Students should be able to show their understanding of the character of the
outgoings being examined.

HA3042 Taxation Law Individual Assignment T3.2019

Law and Application: Discussion of the nature of each of the different types of outgoings and apply them
to the relevant law. Set out the legal principles that will be used to address the problem. Source legal
principles from cases and legislation.
Law and Application: Students need to discuss whether:

– There is a connection between the outgoings and the assessable income so that the outgoings are
incidental and relevant to the gaining of assessable income.

– Or whether the outgoings have the character of being a private or domestic expense.
– Set out the legal principles that will be used to address the problem. Source legal principles from

cases and legislation.
Conclusion: Stand back and play ‘the judge.’ Choose the arguments and conclusions you think are the
strongest and articulate what you believe to be the appropriate answer to the given scenarios.

Marking criteria

Marking criteria Weighting
For Question 1, students need to answer the following elements correctly:
Students should be able to identify the material facts regarding Sophia’s capital
gains tax (CGT) transactions in the given scenario, and the critical discussion of
CGT consequences relevant to the assignment question.

2 Marks

Students should identify and analyse the legal issues / legal question and relevant
taxation law in regards to Sophia’s capital gains tax (CGT) (e.g. ITAA 1936 and
ITAA 1997).

5 Marks

Students should be able to apply the relevant laws (e.g. ITAA 1936 and ITAA
1997) to material facts in Sophia’s capital gains tax (CGT) scenario.

3 Marks

Students should refer to the correct information and taxation law regarding the
capital gains tax (CGT) have been used and properly cited. A detailed analysis
has been performed.

2.5 Marks
Detailed and accurate capital gains tax (CGT) conclusions are reached from the
discussions.
2.5 Marks

Question 1 Weight 15 MARKS
For Question 2, students need to answer the following elements correctly:
Students should be able to identify and discuss whether Ava’s outgoings are an
allowable deduction or expenses of a private and domestic nature. Students
should be able to show their understanding of the character of the outgoings
being examined.

2 Marks

Students must utilise and discussion of the nature of each of the different types of
outgoings and apply them to the relevant law. Set out the legal principles that will
be used to address the problem. Source legal principles from cases and
legislation.

3 Marks
Students need to discuss whether:
– There is a connection between the outgoings and the assessable income so
that the outgoings are incidental and relevant to the
gaining of assessable income.

– Or whether the outgoings have the character of being a private or
domestic expense.

– Set out the legal principles that will be used to address the problem.

3 Marks

HA3042 Taxation Law Individual Assignment T3.2019

Source legal principles from cases and legislation.
Students make a correct conclusion: Stand back and play ‘the judge.’ Choose the
arguments and conclusions you think are the strongest and articulate what you
believe to be the appropriate answer to the given scenarios.

2 Marks

Question 2 Weight 10 MARKS
TOTLA WEIGHT: 25 MARKS

Marking Rubric

Excellent Very Good Good Satisfactory Unsatisfactory

Marks

Allocation

For Question 1, students need to answer the following elements correctly

Identification of
material facts
regarding Sophia’s
capital gains
tax (CGT) concerns
in the given
scenario.

Student knows
how to use the
ITAA 1997,
know how to
apply the law
in a real
scenario and
understand the
different CGT
consequences
in relation to
the given
scenario.

Very good
identification of
the CGT
consequences
of the given
scenario and
discussion of
the issues.

Majority of
relevant issues
identified and
discussed in
relation to the
given scenario.

The area of
CGT law is
correctly
identified but
the statement
does not
clearly
describe the
legal
problem/s and
conclusions
that need to be
addressed in
relation to the
given
scenario.

The relevant
area of law in
relation to the
given scenario
is not
identified.

2 Marks

Identification and
analysis of legal
issues / legal
question and
relevant taxation
law in regards to
Sophia’s capital
gains tax (CGT)
(e.g. ITAA 1936
and ITAA 1997).

All relevant
CGT legal
principles in
relation to the
gain or loss
made from the
given scenario
are clearly
explained and
their correct
source of
authority is
given.

All or most of
the relevant
CGT legal
principles in
relation to the
gain or loss
made from the
given scenario
are explained
and their correct
source of
authority is
given.

Most of the
relevant CGT
legal
principles in
relation to the
gain or loss
made from the
given scenario
explained and
their correct
source of
authority is
given.

Some
identification
of relevant
CGT legal
principles in
relation to the
gain or loss
made from the
given scenario
but the correct
source of
authority
(section of Act
or relevant

case) has not
been cited.

No relevant
legal principles
in relation to
the gain or loss
made from the
given scenario
have been
identified.

5 Marks

Thorough yet
succinct application
of tax law (e.g.
ITAA 1936 and
ITAA 1997) to
material facts in
Sophia’s capital
gains tax (CGT)
scenario.

The discussion
is a clear and
comprehensive
analysis of the
relevant CGT
legal principles
in relation to
the given
scenario is
given.

Very good
discussion and
analysis of the
relevant CGT
legal principles
in relation to
the given
scenario and
their application
to the facts to
support logical

Good
discussion and
analysis of the
relevant CGT
legal
principles in
relation to the
given scenario
and their
application to
the facts to

The discussion
considers
some of the
relevant legal
principles but
does not apply
those
principles to
the key facts
to support
logical

The discussion
of the facts
does not refer
to any relevant
capital gain
legal principles
in relation to
the given
scenario.

3 Marks

HA3042 Taxation Law Individual Assignment T3.2019

arguments
given.

support logical
arguments
given.

arguments in
relation to the
given
scenario.

Correct information
and taxation law
regarding the
capital gains
tax (CGT) have
been used and
properly cited. A
detailed analysis
has been
performed.

All relevant
CGT legal
principles in
relation to the
given scenario
are clearly
explained and
their correct
source of
authority is
given.

All or most of
the relevant
CGT legal
principles in
relation to the
given scenario
are explained
and their correct
source of
authority is
given.

Most of the
relevant CGT
legal
principles in
relation to the
given scenario
are explained
and their
correct source
of authority is
given.

Some
identification
of relevant
CGT legal
principles in
relation to the
given
scenario, but
the correct
source of
authority
(section of Act
or relevant
case) has not
been cited.

No relevant
legal principles
in relation to
the given
scenario have
been identified.

2.5 Marks

The correct
conclusion is made
in relation to
Sophia’s CGT
transactions.

Student knows
how to use the
ITAA 1997 in
relation to the
given scenario,
and know how
to apply the
law in a real
scenario and
understand the
different CGT
consequences
in relation to
the given
scenario.

Very good
identification of
the CGT
consequences in
relation the
given scenario
and discussion
of the issues.

Majority of
relevant issues
identified and
discussed in
relation to the
given scenario.

The area of
CGT law in
relation to the
given scenario
is correctly
identified but
the statement
does not
clearly
describe the
legal
problem/s and
conclusions
that need to be
addressed.

The relevant
area of law in
relation to the
given scenario
is not
identified.

2.5 Marks

For Question 2, students need to answer the following parts correctly

Correct discussed is
whether Ava’s
outgoings are an
allowable deduction
or expenses of a
private and
domestic nature.

The area of law
and the legal
problem/s
regarding the
given scenario
that needs to be
addressed are
identified and
completely
described.

Very good
identification
and discussion
regarding the
elements of the
given scenario.

Majority of
relevant issues
regarding the
element of the
given scenario
identified and
discussed.

The area of
law is
correctly
identified but
the statement
does not
clearly
describe the
legal
problem/s
regarding the
given scenario
that need to be
addressed.

The relevant
area of law
regarding the
given scenario
is not
identified.

2 Marks

Discussion of the
nature of each of
the different types
of outgoings and
apply them to the
relevant law.

All relevant
legal principles
regarding the
given scenario
are clearly
explained and
their correct
source of
authority is
given.

All or most of
the relevant
legal principles
regarding the
given scenario
are explained
and their correct
source of
authority is
given.

Most of the
relevant legal
principles
regarding the
given scenario
are explained
and their
correct source
of authority is
given.

Some
identification
of relevant
legal
principles
regarding the
given
scenario, but
the correct
source of
authority
(section of Act
or relevant

No relevant
legal principles
regarding the
given scenario
have been
identified.

3 Marks

HA3042 Taxation Law Individual Assignment T3.2019

case) has not
been cited.

Identification and
discussion of
a connection
between the outgoin
gs and the
assessable income s
o that the outgoings
are incidental and
relevant to the
gaining of assessabl
e income.

The discussion
is a clear and
comprehensive
analysis of the
relevant legal
principles
regarding the
given scenario
and their
application to
the facts to
support logical
arguments
about how the
issue/s will be
resolved.

Very good
discussion and
analysis of the
relevant legal
principles
regarding the
given scenario
and their
application to
the facts to
support logical
arguments
about how the
issue/s will be
resolved.

Good
discussion and
analysis of the
relevant legal
principles
regarding the
given scenario
and their
application to
the facts to
support logical
arguments
about how the
issue/s will be
resolved.

The discussion
considers
some of the
relevant legal
principles but
does not apply
those
principles to
the key facts
to support
logical
arguments
about how the
issue/s will be
resolved.

The discussion
of the facts
does not refer
to any relevant
legal principles
regarding the
given scenario.

3 Marks

Conclusion:
Students’ ability in
choosing logical
argument and
conclusions they
think are the
strongest and
articulate what they
believe to be the
appropriate answer
to the given
scenarios.

The discussion
regarding the
given scenario
are very well
supported by
arguments in
this section and
clearly
explains how
those
arguments
address the
question.

Very good
discussion
regarding the
given scenario,
are clearly
explains.

Good
argument and
discussion,
which is
supported by
most of the
arguments, but
the
explanation of
how those
arguments
address the
issue is not
clear or is
incomplete.

The argument
in this part is
supported by
some of the
relevant law,
but does not
explain how
they address
the issue.

Concluding
discussion
regarding the
given the given
scenario is
missing and is
not supported.

2 Marks