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HI6028 T2 2020 Taxation Theory, Practice & Law

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Assessment Details and Submission Guidelines

Trimester                              T2 2020

Unit Code                              HI6028

Unit Title                               Taxation Theory, Practice & Law

Assessment Type                Individual Assignment

Assessment Title                  Case Studies of Fringe Benefits Tax and Capital Gain Tax

HI6028 Taxation Theory, Practice and law
HI6028 Taxation Theory, Practice and law

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.        Demonstrate an understanding of the Australian income tax system, the concept of FBT, Ordinary Income, general anti-avoidance provisions and income tax administration. (ULO 1).

2.       Identify and critically analyse taxation issues. (ULO  2).

3.       Interpret the relevant taxation legislations and case law. (ULO 3).

4.       Apply taxation principles to real life problems. (ULO  4).

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                               Week 9, 15th  of September 2020 (Before 11.59 PM AEST)

Submission Guidelines       Instructions: Please read carefully to avoid mistakes.

•   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 submittedworks 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 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.

Assignments’ Instructions and Requirements

Question 1                                              (10 Marks)

Perisher Pty Ltd (Perisher) is a Ski equipment manufacturer that operates around Mt Hotham in Victoria.  On 1

May 2019, Perisher provided Nikita (one of its employees) with a car as Nikita does a lot of travelling for work purposes. However, Nikita’s usage of the car is not restricted to work only. Perisher purchased the car on that date for $44,000 (including GST) plus $2,000 (including GST) dealer delivery charges.

For  the  period  of  1  May  2019  to  31  March  2020,  Nikita  travelled  12,000  kilometers  in  the  car  and  incurred expenses of $770 on minor repairs that have  been reimbursed by Perisher. The car was not used for 10 days when Nikita was interstate and was parked at the airport and for another five days when the car was scheduled for annual repairs.

Calculate  the  Fringe  Benefits  Tax  Liability  for  Perisher,  please  have  a  look  at  the  matrix  below  on  how  to answer the question

QUESTION 1: Calculate the FBT liability for Perisher Pty Ltd                                                                                                 Weighting

Identification of material facts (issues) regarding fringe benefits provided to Nikita                                          1 %

Identification and analysis of legal issues / legal question and relevant taxation law  in regards to           1 %

fringe benefits (e.g. FBTAA 1986).

Thorough  application  of  tax  law  (e.g.  ITAA  1936  and  ITAA  1997)  to  material  facts  in  Perisher’s 1 % case.

Accurate conclusion of the FBT calculation.  5 %

Correct information and taxation law have been used and properly cited. A detailed analysis has  2 % been performed.

QUESTION 1 TOTAL MARKS:                                                                    10 %

QUESTION 2 – (15 MARKS)

Taryn would like to open a new business as an interior designer, to funds her ambition she sold some of the following assets:

1.  Antique Painting that was given to Taryn by her father 5 years ago. Taryn’s father bought it on 20 August

1984 for $2,500. Taryn sold it on 1’st June 2020 for $25,000

2.  Taryn sold her car (Toyota Corolla) for the amount of $12,000 on 20’th May 2020, she bought on 1’st

January 2015 for the amount of $20,000

3.  Taryn sold her Harry Potter’s collection for the  amount of $1,500 on 4’th January  2020, she bought it

second hand on 10’th October 2018 for $350.

4.  Taryn sold her gold necklace for $2,000 on 20’th March 2020, she bought it for $1,200 on 8’th August 2018

5.  Taryn sold a sculpture for $6,000 on 1 January 2020, she bought it on December 1994

Advise the Capital Gain Tax Consequences  for the above transactions, please have a look at the matrix below on how to answer the question

QUESTION 2: Capital gain tax consequences           Weighting

Identification of material facts on regard to each case  2 %

Identification and analysis of legal issues / legal question and relevant taxation law for each case.              2 %

Thorough application of ITAA 1997 to material facts.           2 %

Accurate conclusions are reached from each case.                                                                                                       6 %

Correct information and taxation law have been used and properly cited. A detailed  analysis has           3 %

been performed.

QUESTION 2 TOTAL MARKS:                                                                                                                                               15 %

Academic Integrity

Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to  comply  with  academic  integrity  guidelines.    Table  1  identifies  the  six  categories  of  Academic  Integrity breaches.   If you have any questions about Academic Integrity issues related to your assessment tasks, please consult  your  lecturer  or  tutor  for  relevant  referencing  guidelines  and  support  resources.    Many  of  these resources can also be found through the Study Sills link on Blackboard.

Academic  Integrity  breaches are  a serious offence  punishable  by penalties that  may  range  from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.

Table 1: Six categories of Academic Integrity breaches

Plagiarism                                Reproducing the work of someone else without attribution. When a  student  submits  their  own  work  on  multiple  occasions  this  is known as self-plagiarism.

Collusion                                  Working   with  one   or  more   other  individuals  to  complete   an assignment, in a way that is not authorised.

Copying                                    Reproducing and submitting the work of another student, with or without  their  knowledge.  If  a  student  fails  to  take  reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.

Impersonation                        Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.

Contract cheating                  Contracting   a  third  party   to  complete   an  assessment   task, generally in exchange for money or other manner of payment.

Data     fabrication     and falsification

Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images.