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Assessment Details and Submission Guidelines
Trimester T1 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. Knowledge of tax law concepts
2. Ability to analyse tax law issues
3. Ability to apply legal tax principles.
Weight 20 % of the total assessments
Total Marks 20
Word limit Max 2000 words (acceptable to be 10% above or below this word limit)
Due Date Sunday of week 10 at 11:59PM.
Submission Guidelines • Answer all questions.
• This assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook.
• It is the responsibility of the student who is submitting the work, to ensure that the work is in fact her/his own work. Incorporating another’s work or ideas into one’s own work without appropriate acknowledgement is an academic offence. Students should submit all assignments for plagiarism checking on Blackboard before final submission in the subject. For further details, please refer to the Subject Outline and Student Handbook.
• All works must be submitted on Blackboard by the due date along with a completed Assignment’s Cover Page.
• 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.
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:
Questions 1: Weighting
Depreciation 0.5
Interest 0.5
Total operating cost 0.5
Taxable value 1
FBT 1
Statutory method formula 1.5
FBT liability 0.5
Conclusion 0.5
Questions 2: Weighting
a. Based on the given information, students are required to determine Daniel Ray’s net capital gain or net capital loss for the year ended 30 June 2019.
10
b. What Daniel will do with a likely net capital gain in this financial year.
2
c. What Daniel will do with a likely net capital loss in this financial year. 2
Assignments’ Instructions and Requirements
Question 1 (6 marks)
On 1 April 2018, Spiceco Pty Ltd provided a car to their employee Lucinda for her private use. Throughout the 2018/19 FBT year, the cost of the car was $18,000, repairs $3,300 Insurance $2,200, Fuel $ 990 (all above expenses are GST inclusive). Distance travelled
20,000 km (for the entire 2018/19 FBT year), Business use 70% Lucinda contributed $1,000 towards the cost of the car.
Using the 2018/19 rates, calculate the FBT liability for Spiceco Pty Ltd for the 2018/19 FBT year, assuming Spiceco Pty Ltd would like to minimise its FBT liability. If there is more than one method of calculating the FBT liability, conclude which method should be used. Show full workings to support your conclusion.
Question 2 (14 marks)
Daniel Ray is in his late 50s and would like to plan for his retirement. Daniel has visited his accountant last week (15th March 2019). As part of his plan he likes to contribute to his superannuation fund (i.e. BT Super for Life) before end of financial year this year. (i.e. 30 June 2019).
Daniel has different assets worth around $1m and plans to see these and contribute this to his super fund. He also wants to lease his house and withdrew tax free amounts from huis super account when he turns sixty in august 2020. As part of his plan to collect $1m for his super investment, he has sold the following assets:
1- A house located at Doncaster (suburb of Melbourne). Daniel lived in this property for the last 30 years. At that time, he bought the house for $70,000 and sold the house for $865,000 in an auction on Saturday 29th June 2019. Out of this, he paid $15,000 to the real estate agent for the sales commission. The buyer deposited $85,000 on the property, however after 14 days the buyer advised the real estate that he did not have enough money for proceed with the contract of [purchase, therefore forfaiting
his deposit to Daniel on 1st May 2019. After this the real estate agent started looking for another potential buyer.
2- Daniel has an artistic piece of painting by Margaret Preston. He purchased this on 20
September 1985 for $15,000. The painting was sold for $125,000 at an auction on 31 May 2019.
3- Daniel had a luxury yacht that he has since he was active member of Port Melbourne Yacht Club. He purchased the yacht in November 2004 for $110,000. Daniel sold the luxury yacht on 1st June 2019 for $60,000.
4- Daniel had shares in BHP mining company, which he has purchased these shares on 10 January 2019 for $75,000 and sold all of these shares on 5 June 2019 for $80,000. Indeed, he got a loan of $70,000 in order to buy these shares and incurred $5,000 interest on the loan. Daniel has paid $250 for stamp duty on the purchase, and $750 of brokerage fee on the sale of these shares. Daniel spoke to his tax adviser and he has advised Daniel that $5,000 interest incurred on the loan is a nondeductible expense.
In his previous financial year’s tax return (i.e. 2017-2018) Daniel has incurred a net capital loss of $10,000 from the sale of AZJ shares. AZJ shares were the only asset that he sold in 2017-2018 financial year.
(a) Based on the above information, you are required to determine Daniel Ray’s net capital gain or net capital loss for the year ended 30 June 2019.
(b) What Daniel will do with a likely net capital gain in this financial year.
(c) What Daniel will do with a likely net capital loss in this financial year.
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:
Depreciation
Interest
Total operating cost
Taxable value
FBT
Statutory method formula
FBT liability
Conclusion
For question 2, address the following parts:
a) Based on the given information, students are required to determine Daniel Ray’s net capital gain or net capital loss for the year ended 30 June 2019.
b) What Daniel will do with a likely net capital gain in this financial year.
c) What Daniel will do with a likely net capital loss in this financial year.
Marking criteria
Marking criteria Weighting
For Question 1, students need to answer the following elements correctly:
Depreciation 0.5
Interest 0.5
Total operating cost 0.5
Taxable value 1
FBT 1
Statutory method formula 1.5
FBT liability 0.5
Conclusion 0.5
Question 1 Weight 6 marks
For Question 2, students need to answer the following parts correctly:
Based on the given information, students are required to determine Daniel Ray’s net capital gain or net capital loss for the year ended 30 June 2019. 10
What Daniel will do with a likely net capital gain in this financial year. 2
What Daniel will do with a likely net capital loss in this financial year. 2
Question 2 Weight 14 marks
TOTLA WEIGHT: 20 marks
Marking Rubric
Excellent Very Good Good Satisfactory Unsatisfactor y
Marks Allocatio n
For Question 1, students need to answer the following elements correctly
Depreciation Depreciation
figure is calculated correctly. Student demonstrate s very good knowledge by giving depreciation formula. Minor error in calculation of the depreciation. Student demonstrate
s good knowledge overall. Final figure is incorrect , however some elements are identified correctly. None of the depreciation elements has been identified. 0.5
Interest Interest
figure is calculated correctly. Student demonstrate s very good knowledge by giving Minor error in calculation of the interest. Student Final figure is incorrect , however some elements are None of the interest
elements has been identified. 0.5
interest formula. demonstrate
s good knowledge overall. identified correctly.
Total operating cost All the steps are correct. The operating cost figure has been identified correctly. Student demonstrate s very good knowledge by calculating total operating cost. Minor error in calculation of the total operating cost. Student demonstrate
s good knowledge overall. Final total operating cost figure is incorrect , however some elements in the formula are identified correctly. None of the
total operating cost elements has been identified. 0.5
Taxable value Demonstrate
s clear
understandin
g by
answering the taxable value figure and the formula correctly. Acknowledge
s and reflects on the calculation of the taxable value figure and the formula. Student demonstrate s good by
answering the taxable value figure and the formula correctly. Student demonstrates sound knowledge by demonstratin g the formula.
But the answer to the taxable value figure was incorrect. Has difficulty understanding the material. 1
FBT Right formula of FBT has been given. Accurately answered the question. Student demonstrate
s good
knowledge by giving
expected answers to all questions, minor error is evidenced in the answers. Student demonstrate
s good
knowledge by giving
expected answers to all questions, but fails to elaborate. Student demonstrates sound knowledge by giving expected answers to most, but not all parts of the questions. Answered
incorrectly 1
FBT Formula Right formula has been identified. Student demonstrate s very good knowledge by identifying the FBT formula. FBT formula is correct, minor error in elements. Formula given shows some minor errors. Formula is not given,
answered the questions incorrectly. 1.5
FBT liability Correctly calculated
FBT liability. Student demonstrate s very good knowledge
by giving the right formula and attempting to answer the question.
The student provides the formula but not given the final answer to the question. The student followed the formula but the elements of formula are incorrect.
The final answer is incorrect. FBT liability is not calculated.
Clear focus and
organisation is lacking. 0.5
Conclusion Student is able to
effectively and accurately conclude the question. Student demonstrate s very good knowledge by giving
expected answers to all parts, minor error is evidenced in the answers. Student demonstrate
s good
knowledge by giving
expected answers to all questions, but fails to elaborate. Student demonstrates sound knowledge by giving expected answers to most, but not all parts of the questions. Conclusion is not given correctly. 0.5
For Question 2, students need to answer the following parts correctly
Based on the given information,
students are required to
determine Dani el Ray’s net capital gain or net capital loss for the year ended 30 June 2019. Daniel’s CGT gains and losses are calculated correctly. Student demonstrate s very good knowledge of CGT by giving expected answers to all questions, minor error is evidenced in the answers. Student demonstrate s good CGT knowledge by giving expected answers to all questions, but fails to elaborate. Student demonstrates sound CGT knowledge by giving expected answers to most, but not all parts of the questions. None of the Daniel’s CGT gains and losses are calculated correctly. 10
What Daniel will do with a likely net capital gain in this financial year. CGT questions is answered correctly. Student demonstrate
s good
knowledge by giving
expected answers to all questions, minor error is evidenced in the answers. Student demonstrate
s good
knowledge by giving
expected answers to all questions, but fails to elaborate. Student demonstrates sound knowledge of CGT by giving expected answers to most, but not all parts of the questions. CGT questions is not answered correctly. 2
What Daniel will do with a likely net capital loss in this financial year. Clear answer is given to this part of the question. Point of view is present and followed by logical organisation,
and clear connection. Point of view is present and followed by logical organisation. Purpose of the question is clear, but missing some facts. Answered the question incorrectly. 2

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