LAW5230 Assignment Semester 3, 2019
LAW5230 Taxation Law Assignment
Due date: 13 January 2020
Value: 40%
Word Limit: 4,000 words (excluding calculations)
This assignment consists of two (2) parts. Part A consists of a problem solving scenario (1,000 words) and Part B is a research assignment (3,000 words). You must complete both Part A and Part B.
Marking criteria is at the end of each Part. Part A
Catherine is 22 years old and was born in Cardiff, Wales. On 20 August 2018, she arrived in Brisbane on a 12-month working holiday visa. Prior to arriving in Brisbane Catherine had always lived with her parents in Wales.
Catherine had worked in Cardiff prior to leaving for Australia and had been saving for her travel. She did not own any significant assets in Cardiff, only personal possessions such as clothes and a few electronic items. She left most of this with her parents while she was in Australia.
Catherine stayed in a hostel in Brisbane for 2 weeks after arriving, visiting the Gold Coast and Sunshine Coast and other tourist attractions. She then moved into a shared house with other working holiday makers, and worked at a café and hotel in Brisbane city as a casual employee.
As she was required to work in a rural area as part of her visa requirement, in February 2019 she travelled to central Queensland to work on a cattle station for two months. When she returned to Brisbane in April 2019 she went back to live in the same share house.
On 16 July 2019 Catherine decided to return to Cardiff and moved back into her parents’ house. She wanted apply for a working holiday in Canada and started working and saving for her next adventure. After six months she started travelling again.
Required:
Discuss with reference to legislation, case law and/or rulings whether Catherine would be considered a resident of Australia for tax purposes for the income year ended 30 June 2019. You do not need to consider the temporary residency rules.

Part A continued over page

LAW5230 Assignment Semester 3, 2019
Catherine provides you with the following financial information for the year ended 30 June 2019:
· Salary from employment in Wales prior to 20 August 2018 equivalent to AUD$5,500.
· Salary paid by her Australian employers for work at the café, hotel and cattle station AUD$36,000.
· A $250 prize for winning the annual pie-eating contest in Cloncurry, Queensland.
· Interest on her Australian bank account of $50.
· Interest on her bank account in Wales equivalent to AUD$180, from which $20 withholding tax had been deducted by the bank prior to crediting her account on 1 March 2019.
· $350 from the sale of excess clothing, sleeping bag and other personal items on eBay in June 2019 prior to leaving Australia.
Required:
i) Assuming that Catherine is a resident of Australia for tax purposes for the whole year ended 30 June 2019, what amount should she include in her assessable income in Australia?
ii) Assuming that Catherine is a foreign resident (non-resident) of Australia for tax purposes for the whole year ended 30 June 2019 what amount should she include in her assessable income in Australia?
You should state and apply any relevant source of income, derivation, general income rules and cite relevant legislation, case law and rulings in answering approaching this question.
LAW5230 – Taxation Law
Semester 3, 2019
Assignment Marking Criteria Sheet
PART A – Problem Solving Little
attemp
t F C B A HD
Identification of legal issues, legislation and case law
Overall the student has identified the relevant assessable income issues, legislation and where appropriate case law and rulings. 0 0.5 1 1.25 1.5 2
Application
Demonstrated level of understanding of the specific residency issues through the application of the identified law. 1 3 5 6.5 8 10
Demonstrated level of understanding of residency and source issues through the application of the identified law. 1 3 5 6.5 8 10
Conclusions
Overall, the student has drawn appropriate and valid conclusions after applying the law. 0 1 1.5 2 2.5 3
Total out of 25
LAW5230 Assignment Semester 3, 2019
Description of Performance Standards:
HD – the student has shown a very high level of demonstrated ability in relation to the stated criteria by covering all valid points in a clear and succinct manner. The student may have also demonstrated an ability to think beyond the facts and recognise the broader implications of the facts, missing facts or alternate arguments.
A – The student has shown a high level of demonstrated ability in relation to the stated criteria by either covering all valid points or by covering the majority of valid points in a clear and succinct manner. The student may have very briefly or occasionally shown ability at the HD level.
B - The student has shown a good level of demonstrated ability in relation to the stated criteria by covering most of the valid points. The student may have made some minor incorrect statements or missed some minor points.
C - The student has shown a satisfactory level of demonstrated ability in relation to the stated criteria by covering the main valid points. The student may have made a number of minor incorrect statements but did make incorrect statements in relation to major points.
F - The student has not shown a satisfactory level of demonstrated ability in relation to the stated criteria by missing some main points or by making incorrect statements in relation to major points.
Little Attempt – The student has not addressed or attempted to address this criterion.

LAW5230 Assignment Semester 3, 2019
Part B – 75 Marks (3,000 words)
You are required to prepare a written research assignment that addresses one of the provided topics below. The purpose of the task is for you to demonstrate high level critical reflection and analytical reasoning skills in the context of the application of Australian taxation law and taxation law policy. You must undertake academic research which demonstrates the following:
· An in-depth understanding of how the specific tax law applies,
· The policy context of the law and if relevant how other jurisdictions deal with similar issues,
· Critical reflection as to whether the law achieves its stated purpose, aligns with principles of good tax policy or could be improved/amended. These critical reflections should be supported by the research you have undertaken as well as your own independent thought.
Topic Choices
1. Australia’s Residency Rules
· Briefly outline the current tax rules for the residency of individual taxpayers in Australia;
· Discuss and critically evaluate the Board of Taxation’s recent suggestion to amend the residency rules, as well as recent case law;
· Compare the Australian rules to the rules in one other country;
· Conclude as to whether the current rules should be changed.
2. International Tax Avoidance
· Briefly outline why the avoidance and/or minimisation of tax by large multi-national corporations is of great concern to Governments and tax administrators;
· Discuss and critically evaluate at least one common method multi-national corporations might use to avoid tax in Australia and a current strategy implemented by the Government that is used to prevent this.
· Compare the Australian rules to the rules in one other country;
· Conclude as to whether the current rules should be changed.
3. Negative Gearing
· Briefly outline what is meant by negative gearing and how the Australian tax system treats negatively geared investments;
· Discuss and critically evaluate the extent to which tax-deductible negative gearing impacts upon savings and investment decisions, and recent election policies to amend the current rules;
· Compare the Australian rules to the rules in one other country;
· Conclude as to whether the current rules should be changed.
4. Small Business CGT Concessions
· Briefly outline the Small Business CGT Concessions in Australia;
· Discuss and critically evaluate the Small Business CGT Concessions in Australia, including the overall policy objectives and your evaluation of whether regime currently meets these objectives;
· Compare the Australian concessions to the concessions in one other country;
· Conclude as to whether the current rules should be changed.

LAW5230 Assignment Semester 3, 2019
5. Superannuation Tax Concessions
• Briefly outline the changes to Australia’s superannuation tax concessions effective from 1 July 2017 and the purpose/policy intention of those changes;
• Discuss and critically evaluate whether the recent changes are equitable and an improvement to the prior system;
• Conclude as to whether the additional reforms to Australia’s superannuation tax concession system are required.

LAW5230 Assignment Semester 3, 2019
LAW5230 Part B – Research Assignment Criteria Little attempt F C B A HD
Demonstrated technical understanding of the chosen tax law topic. No/little attempt made in relation to this criterion 1 Very little technical understanding of the legal topic demonstrate and/or many instances of incorrect understanding. 4 Sound technical understanding of the legal topic demonstrated with some instances of incorrect understanding. 7.5 Good technical
understanding of the legal topic demonstrated, with few instances of incorrect understanding.
10 High level technical understanding of the legal topic demonstrated, with no/very few instances of incorrect understanding. 12 Very High level technical understanding of the legal topic demonstrated, no instances of incorrect understanding.
15
Ability to analyse and present practical applications of the law in the context of the overall paper, rather than simply describe the law. No attempt made in relation to this criterion. 0 Did not demonstrated an ability to explain tax law concepts in the context of how it is relevant to practical applications.
3 Demonstrated sound ability to explain tax law concepts in the context of how it is relevant to practical applications in some instances. Some insightful and relevant applications made.
6 Demonstrated a good ability to explain tax law concepts in the context of how it is relevant to practical applications in some instances. Practical applications were mostly insightful and relevant. 7.5 Demonstrated a very good ability to explain tax law concepts in the context of how it is relevant to practical applications in many instances. Practical applications were mostly insightful and relevant. 9 Demonstrated an excellent ability to explain tax law concepts in the context of how it is relevant to practical applications in all instances. Practical applications were insightful and relevant. 12
Ability to demonstrate critical reflection on the topic researched incorporating independent thought and ability to critically analyse research presented. No/little attempt made in relation to this criterion 1 Insufficient evidence of effective analysis, balanced evaluation, personal perspectives made.
4 Few instances of careful analysis of the research. Limited ability to balance and evaluate competing arguments in the literature and/or limited articulation of personal perspectives throughout paper.
7.5 Some evidence of careful analysis of the research. Some instances of an ability to balance and evaluate competing arguments in the literature as well as some personal perspectives throughout paper.
10 Evidence and multiple instances of careful analysis of the research. Evidence of an ability to balance and evaluate competing arguments in the literature as well as clearly articulated personal perspectives throughout paper. 12 Strong evidence and multiple instances of careful analysis of the research. Strong evidence of an ability to balance and evaluate competing arguments in the literature as well as clearly articulated personal perspectives throughout paper.
15
Ability to demonstrate independent, high quality research. No/little attempt made in relation to this criterion 1 Little evidence of quality and independent research. Many major sources overlooked. Very few sources from outside course materials.
4 Some evidence of careful, relevant, quality and independent research undertaken. Many major research sources/authors overlooked. A few sources from outside course materials.
7.5 Evidence of careful, relevant, quality and independent research undertaken. Few major research sources/authors overlooked. Some sources from outside course materials.
10 Evidence of careful, relevant, high quality and independent research undertaken. No major research sources/authors overlooked. Many sources from outside course materials.
12 Evidence of careful, relevant, high quality and independent research undertaken. No research sources/authors overlooked. Many sources from outside course materials and all high quality.
15

LAW5230 Assignment Semester 3, 2019
Overall clarity of expression, use of grammar and appropriateness of the language and terminology for an academic research paper. No/little attempt made in relation to this criterion 1 No instances of sophisticated and academic language used. Many instances of incoherent. Lacks readability.
2 Few instances of sophisticated and academic language used. Somewhat clear and readable expression used throughout. Many instances of unclear expression.
3 Mostly sophisticated, clear and readable expression used throughout. Moderately academic language used throughout. Few instances of unclear expression. 4 Some sophisticated language, but otherwise, very clear and highly readable expression used throughout. Appropriate academic language used throughout.
5 Sophisticated, clear and highly readable expression used throughout. Very appropriate academic language used throughout. 6
Clear and logical structure, development of clear arguments, supported conclusions reached. No/little attempt made in relation to this criterion 1 Very little persuasive argument used in paper. Little structure or flow. Many inconsistent / unsupported conclusions reached.
2 Somewhat persuasive argument built throughout paper. Some structure presented, though paper may have some flow problems, or inconsistent / not well supported conclusions presented. May have some inconsistencies.
3 Moderately persuasive argument built throughout paper. Clear structure resulting in some supported conclusions/ recommendations with few inconsistencies. 4 Persuasive argument built throughout paper. Clear and logical structure resulting in some well supported conclusions/ recommendations. 5 Highly persuasive argument built throughout paper. Very clear and logical structure resulting in well supported conclusions/ recommendations.
6
Ability to use chosen referencing method appropriately and correctly No/little attempt made in relation to this criterion 1 Inability to use chosen referencing method appropriately and correctly. Inconsistent and fundamental errors. 2 Acceptable standard of referencing, citations and bibliography. Some fundamental errors. 3 High standard of referencing, citations and bibliography. Some minor errors.
4 Very high standard of referencing, citations and bibliography. Very few errors.
5 Very high standard of referencing, citations and bibliography. Almost no errors.
6
Total out of 75
TOTAL (out of 100)
General Comments
END OF ASSIGNMENT