Assessment Task – Tutorial Questions Assignment 2
Unit Code: HA3042
Unit Name: Taxation Law
Assignment: Tutorial Questions Assignment 2
Due: 11:30pm, 26th June 2020
Total Assignment Marks: 50 marks
This assignment is designed to assess your level of knowledge of the key topics covered in this unit.
Unit Learning Outcomes Assessed:
1. Gain a broad understanding of tax law
2. Demonstrate ability to analyse and synthesise complex tax law issues
3. Demonstrate ability to apply principles of tax law to complex legal problems
Each week students were provided with three tutorial questions of varying degrees of difficulty.
These tutorial questions are available in the Tutorial Folder for each week on Blackboard. The Interactive Tutorials are designed to assist students with the process, skills and knowledge to answer the provided tutorial questions. Your task is to answer a selection of tutorial questions for weeks 6 to 10 inclusive and submit these answers in a single document.
The questions to be answered are:
Week 6 – Question 1 (10 Marks)
John is a sole trader working in his small business as a carpenter. His brother Paul is mentally disabled, who lives with John and is receiving disability support pension.
Work out John’s invalid tax offset for his brother Paul who is an invalid under the following three scenarios:
Scenario 1 - John has $120,000 taxable income in the 2018-2019 financial year from his small business. Paul has $4,000 as an adjusted taxable income.
Scenario 2 - John has adjusted taxable income of $63,000. Paul has adjusted taxable income of $900.
Scenario 3 - John has an adjusted taxable income of $41,000. Paul was severely sick this year and
had zero adjusted taxable income. (Maximum 200 words)
Week 7 – Question 2 (10 Marks)
Oliver wanted to repay his loan of $12,000, which he borrowed from National Australia Bank (NAB). He approached his employer on 4th October 2019 and received $12,000 from him at no interest. On 15th February 2019, Oliver had a performance review with his employer when they told him that he was only required to repay half of the loan as he is a good performing employee.
With reference to the relevant laws, advise Oliver and his employer of the tax consequences of this
transaction. (Maximum 300 words)
Week 8 – Question 3 (10 Marks)
David and Emma are married and have some investment properties jointly in Sydney. To structurally manage their investment properties, they signed a formal partnership agreement, and agreed that the net profits from their rental properties would be distributed 95% to Emma and 5% to David. They also agreed that David bear the total losses from the investments.
With reference to the relevant laws, critically discuss whether David and Emma are in a partnership as investors? Also, discuss whether they are required to lodge a partnership tax return?
(Maximum 200 words)
Week 9 – Question 4 (10 Marks)
Anna works for the Eastern Medical Centre as admin officer with a marginal tax rate of 47%. She has just turned 48 in June 2020. Eastern Medical Centre contributed $13,000 under the Superannuation Guarantee Charge. Anna entered into a salary sacrifice agreement with Eastern Medical Centre to sacrifice 10% of her salary into her Superannuation fund. This extra contribution has resulted in an additional contribution of $17,000 for the current income year.
With reference to the relevant laws, discuss the effect of these arrangements for both Anna and the Eastern Medical Centre. Determine the total tax levied on the contributions to Anna's superannuation fund and the tax effect on Anna's employer. (Maximum 200 words)
Week 10 – Question 5 (10 Marks)
Darryl Kerrigan is the director of DK Pty Ltd, which is a property investment company in Sydney and the company is registered for Goods and Services Tax (GST). Due to the COVID-19 impact, DK Pty Ltd has decided to rent out their twenty (20) existing office units that they finished in a building project in February 2020.
To negotiate rental contracts, DK Pty Ltd employs a property lawyer, Mr. Dennis Denuto. Dennis is a busy lawyer and his practice income is $300,000 per year. DK Pty Ltd offered Dennis a rent-free office in the city of Sydney in exchange for his service to DK Pty Ltd. The market rental value of the office provided to Dennis is $38,000 per year.
Advise of the GST obligations and the input tax credit of this arrangements to DK Pty Ltd and Mr.
Dennis Denuto. (Maximum 400 words)
The assignment has to be submitted via Blackboard. Each student will be permitted one submission to Blackboard only. Each student needs to ensure that the document submitted is the correct one.
Academic honesty is highly valued at Holmes Institute. Students must always submit work that represents their original words or ideas. If any words or ideas used in a class posting or assignment submission do not represent the student’s original words or ideas, the student must cite all relevant sources and make clear the extent to which such sources were used. Written assignments that include material similar to course reading materials or other sources should include a citation including source, author, and page number.
In addition, written assignments that are similar or identical to those of another student in the class is also a violation of the Holmes Institute’s Academic Conduct and Integrity Policy. The consequence for a violation of this policy can incur a range of penalties varying from a 50% penalty through to suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and the student’s history of academic misconduct issues. All assessments will be automatically submitted to Safe-Assign to assess their originality.
For further information and additional learning resources, students should refer to their Discussion Board for the unit.