HOLMES
INSTITUTE
FACULTY OF HIGHER
EDUCATION
Assessment Details and Submission Guidelines
Trimester T2 2021
Unit Code HI6028
Unit Title Taxation Theory, Practice & Law
Assessment Type Individual Assignment
Assessment Title Case Studies of Specific Deductions and Tax Liability
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 1500 words (acceptable to be 10% above or below this word limit).
Due Date Week 9, September 17, 2021 (Before 11.59 PM AEST)
HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2021
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 once. After this 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 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.
• Harvard Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Adopted 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. Penalty for not providing references is 5 marks.
• 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)
An owner of a Cinema Hall, on ascertaining that a portion of the ceiling of the hall was in need of repairs, decided to replace the whole of the ceiling with different but better materials. The new ceiling, in addition to enhancing the appearance of the hall, improved the acoustics. The total cost of the material and of erecting the new ceiling was $320,000. It was estimated that the cost of repairing the ceiling would have been $220,000.
With reference to Income Tax Assessment Act 1997 and relevant case law, discuss the amount, if any, allowable as a deduction for income tax purposes.
Kindly use the four sections of:
1. Facts of the scenario
2. Relevant laws and cases
3. Application of laws and cases
4. Conclusion
(Maximum 800 words)
HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2021
QUESTION 2 - (15 MARKS)
A new client, Mary, is your first client. She needs to lodge his income tax for 2021/22. Further, she wants to know about some tax-related provisions and practices. She asks some questions - what are the differences between taxable income, ordinary income, and statutory income? What types of ordinary and statutory income do not constitute assessable income? (Maximum 700 words)
Furthermore- She gave her annual income and deduction below. Calculate her Total Assessable Income, Taxable Income, Tax Liability, Medicare Levy and Medicare Levy Surcharge, if applicable, for the taxpayer (Mary) with the information below:
• Mary is a resident single mom with one dependent child (4 years old) taxpayer of Australia for the tax year 2021-2022
• Her Taxable Salary earned is $110,000 (Including tax withheld) having no private health insurance.
• She had a $12,000 deduction.
• Mary has a student loan outstanding for his previous studies at Queensland University of $32,000.
• Mary’s employer pays superannuation guarantee charge of 9.5% on top of her salary to her nominated fund.
• Mary earned a passive income of $5,000 from the investments in shares in the same tax year.
Hint: The following website can be used to cross-check your answers but you need to provide detailed calculations, rates and explanations of rates from ATO website.
https://www.paycalculator.com.au/
Submission guide: Strictly NO excel sheet(s) or the screenshots of excel calculations and/or tables are allowed, and NO marks will be granted if these are submitted. But, no referencing is required for this question. Kindly use word document tables for your answers and please avoid writing the calculations in narration format.
QUESTION 2: Income Tax Calculation and explanation Weighting
Answer tax related questions 5%
Total Assessable Income 1 %
Total Taxable Income 1 %
HELP repayment amount 1 %
Medicare Levy 1 %
Medicare Levy Surcharge 1 %
Total Tax Liability 3 %
Net Tax Liability (Total Tax Liability less any applicable tax offset if any) 2 %
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 falsification and Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images.
Source: INQAAHE, 2020
HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2021
If any words or ideas used the assignment submission do not represent your original words or ideas, you must cite all relevant sources and make clear the extent to which such sources were used.
In addition, written assignments that are similar or identical to those of another student is also a violation of the Holmes Institute’s Academic Conduct and Integrity policy.
The consequences for a violation of this policy include a range of penalties varying from a 50% penalty through suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and your history of academic misconduct issues.
All assessments will be automatically submitted to SafeAssign to assess their originality.
For further information and additional learning resources please refer to your Discussion Board for the unit.