LAWS XXXXXXXXXXTERM 2, 2017ASSESSMENT 1 - INDIVIDUAL ASSIGNMENTMarks: 40% of the overall assessment...

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LAWS XXXXXXXXXXTERM 2, 2017ASSESSMENT 1 - INDIVIDUAL ASSIGNMENTMarks: 40% of the overall assessment for the course Submission: Online via Moodle Format: One file in .doc or .docx(MSWord) format. Submissions in any other file format (e.g. .zip) will be treated as a non-submission. Word limit: XXXXXXXXXXwordsDue date extended:Week 8 Wednesday (06-Sep XXXXXXXXXX:45 PM AESTReturn to students:Week 11 Friday (29-Sep-2017)Extensions policy:The university policy on extensions of time will be strictly enforced. Extensions will only be considered if made via the online system and based on medical or compassionate grounds. Any extension application should be made before the due date for submission. Medical conditions should be supported by a medical certificate, and, since students are expected to start the assignment early, temporary or last-minute conditions are usually not grounds for an extension. Professionals are expected to manage their time to meet their obligations, so work or personal commitments are insufficient grounds for an extension.Plagiarism:The university’s plagiarism policy will also be strictly enforced. If plagiarism is found, a minimum penalty is likely to be zero marks for the assessment. It could be worse.QUESTION 1: 20 marks, 20% of the subjectAdvise yourclient on how the following items will be treated for tax purposes under Australian tax law:i.  Webjet frequent flyer points received by a business analyst employed by a large business consultancy firm in relation to work related travel paid for by the firm ii.  amounts received by a crane hire company from its customers for a damaged craneiii.  a free overseas holiday received by a nightclub manager from an alcohol supplieriv.  the return to its members of excess funds raised by a canoe club for the purchase of additional canoesv.  a payment made by a television station to anAustralian footballer for being named the best and fairest in the AFLvi.  Expenses relating to a building qualification for a building apprentice vii.  Expenses relating to a short course in art management in the hope of becoming an art directorviii.  Expenses relating to work make-up and work dressesix.  Expenses relating to travel between home and officex.  Expenses relating to travel between one employer and another employerQUESTION 2: 20 marks, 20% of the subjectManpreetis an international student studying an accounting degree at CQU, Sydney. She commenced her studies in term 1, 2016. In the 2016/2017 financial year she worked part time as an office assistant at an Accountant’s office to gain work experience in her chosen career and made $45,000 from that job. Manpreet also received $20,000 from her parents to assist her with her living expenses, and a $10,000 distribution from a trust account set up in India by her grandmother of which she paid $1,000 in foreign tax. She spent $18,500 on her studies, $2,000 on a computer and printer for educational purposes, and $500 on a new mobile which was required for work purposes.Calculate Manpreet’s net tax payable for the 2016/2017 financial year, making reference to the taxation formula, the reasons for including or excluding specific items, your calculations, and the applicable tax law (sections of legislation and/or case law).Assessment criteria Evaluation CriteriaThese criteria are a general guide as to the standard expected at the various levels. Characteristics indicative of the respective levels of achievement in the assignment are as follows. It is not necessarily the case that all these criteria will be met at a particular standard as there may be a superior performance on one of the criteria and not so satisfactory performance on another.High distinction standard·  The answer is very well written and clearly expressed·  There is a demonstrated appreciation and understanding of the issues involved·  The answer is well structured and logically organised·  Demonstrated mastery of referencing system·  There is evidence of a comprehensive analysis of the issues·  Conclusions are backed by well-reasoned arguments demonstrating a detailed insight and analysis of issues·  Comprehensive coverage of all relevant issues·  References are made to the appropriated legislation for particular issues·  Statutory provisions are analysed and interpreted correctly·  The legislation is applied to the particular fact situation in a competent manner·  Consideration is given to the operation of the common law·  There may be consideration of issues not raised in the tutorials and answer guidesDistinction standard·  The answer is well written and expressed·  The answer is structured and logical·  The issues have been reasonably well identified and appreciated·  There is correct use of referencing·  Issues have been analysed·  Reference is made to all appropriate legislation, although the analysis and interpretation is not as detailed and reasoned as for the high distinction standard·  The effect of the common law is considered·  There is a comprehensive coverage of the issues·  Occasional errors of law and legal reasoning may still be presentCredit standard·  The answer is generally well written and expressed·  The answer is structured and sequential·  Referencing is satisfactory·  Issues are identified and addressed·  There has been an attempt to analyse some of the issues·  The coverage of issues is reasonably comprehensive often with a good treatment and analysis of particular points·  Errors of law and incorrect reasoning may sometimes be present·  Statutory interpretation may require improvement·  Depth of treatment is often lacking in some of the issues·  Pass standard·  The answer is able to be followed and understood·  The answer could perhaps be better organised and structured·  The referencing may need improvement·  Issues may need to be identified and addressed in more depth·  Analysis when present may be incorrect·  Some familiarity with the legislation and its application is demonstrated·  Sometimes the conclusions reached are simple·  There may be several errors of law·  There may be quantities of material of marginal relevance included in the answerFail standard·  The answer may be significantly short of the required length·  The written expression is poor and difficult to understand·  The answer is poorly organised·  There has been a failure to identify and address the issues in the question·  Referencing is generally inadequate·  There is a lack of familiarity with the legislation and its appropriate application·  The reasoning and application demonstrated is poor·  Frequently there is much irrelevant material

David · Accepted Answer

Advising to the client, mentioned below items how treated for tax purpose.  
i) Webjet frequent flyer points received by a business analyst.( TR 1999/6 - flight 
rewards) 
According to the Australian tax, business analyst flyer points can be consider as  employee   
income or other income as private used but it should be taxed under certain limitation. 
Lets I explain if business analyst used Web jet only for the business purpose or partly 
business purpose and another part used in private purpose but  the points can be redeemed as 
cash then it is taxable as wholly in taxable employee income  if she/he used flyer only for the 
business or used partly for business and private  points redeemed as  cash also taxable as 
employee income and another part cash taxable as other income. 
But the flyer points can’t be redeemed as cash then it is considered as non taxable.  
ii. Amounts received by a crane hire company from its customers for a damaged crane: 
According to the Australian tax ,  the amount which is received by a crane company  is not 
fully taxable  but it is having certain limitation to imposing the tax. 
Crane hire company received the income from crane, so the company needs to calculate,  the 
remaining life of years is left for that crane and  worth of the crane during in the time of 
damage. 
If the amount received is surplus  than damage crane worth then only surplus amount is 
taxed, if amount received is less than damage crane worth the loss needs to use for offset 
during in the tax payer return. 
Client items explained with worth. 
Damage amount received is $2000, but damaged crane actual worth during in the damage 
period is $1500,so $2,000 -$1,500=$500 considered as surplus and it is taxable. 
Damage amount received is $1200 but  damaged crane worth during in the damage period is 
$1,500, so $1,200 - $1,500 =-$300 is loss need to mention for offset. 
iii. A free overseas holiday received by a nightclub manager from an alcohol supplier: 
According to the Australian tax , a night club manger comes under  hospitality industry,   
manager received free overseas holiday package needs to considered as commissions or 
bonus given by the alcoholic supplier  because the manager made surplus sales revenue or 
more sales revenue from the particular alcohol supplier drinks.   Normally tax would be 
imposed through annualised method such as 52 weeks or  365 days but the night club manger 
employer needs to withhold 47% tax on this bonus or commissions.    
Implementing the tax in client items: 
Manager received holiday package considered as  bonus or commission as an indirect 
monetary benefits because manager not received the payment directly,   but alcohol supplier 
pay the amount to receive the holiday package, so that package have monetary worth so it is 
taxable.  
iv. The return to its members of excess funds raised by a canoe club for the purchase of 
additional canoes. 
According to the  Australian tax, this canoe club comes under other taxable company, 
because this club working activities shown not  to get any  profit  but it has disbursed the 
raising funds  surplus to its members.  So the company has  to file the tax  return. 
Example for not to file for tax: 
Flower club has raised  the amount if it wants,  it could be monthly, festival occasions or half 
yearly basis.  This current  financial year club has made the profit unexpected , then the club 
used  profit for club operating expenses,  it never think about to allocate the profit to its 
premium members or members.  As per Australian tax purpose this flower club need to file a 
tax return. 
V)A payment made by a television station to an Australian footballer for being named 
the best and fairest in the AFL 
As per Australian tax purpose, awards, grants, etc.,  considered as a  tax exempted income it 
means tax payer need  not to  pay the tax for the award income but  has to mention in the tax 
return to set off any loss. 
But in this case Australian footballer payment considered as a  normal income, so footballer 
need to pay the tax for her/his award payment. 
How it works, let check below. 
First of all, footballer player duty is to play the football and income received  for her/his 
employment  taken for taxable income, now the same player  received the award payment  
while showing the professional work as best, out of  from her/ his/other team players.  
Footballer  played  through employer /organization/ sponsors name  and received best player 
payment, so this amount comes indirectly under her/ his employment income so it is taxable. 
Example: 
A Footballer normally plays for  a particular league/ sponsors etc, so they are considered for 
footballer employer.  The same player received amount as award related to employment only 
so it is taxable.  It is expected as well as  normal income for sports tax payers. 
A footballer plays any game such as puzzles, crossword, winning lotteries and received as 
award payment considered as a exempted income, in this case footballer need not to pay the 
tax, but award amount have to mention in the tax return. 
vi. Expenses relating to a building qualification for a building apprentice:  Sec 16-160 
According to the Australian tax deduction comes under specific industries,  Even though 
building apprentice can get travel expense, work related dress and maintenance expense,

LAWS XXXXXXXXXXTERM 2, 2017 ASSESSMENT 1 - INDIVIDUAL ASSIGNMENT Marks : 40% of the overall assessment for the course Submission : Online via Moodle Format : One file in .doc or .docx (MSWord) format....

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