Microsoft Word - HA3042 Tutorial Questions Assignment 2
Assessment Task –Tutorial Questions Assignment 2
Unit Code: HA3042
Unit Name: Taxation Law
The questions to be answered are;
Week 6
John is a sole trader working in his small business as a carpenter. His
other Paul is mentally disabled, who lives with John and is receiving disability support pension.
Required:
Work out John’s invalid tax offset for his
other Paul who is an invalid under the following three scenarios:
Scenario 1‐ John has $120,000 taxable income in 2018‐2019 financial year from his small business, Paul has $4,000 adjusted taxable income.
Scenario 2‐ John has adjusted taxable income of $63,000, Paul has adjusted taxable income of $900.
Scenario 3‐ John has adjusted taxable income of $41,000, Paul was severely sick this year and had zero adjusted taxable income. (10 marks, maximum 200 words).
Week 7
Oliver wanted to repay his loan of $12,000 he bo
owed from NAB. He approached his employer on 4 October 2019 and received $12,000 from him at no interest. On 15 Fe
uary 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.
Required:
With reference to the relevant laws, advise Oliver and his employer of the tax consequences of this transaction. (10 marks, Maximum 300 words)
Week 8
David and Emma are ma
ied and have some investment properties jointly in Sydney. To structurally manage their investment properties, they signed a formal partnership agreement, and agreed that 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.
Required:
With reference to the relevant laws, critically discuss whether David and Emma are in a partnership as investors? Also, discuss whether they required to lodge a partnership tax return? (10 marks, Maximum 200 words)
Week 9
Anna works for 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 Superannuation Guarantee Charge. Anna entered into a salary sacrifice agreement with Eastern Medical Centre to sacrifice 10% her salary into her Super fund. This extra contribution has resulted in an additional contribution of $17,000 for the cu
ent income year.
Required:
With reference to the relevant laws, discuss the effect of these a
angements for both Anna and her Eastern Medical Centre. Determine the total tax levied on the contributions to Anna's superannuation fund and the tax effect on Anna's employer. (10 marks, Maximum 200 words)
Week 10
Da
yl Ke
igan 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. Due the COVID‐19 impact, DK Pty Ltd has decided to rent out their 20 existing office units that they have finished its building project in Fe
uary 2020.
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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 exchanged for his service to DK Pty Ltd. The market rental value of the office provided to Dennis is $38,000 per year.
Required:
Advise GST obligations and input tax credit of this a
angements to DK Pty Ltd and Mr Dennis
Denuto. (10 marks, Maximum 400 words)
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