Microsoft Word - Tax 305 Semester XXXXXXXXXXASSIGNMENT
College of Business and Law
TAX 305 TAXATION LAW
ASSIGNMENT 1 - WRITTEN ASSIGNMENT
VALUE: 30% OR 30 MARKS
WORD COUNT: 1,500 - 2,500. THIS INCLUDES ALL FOOTNOTES AND
REFERENCES. (10% margin under or over)
This assignment may be submitted on or before 11.59pm (ACST), Study
Week 8
18th September 2020
 Submit your Assignment using Word or PDF file format
 The assignment must be lodged online via Learnline Assignment
Lodgement link.
 Assignment lodgements will be acknowledged automatically on the
Learnline site, on submission.
 Citations: The CDU Harvard or AGLC referencing styles may be used, as
long as you choose one style and use it consistently.
 Additional research IS required for this assignment.
 Further questions: Post your questions on the discussion board.
College of Business and Law
UNIVERSITY PLAGIARISM POLICY
Plagiarism is the unacknowledged use of material written or produced by others or a rework
of your own material. All sources of information and ideas used in assignments must be
eferenced. This applies whether the information is from a book, journal article, the internet,
or a previous essay you wrote or the assignment of a friend.
Plagiarism policy is available at:http:
www.cdu.edu.au/governance/docli
ary/pol-001.pdf
and
Student Breach of Academic Integrity Procedures
http:
www.cdu.edu.au/governance/docli
ary/pro-092.pdf.
EXTENSIONS AND LATE LODGEMENTS
Extensions
An Application for Assignment Extension or Special Consideration should be completed and
provided to the Dean, College of Business and Law.
This application form, explanation and instructions is available on the Learnline course site
or direct from
http:
learnline.cdu.edu.au/units/lb_school_templates/deployed/assignment_extension.docx
Please note that it is now College policy that all extension requests must be approved by the
Dean. The lecturer is not able to personally approve extension requests.
Leaving a request for an extension, special assessment or special consideration until the last
moment, based on grounds that students could have reasonably been able to foresee, may
esult in the application being rejected.
Late lodgement
Late lodgements are subject to a penalty of 5% of assignment marks per day. Partially
completed assignments will be accepted with appropriate loss of marks for the incomplete
portion.
College of Business and Law
Case Study One -
Part A
You are cu
ently working as a graduate accountant and are provided with the following information
from a client. The client, Joe, has the following income and expenses for the financial year ended 30
June XXXXXXXXXXJoe is employed as a manager of operations at a local transport company. In addition to
his employment Joe also operates a market stall selling wood carvings on the weekend.
Income
$
• 45,000 Sales of wood carvings from the market stall
• 1,000 An anniversary gift from his employer for Joe’s 10th wedding anniversary
• 5,000 Bonus received from his employer for successful completion of large project
• 125,000 Salary received from his employer (including PAYG Withholding of $22,000)
• 5,000 Interest on Bank Deposits
• 10,000 Joe gambles on the horses and during the year had won $10,000 on betting
• 35,000 Sale of his personal motor vehicle (he
ought the vehicle for $15,000)
• 25,000 Sale of shares (he
ought the shares 13 months ago for $10,000)
• 1,000 Received Manager of the year award from the Institute of Managers
Expenses
$
• 2,000 Rent on market stall for his business
• 5,000 Purchase of wood for carvings, Joe estimates in cost he has $2,000 in wood
as at 30 June 2019 as stock on hand and advises that as at 1 July 2018 his
wood stock at cost was $3,000.
• 800 Joe purchased steel capped work boots for $500, protective sunglasses for
$220, New jeans for $80 (which he also wears on the weekend)
• 1,500 Bookkeeping fees for the market stall business
• 12,000 Purchase of new carving tools for the market stall business
• 400 Cost of meals and entertainment that his employer did not reimburse
• 200 Train fares for travel to and from work
• 3,200 Rates on family home
• XXXXXXXXXXElectricity for family home
• 1,000 Advertising packaging for market stall business
• 1,000 Purchase new table and counter for market stall
Joe does not have any children. Joe does have private health insurance. Joe also advises you that
he had ca
ied forward tax losses from last year of $2,000 relating to his market stall. In addition to
the above Joe advises he does work from home as he attends to emails late night after dinner at least
4 nights a week.
College of Business and Law
Required:
• Determine which Income and Expenses are assessable income or allowable deductions.
Note you will need to cite legislative references, case law and tax rulings as applicable.
Emphasis is on providing substantiation for you reasoning to include as assessable income or
allowable deduction. Also refer to the relevant item number on the 2019 tax return where the
amount would be disclosed, i.e. (interest income is item 10). An Example format is provided
elow.
• Assume Joe is a resident for Australian taxation purposes, calculate his tax liability including
any tax offsets and levies.
EXAMPLE FORMAT
Income
Assessable Particulars Legislation, Case law, Rulings,
Reasoning
Item – 2019 Tax
Return
Y/N
Expenses
Deductible Particulars Legislation, Case law, Rulings,
Reasoning
Item – 2019 Tax
Return
Y/N
Part B
During your meeting with Joe, he advises that his employer has offered him a position for 3 years in
Thailand. Joe seeks your advice on residence issues for Australian taxations purposes. In particular
Joe wants to understand impact on any Non Australian assets he owns (Joe cu
ently has overseas
shares valued at $150,000 and a overseas property in Singapore valued at $1.5million). Joe also
wants to understand what tests will be applied to determine his residency.
(Part A 20 marks)
(Part B 5 marks)
Word Count: 1, XXXXXXXXXXwords
College of Business and Law
Theory Question
Required:
Discuss the difference between tax evasion and tax minimization. Consider when will the tax office
deny a deduction based on a taxpayer’s subjective purpose or intention in incu
ing the expenses.
(5 marks)
Word Count: 500 words