Unit ACC3004 Tax Law Assessment Type Group Assignment Assessment Number 2 Assessment Weighting Case studies 30% Alignment with Unit and Course Unit Learning Outcome Graduate Attributes Assessed ULO 1....

Unit ACC3004 Tax Law
Assessment Type Group Assignment
Assessment
Number
2
Assessment
Weighting
Case studies
30%
Alignment with
Unit and Course
Unit Learning Outcome Graduate Attributes Assessed
ULO 1. Describe the taxation framework
in Australia and identify the concepts and
principles that underpin Australian Tax
Law.
2. Explain how the main tax laws and
egulations in Australia have been applied
and identify the body of case law that
informs cu
ent interpretations of the
taxation regime.
3. Recognise, describe and analyse
taxation issues and concepts with regard
to problems encountered in commercial
settings.
4. Demonstrate an understanding of
substantive areas of taxation law including
income tax, goods and services tax and
fringe benefits taxes.
GA 1: Communication
GA 2: Collaboration
GA 3: Research
GA 4: Critical Thinking
GA 6: Flexibility
Due Date/Time Week 10
5pm Friday
Assessment
Description
 This is a group assignment. There should be 3-4 students in each group. Students
are required to work with their respective groups. No individual submission will be
accepted.
 Please nominate one member as your group leader to coordinate the assignment
submission. Only one copy needs to be submitted per group.
 The assignment must be submitted online in Moodle as well as Turnitin. All
materials must be submitted electronically in Microsoft Word format. No paper
ased or hardcopy submission will be accepted.There are two parts in this
assessments. You need to answer both of them.
Please see the details on page 3.
Detailed
Submission
 One member of the group must submit the assessment through the Assessment 2
Turnitin link on MMoodle page for this unit



Requirements
Misconduct  The assessment will be submitted through Turnitin via your unit page on MMoodle.
 Turnitin is plagiarism software, which will identify if you have copied information
and included it in your assessment.
 Copying information from others (i.e. websites, partner company information, or
other students etc.) without the acknowledging the author is classified as
misconduct.
 Engaging someone else to write any part of your assessment for you outside of the
group work a
angement is classified as misconduct.
 To avoid being charged with Misconduct, students need to submit their own work
and apply Harvard Style Referencing (ask your lecturer or the learning support
coordinator ( XXXXXXXXXX) if you do not know what this means, or you
need assistance applying it).
 The AIH misconduct policy and procedure can be read on the AIH website
(https:
aih.nsw.edu.au/about-us/policies-procedures/).
 Use the AIH referencing guide accessible via Li
ary and Learning Support Page
on mMoodle.
Late Submission  Any assessment submitted past the specific due date and time will be classified as
Late.
 Any Late submission will be subject to a reduction of the mark allocated for the
assessment item by 5% per day (or part thereof) of the total marks available for the
assessment item. A ‘day’ for this purpose is defined as any day of the week
including weekends. Assignments submitted later than one (1) week after the due
date will not be accepted, unless special consideration is approved as per the
formal process.
Special
consideration
 Students whose ability to submit or attend an assessment item is affected by
sickness, misadventure or other circumstances beyond their control, may be
eligible for special consideration. No consideration is given when the condition or
event is unrelated to the student's performance in a component of the assessment,
or when it is considered not to be serious.
 Students applying for special consideration must submit the form within 3 days of
the due date of the assessment item or exam.
 The form can be obtained from the AIH website (https:
aih.nsw.edu.au/cu
ent-
students/student-forms/) or on-campus at Reception.
 The request form must be submitted to Student Services. Supporting evidence
should be attached. For further information please refer to the Student Assessment
Policy and associated Procedure available on
 (https:
aih.nsw.edu.au/about-us/policies-procedures/).
mailto: XXXXXXXXXX
https:
aih.nsw.edu.au/about-us/policies-procedures
https:
aih.nsw.edu.au/cu
ent-students/student-forms
https:
aih.nsw.edu.au/cu
ent-students/student-forms
https:
aih.nsw.edu.au/about-us/policies-procedures
Case 1 (15 marks)

Dave Solomon is 59 years of age and is planning for his retirement. Following a visit to his financial adviser in March of
the cu
ent tax year, Dave wants to contribute funds to his personal superannuation fund before 30 June of the cu
ent
tax year. He has decided to sell the majority of his assets to raise the $1,000,000. He then intends to rent a city apartment
and withdraw tax-free amounts from his personal superannuation account once he turns 60 in August of the next year.
Dave has provided you with the following details of the assets he has sold:
(a) A two-story residence at St Lucia in which he has lived for the last 30 years. He paid $70,000 to purchase the
property and received $850,000 on 27 June of the cu
ent tax year, after the real estate agent deducted
commissions of $15,000. The residence was originally sold at auction and the buyer placed an $85,000 deposit
on the property. Unfortunately, two weeks later the buyer indicated that he did not have sufficient funds to
proceed with the purchase, thereby forfeiting his deposit to Dave on 1 May of the cu
ent tax year. The real
estate agents then negotiated the sale of the residence to another interested party.
(b) A painting by Pro Hart that he purchased on 20 September 1985 for $15,000. The painting was sold at auction
on 31 May of the cu
ent tax year for $125,000.
(c) A luxury motor cruiser that he has moored at the Manly Yacht club. He purchased the boat in late 2004 for
$110,000. He sold it on 1 June of the cu
ent tax year to a local boat
oker for $60,000.
(d) On 5 June of the cu
ent tax year he sold for $80,000 a parcel of shares in a newly listed mining company. He
purchased these shares on 10 January of the cu
ent tax year for $75,000. He bo
owed $70,000 to fund the
purchase of these shares and incu
ed $5,000 in interest on the loan. He also paid $750 in
okerage on the
sale of the shares and $250 in stamp duty on the purchase of these shares. Dave has contacted the ATO and
they have advised him that the interest on the loan will not be an allowable deduction because the shares are
not generating any assessable income.
Dave has also indicated that his taxation return for the year ended 30 June of the previous year shows a net capital
loss of $10,000 from the sale of shares. These shares were the only assets he sold in that year.

Required:
Based on the information above, determine Dave Solomon’s net capital gain or net capital loss for the year ended
30 June of the cu
ent tax year. (15 marks)



Case 2 (15 marks)

Nick Smithson at all relevant times held a German passport. From the time of his first visit Australia in 2007 until the
end of the 2018 income year, he held a visa which permitted him to live and work in Australia.
During the time he was in Australia, Nick worked under contract as a marine engineer on a sea-going barge owned by
an Australian company. Subsequently, the barge was leased to a Malaysia-based company, Ocean Development Ltd
(OD), for use in ca
ying out work in China. Nick accepted employment with OD and left Australia on 8 July 2017,
leaving his son and wife in Australia. He worked for Ocean Development Ltd for nine months in China and earned AUD
$90,000. He then terminated his contract and returned to Australia where he stayed for the rest of the income year. On
his a
ival back in Australia he entered into a partnership business with his wife.

Accommodation provided for Nick in China by his employer was of a temporary or transitory nature in the form of single
men’s quarters or ba
acks. Meals were also provided. Ocean Development Ltd.’s office in Malaysia paid Nick’s wages
into his bank account in Australia, after deducting tax required to be paid in Malaysia. Nick paid no income tax in China.
Nick’s assets in Australia are his home in Sydney, an investment residential unit in Ma
ickville, a super policy with AMP,
listed shares, bank accounts and membership of a local golf club. Nick intended to be absent from Australia for
approximately nine months and was in fact away for that period only.

Required:
For the 2017/2018 tax year:
1) Is Nick a resident or non-resident of Australia? In your answer, you must refer to the relevant legislation and
cases. (10 marks)
2) Determine the source of income Nick received while he was working in China? In your answer, you must refer
to the relevant legislation and cases. (5 marks)