Posted: June 6th, 2019

HA3042 Taxation Law Individual Assignment T1.2019 Assessment

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HA3042 Taxation Law Individual Assignment T1.2019
Assessment Details and Submission Guidelines
Trimester T1 2019
Unit Code HA3042
Unit Title TAXATION LAW
Assessment Type Assignment
Assessment Title Individual Assignment
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. Knowledge of tax law concepts
2. Ability to analyse tax law issues
3. Ability to apply legal tax principles.
Weight 20 % of the total assessments
Total Marks 20
Word limit Max 2000 words (acceptable to be 10% above or below this word limit)
Due Date Sunday of week 10 at 11:59PM.
Submission
Guidelines
• Answer all questions.
• This assignment is to be submitted in accordance with assessment policy
stated in the Subject Outline and Student Handbook.
• It is the responsibility of the student who is submitting the work, to ensure
that the work is in fact her/his own work. Incorporating another’s work or
ideas into one’s own work without appropriate acknowledgement is an
academic offence. Students should submit all assignments for plagiarism
checking on Blackboard before final submission in the subject. For further
details, please refer to the Subject Outline and Student Handbook.
• All works must be submitted on Blackboard by the due date along with a
completed Assignment’s Cover Page.
• 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.
• 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.
Individual Assignment Specifications
Purpose:
This assignment aims at assessing students on the Learning Outcome from 1 to 3 as
mentioned above.
Assignment Structure should be as the following:
Questions 1: Weighting
Depreciation 0.5
Interest 0.5
Total operating cost 0.5
Taxable value 1
FBT 1
Statutory method formula 1.5
FBT liability 0.5
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HA3042 Taxation Law Individual Assignment T1.2019
Conclusion 0.5
Questions 2: Weighting
a. Based on the given information, students are required to
determine Daniel Ray’s net capital gain or net capital loss for the year
ended 30 June 2019.
10
b. What Daniel will do with a likely net capital gain in this financial year. 2
c. What Daniel will do with a likely net capital loss in this financial year. 2
Assignments’ Instructions and Requirements
Question 1 (6 marks)
On 1 April 2018, Spiceco Pty Ltd provided a car to their employee Lucinda for her private
use. Throughout the 2018/19 FBT year, the cost of the car was $18,000, repairs $3,300
Insurance $2,200, Fuel $ 990 (all above expenses are GST inclusive). Distance travelled
20,000 km (for the entire 2018/19 FBT year), Business use 70% Lucinda contributed
$1,000 towards the cost of the car.
Using the 2018/19 rates, calculate the FBT liability for Spiceco Pty Ltd for the 2018/19 FBT
year, assuming Spiceco Pty Ltd would like to minimise its FBT liability. If there is more than
one method of calculating the FBT liability, conclude which method should be used. Show
full workings to support your conclusion.
Question 2 (14 marks)
Daniel Ray is in his late 50s and would like to plan for his retirement. Daniel has visited his
accountant last week (15th March 2019). As part of his plan he likes to contribute to his
superannuation fund (i.e. BT Super for Life) before end of financial year this year. (i.e. 30
June 2019).
Daniel has different assets worth around $1m and plans to see these and contribute this to
his super fund. He also wants to lease his house and withdrew tax free amounts from huis
super account when he turns sixty in august 2020. As part of his plan to collect $1m for his
super investment, he has sold the following assets:
1- A house located at Doncaster (suburb of Melbourne). Daniel lived in this property for
the last 30 years. At that time, he bought the house for $70,000 and sold the house
for $865,000 in an auction on Saturday 29th June 2019. Out of this, he paid $15,000
to the real estate agent for the sales commission. The buyer deposited $85,000 on
the property, however after 14 days the buyer advised the real estate that he did not
have enough money for proceed with the contract of [purchase, therefore forfaiting
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HA3042 Taxation Law Individual Assignment T1.2019
his deposit to Daniel on 1st May 2019. After this the real estate agent started looking
for another potential buyer.
2- Daniel has an artistic piece of painting by Margaret Preston. He purchased this on 20
September 1985 for $15,000. The painting was sold for $125,000 at an auction on
31 May 2019.
3- Daniel had a luxury yacht that he has since he was active member of Port Melbourne
Yacht Club. He purchased the yacht in November 2004 for $110,000. Daniel sold the
luxury yacht on 1st June 2019 for $60,000.
4- Daniel had shares in BHP mining company, which he has purchased these shares
on 10 January 2019 for $75,000 and sold all of these shares on 5 June 2019 for
$80,000. Indeed, he got a loan of $70,000 in order to buy these shares and incurred
$5,000 interest on the loan. Daniel has paid $250 for stamp duty on the purchase,
and $750 of brokerage fee on the sale of these shares. Daniel spoke to his tax
adviser and he has advised Daniel that $5,000 interest incurred on the loan is a nondeductible expense.
In his previous financial year’s tax return (i.e. 2017-2018) Daniel has incurred a net capital
loss of $10,000 from the sale of AZJ shares. AZJ shares were the only asset that he sold in
2017-2018 financial year.
(a) Based on the above information, you are required to determine Daniel Ray’s net
capital gain or net capital loss for the year ended 30 June 2019.
(b) What Daniel will do with a likely net capital gain in this financial year.
(c) What Daniel will do with a likely net capital loss in this financial year.
Assignment Structure should be as the following (students responses involves
calculations, and students must refer to the relevant legislation and cases whenever
required according to the questions).
For question 1, address the following elements:
Depreciation
Interest
Total operating cost
Taxable value
FBT
Statutory method formula
FBT liability
Conclusion
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HA3042 Taxation Law Individual Assignment T1.2019
For question 2, address the following parts:
a) Based on the given information, students are required to determine Daniel Ray’s net
capital gain or net capital loss for the year ended 30 June 2019.
b) What Daniel will do with a likely net capital gain in this financial year.
c) What Daniel will do with a likely net capital loss in this financial year.

Marking criteria
Marking criteria Weighting
For Question 1, students need to answer the following elements correctly:
Depreciation 0.5
Interest 0.5
Total operating cost 0.5
Taxable value 1
FBT 1
Statutory method formula 1.5
FBT liability 0.5
Conclusion 0.5
Question 1 Weight 6 marks
For Question 2, students need to answer the following parts correctly:
Based on the given information, students are required to determine Daniel
Ray’s net capital gain or net capital loss for the year ended 30 June 2019.
10
What Daniel will do with a likely net capital gain in this financial year. 2
What Daniel will do with a likely net capital loss in this financial year. 2
Question 2 Weight 14 marks
TOTLA WEIGHT: 20 marks
Marking Rubric
Excellent Very Good Good Satisfactory Unsatisfactor
y
Marks
Allocatio
n
Taxation paper answers
For Question 1, students need to answer the following elements correctly
Depreciation Depreciation
figure is
calculated
correctly.
Student
demonstrate
s very good
knowledge
by giving
depreciation
formula.
Minor error
in calculation
of the
depreciation.
Student
demonstrate
s good
knowledge
overall.
Final figure is
incorrect ,
however
some
elements are
identified
correctly.
None of the
depreciation
elements has
been
identified.
0.5
Interest Interest
figure is
calculated
correctly.
Student
demonstrate
s very good
knowledge
by giving
Minor error
in calculation
of the
interest.
Student
Final figure is
incorrect ,
however
some
elements are
None of the
interest
elements has
been
identified.
0.5
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HA3042 Taxation Law Individual Assignment T1.2019
interest
formula.
demonstrate
s good
knowledge
overall.
identified
correctly.
Total operating
cost
All the steps
are correct.
The
operating
cost figure
has been
identified
correctly.
Student
demonstrate
s very good
knowledge
by calculating
total
operating
cost.
Minor error
in calculation
of the total
operating
cost. Student
demonstrate
s good
knowledge
overall.
Final total
operating
cost figure is
incorrect ,
however
some
elements in
the formula
are identified
correctly.
None of the
total
operating cost
elements has
been
identified.
0.5
Taxable value Demonstrate
s clear
understandin
g by
answering
the taxable
value figure
and the
formula
correctly.
Acknowledge
s and reflects
on the
calculation of
the taxable
value figure
and the
formula.
Student
demonstrate
s good by
answering
the taxable
value figure
and the
formula
correctly.
Student
demonstrates
sound
knowledge by
demonstratin
g the formula.
But the
answer to the
taxable value
figure was
incorrect.
Has difficulty
understanding
the material.
1
FBT Right formula
of FBT has
been given.
Accurately
answered the
question.
Student
demonstrate
s good
knowledge
by giving
expected
answers to all
questions,
minor error is
evidenced in
the answers.
Student
demonstrate
s good
knowledge
by giving
expected
answers to
all questions,
but fails to
elaborate.
Student
demonstrates
sound
knowledge by
giving
expected
answers to
most, but not
all parts of
the
questions.
Answered
incorrectly
1
FBT Formula Right formula
has been
identified.
Student
demonstrate
s very good
knowledge
by identifying
the FBT
formula.
FBT formula
is correct,
minor error
in elements.
Formula
given shows
some minor
errors.
Formula is not
given,
answered the
questions
incorrectly.
1.5
FBT liability Correctly
calculated
FBT liability.
Student
demonstrate
s very good
knowledge
by giving the
right formula
and
attempting
to answer
the question.
The student
provides the
formula but
not given the
final answer
to the
question.
The student
followed the
formula but
the elements
of formula
are incorrect.
The final
answer is
incorrect.
FBT liability is
not calculated.
Clear focus
and
organisation is
lacking.
0.5
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HA3042 Taxation Law Individual Assignment T1.2019
Conclusion Student is
able to
effectively
and
accurately
conclude the
question.
Student
demonstrate
s very good
knowledge
by giving
expected
answers to all
parts, minor
error is
evidenced in
the answers.
Student
demonstrate
s good
knowledge
by giving
expected
answers to
all questions,
but fails to
elaborate.
Student
demonstrates
sound
knowledge by
giving
expected
answers to
most, but not
all parts of
the
questions.
Conclusion is
not given
correctly.
0.5
For Question 2, students need to answer the following parts correctly
Based on the
given
information,
students are
required to
determine Dani
el Ray’s net
capital gain or
net capital loss
for the year
ended 30 June
2019.
Daniel’s CGT
gains and
losses are
calculated
correctly.
Student
demonstrate
s very good
knowledge of
CGT by giving
expected
answers to all
questions,
minor error is
evidenced in
the answers.
Student
demonstrate
s good CGT
knowledge
by giving
expected
answers to
all questions,
but fails to
elaborate.
Student
demonstrates
sound CGT
knowledge by
giving
expected
answers to
most, but not
all parts of
the
questions.
None of the
Daniel’s CGT
gains and
losses are
calculated
correctly.
10
What Daniel will
do with a likely
net capital gain
in this financial
year.
CGT
questions is
answered
correctly.
Student
demonstrate
s good
knowledge
by giving
expected
answers to all
questions,
minor error is
evidenced in
the answers.
Student
demonstrate
s good
knowledge
by giving
expected
answers to
all questions,
but fails to
elaborate.
Student
demonstrates
sound
knowledge of
CGT by giving
expected
answers to
most, but not
all parts of
the
questions.
CGT questions
is not
answered
correctly.
2
What Daniel will
do with a likely
net capital loss
in this financial
year.
Clear answer
is given to
this part of
the question.
Point of view
is present
and followed
by logical
organisation,
and clear
connection.
Point of view
is present
and followed
by logical
organisation.
Purpose of
the question
is clear, but
missing some
facts.
Answered the
question
incorrectly.
2