LAW5230 Taxation L Aasws iAgsnsmigennmt e nt

| December 26, 2015

LAW5230 Taxation L Aasws iAgsnsmigennmt e nt
Due date: 11 January 2016
Value: 34%
LWimoridt: 3,000 words (excluding calculations)
This assignment consists of three (3) case studies. You must complete all the case studies and all parts of each case study.
Case Study One
Jsotuhdni eisd aa 3t 8U ySeQa r aonldd msipneinngt esnegveinreael r ywehaors wwaso rbkoinrng inin Qmueineenss lainn d.c e nJotrhanl aQnude elinvselda ntdh eareft ewri tghr ahdisu gatirinlfgri.e n dH efo pr usrecvhearsael dy eaa rhso. u se in Mackay in 2010
Icno mApparnily ,2 b0a1s4e dh ein athceceirp hteeda daq uamrtaenrasg ienm Sewnitt zerorllaen dw.i t hA sa p agrlto boaf l thmisi nrionlge hweo rwlda, s arse qaunirde dw thoe ntr advireel cttoe dm binyi ngh isc oenmstprulocyteiorn. p rTohjee ctms inailnl ga rocoumndp atnhye sphroavreidde da at wfuor nbiesdhreodo map aarptmaretmnte innt Swwitihtz ear laconldle faogru iet . e mJophlony esetasy, eadn din J othhne taop atrhtims eanpta rwtmheenn th efr owmas A nportil t2ra0v1e4l liunngt itl oA muginuisntg 2 p0r1o5je. c tHs,e aensdt imhaadt eadc ctehsast tdhuer inagp atrhtem yeenat,r aesn dheed s 3p0en Jtu tnhee 2m01aj5o rhitey hoafd t hseta yyeedar a a tto vtaalr ioofu s6 2m ninigeh stsit eins farrioeunndds itnh Se wwitozreldrl.a n Ads o rJ othimn ew taos j otrina vaenllyin sgp osrot inmgu ochr shoec iadli dcnlu’tb sh.a ve many
Iansikteiadll yh Jiso henm hpalody deirf fitcou lptiaeys ohpise nsianlga ray bianntok ahcisc oAuunstt rina liSawn itbzaenrlka nadc,c soou nhte. After a few months he was able to open a bank account in Switzerland.
sWhhee wn oJuolhdn rleenftt Ahuiss throauliase h ein cMamacek atoy , apna ayginrge eam menatr kweitt hr ehnista gl idrlifrreiecntldy tinhtaot ihnis s Atoursatgrae liiann M baacnkka ya cpcroiourn tto. lHeaev pinlagc eind Aitpermil s2 0o1f 4fu. r nDituurrineg a nthde a y meaort oernbdiekde 3C0h riJsutmnea s2 a0n1d5 fohre hvisi sfiatethde rA’su s7t0rathl ibai rtohnd atyw oin oMcacracshio 2n0s1, 5f.o r a week over
During the year-ended 30 June 2015 John had the following transactions:
? $S2a0la,r0y0 0p awida bs yp tahied minitnoi nhgi sc oAmusptarnayli aAnU Dba$n1k2 0a,c0c0o0u.n tO af nthdi s$ a1m00o,u0n0t0, was paid into his Swiss bank account.
LAW5230 Assignment Semester 3, 2015
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? The mining company awarded John a bonus for during the year year-ended 30 June 2015. It wa sh pisa igdo tood Josehrnv iocne 15 July 2015.
? gRiernlftr ieonfd $fo1r3 t,h5e0 0r enpta iodf hinist oh ohuisse iAnu Mstarackliaayn. bank account by his
? Interest on his Australian bank account of $250.
? Iwnittehrheosltd inogn thaixs hSawdis sb ebeann kd eadcuccotuend t bAyU Dth$e4 5S0w, isfsr omba nwk hipcrhio r$ 5t0o crediting his account.
? Jnooht nw woarks ifnojru trherde eo n( 3o)n ew oefe khsis avnisdi tws atos ap amidin we oinrk Aerfrsi’c aco. m Jophenns caotuiolnd roef c$e1iv,e0d0 0a ao nwee-oekff taom roeupnlat coef h$5is, 0s0a0la rfoyr dtuhrei npgh ythsiicsa tl imineju. r yJ.o hn also
DRiesqcuusirse dw:i th reference to legislation, case law and/or rulings (where rpeulrepvoasnets) wfohre ththeer Joinhcno mwoe ulyde baer ceonndseidde r3e0d aJ urensei de2n0t1 5of. ABuasstreadl iao fno r tthaixs cstoantcel uwsihoinc ha nadm oduisnctuss swinogu ldth eb es oinucrlcued eadn di nd ehrisiv aatsisoens soaf bilnec oinmceo mperi nfcoirp ltehse, yAegarer.e m Yeonut sd. o not need to consider the consequences of any Double Tax
LAW5230 Assignment Semester 3, 2015
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Case Study Two
The following separate scenarios require your advice as indicated:
Part A
Regional Aussie Bank Ltd (RAB) is an Australian resident has been making good profits in recent years. company that Due to its success it became a target for a takeover by one of the larger lbeagnakl,s . a cDcouurinntgin gth, ep yuebalirc ernedlaetdio n3s0 aJnudn e p2ri0n1ti5n,g RcAoBs tisn ciunr raend a$t7t5e,m00p0t tino defend itself against the takeover. cOunset oomf etrhse. sRerAvBic ewsa sR AsBu epdr ofvoird edsa misa ginevse sbtym esnotm aed voifc eit sf ocru hstigohm ewrse afltohr snieggnliifgiceannt t inavmesotumntesn t ofa dmvicoen eyth. at Trehseu ltCeodu ritn atwheasrdee dc usthtoem ecruss tolomseinrgs f$e2e0s0 ,w0h0e0n w thhiec hm RaAtBte rp awide notn to3 1C Mouaryt ,2 r0e1c5e.i v iRngA Ba nsp iennvto i$c4e5 ,f0ro0m0 othne l elgaawl firm on 25 June 2015. The legal fees were paid on 10 July 2015. Awfatnerte ds utcoc eesxspfaunllyd idtse fheonmdien gle nitdsienlgf baugsaiinnesst s.t h eO nt a1k eJaonvuera rya t2te0m15p ti,t pRaAiBd l$o1a,n0s0 0t,o0 0th0e toc oam plaarngye’ sm einminpglo yceoemsp iann yr etgoio bnea l tmhei nsinogle tporwonvsid eforr offi vheo m(5e) years. BRaesqeudi roend :t his information what amount can RAB claim as an allowable ednedduedct io3n0 uJnudneer s2 081-51? In cSomupep oTrat x yAosusre sdsmisceunsts iAocnt w19it9h7 rfeofre rtehnec ey eator appropriate authority.
Part B
fIins hJiunlgy t2ri0p1s4 i nB aMroryre dtoenc idBeady . t oB abruryy ac obmomate fnocre s$ 3h2is,0 b0u0s itnoe stas koen t2o8u rAisutsg uosnt 2w0a1s4 f,i vceh ayregainrsg oeldac ahn pda hssaedn dgaemr $a1g5e 0t op eitrs thriupl.l dTuhee tboo tahte B parreryv iopuusr cohwasneedr ohritdteinrg t oa msuabkme eitr gseadfe r otoc kc.o mBamrreyn chea dfi sthoi nsgp etnridp s$. 5 ,O0n0 01 tAo urgeupsati r2 t0h1e4 hBuallr riny rpeugruchlaatsioends . 12 life jackets costing $149 each to comply with safety
tIhne D beocaetm. b Bear r2ry0 1h4a da tpoa pssaeyn $g7e0r 0d atom haagveed tohnee r oofd thhoel dfiesrh irnegp lraocde dh.o lders on
pAa ssstoernmge rins sJiatn wuahrilye cthaeu sbeoda td aism targavee tlloin gth oeu ct atnov afiss hcinagn olopcya tuionndse.r wBharicrhy dweocuidlde dn otto b ere dpalamcea gethde asc aenavsailsy cina nfuotpuyr ew bitahd aw efaibthreegr.la sTsh ec arneopplayc ewmheicnht canopy cost $2,000.
LAW5230 Assignment Semester 3, 2015
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Required:
Discuss with reference to appropriate (and most relevant) law and/or rulings whether the expenses described abov ele agrisel adteiodnu,c ctiabslee fdoerd uBcatirbriyli tyi na ntdh eti myineagr isseunedse,d b u3t0 D OJu NneO T2 n0e1e5d. to Ycoaulc ulsahtoeu aldn y dciascpuitsasl allowances.
Part C
SStteellllaa isr eagnu laacrclyo untrtaavnetl se mtpol oyceliedn wt’sit h parne macisceosu nIt inTgo foirwmo oinm bTao owaonodm tbhae. s2u0r1r4o uSntdeinllag apruerac hdausreindg ah enre ww ocrkairn gfo dr a$y6 u7s,0in0g0 hwerh iocwh ns chaer .u sOend 1b oAtuhg ufosrt ypeearsros.n al and work-related travel. The effective life of the car is eight (8)
Tbheien gto wtaol rkki-loremlaetterde su tsrea.v elled to 30 June 2015 was 40,000, with 7,500kms
Stella incurred the following expenses:
Registration $670
Insurance $850
Petrol $2,250
Replacement windscreen $250
aTlhoen gw ain gdrsacvreeel nro awda,s a nbda dhley r cinhsipupraedn cew hdeidn nSotte pllrao vwidaes adnryiv cinogm ptoe nas actiloienn.t
Required:
tAhdev iusese S otef llhae rw hcaert.h e rC aslhceu laist ee nthtietl emd atxoim culamim a allonw aallbolwe adbeled udcetidounc, tiiof na nfoyr, Swtoerlklain wgsil.l be able to claim for the year ended 30 June 2015. Show all
LAW5230 Assignment Semester 3, 2015
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Case Study Three
Billy is a resident of Australia for tax purposes and has the following transactions which occurred during the inc oinmfoer myeeadr yeonud eodf l3o0s sJeusn efr o2m01 5th. e B2i0lly1 2a lysoe airn foofr m$1s 1y,o0u0 0t.h a tT hhies hloasss craerlraieteds fotorw tahred scaalpei toafl s2h0a0r9e sin. c oAmddei tyioenaar lilny hreel ahtaiosn a t o$ 1th,2e0 s0a lcea rorfi eadn fooirl wpaarindt cinagp.i tal loss from the House nDeuarirn gT otohwe ocoumrrbean ta inndc ommoev yee ator BBirlilsyb daencei.d e dT hteo sTeolol whioso 4m hbeac tparroep eprrtoyp ehratdy faalwrmayinsg b beuesni nuessesd oans tBhiell yla’sn dm, aoinn lrye shiadveinncge .a fBeiwlly shhaede pn etov eer acta trhriee dg roans sa. dHuet yfi rostf p$u2r,0ch0a0s. e dB tilhlye blaunildt othne 1h Ooucstoeb eimr m20e0d0ia tfeolry $a1f0te0r, 0p0u0r cphlaussi nsgta tmhpe lsaenlld t,h aen pdr oppaeidrt y$ 1fo8r0 ,$060200 ,in0 0c0o nosnt r1u cJtuionne 2co0s1t5s .a nBdi lltyh es ipgrnoepde ral yc osentttrlaecdt otno $115 5,J0u0ly0 . 2 T0h1e5 .r e aTl hees tarteea la geesntat tvea luaegde ntth’se tcwoom (m2)is hsieocnt aroen yathrde tshael eh owuases $w2a0s0 l,o0c0a0te. d on at $420,000 and the remaining two (2) hectare paddock at Coin pBuillryc haacsqeudi rethde ac orainr eo nR o1m Saenp ctoeimn bferor m1 9h9i8s ffaotrh $e1r’,s0 0e0st.a tAe.t tHheis tfiamthee or f hhaids fcaotihne fro’sr $d6ea,8th0 0i no nM a1y J u2n0e1 32 0t1h5e , minacrukrertin vga $lu9e5 0w ains c$o6m,0m0i0s.s i oBni lflye esso aldt tthhee time of sale. Letter of Advice:
? iPnrcolvuiddee ina dhviisc ea stsoe sBsiallbyl ea isn ctoom aen yfo rn etht ec ianpciotaml eg ayiena rh een dweildl h3a0v Jeu ntoe t2h0e1 5fo arms ao fr eas Cullti eonf tt hLee tatbeorv oef tAradnvsiaccet.i ons. Your advice must be in
? aYuoudire nlectete r( inofd iavdidvuicael sthaxopualdy ebre) warnidtt edni sicnu lsasn gthuea geca spuitiatal bglea ifnosr tthaex caonnys reeqcuoerndc-kees eopfi nega rcehq turiarenmsaecntitosn. . You should also advise Billy of
? aTnh e cAaplpcuelnadtiioxn st oo f atnhye releletvtearn,t csahpoitwailn gga inesx pshlaonualtdi obne infocrl udtehde sine rceallecvualanttio lnesg.i sl aTtihoins, cisa swe hlaewre pyrionuc ipslheos ualdn dm rualkineg sr eifne raepnpcreo atcoh inagll itnhfios rmqauteiostnio. n. Please consult the marking criteria for further 100 Marks Total for this Assignment See Criteria Sheet on next page for mark allocations.
LAW5230 Assignment Semester 3, 2015
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LAW5230 Semes –te Tra 3x,a 2ti0o1n5 L aw Assignment Marking Criteria Sheet
Case Study 1 – Assessable Income Issues
Little
attemp
t
F C B A HD
Iadnedn ctaifsicea ltaiown of legal issues, legislation
rOevleevraalnl tt haes ssetsusdaebnlet hinacso imdeen itsifsiueeds t,h e laengdis rlautliinogns a. nd where appropriate case law
0 0.5 1.5 2 2.5 3
Application
sDpeemciofincs rterastideedn lceyv eisl soufe usn idne rresltaatniodnin tgo oJfo thhne through the application of the identified law. 1 2 5 6 8 10
sDpeemciofincs dtreartievda tlieovne al nodf usnoduercres toafn dinincogm oef the iaspspuleicsa itnio rne loaft itohne tiod eJnothifnie tdh rloauwg.h the
1 2 5 6 7 9
sDpeemciofincs otrradtienda rlye vaenld o sf tuantudteorrsyta inndcoinmg eo ifs tshuee s itnh er eidlaetniotnif ietod Jloahwn. through the application of
1 2 5 6 7 9
Conclusions
aOnvde rvaalll,i dt hceo nsctuludseionnt sh aafst edrr aawpnpl yaipnpgr othperi alatew . 0 0.5 1.5 2 2.5 3
Total out of 34
Case Study 2 – Deduction Issues aLtipttettlm e F C B A HD
Iadnedn ctaifsicea ltaiown of legal issues, legislation
dOevdeuracltli otnh ei ssstuuedse,n lte ghiassla itdioenn taifniedd w thheer e appropriate case law and rulings. 0 0.5 1.5 2 2.5 3
Application
lDaewm roenlasttirnagt etdo laelvloewl aobf luen ddeedrsutcatniodnins gf oorf the business expenses for RAB. 1 2 5 6 8 10
lDaewm roenlasttirnagt etdo laelvloewl aobf luen ddeedrsutcatniodnins gf oorf the repairs for Barry. 1 2 5 6 7 9
lDaewm roenlasttirnagt etdo laelvloewl aobf luen ddeedrsutcatniodnins gf oorf ctahre expenses for Stella. 1 2 5 6 7 9
Conclusions
aOnvde rvaalll,i dt hceo nsctuludseionnt sh aafst edrr aawpnpl yaipnpgr othperi alatew . 0 0.5 1.5 2 2.5 3
Total out of 34
LAW5230 Assignment Semester 3, 2015
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Case Study 3 – Issues Capital Gains Tax
aLtittetlme pt F C B A HD
lIedgeinstlaiftiicoant iaonnd o cf alesgea lla wiss ues,
rOevleevraalnl tt hcea psittuadl egnatin hsa tsa xid eisnstuifeies,d the laengdis rlautliinogns a. nd where appropriate case law
0 0.5 1.5 2 2.5 3
Application
tDheem sopnesctirfiact ecdap lietvael lg oafi nusn tdaexr sistasunedsin ign of relation to the sale of Billy’s residence. 1 2 4 5 6.5 7.5
tDheem sopnesctirfiact ecdap lietvael lg oafi nusn tdaexr sistasunedsin ign of relation to the sale of Billy’s coins. 1 2 4 5 6.5 7.5
Conclusions
aOnvde rvaalll,i dt hceo nsctuludseionnt sh aafst edrr aawpnpl yaipnpgr othperi ate lnaewt (cCaaplictuall agtaioinn, arnedco erxdp-klaeneaptiinogn) .o f
0 1 2 2.5 3 4
Letter of Advice
gOrvaemramll acrl aarnitdy aopf perxopprreiastseionne,s su soef othf e llaenttgeura goef aanddv itceer.m inology for a client
0 1 2.5 3.5 5 6
Total out of 28
General Criteria aLtipttettlm e F C B A HD
aApbpilritoyp troia tuesley cahnods econr rreecftelyre. ncing method Bibliography. 0 0.5 1 2 3 4
Total out of 4
TOTAL (out of 100)
General Comments
LAW5230 Assignment Semester 3, 2015

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