LAWS 19033 – CCCC AND PRACTICE A
TERM 1, 2020
ASSESSMENT ITEM 1 – INDIVIDUAL ASSESSEMENT
Marks: 40% of the overall assessment for the course.
Submission: Online via Moodle (Turnitin). Note: Submission in any other format (eg, .zip) will be treated as a non-submission.
Word limit: 2500-3000words
Due date: 24 April 2020. Note that Assignments submitted after this date (or a date approved by the unit coordinator after an online extension application) will incur a penalty of 5% of the total marks available for the assessment item per day.
Return to students: For students who have submitted their assignment by the due date, your assignments will be returned to you with feedback on or before 8 May 2020.
Extensions policy: The university policy on extensions of time will be strictly enforced. Extensions will only be considered if made via the online system and based on medical or compassionate grounds. Any extension application should be made before the due date for submission. Medical conditions should be supported by a medical certificate, and, since students are expected to start the assignment early, temporary or last-minute conditions are usually not grounds for an extension. Professionals are expected to manage their time to meet their obligations, so work or personal commitments are insufficient grounds for an extension.
Plagiarism: The university’s plagiarism policy will also be strictly enforced. If plagiarism is found, a minimum penalty is likely to be zero marks for the assessment. It could be worse. This assignment is the only assignment for this course, and it carries a weighting of 40% of the total assessment for the course. While the assignment is largely based on material covered, you are free to research and seek advice as widely as you find necessary—there are no limitations as to sources. However, you must make sure that sources are appropriately referenced.
Objectives: This assessment item links to the unit objectives as stated in the Unit Profile. Details This assignment is to be submitted in one (1) Word document only. This assignment is to be submitted online via Moodle by the due date stated. It is suggested that where necessary you put your calculations into columns or tables to improve readability in the assignment document.
Referencing: The method of referencing to be used in this assignment is the Australian Guide to Legal Citation (AGLC) 4th Edition Additional information regarding this method is available through the library and the Academic Learning Centre. When making a reference, cite the original source or authority in preference to a secondary source such as the textbook, especially when you are discussing various sections of legislation. This means you should make reference to legislation, cases and Tax Rulings as a priority to back up any arguments that you make in your assignment. Students must complete all Parts of the Assignment. To support the analysis in your answers, refer where appropriate to the ITAA 1936, ITAA 1997, Tax Rulings and/or case law.
Word limit: University assignments are an exercise in identifying and filtering relevant material and communicating answers succinctly. Quality is always more important than quantity. Please ensure that you adhere to the word limit indicated above. Please note that the word limits that appear beside each part of the assignment are indicators only. You may choose to allocate your word limit differently.
MARKING
All parts of the assignment will be marked in accordance with the university’s Grades procedure (which can be accessed via the Course Profile). The following marking rubric incorporates that procedure.
MARKING RUBRIC GRADE MARK
GRADE – HD
MARK – 85%+
CRITERION Demonstrates proficiency in all the learning outcomes of the unit; work is well read or scholarly.
COMMENT: Here, the student will have done everything well and formulated their answer in a tight, efficient, thoroughly professional manner. Their explanations and arguments will have a strong logical flow and be convincing. Their research will be thorough.
GRADE – D
MARK – 75-84%
CRITERION Demonstrates awareness and understanding of deeper and less obvious aspects of the unit, such as ability to identify and debate critical issues or problems, ability to solve non‐routine problems, ability to adapt and apply ideas to new situations. COMMENT: The student will demonstrate this by achieving all the outcomes for a Credit, but also some of the higher level standards for a High Distinction.
GRADE – C
MARK – 65-74%
CRITERION Demonstrates ability to use and apply fundamental concepts and skills of the unit, going beyond mere replication of content knowledge or skill to show understanding of key ideas, awareness of their relevance and some use of analytical skills.
COMMENT: Learning involves not only knowing principles or concepts but also the ability to apply them to a real-life situation.
GRADE – P
MARK – 50-64%
CRITERION Demonstrates the learning outcomes of the unit, such as knowledge of fundamental concepts and performance of basic skills; demonstrates sufficient quality of performance to be considered satisfactory or adequate or competent or capable in relation to the learning outcomes of the unit.
COMMENT: Students who get a mark in this range usually demonstrate some knowledge of principles and concepts, but do not explain or apply them accurately. Answers often look like little more than a summary of what someone else has written.
GRADE – F
MARK – 40-49%
CRITERION Fails to demonstrate the learning outcomes of the unit.
COMMENT: Students in this range usually make some effort to perform the assignment task but fail to achieve what is prescribed for a Pass.
GRADE – Low F
MARK – <40%
CRITERION COMMENT: Students in this range usually fail to properly carry out the instructions or fully perform the tasks specified in the assessment.
In more detail, markers will be using the following criterion to mark your assignment:
High distinction standard
• The answer is very well written and clearly expressed
• There is a demonstrated appreciation and understanding of the issues involved
• The answer is well structured and logically organised
• Demonstrated mastery of referencing system
• There is evidence of a comprehensive analysis of the issues
• Conclusions are backed by well-reasoned arguments demonstrating a detailed insight and analysis of issues
• Comprehensive coverage of all relevant issues
• References are made to the appropriated legislation for particular issues
• Statutory provisions are analysed and interpreted correctly
• The legislation is applied to the particular fact situation in a competent manner
• Consideration is given to the operation of the common law
• There may be consideration of issues not raised in the tutorials and answer guides
Distinction standard
• The answer is well written and expressed
• The answer is structured and logical
• The issues have been reasonably well identified and appreciated
• There is correct use of referencing
• Issues have been analysed
• Reference is made to all appropriate legislation, although the analysis and interpretation is not as detailed and reasoned as for the high distinction standard
• The effect of the common law is considered
• There is a comprehensive coverage of the issues
• Occasional errors of law and legal reasoning may still be present
Credit standard
• The answer is generally well written and expressed
• The answer is structured and sequential
• Referencing is satisfactory
• Issues are identified and addressed
• There has been an attempt to analyse some of the issues
• The coverage of issues is reasonably comprehensive often with a good treatment and analysis of particular points
• Errors of law and incorrect reasoning may sometimes be present
• Statutory interpretation may require improvement
• Depth of treatment is often lacking in some of the issues
Pass standard
• The answer is able to be followed and understood
• The answer could perhaps be better organised and structured
• The referencing may need improvement
• Issues may need to be identified and addressed in more depth
• Analysis when present may be incorrect
• Some familiarity with the legislation and its application is demonstrated
• Sometimes the conclusions reached are simple
• There may be several errors of law
• There may be quantities of material of marginal relevance included in the answer
Fail standard
• The answer may be significantly short of the required length
• The written expression is poor and difficult to understand
• The answer is poorly organised
• There has been a failure to identify and address the issues in the question
• Referencing is generally inadequate
• There is a lack of familiarity with the legislation and its appropriate application
• The reasoning and application demonstrated is poor
• Frequently there is much irrelevant material
PART A: Residency short response: 9 MARKS. Please make sure you use complete sentences in drafting your answers. Your responses should contain all relevant references to legislation, case law, and ATO guidance materials.
1. Annika, an aircraft mechanic, was born in Canberra. On the 1st of July 2018 she signed an employment contract with a Singaporean company. Annika intended on creating a life for herself in Singapore, and, therefore, upon signing the employment contract, sold her house in Canberra along with most of her personal belongings. However, due to the nature of her work, during the 2019 income tax year, she worked in Vietnam, Singapore and Malaysia staying only in temporary accommodation. She visited family and friends in Australia for 3 weeks between December and January 2019.
Advise Annika whether she would be considered a resident of Australia for tax purposes for the 2019 income tax year.
(3 marks)
2. Josh was born in England. He is a Professor at the University of London. He arrives in Brisbane on the 1st of February 2019 to undertake a research project. He rents a small furnished unit near his work and buys an old car. Josh occasionally goes to social events with work colleagues, but mostly keeps to himself. Apart from depositing his salary from the research project into an Australian bank account to cover his living expenses, Josh retains all his assets and investments in England. The research project is completed in October 2019, and Josh returns to England.
Advise Josh whether he would be considered a resident of Australia for tax purposes for the 2019 income tax year.
(3 marks)
*** PART A CONTINUED OVER PAGE ***
3. Lucy, a Canadian national, decides to spend some time in Australia after finishing her university degree. Her intention is to spend at least part of her time in Australia working, and, therefore, she obtained a working holiday visa. This enables her to work for no more than six months for the one employer. Upon her arrival in Australia on the 1st of July 2018, Lucy obtains a job at a pub in Sydney. She works at this pub for 3 months and stays with an old family friend during this time. After that period, Lucy decides to travel, around the country, spending less than a month in each destination. After 8 months, Lucy returns to Canada, obtains a full-time job, and buys a house.
Advise Lucy whether she would be considered a resident of Australia for tax purposes for the 2019 income tax year.
(3 months)
PART B: Assessable income: short response 16 MARKS. Please make sure you use complete sentences in drafting your answers. Your responses should contain all relevant references to legislation, case law, and ATO guidance materials.
1. Neil, an electrician, is injured at work. On the 1st of February 2019, he receives the following amounts:
a. Compensation for loss of wages $2,000
b. Reimbursement of medical expenses by employer $500
c. Damages for personal injury $13,000
Advise Neil whether any of these amounts would form part of his assessable income.
(4 marks)
2. Ameerah, who works full time as a graphic designer, has recently started to design websites for her friends. She spends an average of two hours per week on this activity, and her friends pay her $50 per hour. She does not maintain business records, however, believes it will take her about three years to make this activity into a successful business of her own. She has purchased special software for use on her home laptop. Ameerah has registered the business name “Website designs by Ameerah” and has opened a separate bank account for the business.
Advise Ameerah whether creating websites for her friends is a business or a hobby for tax purposes.
(6 marks)
3. Travis purchased a large block of land on the outskirts of Brisbane on 10 July 1984. He built a house on that land and has lived there ever since. As he is nearing retirement, in the 2020 income tax year, Travis plans to subdivide the block. He plans on subdividing the block into 5 lots, selling 4 blocks and retaining the block his private residence is on. He does not have any prior experience with land development and does not have any plans for any other subdivision projects. Travis intends to engage contractors to perform the necessary work such as surveying, marketing and selling.
Advise Travis whether the profit from the sale of the subdivided lots are assessable as ordinary income. You can ignore any capital gains tax implications in your answer.
(6 marks)
PART C: Allowable deductions: short response 15 MARKS. Please make sure you use complete sentences in drafting your answers. Your responses should contain all relevant references to legislation, case law, and ATO guidance materials.
1. Danielle is a television game show host who attends a studio once a week to record multiple episodes of the show for the week. Her employer does not provide her with clothing to wear on the show. She buys evening wear and formal wear to complement the sets and prize showcases. Danielle does not wear this clothing other than for work.
Advise Danielle whether she would be able to claim the cost of this clothing as a deduction.
(4 marks)
2. In 2017, Akari was audited by the ATO, which resulted in an amended assessment issuing. Akari lodged a Notice of Objection against the amended assessment. The Commissioner disallowed the objection. Akari appealed the matter to the Administrative Appeals Tribunal, where the decision of the Commissioner was upheld. Akari incurred substantial accounting and legal fees in respect of this matter.
Advise Akari whether the accounting and legal fees incurred are deductible.
(3 marks)
3. Simon operates a mobile mechanic business. His clients often pay him in cash, which he keeps in a lock box in his truck until he can get to the bank. Simon includes these cash takings in his assessable income. Unfortunately, whilst on a job, the lock box was stolen from Simon’s truck, and he lost $2400.
Advise Simon whether he can claim this theft as a deduction.
(3 marks)
*** PART C CONTINUED OVER PAGE ***
4. Sunshine Coast Joy Flights Pty Ltd is a business which takes tourists on scenic helicopter flights. On the 1st of April 2019, the company purchased a helicopter for use in the business. The helicopter was purchased with a certificate of airworthiness which stated that it was ready to fly. However, soon after the purchase, it was discovered that the helicopter needed major repairs. The helicopter was not used for any private or income producing activities from the time of purchase until the major repairs were undertaken. Once the repairs were completed in August 2019, the helicopter was put into service.
Advise the company whether they could claim a deduction for the purchase of the helicopter in the 2019 income tax year only.
(5 marks)