HI6028 Taxation Theory, Practice and Law Assignment
|Unit Details||Name||Taxation Theory, Practice and Law|
|Year, Trimester||2023 Trimester 1|
|Assessment Details||Name||Individual Assignment|
|Due Date and Week||Week 9 (19 May 2023)|
|Individual Student Details||Student Number|
|Submission Declaration||Integrity Declaration||I have read and understand academic integrity policies and practices and my assessment does not violate these.|
|Academic Integrity Information||Holmes Institute is committed to ensuring and upholding academic integrity. All assessment must comply with academic integrity guidelines. Important academic integrity breaches include plagiarism, collusion, copying, impersonation, contract cheating, data fabrication and falsification. Please learn about academic integrity and consult your teachers with any questions. Violating academic integrity is serious and punishable by penalties that range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.|
|Format Instructions||Most assessments must be in MS Word format with no spacing, 11-pt Calibri font and at least 2cm margins on all four sides with appropriate section headings and page numbers. |
You must name your file with the Unit Code and Student ID (e.g. “HI6028- GWA1995”).
Check that you submit the correct document as special consideration is not granted if you make a mistake.
Student ID needs to be indicated on the cover page.
|Penalties||All work must be submitted on Blackboard by the due date and time along with a completed Assessment Cover Page. Late penalties apply.|
Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Holmes Institute Adapted
|Harvard Referencing. Penalties are associated with incorrect citation and referencing.|
Question No 1 A
Melissa is a mechanic. She runs her own business specialising in repairing electric vehicles, especially cars. This year her company has some expenses. Referring to relevant provisions of the Income Tax Assessment Act 1997 (Cth), Income Tax Assessment Act 1936 (Cth) and case laws, discuss the following amounts are deductible or not: (Maximum 800 words)
- She spends travel cast from her home to her repair centre regularly. In this process, she spent a total travel cost of $3,200 this year.
- A staff who works in the repair centre paid a $1,080 fine for speeding a car that he was driving in the process of servicing and repairing.
- Legal expenses incurred by a company opposing a petition for winding up. The company paid $11,000 for lawyers and court fees.
Questions 1 B
Suresh is a technician working with Melissa’s car repair centre. Due to a dangerous workplace accident, Suresh became seriously ill. Suresh received compensation of $131,000. The lump sum was divided into $57,000 loss of earnings, $43,000 loss of future earning capacity and $31,000 for pain and suffering. Based on legal provisions and case law, advise Suresh, will any of these amounts be assessable income?
Furthermore, advise Suresh whether it would be better to accept a lesser sum of $110,000 without any agreed allocation of the funds between current and future earnings and pain and suffering. (Maximum 700 words)
Question No 2 15 Marks
You are working as a staff at Accounting and Tax Services Pty Ltd Sydney. Sharine is your first client. She requires to lodge her income tax for 2021/22. She gave her annual income and deduction below. Calculate her Total Assessable Income, Taxable Income, Tax Liability, Medicare Levy and Medicare Levy Surcharge, if applicable, for the taxpayer (Sharine) with the information below:
- Sharine is a resident single mom with one dependent daughter (3 years old) taxpayer of Australia for the tax year 2021-2022.
- Her Taxable Salary earned is $111,000 (Including tax withheld), having no private health insurance.
- She had a $13,000 deduction.
- Sharine has a student loan outstanding for her study at Sydney University $47,000, an education loan.
- Sharine ’s employer paid a superannuation guarantee charge of 10 % on top of her salary to her nominated fund.
- Sharine earned a passive income of $15,000 from the investment income from her investment property in the same tax year.
Hint: The following website can be used to cross-check your answers, but you need to provide detailed calculations, rates and explanations with screenshots of rates from the ATO website.
Submission guide: Strictly NO excel sheet(s) or screenshots of excel calculations and/or tables are allowed. Kindly use word document tables for your answers and please avoid writing the calculations in narration format.
|QUESTION 2: Income Tax Calculation and explanation||Weighting|
|Total Assessable Income||1 mark|
|Total Taxable Income||1 mark|
|Tax Rates (formula)||1.5 Marks|
|HELP repayment amount||1.5 marks|
|Medicare Levy||1.5 marks|
|Medicare Levy Surcharge||1.5 mark|
|Total Tax Liability||3 marks|
|Net Tax Liability (Total Tax Liability less any applicable tax offset if any)||3 marks|
|Total marks||15 Marks|
Student Assessment Citation and Referencing Rules
Holmes has implemented a revised Harvard approach to referencing. The following rules apply:
- Reference sources in assignments are limited to sources that provide full-text access to the source’s content for lecturers and markers.
- The reference list must be located on a separate page at the end of the essay and titled: “References”.
- The reference list must include the details of all the in-text citations, arranged A-Z alphabetically by author surname with each reference numbered (1 to 10, etc.) and each reference MUST include a hyperlink to the full text of the cited reference source.
7. Hawking, P., McCarthy, B. & Stein, A. 2004. Second Wave ERP Education, Journal of Information Systems Education, Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf
- All assignments must include in-text citations to the listed references. These must include the surname of the author/s or name of the authoring body, year of publication, page number of the content, and paragraph where the content can be found. For example, “The company decided to implement an enterprise-wide data warehouse business intelligence strategy (Hawking et al., 2004, p3(4)).”
Further referencing for Acts/Statues and case law – students require to use the following example. These examples apply to law-related units only.
Referencing legislation and Cases: Examples
|In-Text – Example||Reference List – Examples|
|Acts/Statutes||Section 8.1 of the Income Tax Assessment Act 1997 (Cth) states that … OR ‘You can deduct from your assessable income’ … (Income Tax Assessment Act 1997 (Cth), s.8.1).||Income Tax Assessment Act 1997 (Cth) |
No full stops at the end of the reference – for the Reference List for legislation and cases.
|Cases||FC of T v Western Suburbs Cinema Ltd (1952) 86 CLR 102.||FC of T v Western Suburbs Cinema Ltd (1952) 86 CLR 102|
Non-Adherence to Referencing Rules
Where students do not follow the above rules, penalties apply:
- For students who submit assignments that do not comply with all aspects of the rules, a 10% penalty will be applied.
- Students who comply with rules BUT their citations are ‘fake’ will be reported for academic misconduct.