ACCG 924 Taxation Law
Session 2, 2014 Assessment Guide Note – this is NOT the Unit Guide The ofcial Unit Guide is available available online and is accessed separately separately through through iLearn or this unit. The Assessment Assessment Guide should be read in conunction !ith the Unit Guide.
"epartment o Accounting and #orporate Governance
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
MACQUARIE MACQUARIE UNIVERSITY FACULTY OF BUSINESS AND ECONOMICS ASSESSMENT GUIDE
Unit: ACCG924 Taxation Law Study Period: Session 2, 2014 Unit Convenor: r Catriona Lavermi!o!!a Credit "oints: 4 !redit "oints Students in this unit MUST read the onine Unit Guide !are"u# at the start o" session and $e a%are o" its !ontents throu&hout the session' T#e Unit Guide !ontains im"ortant in$ormation a%out t#e unit & i$ anyt#in' in t#e unit 'uide is un!(ear, "(ease "(ease !onsu(t wit# t#e Unit Convener) This Assess(ent Guide )ro*ides si&ni"i!ant additiona detai re&ardin& in t#e Unit assess(ent and other earnin& reated issues' Some items in Guide are inevita%(y inevita%(y re*stated in t#is Assessment Guide) Guide) +t is im"ortant t#at you understand $u((y t#at, in t#e event t#at t#ere is any di$$eren!e in t#e way t#at t#is assessment 'uide states a matter and t#e way t#at t#e Unit Guide ex"resses t#e same matter, t#en t#e Unit Guide is to %e re'arded as %ein' t#e o$$i!ia( "osition o$ t#e e"artment)
ABOUT T+IS UNIT T#is unit detai(s and ana(yses t#e (aws re(atin' r e(atin' to in!ome tax, $rin'e %ene$its tax and t#e 'oods and servi!es tax in Austra(ia) Students !om"(etin' t#is unit wi(( review (e'is(ative "rovisions, !ase (aw and ru(in's and a""(y t#eir now(ed'e o$ t#e taxation (aws to a variety o$ $a!t situations and !ase studies as we(( as "arti!i"ate in 'rou" dis!ussion) TEAC+ING STAFF Na(e
Roe in unit
E(ai
S#ir(ey -ur"#y
Le!turer
s#ir(ey)mur"#y.m/)edu)au
i!toria Lais
Le!turer
vi!toria)(ais.m/)edu)au
Patri! Ga((a'#er
Le!turer
"atri!)'a((a'#er.m/)edu)au
Tom Tom Su((ivan Su(( ivan
Le!turer
tom)osu((ivan.m/)edu)au
-in' 3on'*Too*uen 3on'*Too*uen
Le!turer
min')won'*too*yuen.m/)edu)au
Catriona Lavermi!o!!a
Unit Convenor
!atriona)(avermi!o!!a.m/)edu)au
2 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
CONTACTING STAFF AND SU,,ORT
All correspondence correspondence related to administrative matters matters must be submitted via the unit unit’s ’s emai emaill addr addres ess s at
[email protected] [email protected] .au . Any Any ques questi tion ons s rela relati ting ng to the the technical techn ical mater material ial shou should ld be subm submit itte ted d via via the the ilea ilearn rn unit unit webs websit ite e Gen Gener eral al !iscussion" so that all students will be able to view the questions and responses and reduce duplication #tudents are also advised to chec$ i%learn and their emails o&ten as announcements' advice or help with issues will be posted on i%learn and sent by email throughout the semester. semester. Sta$$ tea!#in' in t#e unit wi(( %e avai(a%(e $or individua( !onsu(tation wit# students) A timeta%(e o$ w#en sta$$ wi(( %e avai(a%(e wi(( %e "osted on t#e units iLearn site) Stud Studen ents ts ex"e ex"erie rien! n!in in' ' si'n si'ni$ i$i! i!an antt di$$ di$$i! i!u( u(tie ties s wit# wit# any any to"i to"i! ! in t#e t#e unit unit must must see see assistan!e immediate(y) ou are en!oura'ed to see #e(" at a time t#at is !onvenient to you $rom a sta$$ mem%er tea!#in' on t#is unit durin' t#eir re'u(ar !onsu(tation #ours) +n s"e!ia( !ir!umstan!es, an a""ointment may %e made outside re'u(ar !onsu(tation #ours) Sta$$ wi(( not !ondu!t !onsu(tations %y emai() ou may, #owever, "#one sta$$ durin' t#eir !onsu(tation #ours) Tutor !onsu(tation sessions sessions wi(( %e run at t#e Consu(tation 5oom at 647104) +n order to 'ain a!!ess to sta$$ (o!ated at (eve(s 1, 2 and 8 o$ %ui(din' 64A durin' t#eir !onsu(tation #ours "(ease rin' t#e sta$$ mem%er $rom t#e "#ones avai(a%(e in t#e (o%%y "#one num%ers o$ re(evant sta$$ mem%ers wi(( %e "rovided on iLearn and are avai(a%(e next to t#e "#ones)
CLASSES •
•
T#e t#irteen t#ree*#our seminars ea!# wee wi(( !onsist o$ a (e!ture and tutoria( !om"onent as detai(ed (ater in t#is Assessment Guide) C(ass attendan!e $or t#is unit is !om"u(sory) !om"u(sory)
REQUIRED AND RECOMMENDED TE-TS AND .OR MATERIALS ,res!ri$ed te/t$oo0s1 •
•
3oe((ner, 7aro!;y, -ur"#y, 6vans and Pinto Australian Taxa Taxation tion Law 2014 Law 2014 CC< 24t# 6dition 7aro!;y, S) Core Tax Legislation and Study Guide 2014 CC<) 2014 CC<)
Re!o((ended te/t$oo0s1 T#e $o((owin' is not s"e!i$i!a((y re/uired %ut may %e used $or additiona( readin') Australian Master Tax Tax Guide 2014 2014 =2nd =2nd 6dition CC< >et#er!ott L? and ot#ers Australian ot#ers Australian Tax Tax Study Manual: Manual: Questions and Suggested Suggested Solutions 2014 24t# 2014 24t# 6dition CC< • •
3 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
•
7aro!;y S Australian Tax Casebook 2014 12t# 6dition CC<
T#e "res!ri%ed and re!ommended texts !an %e "ur!#ased $rom t#e -a!/uarie University Co*o" 7oos#o" and are avai(a%(e in t#e -a!/uarie Li%rary) Additiona Resour!es1 T#e University (i%rary #as numerous resour!es re(atin' to taxation (aw #owever you may $ind "arti!u(ar(y use$u( t#e on*(ine resour!es @Tax resour!es avai(a%(e t#rou'# t#e (i%rary data%ases, s"e!i$i!a((y CC<*n(ine) Additiona( resour!es wi(( %e made avai(a%(e on t#e i(earn unit we%site $or you to down(oad and read) LEARNING OUTCOMES n t#e !om"(etion o$ t#is unit a student wi(( %e a%(e to: 1) 2) 8) 4)
+denti$y, ana(yse and a""(y t#e (aw re(atin' to in!ome taxation) +denti$y, ana(yse and a""(y t#e (aw re(atin' to GST) +denti$y, ana(yse and a""(y t#e (aw re(atin' to 7T) +nter"ret t#e re(evant tax (aws and re(ated (e'a( "re!edents and a""(y t#em to a "ro%(em or $a!t situation) =) etermine a "arti!u(ar tax"ayerBs $ina( in!ome tax, GST and 7T (ia%i(ity) ) Present ver%a((y and in writin' !on!(usions as to t#e tax im"(i!ations arisin' $rom a "arti!u(ar set o$ $a!ts) TEAC+ING AND LEARNING STRATEGY Le!ture notes wi(( %e "(a!ed on i*(earn %e$ore a !(ass) T#ese notes are on(y t#e !ore notes and t#ey are >T intended to stand a(one nor in "(a!e o$ (e!ture attendan!e) T#ey are "rovided $or your !onvenien!e) ou must a(so "ro"er(y !onstru!t your own notes %ased on your own readin's o$ t#e a((o!ated materia(s and any additiona( !omments, su""(ements and !orre!tions to t#ese notes w#i!# may o!!ur durin' (e!tures & w#i!# you -UST attend) ou s!ould not rely on le"turer #ro$ided notes %or %ull study #ur#oses nor as t!e %inal indi"ator o% exa& "ontent' ou are re(uired to and ex#e"ted to read all text and legislati$e re%eren"es and also to take into a""ount "o&&ents) additional &aterials and illustrations and exa&#les w!i"! &ay also be gi$en in le"tures' The three2hour se(inars %i !onsist o" a))ro/i(ate# 3 hour e!ture !o()onent and 4 hour tutoria !o()onent' It is e/)e!ted that ALL students ha*e )re)ared ans%ers to ea!h %ee05s tutoria 6uestions ,RIOR to the se(inar'
4 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
Assess(ent Tas0s Tas0 C(ass "arti!i"ation
7ei&ht 10D
Due Date +n C(ass
Brie" Des!ri)tion +n !(ass "resentation and written re"ort
n*(ine /ui;
1=D
= S#ort answer /uestions and = mu(ti"(e !#oi!e /uestions
Case study
2=D
ina( examination
=0D
3ee 4 ue 29 Au'ust 2014 3ee E ue 10 !to%er 2014 6xamination "eriod
Ana(yse a set o$ $a!ts and "re"are advi!e ina( examination
849 Cass )arti!i)ation 84:;9 6a!# student wi(( %e a((o!ated a /uestion and wi(( %e re/uired to 'ive one ora )resentation ana(ysin' and answerin' t#e issues in t#e /uestion) T#e "resentation %orth < (ar0s must not %e (on'er t#an F minutes) Presentations wi(( %e mared on t#e %asis o$ t#e (eve( o$ "re"aration, understandin', a!!ura!y and a%i(ity to ex"(ain t#e ey issues) 6a!# student wi(( a(so %e re/uired to su%mit a %ritten ana#sis maximum 800 words o$ t#e issues, t#e (aw and #ow to a""roa!# so(vin' t#e /uestion t#at t#ey #ave %een a((o!ated) T#is written ana(ysis 8%orth < (ar0s must %e "resented to t#e (e!turer in !(ass on t#e day o$ t#e "resentation) T#is written ana(ysis &ust not be a re#eat o% t!e #resentation' +t s#ou(d instead %e an ex#lanation o$ t#e issues arisin' $rom t#e /uestion, t#e taxation (aw re(evant to t#ose issues and a su''estion o$ #ow t#e issues !an %e so(ved %y a""(i!ation o$ t#e (aw) T#e written ana(ysis s#ou(d not in!(ude !a(!u(ations or numeri!a( ex"(anations) Two exa&#les o$ t#e ty"e o$ written ana(ysis t#at you are re/uired to su%mit are in!(uded at t#e end o$ t#is Assessment Guide) >o extensions wi(( %e 'ranted) Students w#o #ave not su%mitted t#e tas "rior to t#e dead(ine wi(( %e awarded a mar o$ 0 $or t#e tas, ex!e"t $or !ases in w#i!# an a""(i!ation $or isru"tion to Studies is made and a""roved 839 On2ine Qui= 84<;9 T#e on*(ine /ui; wi(( !over (e!ture to"i!s 1 to 8 and re(ated tutoria( /uestions, and wi(( %e made avai(a%(e on i(earn on 2= Au'ust 2014) T#e ui; wi(( !om"rise a se(e!tion o$ s#ort answer and mu(ti"(e !#oi!e /uestions and is due to %e !om"(eted %y ="m 29 Au'ust 2014) 5esu(ts wi(( %e "rovided to students via iLearn) >o extensions wi(( %e 'ranted) Students w#o #ave not su%mitted t#e tas "rior to t#e dead(ine wi(( %e awarded a mar o$ 0 $or t#e tas, ex!e"t $or !ases in w#i!# an a""(i!ation $or isru"tion to Studies is made and a""roved 5 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
8>9 Case stud# 83<;9 T#e !ase study wi(( !over (e!ture to"i!s 2 to F and re(ated tutoria( /uestions, and is due to %e (od'ed via turnitin and i(earn %y ="m 10 !to%er 2014) T#e !ase study wi(( re/uire students to "rovide a detai(ed ana(ysis o$ a $a!t situation a""(yin' t#e taxation (aws to arrive at a !on!(usion in t#e $orm o$ a "ie!e o$ advi!e) Guide(ines to marin' t#e !ase study wi(( %e "rovided on i(earn a$ter t#e !ase study mars are returned to students) >o extensions wi(( %e 'ranted) Students w#o #ave not su%mitted t#e tas "rior to t#e dead(ine wi(( %e awarded a mar o$ 0 $or t#e tas, ex!e"t $or !ases in w#i!# an a""(i!ation $or isru"tion o$ Studies is made and a""roved 8?9 End o" session "ina e/a(ination 8<:;9 T#e end o$ session examination wi(( !over (e!ture to"i!s to 12 and re(ated tutoria( /uestions, and wi(( %e #e(d in t#e examination "eriod 1F >ovem%er 2014 to = e!em%er 2014) To )ass the unit@ students (ust ,ASS the "ina e/a(ination and a!hie*e an o*era )ass (ar0' University $ina( exam !onditions a""(y)
Materias that (a# $e ta0en into the e/a( ou are "ermitted to tae t#e $o((owin' materia(s into t#e $ina( examination: • • •
our own #andwritten notes) A !a(!u(ator) 7aro!;y, S) Core Tax Legislation and Study Guide 2014 CC<) T#is may %e written on, mared u" %y #and or ta''ed as you see $it)
You are NOT )er(itted to ta0e into the e/a( an# other ite(s #ou are not@ "or e/a()e@ ao%ed to ta0e #our te/t$oo0 Australian (a)ation *aw into the e/a(' Si(iar#@ no )hoto!o)ies are )er(itted nor an# !o()uter do%noads or )rinted out)ut o" an# t#)e'
Fina E/a(ination A $ina( examination is in!(uded as an assessment tas $or t#is unit to "rovide assuran!e t#at: i t#e "rodu!t %e(on's to t#e student and ii t#e student #as attained t#e now(ed'e and si((s tested in t#e exam) A 8 #our $ina( examination "(us 10 minutes readin' time $or t#is unit wi(( %e #e(d durin' t#e University 6xamination "eriod)
6 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
ou are ex"e!ted to "resent yourse($ $or examination at t#e time and "(a!e desi'nated in t#e University 6xamination Timeta%(e) T#e timeta%(e wi(( %e avai(a%(e in ra$t $orm a""roximate(y ei'#t wees %e$ore t#e !ommen!ement o$ t#e examinations and in ina( $orm a""roximate(y $our wees %e$ore t#e !ommen!ement o$ t#e examinations) #tt":HHstudents)m/)edu)auHstudentIadminHexamsH T#e on(y ex!e"tion to not sittin' an examination at t#e desi'nated time is %e!ause o$ do!umented i((ness or unavoida%(e disru"tion) +n t#ese !ir!umstan!es you may wis# to !onsider a""(yin' $or isru"tion to studies) T#e Universitys "o(i!y on isru"tion to Studies !an %e $ound at #tt":HHwww)%usinessande!onomi!s)m/)edu)auH!urrentIstudentsHunder'raduateH#owIdoIi Hdisru"tionItoIstudies I" a Su))e(entar# E/a(ination is &ranted as a resut o" the Disru)tion to Studies )ro!ess the e/a(ination %i $e s!hedued as )er the Su))e(entar# E/a(ination ti(eta$e o" the Fa!ut# o" Business and E!ono(i!s' ,ease note that the su))e(entar# e/a(ination %i $e o" a si(iar "or(at as the "ina e/a(ination' T#e -a!/uarie university examination "o(i!y detai(s t#e "rin!i"(es and !ondu!t o$ examinations at t#e University) T#e "o(i!y is avai(a%(e at: #tt":HHwww)m/)edu)auH"o(i!yHdo!sHexaminationH"o(i!y)#tm
7EELY CURRICULUM Wee 01
02
03
04
05
06
Le!tu"e
#"esentation *o )"esentations
Lecture 1 $nt"odu!tion to taxation %aw Tax &o"mu%a' tax "ates and tax o&&sets Administ"ati(e as)e!ts o& taxation , 1' 2' 3' 4 and 5 Lecture 2 Gene"a% )"in!i)%es o& in!ome "e%atin+ to Le!tu"e $n!ome &"om )e"sona% exe"tion 1 , 1' 2' 3 and 4 Lecture 3 $n!ome &"om )"o)e"t"e%atin+ to Le!tu"e $n!ome &"om .usiness Two $nte"nationa% as)e!ts o& taxation , 1' 2' 3 and 4 Lecture 4 Tax A!!ountin+ "e%atin+ to Le!tu"e Gene"a% dedu!tions T"ee , 1' 2' 3 and 4 Lecture 5 S)e!i&i! dedu!tions "e%atin+ to Le!tu"e T"adin+ sto! ou" Lecture 6 Ca)ita% a%%owan!es and !a)ita% , 1' 2' 3 and 4 wo"s "e%atin+ to Le!tu"e %a!o%e ex)enses i(e Sma%% .usiness !on!essions $nt"odu!tion to Ca)ita% Gains Tax
Semina" date
Wee !ommen!in+ 4 Au+ust
Wee !ommen!in+ 11 Au+ust
Wee !ommen!in+ 1/ Au+ust
Wee !ommen!in+ 25 Au+ust
Wee !ommen!in+ 1 Se)tem.e"
Wee !ommen!in+ / Se)tem.e" 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
0
0/
09
10
11
12
Lecture 7 Ca)ita% Gains Tax
Mid-Semester Break Lecture 8 Goods and Se"(i!es Tax Lecture 9 T"usts Taxation o& mino"s Lecture 10 #a"tne"si)s Su)e"annuation Lecture 11 Com)anies Lecture 12 "in+e .ene&its tax
13
14
Lecture 13 7e(ision EXAMIA!I" #E$I"% S!A$!S
, 1' 2' 3' 4' 5 and 6 "e%atin+ to Le!tu"e Six
Wee !ommen!in+ 15 Se)tem.e" 20 Se)tem.e" to 6 !to.e"
, 1' 2' 3 and 4 "e%atin+ to Le!tu"e Se(en , 1' 2' 3' 4 and 5 "e%atin+ to Le!tu"e i+t , 1' 2' 3 and 4 "e%atin+ to Le!tu"e *ine , 1' 2' 3' 4' 5 and 6 "e%atin+ to Le!tu"e Ten , 1' 2' 3' 4' 5 and 6 "e%atin+ to Le!tu"e %e(en , 1' 2' 3' 4 and 5 "e%atin+ to Le!tu"e Twe%(e
Wee !ommen!in+ !to.e" Wee !ommen!in+ 13 !to.e"
Wee !ommen!in+ 20 !to.e"
Wee !ommen!in+ 2 !to.e"
Wee !ommen!in+ 3 *o(em.e"
Wee !ommen!in+ 10 *o(em.e" 17 &'em(er 2014
JAs -onday !to%er 2014 is a "u%(i! #o(iday students in t#e -onday !(asses wi(( %e advised o$ an a(ternative seminar to attend t#at wee)
/ 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
Lecture ")e I)tr&ducti&) t& ta*ati&) +a, !a* &rmu+a. ta* rates a)d ta* &sets Admi)istrati'e as/ects & ta*ati&) 7eadin+s &"om Woe%%ne"' a"o!8-' u")-' (ans and #into Australian Taxation Law 2014 CC: ;"e&e""ed to in tis unit out%ine as
&o" tis wee?s %e!tu"e@
I)tr&ducti&) t& ta*ati&) +a, Wat is a tax BB W 1B550 Aust"a%ian taxation s-stem BB W 1B310 to 1B520 Constitutiona% as)e!ts o& taxation BB W 1B530 to 1B620
!a* &rmu+a. ta* rates a)d ta* &sets W 2B000 to 2B040 W 2B100 to 2B150 W 2B200 W 2B300 to 2B405 W 2B500 to 2B510 W 2B640
Admi)istrati'e as/ects & ta*ati&) Assessment s-stem BB W30B000 to 30B025 W30B033 to 30B040 W30B055 to 30B104 W30B140 to 30B155 Tax a))ea% )"o!ess BB W31B300 to 31B00 W33B020 to 33B0/3 W33B095 #rese)tati&) uesti&)s re+ati) t& Lecture &)e t& (e /rese)ted i) )e*t ,eeks c+ass uesti&) 1-1
G"a!e is a "esident indi(idua% wo de"i(es sa%a"- in!ome o& D3'000 in 2013E14@ G"a!e is sin+%e' wit no !i%d"en and does not a(e )"i(ate ea%t insu"an!e@ Fu"in+ te -ea" e" em)%o-e" wito%ds D6'000 tax &"om e" wa+es@ E*/+ai) racess ta* +ia(i+it ater taki) acc&u)t & te +&, i)c&me ta* &set. te Medicare +e' a)d te Medicare +e' surcare i te are re+e'a)t race as ad'ised &u tat se as a EL# de(t t&ta++i) :21.000
uesti&) 1-2
%ad' wo is a "esident' !ondu!ts a sma%% .usiness in 2013E14 and ea"ns D130'000@ %ad is sin+%e and %i(es .- imse%&@ Fu"in+ te -ea" e )a-s D35'000 in!ome tax to te AT wen e %od+es is usiness A!ti(it- Statements@ %ad is sin+%e' wit no !i%d"en and does not a(e )"i(ate ea%t insu"an!e@ E*/+ai) ,eter ;+ad is reuired t& /a m&re ta* &r is e)tit+ed t& a ta* reu)d ,e) e +&des is ta* retur) &r 2013<14 ater taki) acc&u)t & te +&, i)c&me ta* &set. te Medicare +e' a)d te Medicare +e' surcare i te are re+e'a)t E*/+ai) ,eter &ur a)s,er ,&u+d (e diere)t i ;+ad ad a ,ie ,& ad )& i)c&me &r te ear
9 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
uesti&) 1-3
a.e% is a &o"ei+n "esident &o" a%% o& 2013E14@ :e" in!ome &o" te -ea" !onsists o&H ;i> D15'000 &"om in(estments in Aust"a%ia' ;ii> D50'000 &"om a !a)ita% +ain on te sa%e o& a )"o)e"t- in "itain' and ;iii> D10'000 &o" a mont?s ad(iso"- wo" )e"&o"med in S-dne-@ a.e% is ma""ied wit two !i%d"en@ E*/+ai) er ta* +ia(i+it ater taki) acc&u)t & te +&, i)c&me ta* &set. te Medicare +e' a)d te Medicare +e' surcare i te are re+e'a)t
uesti&) 1-4
"ed is unsu"e as to wete" an amount o& D15'000 e "e!ei(ed du"in+ te -ea" 2013E2014 is assessa.%e@ "ed?s tax ad(iso" as said tat te a"ea o& te tax %aw tat "e%ates to te assessa.i%it- o& tis amount is unsett%ed and te"e is no !%ea" answe" tat !an .e )"o(ided on tis Iuestion@ Ad'ise =red &) te &/ti&)s a'ai+a(+e i) +&di) is i)c&me ta* retur) &r 2013<2014 ,it res/ect t& te :15.000 uesti&) 1-5
o"tex #t- Ltd "e!ei(ed an amended assessment &"om te AT on 2 *o(em.e" 2013@ Te amended assessment in!"eased taxa.%e in!ome .- D23'000 on te .asis tat a tax dedu!tion !%aimed .- o"tex in te 2012E2013 -ea" was not a(ai%a.%e unde" te "e%e(ant %e+is%ation@ E*/+ai) ,at &/ti&)s are a'ai+a(+e t& ;&rte* t& dis/ute te ame)ded assessme)t i)c+udi) te acti&)s reuired ( ;&rte*
Lecture !,& e)era+ /ri)ci/+es & i)c&me I)c&me r&m /ers&)a+ e*erti&) I)c&me r&m /r&/ert 7eadin+s &"om Australian Taxation Law 2014 CC: &o" tis wee?s %e!tu"e@
e)era+ /ri)ci/+es & i)c&me W 3B000 to 3B420 W 6B/00 to 6B/30 W6B/0 to 6B910
I)c&me r&m /ers&)a+ e*erti&) W 4B000 to 4B190
I)c&me r&m /r&/ert W 5B000 W 5B200 to 5B215 W 5B300 to 5B320 W 5B400 to 5B420 W 5B500 to 5B520 #rese)tati&) uesti&)s re+ati) t& Lecture t,& materia+ t& (e /rese)ted i) )e*t ,eeks c+ass uesti&) 2-1 E*/+ai) ,eter te &++&,i) ,&u+d (e &rdi)ar i)c&me i) 2013<14
10 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
1@ a !a" wo"t D50'000 won .- a &a"me" &o" ado)tin+ en(i"onmenta%%-B&"iend%- &a"min+ )"a!ti!es 2@ D100 "e!ei(ed .- a &u"nitu"e so) wen it added GST to te D1'000 )"i!e o& a !ai" it so%d 3@ a D/'000 .onus awa"ded to an em)%o-ee &o" ex!e%%ent wo" .ut sent' at te em)%o-ee?s "eIuest' to )a- s!oo% &ees owin+ in "es)e!t o& te em)%o-ee?s !i%d@ 4@ a )"i8e o& D50'000 won .- a student wen se went to te !asino to !e%e."ate te end o& exams@ 5@ !as o& D15'000 )aid to an em)%o-ee &o" te )"omise not to wo" &o" a !om)etito" on te"mination o& em)%o-ment@
uesti&) 2-2 E*/+ai) ,eter a) & te &++&,i) am&u)ts ,&u+d (e &rdi)ar i)c&me i) 2013<14
1@ A tota% o& D50'000 )aid to owne" o& %and %o!ated in no"te"n *SW !a%!u%ated .ased on D100 )e" t"ee "emo(ed &"om te %and@ 2@ D20'000 tat is "e!ei(ed .- a d"u+ dea%e" &o" te sa%e o& d"u+s' at a si+ni&i!ant )"o&it' to an asso!iate@ 3@ ,antas &"eIuent &%-e" )oints "e!ei(ed .- an a!!ountant em)%o-ed .- an a!!ountin+ &i"m in "e%ation to wo"B"e%ated t"a(e% )aid &o" .- te &i"m 4@ an amount "e!ei(ed .- a moto"ist &"om an insu"an!e !om)an- to !om)ensate te moto"ist &o" %oss o& wa+es and dama+e to e" !a" wen se was in(o%(ed in an a!!ident !aused .- anote" d"i(e"@
uesti&) 2-3
Wen Ted !ommen!ed em)%o-ment as a sa%es "e)"esentati(e on 1 Ju%- 2013 e was o&&e"ed a sa%a"- o& D0'000 )%us an ente"tainment a%%owan!e o& D100 )e" wee@ :e was a%so entit%ed to a a%& da- o&& e(e"- &o"tni+t@ n 1 Janua"- 2014' Ted?s )osition wit is em)%o-e" !an+ed and e no %on+e" wo"ed as a sa%es "e)"esentati(e@ :e !ontinued to "e!ei(e D0'000 as sa%a"-' .ut was no %on+e" entit%ed to te ente"tainment a%%owan!e o" to te a%& da- o&&@ Ted was )aid a %um) sum o& D15'000 in "etu"n &o" +i(in+ u) te ente"tainment a%%owan!e and te time o&&@ E*/+ai) te ta* c&)seue)ces &r !ed r&m tese 'ari&us e'e)ts
uesti&) 2-4
Fu"in+ te -ea" ended 30 June 2014 Fa(id was em)%o-ed &u%%Btime as an $T !onsu%tant@ :e a%so )%a-ed "u+.- at a (e"- i+ %e(e% and was )aid D35'000 .- ea"s 7u+.- C%u. to !o(e" te !osts o& t"a(e% inte"state to )%a- "u+.- &o" tem@ Fa(id?s em)%o-e" sometimes a%%owed im to tae %ea(e witout )a- to !om)ete in "u+.- tou"naments' and Fa(id "e!ei(ed D50'000 in "u+.- mat! )a-ments &"om ea"s 7u+.- !%u. du"in+ te -ea"@ $n June 2014 Fa(id won te )"i8e o& a &u%%- )aid o(e"seas o%ida- &"om te *ationa% 7u+.Asso!iation in "e!o+nition o& is ex!e%%ent )e"&o"man!e and mento"in+ o& ote" )%a-e"s @ Te o(e"seas o%ida- was not !on(e"ti.%e into !as and not t"ans&e"a.%e i& Fa(id !ose not to use it@ E*/+ai) te ta* treatme)t & te /ame)ts %a'id recei'ed duri) 2013<14
11 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
Lecture !ree I)c&me r&m (usi)ess I)ter)ati&)a+ as/ects & ta*ati&) 7eadin+s &"om Australian Taxation Law 2014 CC: &o" tis wee?s %e!tu"e@
I)c&me r&m (usi)ess W 6B000 to 6B910
I)ter)ati&)a+ as/ects & ta*ati&) $nt"odu!tion BB W 24B000 to 24B020 7esiden!e BB W 24B040 to 24B066 Sou"!e BB W 24B100 to 24B160
#rese)tati&) uesti&)s re+ati) t& Lecture !ree materia+ t& (e /rese)ted i) )e*t ,eeks c+ass uesti&) 3-1
o" man- -ea"s' e"( as .een em)%o-ed as an a!!ountant and as a%so made some mone;a"ound D11'000 in 2014> &"om se%%in+ is own and ote" &ami%- mem.e"s )e"sona% +oods on e.aand ote" t"adin+ we.sites@ e"( as a%so w"itten and )u.%ised a .oo tit%ed KSe%%in+ Wat ou Fon?t *eed? tat detai%s ti)s and ta!ti!s on maximisin+ te sa%e o& )e"sona% +oods o(e" te inte"net and e"( se%%s ea! .oo &o" D15@00@ A %a"+e )u.%isin+ !om)an- )aid e"( D40'000 in a"! 2014 to )u"!ase te !o)-"i+t in tis .oo@ e"( a%wa-s %od+es a tax "etu"n .ut on%- te%%s te Tax &&i!e a.out is em)%o-ment in!ome' and ne(e" a.out te sa%es &"om is ote" a!ti(ities@ A&te" "e!ei(in+ a ti)Bo&&' te Tax &&i!e sta"ts an in(esti+ation into e"(?s a&&ai"s@ E*/+ai) &, Mer' is +ike+ t& (e ta*ed &) is sa+es & /ers&)a+ &&ds. sa+es & is (&&k a)d te :40.000 recei'ed r&m te /u(+isi) c&m/a)
uesti&) 3-2
Wen a new o&&i!e .%o! is .ui%t in te !ent"e o& S-dne-' te de(e%o)e" is een to a(e a )a"ti!u%a" %aw &i"m as its &i"st tenant so tat it !an use tat &i"m?s tenan!- in its ad(e"tisements@ Te %aw &i"m is a))- to mo(e &"om its !u""ent )"emises' .ut wou%d )"e&e" to mo(e &"om te !ent"e o& S-dne- to somewe"e we"e te "ent is !ea)e"@ $n o"de" to )e"suade te %aw &i"m' te de(e%o)e" )"omises' in "etu"n &o" te %aw &i"m si+nin+ u) as a tenant &o" 10 -ea"sH 1@ a %um) sum o& D10 mi%%ion 2@ a &i(eB-ea" "entB&"ee )e"iod 3@ )a-ment .- te de(e%o)e" o& te %aw &i"m?s "emo(a% !osts' and 4@ a oneBwee o%ida- in a%i &o" ea! o& te %aw &i"m )a"tne"s@ E*/+ai) te c&)seue)ces &r te +a, irm i it acce/ts te +ease i)ce)ti'es &ered ( te de'e+&/er
12 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
uesti&) 3-3
#au%ine is te Sa%es ana+e" &o" #a)e" #"odu!e"s #t- Ltd ;#a)e" #"odu!ts>@ #au%ine was )"e(ious%- %o!ated at te ead o&&i!e in S-dne- .ut is !u""ent%- wo"in+ &"om te $ndonesian o&&i!e' a(in+ "e%o!ated te"e on 1 a"! 2014@ #a)e" #"odu!ts anti!i)ate tat #au%ine wi%% ead u) te $ndonesian o&&i!e &o" two -ea"s wit an o)tion to sta- &o" anote" two -ea"s@ #au%ine?s "emune"ation )a!a+e du"in+ e" em)%o-ment in $ndonesia in!%udes te &o%%owin+H • •
Sa%a"- o& D220'000 )a Ai"&a"e !osts )aid .- #a)e" #"odu!ts &o" #au%ine to "etu"n to Aust"a%ia twi!e a -ea"
#au%ine was .o"n and as %i(ed a%% e" %i&e in S-dne- so is a %itt%e anxious a.out te mo(e to $ndonesia' wit e" us.and and two sma%% !i%d"en' -et .e%ie(es it wi%% .ene&it e" &inan!ia%%- and )"o&essiona%%-@ %iscuss #au+i)es status >reside)t &r )&t? &r Austra+ia) ta* /ur/&ses &r 2013<14 a)d te ta* im/+icati&)s & te tra)ser t& I)d&)esia
uesti&) 3-4
,uintex Ltd manu&a!tu"es e%e!t"i!a% a))%ian!es in a%a-sia' is in!o")o"ated in a%a-sia and a%% its sa"es a"e e%d .- indi(idua%s "esident in a%a-sia@ ,uintex as an o&&i!e in S-dne- and em)%o-s se(en sta&& te"e@ Te S-dne- o&&i!e !on!%udes sa%e !ont"a!ts and is "es)onsi.%e &o" te ma"etin+ o& ,uintex )"odu!ts wo"%dBwide@ Two o& te di"e!to"s o& ,uintex a"e "esidents o& a%a-sia and two a"e "esidents o& Aust"a%ia' and .oa"d meetin+s a"e +ene"a%%- e%d in S-dne-@ E*/+ai) >i? i ui)te* is &r is )&t a reside)t &r ta* /ur/&ses. a)d >ii? &, te tradi) i)c&me deri'ed ( ui)te* ,&u+d (e ta*ed i) Austra+ia
Lecture =&ur !a* Acc&u)ti) e)era+ %educti&)s 7eadin+s &"om Australian Taxation Law 2014 CC: &o" tis wee?s %e!tu"e@
!a* acc&u)ti) @ I)c&me W13B000 to 13B035' 13B100 to 13B160' 13B200 to 13B220 W13B300 to 13B330' 13B3/0
e)era+ deducti&)s >Secti&) 8-1? W10B000 to 10B240' 10B250 to 10B330 13 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
W10B420 to 10B45 W10B535 to 10B550' 10B610 Su.stantiation W10B6/0 to 10B05 eanin+ o& in!u""edH W13B500 to 13B510 W13B541 to 13B545 #rese)tati&) uesti&)s re+ati) t& Lecture =&ur materia+ t& (e /rese)ted i) )e*t ,eeks c+ass uesti&) 4-1
)tex #t- Ld ente"s into 12 mont !ont"a!ts to su))%- !om)ute" a"dwa"e and so&twa"e su))o"t to its !ustome"s in te ea%t indust"-@ n 1 Janua"- 2014' a !ustome" )a-s )tex D11'500 &o" a"dwa"e and so&twa"e su))o"t &o" te &o%%owin+ 12 monts@ Te te"ms o& te !ont"a!t .etween )tex and te !ustome" )"o(ides tat a "e&und is a(ai%a.%e' &o" te unex)i"ed "emainin+ da-s o& te !ont"a!t' i& te- a"e unsatis&ied and de!ide to Iuit )a"tBwa- t"ou+@ Ad'ise &, "/te* s&u+d acc&u)t &r te :11.500 ,e) te +&de teir i)c&me ta* retur)
uesti&) 4-2
7adio 24 as an esta.%ised .usiness as a "adio station in te sma%% !ount"- town o& 7oma@ 7adio 24 is %ooin+ at settin+ u) and o)e"atin+ a teat"e in 7oma as we%% .ut .e%ie(es a .usiness !ase needs to .e made &o" te teat"e and to tat end )a-s a !onsu%tant D10'000 to unde"tae a &easi.i%it- stud-@ E*/+ai). usi) te a//r&/riate test. ,eter $adi& 24 is e)tit+ed t& a ta* deducti&) &r te :10.000 e*/e)diture it as i)curred &) te easi(i+it stud
uesti&) 4-3
inoo' wo is em)%o-ed as an a!!ountant' wants to u)date e" si%%s so en"o%s in a )ost+"aduate a!!ountin+ de+"ee at uni(e"sit-@ Fu"in+ 2013E14' se in!u"s te &o%%owin+ ex)ensesH uni(e"sit- &ees .oos and mate"ia%s !ost o& t"a(e% &"om wo" to uni(e"sit-' ten &"om uni(e"sit- to ome %i."a"- &ines &o" "etu"nin+ .oos %ate &ood and d"in at uni(e"sit- .etween !%asses !i%d!a"e &o" wen se as a !%ass in te e(enin+@ • • • • • •
E*/+ai) ,eter a) & tese e*/e)ses are deducti(+e
uesti&) 4-4
#ete" is a do!to" wo is em)%o-ed at a %o!a% su"+e"-@ n!e a wee #ete" a%so +i(es %e!tu"es to medi!a% students at te uni(e"sit- and "e!ei(es an ou"%- &ee &o" is se"(i!es@ E*/+ai) ,eter #eter ,&u+d (e e)tit+ed t& a deducti&) &r te &++&,i) e*/e)ses
14 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
1@ !ost o& )u.%i! t"ans)o"t to and &"om is ome wen e +oes to te Mni(e"sit- to +i(e %e!tu"es 2@ %e+a% ex)enses in!u""ed in de&endin+ an a!tion &o" )"o&essiona% ne+%i+en!e initiated .- one o& is )atients 3@ inte"est on a %oan taen out to )u"!ase a "esidentia% "enta% )"o)e"t4@ !ost o& attendin+ a medi!a% !on&e"en!e in "is.ane@ #ete" sta-ed in "is.ane &o" te 3 da!on&e"en!e and anote" two da-s si+tseein+@
Lecture =i'e S/eciic %educti&)s !radi) St&ck 7eadin+s &"om Australian Taxation Law 2014 CC: &o" tis wee?s %e!tu"e@
S/eciic deducti&)s $nt"odu!tion BB W 11B000 7e)ai"s BB W 11B020 to 11B0/0 ad Fe.ts BB W 11B440 to 11B460 Tax %osses o& ea"%ie" -ea"s BB W 11B500 to 11B530 Losses &"om nonB!omme"!ia% .usiness a!ti(ities BB W11B550 to 11B55/ Tax "e%ated ex)enses BB W 11B560 o""owin+ ex)enses BB W 11B565 T"a(e% .etween wo")%a!es BB W 10B45 and 11B635 Gi&ts BB W11B6/0 to 11B10
!radi) st&ck W 14B000 to 14B035' 14B060 to 14B0/0' 14B160 #rese)tati&) uesti&)s re+ati) t& Lecture =i'e materia+ t& (e /rese)ted i) )e*t ,eeks c+ass uesti&) 5-1
$n Se)tem.e" 2013' Tan-a )u"!ased an in(estment )"o)e"t- tat was in )oo" !ondition@ e&o"e %easin+ te )"o)e"t- to tenants' se )aid &o" te )"o)e"t- to .e )ainted t"ou+out@ Tenants mo(ed in on 1 *o(em.e" 2013@ $n Janua"- 2014' te it!en was dama+ed wen te sto(e !au+t &i"e' and Tan-a was &o"!ed to "e)aint some o& te wa%%s and insta%% a new sto(e and diswase"@ A mont %ate"' a !a" !"ased into te tim.e" &en!e at te &"ont o& te ouse' and se ad it "e.ui%t in ."i!@ E*/+ai) ,eter !a)a ca) c+aim a deducti&) &r a) & tese e*/e)ses
uesti&) 5-2
n 1 June 2013' Swi&t Co )u"!ased &"om Jon 7anda%% a ma"et "esea"! .usiness tat 7anda%% ad .een !ondu!tin+ &o" six -ea"s@ $n!%uded in te )u"!ase )"i!e was D150'000 &o" outstandin+ de.ts@ $n Fe!em.e" 2013' Swi&t Co "e!o(e"ed D20'000 &"om one de.to"@ Anote" de.to"' wo owed D130'000' o&&e"ed to )a- 20 !ents in te do%%a"' and tis was a!!e)ted .- Swi&t Co in te ex)e!tation tat te un)aid amount !ou%d .e "e!o(e"ed as a .ad de.t dedu!tion@ E*/+ai) te ta* c&)seue)ces &r S,it & & tese tra)sacti&)s
15 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
uesti&) 5-3
n 1 *o(em.e" 2013' Jon' a s!oo% tea!e"' .o""owed D500'000 &"om a .an@ :e used D20'000 to t"a(e% o(e"seas wit is &ami%-' D30'000 to )a- uni(e"sit- &ees &o" &u"te" tea!in+ Iua%i&i!ations and te ote" D450'000 to )u"!ase sa"es in :#@ Te .an %oan was &o" a )e"iod o& ten -ea"s@ To esta.%is te %oan' Jon was "eIui"ed to )a- a D2'/00 u)&"ont &ee to te .an@ E*/+ai) ,eter &) ca) deduct te u/r&)t ee i) 2013<14 a)d. i s&. te am&u)t & te deducti&)
uesti&) 5-4
Sand"a owns a sma%% .usiness and in!u"s te &o%%owin+ ex)enses in 2013E14H 1@ &ee )aid to a "e!o+nised tax ad(ise" &o" )"e)a"ation o& e" in!ome tax "etu"n ;D440> and &o" %od+in+ an o.Ne!tion to an in!ome tax assessment ;D500> 2@ +ene"a% inte"est !a"+e o& D250 &o" )a-in+ e" in!ome tax %ate in 2012E13 3@ !ost o& mea%s at "estau"ants &o" !%ients and em)%o-ees@ 4@ a D950 donation to a )o%iti!a% )a"t-' and 5@ D9000 !a" "unnin+ !osts@ Sand"a uses te !a" &o" .ot .usiness and )"i(ate )u")oses@ E*/+ai) ,eter tese am&u)ts are deducti(+e &r Sa)dra
Lecture Si* !reatme)t & ca/ita+ e*/e)diture a/ita+ a++&,a)ces a)d ca/ita+ ,&rks B+ack&+e e*/e)diture a)d sma++ (usi)ess c&)cessi&)s
I)tr&ducti&) t& ca/ita+ ai)s ta* 7eadin+s &"om Australian Taxation Law 2014 CC: &o" tis wee?s %e!tu"e@
!reatme)t & ca/ita+ e*/e)diture Ca)ita% a%%owan!es W 12B100 to 12B20 Ca)ita% wo"s W 12B500 to 12B540 %a!Bo%e ex)enditu"e W 12B300 to 12B320 Ca)ita% a%%owan!es &o" sma%% .usiness !on!essions (e"(iew BB W 15B000 to 15B105 Ca)ita% a%%owan!es BB W15B300 to 15B400
I)tr&ducti&) t& ca/ita+ ai)s ta* (e"(iew BB WB000 to B050 CGT e(ents BB WB100 to B165 WB30 to B3/0 CGT assets BB WB500 to B50 16 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
#rese)tati&) uesti&)s re+ati) t& Lecture Si* materia+ t& (e /rese)ted i) )e*t ,eeks c+ass
uesti&) 6-1
iona )aid D/'000 &o" a new !a" on 1 Au+ust 2013@ Se uses te !a" 0O &o" .usiness use@ Te Commissione"?s dete"mination o& te e&&e!ti(e %i&e o& a !a" is ei+t -ea"s' .ut iona se%&Bassesses te e&&e!ti(e %i&e o& te !a" to .e &i(e -ea"s@ Assumi) =i&)a as mai)tai)ed a +& (&&k e*/+ai) te de/reciati&) deducti&). c&m/ari) (&t de/reciati&) met&ds. &r te car &r te ear e)ded 30 u)e 2014
uesti&) 6-2
n 1 Ju%- 2011' axta Ltd )u"!ased a ma!ine at a !ost o& D200'000 &o" use in its .usiness@ axta dete"mined te ma!ine to a(e an e&&e!ti(e %i&e o& &i(e -ea"s and !%aimed diminisin+ (a%ue de)"e!iation on tat .asis@ axta so%d te ma!ine"- &o" D100'000 on 30 June 2014@ Cat are te ta*ati&) im/+icati&)s & tese tra)sacti&)sD
uesti&) 6-3
e%t!o is a manu&a!tu"in+ !om)an- tat )u"!ased %and &o" D2 mi%%ion on 1 Janua"- 2011@ $t !ommen!ed to .ui%d a &a!to"- on te %and on 1 Se)tem.e" 2011@ Const"u!tion o& te &a!to"- was !om)%eted on 1 Ju%- 2013 at a !ost o& D10 mi%%ion' and e%t!o uses te &a!to"- &o" in!omeB )"odu!in+ )u")oses &"om tat date@ Cat ca/ita+ ,&rks deducti&) is Be+tc& e)tit+ed t& &r te ears 2011<12. 2012<13 a)d 2013<14D
uesti&) 6-4
Jenni&e" "uns a sma%% "etai% .usiness and a&te" man- -ea"s o& a"d wo"' se de!ided to se%% te &o%%owin+ assets in 2013E2014 and used te mone- se "e!ei(ed to t"a(e% a"ound Aust"a%iaH 1@ 2@ 3@ 4@ 5@ 6@ @
T"adin+ sto! o& te "etai% .usiness a!Iui"ed in te %ast 12 monts@ Fe)"e!iatin+ assets used in te "etai% .usiness a!Iui"ed in June 2011@ A -a!t a!Iui"ed on !to.e" 1999 &o" D15'000@ MniIue !o%%e!tion o& stam)s a!Iui"ed on 6 a"! 19/9 &o" D495@ W ;moto" (ei!%e> a!Iui"ed on 15 a"! 2005 &o" D35'000@ 2'000 sa"es in a )u.%i!%- %isted !om)an- a!Iui"ed on 15 A)"i% 200 &o" D4 )e" sa"e@ A "a"e )aintin+ a!Iui"ed on 1 Ju%- 19/5 &o" D2'500@
Ad'ise e))ier ,eter te dis/&sa+ & te a(&'e-stated assets ,i++ i'e rise t& a ! e'e)t A1
uesti&) 6-5
1 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
T"ad ad .een a "esident o& Aust"a%ia a%% is %i&e .ut de!ided to mo(e )e"manent%- to *o"wa- to .e wit is )a"tne"@ T"ad %e&t Aust"a%ia on 1 e."ua"- 2014 and at tat time e !eased to .e a "esident@ Wen T"ad %e&t Aust"a%ia' e sti%% owned a unit in 7andwi!' sa"es in :# and a !a"@ :e ad +i(en (a"ious items o& &u"nitu"e and is .oos and musi! to is ."ote"@ E*/+ai) te ca/ita+ ai)s ta* c&)seue)ces &r !rad. taki) acc&u)t & a) &/ti&)s tat are a'ai+a(+e t& aect t&se c&)seue)ces
uesti&) 6-6 E*/+ai) ,ic ! e'e)t a//e)s. a)d ,e) te e'e)t a//e)s. i) te &++&,i) circumsta)ces
1@ Pat so%d e" .usiness to Tim and a+"eed tat se wou%d not o)e"ate a simi%a" .usiness in te same town &o" &i(e -ea"s@ Tim )aid Pat D20'000 &o" e" a+"eement to tis "est"i!tion@ 2@ e% a!Iui"ed a &a!to"- in Fe!em.e" 200/@ Te &a!to"- was dest"o-ed .- &i"e in Janua"- 2014 and e "e!ei(ed !om)ensation &"om is insu"e" in a- 2014@ 3@ A.e was inNu"ed and is de%i(e"- t"u! dama+ed &"om a !"as in Janua"- 2014@ A.e?s insu"an!e !om)an- "e&used to !om)ensate im &o" te %oss .e!ause e ad not to%d te t"ut wen e &i%%ed out te &o"m &o" te insu"an!e@ Wen A.e t"eatened to +o to !ou"t to "e!o(e" &o" is %osses' te dis)ute was sett%ed out o& !ou"t wit a )a-ment to A.e o& D250'000@ 4@ n 1 June 2014' Ta"iI ente"s into an a+"eement to .u- a "enta% )"o)e"t- &o" D1'000'000@ Te te"ms o& te )u"!ase a"e tat Ta"iI !an tae )ossession o& te "enta% )"o)e"t- on 1 June 2014 and sta"t to "ent it out to tenants@ Ta"iI must )a- te se%%e" D200 a mont &o" 12 monts and at te end o& te 12 monts' e wi%% .e!ome te owne" o& te"enta% )"o)e"t-@ 5@ n 2 a- 2014 Ca"%otte %e&t Aust"a%ia to tae u) "esiden!e in :on+ Pon+ inde&inite%-@ Ca"%otte?s on%- assets e%d on 2 a- 2014 we"e sa"es in a MP %isted !om)an- and %and in *o"te"n ,ueens%and@
Lecture Se'e) a/ita+ ai)s ta* c&)ti)ued
7eadin+s &"om Australian Taxation Law 2014 CC: &o" tis wee?s %e!tu"e@
a/ita+ ai)s ta* xem)tions tat ma- a))%- BB WB00 to B20 W/B050 to /B060 W/B500 to /B540 Ca%!u%atin+ a !a)ita% +ain o" %oss BB WB600 to B69/ Fete"minin+ net !a)ita% +ain o" net !a)ita% %oss &o" te in!ome -ea" BB W B900 to B960 Sma%% .usiness "e%ie& – W/B400 to /B450
#rese)tati&) uesti&)s re+ati) t& Lecture se'e) materia+ t& (e /rese)ted i) )e*t ,eeks c+ass uesti&) 7-1
Janet a!Iui"ed an a)a"tment in S-dne-' unde" a !ont"a!t dated 14 Janua"- 2010' &o" D30'000 !as )a-a.%e on 14 a"! 2011 and a )"omise .- Janet to )a- an additiona% D55'000 on 14 a"! 1/ 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
2012@ Janet )%anned to mae te a)a"tment a(ai%a.%e &o" "ent immediate%-' .ut te "ea% estate a+ent ad(ised tat te a)a"tment !ou%d not .e "ented out unti% a !oat o& )aint was a))%ied to te a)a"tment?s inte"na% wa%%s ;!ost D3'500> and te .a%!on- "ai%in+ was "e)%a!ed ;!ost D5'500>@ A&te" te wo" was !a""ied out' Janet "ented te a)a"tment to a tenant on a a- 2011 &o" D300 a wee@ Janet ad )aid D30'000 in stam) dut-' D1000 &o" a (a%uation o& te )"o)e"t- and D500 &ees to a %aw-e" on a!Iuisition@ $nte"est on a %oan to )u"!ase te a)a"tment was D650 )e" mont &o" te &i"st 5 -ea"s o& te %oan@ n 10 e."ua"- 2014' Janet ente"ed into a !onta!t to se%% te a)a"tment &o" D4/0'000@ a+cu+ate a)d e*/+ai) te ca/ita+ ai)s ta* c&)seue)ces & tese tra)sacti&)s
uesti&) 7-2
Jason is a !a")ente" and "uns is own .usiness .ui%din+ and insta%%in+ it!en !u).oa"ds@ Jason won te %otte"- in Janua"- 2014 and as de!ided to se%% is .usiness assets and "eti"e@ Jason is on%54 -ea"s o& a+e@ As a !onseIuen!e o& te de!ision to "eti"e Jason se%%s te &o%%owin+ assets on 1 a- 2014H •
•
usiness )"emises &o" D6/0'000@ Jason ad ine"ited tis .ui%din+ on te deat o& is &ate" on 1 June 2006@ Jason?s &ate" was a%so a !a")ente" and ad a!Iui"ed te .ui%din+ in 19/2 &o" D60'000 and it was (a%ued at D520'000 at te time o& is deat@ "ed )aid Jason an additiona% D20'000 &o" Jason?s )"omise not to !a""- on anote" !a")ent"- .usiness in te %o!a% a"ea &o" te next 4 -ea"s !ommen!in+ 1 a- 2014@
Jason as a !a""- &o"wa"d !a)ita% %oss o& D23'000 as at 30 June 2013 &"om te sa%e o& sa"es@ Ad'ise as&) &) te ca/ita+ ai)s ta* im/+icati&)s & te a(&'e stated tra)sacti&)s &) 1 Ma 2014 Assumi) as&)s (usi)ess d&es c&)stitute a sma++ (usi)ess &r te /ur/&ses & te sma++ (usi)ess ca/ita+ ai) c&)cessi&)s e*/+ai) ,ic c&)cessi&) ma a//+ t& te sa+e & te (usi)ess /remises uesti&) 7-3
ax )u"!ased a ouse in S-dne- on 1 Janua"- 2002 &o" D600'000 and %i(ed in te ouse unti% e was t"ans&e""ed to "is.ane &o" wo" on 31 Fe!em.e" 2004@ Wi%e e was in "is.ane ax "ented te ouse to tenants' unti% e "etu"ned to te ouse on 31 Fe!em.e" 2011@ :e ten %i(ed in te ouse unti% e so%d it on 31 Fe!em.e" 2013 &o" D/00'000@ E*/+ai) te ca/ita+ ai)s ta* c&)seue)ces & tese tra)sacti&)s Cat diere)ce ,&u+d it make t& &ur a)s,er i Ma* ad )&t re)ted &ut te &use duri) te /eri&d e ,as +i'i) i) Bris(a)eD
uesti&) 7-4
19 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
%aine and Jon a"e us.and and wi&e and Jason is tei" adu%t son@ %aine "uns a .usiness o& )"o(idin+ ome !a"e to e%de"%- )eo)%e and as a++"e+ated tu"no(e" o& D200'000 &o" 2013E14@ Jon "uns a !a" "e)ai" .usiness wit an a++"e+ated tu"no(e" o& D1@6 mi%%ion &o" 2013E14@ Jason "uns a .usiness o& )"o(idin+ tuto"in+ se"(i!es to i+ s!oo% students' and is a++"e+ated tu"no(e" &o" 2013E14 is D300'000@ %aine' Jon and Jason ea! "un tei" .usiness as inde)endent entities wit se)a"ate .usiness .an a!!ounts and em)%o-ees@ %aine and Jason ea! "un tei" .usiness &"om an o&&i!e in te &ami%ome' and Jon "uns is .usiness &"om a se)a"ate %o!ation@ E*/+ai) ,eter E+ai)e ,&u+d (e e)tit+ed t& c+aim sma++ (usi)ess c&)cessi&)s &r 2013<14
Lecture Eit &&ds a)d Ser'ices !a* >S!? 7eadin+s &"om Australian Taxation Law 2014 CC: ;"e&e""ed to in tis unit out%ine as &o" tis wee?s %e!tu"e@ (e"(iew o& GST BB W2B000 to 2B04 asi! GST "u%es – taxa.%e su))%ies BB W2B050 to 2B062 7e+ist"ation &o" GST BB W2B065 GST )a-a.%e BB W2B05 AdNustments BB W2B095 GSTB&"ee su))%ies BB W2B135 to 2B142 $n)ut taxed su))%ies BB W2B145 to 2B14/ $m)o"tation o& +oods –W2B165 GST and (ou!e"s – W2B15 C"edita.%e a!Iuisitions and in)ut tax !"edits BB W2B0/5 Ca%!u%atin+ net amount o& GST – "emission o& GST to AT BB W2B115 A!!ountin+ &o" GST BB W2B125 #rese)tati&) uesti&)s re+ati) t& Lecture Eit materia+ t& (e /rese)ted i) )e*t ,eeks c+ass uesti&) 8-1 E*/+ai) wete" GST wou%d .e added wen te &o%%owin+ su))%ies a"e made@ ou !an assume tat te su))%ie" is !a""-in+ on an ente")"ise' tat te"e is !onside"ation' tat te su))%- is !onne!ted to Aust"a%ia and tat te su))%ie" is eite" "e+iste"ed' o" "eIui"ed to .e "e+iste"ed@
1@ 2@ 3@ 4@
te )"o(ision o& a medi!a% !onsu%tation .- a do!to" te su))%- .- S-dne- Wate" o& wate" to a )"i(ate "esiden!e te sa%e o& .is!uits .- a su)e"ma"et te sa%e o& a wa"eouse tat is no %on+e" used .- a .usiness to a &ami%- wo intend to !on(e"t it into a "esiden!e 5@ a %oan .- a .an to a .usiness !ustome"@ 6@ te +i&t o& a te%e(ision .- an e%e!t"oni!s "etai%e" to a "e%ati(e &o" no !onside"ation@ Te "e%ati(e wi%% use te te%e(ision &o" )"i(ate use@
20 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
uesti&) 8-2 E*/+ai) wete" in)ut tax !"edits wou%d .e a(ai%a.%e &o" te &o%%owin+ a!Iuisitions@ ou !an assume tat te a!Iui"e" is "e+iste"ed and' we"e a))"o)"iate' GST as .een !a"+ed on te su))%-@
1@ 2@ 3@ 4@ 5@
te )u"!ase o& )i)es .- a )%um.e" &o" use in "e)ai"in+ te wate" s-stem at a !%ient?s ouse te )u"!ase .- an in(esto" o& sa"es in a !om)an- %isted on te sto! ex!an+e te )u"!ase o& a !a" .- an em)%o-e" to )"o(ide as a &"in+e .ene&it to an em)%o-ee te )u"!ase o& &u"nitu"e .- a s!oo% te )u"!ase o& &"uit and (e+eta.%es .- a "estau"ant@
uesti&) 8-3 E*/+ai) wete" te &o%%owin+ )eo)%e a"e "eIui"ed to "e+iste" &o" GSTH
1@ a "etai%e" wose GST tu"no(e" is ex)e!ted to .e D160'000 2@ a taxi !a. o)e"ato" wose GST tu"no(e" is ex)e!ted to .e D45'000 3@ a ai"d"esse" wose
uesti&) 8-4
Jim and %i(ia "own own a ti%e .usiness %o!ated in *o"t S-dne- tat su))%ies %o!a% and im)o"ted ti%es and !a""ies on .usiness as a )a"tne"si) unde" te name KSim)%- Ti%es?@ Sim)%- ti%es is "e+iste"ed &o" GST@ Jim and %i(ia a"e unsu"e o& te GST im)%i!ations o& te &o%%owin+ t"ansa!tionsH 1@ Sim)%- Ti%es im)o"ted ti%es &"om $ta%- wi! !ost D330'000@ $n addition to te !ost o& te ti%es D25'000 was )aid &o" &"ei+t and insu"an!e and D 12'000 &o" !ustoms dut-@ Te ti%es we"e )i!ed u) &"om te )o"t and de%i(e"ed to te sow "oom on te 25 Au+ust 2014@ 2@ An annua% &ee o& D4'400 ;GST in!%usi(e> was )aid on 5 Au+ust 2014 &o" )%a!in+ an ad(e"tisement &o" te .usiness in te e%%ow #a+es@ 3@ Jim and %i(ia insta%%ed a ot wate" s-stem in tei" "esidentia% "enta% in(estment )"o)e"t- at a !ost o& D1'100 ;GST in!%usi(e> on te 2 Se)tem.e" 2014@ 4@ Jim and %i(ia )u"!ased a )"e)aid )one &o" D99 ;GST in!%usi(e> on 22 Ju%- 2014 &o" tei" dau+te" to a%%ow e" to !onta!t tem wi%e se is on a s!oo% ex!u"sion in #e"t@ E*/+ai) t& im a)d "+i'ia te a? !e am&u)t a)d timi) & a) S! /aa(+e (? A) e)tit+eme)t t& a S! i)/ut ta* credit #+ease detai+ , a) am&u)t d&es &r d&es )&t i'e rise t& a S! i)/ut ta* credit
uesti&) 8-5
Jim and %i(ia a(e o)e"ated KSim)%- Ti%es? su!!ess&u%%- o(e" a num.e" o& -ea"s and as a "esu%t te- a(e .een a))"oa!ed wit a +ene"ous o&&e" .- a maNo" !om)etito" to .u- te .usiness@ Jim and %i(ia own te .usiness as )a"tne"s as we%% as te !omme"!ia% )"emises we"e te sow "oom 21 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
is %o!ated@ Te )otentia% )u"!ase" is on%- wi%%in+ to .u- te .usiness not in!%udin+ te sow"oom' .ut wou%d %ie to ee) "unnin+ it &"om te same sow "oom and as su++ested a %ease o& te )"emises &"om Jim and %i(ia@ Jim and %i(ia a"e Iuite ex!ited a.out te idea as tis wi%% a%%ow tem to a(e a .it o& a ."ea a&te" wo"in+ %on+ ou"s "unnin+ te .usiness@ Te- a"e !on!e"ned and unsu"e wete" te"e wi%% .e an- GST im)%i!ations o" %ia.i%it- as a "esu%t o& se%%in+ te .usiness@ E*/+ai) t& im a)d "+i'ia te S! im/+icati&)s >i a)? s&u+d te decide t& se++ te (usi)ess
Lecture i)e !a*ati&) & trust i)c&me !a*ati&) & Mi)&rs 7eadin+s &"om Australian Taxation Law 2014 CC: &o" tis wee?s %e!tu"e@
!a*ati&) & trust i)c&me (e"(iew BB W 1B000 As)e!ts o& te %aw o& t"usts BB W 1B005 to 1B020 W 1B040 ;&ixed t"ust' unit t"ust and dis!"etiona"- t"ust on%-> to 1B050 ut%ine o& te taxation o& t"ust in!ome BB W 1B060 to 1B140
!a*ati&) & mi)&rs 21B010 to 21B050 #rese)tati&) uesti&)s re+ati) t& Lecture i)e materia+ t& (e /rese)ted i) )e*t ,eeks c+ass
uesti&) 9-1
Te i%ton T"ust was esta.%ised in 2005 on te deat o& a% i%ton and te )u")ose o& te t"ust was to )"o(ide &o" te edu!ation and maintenan!e o& a% i%ton?s +"and!i%d"en@ Te t"ustee o& te t"ust is a so%i!ito" wo is +i(en a.so%ute dis!"etion to mae su! dist"i.utions o& t"ust in!ome to te .ene&i!ia"ies as se !onside"s a))"o)"iate@ Fu"in+ te -ea" ended 30 June 2014' te net in!ome o& te i%ton T"ust is D/0'000' a%% o& it de"i(ed &"om Aust"a%ian sou"!es@ Te so%i!ito" exe"!ised e" dis!"etion to dist"i.ute D20'000 o& te t"ust in!ome to Ted wo is a+ed 20 and &inisin+ is uni(e"sit- studies in S-dne-@ Te .a%an!e o& te net in!ome is "etained in te t"ust &o" %ate" -ea"s@ E*/+ai) &, te )et i)c&me & te trust &r 2013<14 ,&u+d (e ta*ed &, ,&u+d &ur e*/+a)ati&) dier i i)stead Mit&) trust ,as )&t created &) Ma+ Mi+&)s deat (ut i) act e is sti++ a+i'e a)d acts as te trustee & te trust uesti&) 9-2
22 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
Te ti!a% T"ust is a unit t"ust wi! as net in!ome o& D120'000 in 2013E14@ Ti"t- )e" !ent o& te t"ust in!ome is ea"ned &"om &o"ei+n sou"!es' and se(ent- )e" !ent &"om Aust"a%ian sou"!es@ *i8a% as )u"!ased units in te unit t"ust' and tese units entit%e im to D25'000 o& t"ust in!ome &o" 2013E14@ *i8a% as .een wo"in+ o(e"seas on a de(e%o)ment )"oNe!t in Pen-a sin!e 2011 and )%ans to mo(e to a de(e%o)ment )"oNe!t in #e"u at te end o& 2014@ E*/+ai) &, te :25.000 ,&u+d (e ta*ed
uesti&) 9-3
ana is a 1 -ea" o%d &u%%Btime s!oo% student wo is te .ene&i!ia"- o& a dis!"etiona"- t"ust esta.%ised .- e" )a"ents wo want e" to a(e enou+ mone- to )a- &o" e" own ex)enses@ Fu"in+ 2013E14' te t"ustee o& te t"ust de!ides tat ana sou%d .e )aid D4/'000 wi! wi%% )a&o" e" +ene"a% %i(in+ and a%so &o" a t"i) to u"o)e a&te" e" exams@ E*/+ai) &, te :48.000 tat te trustee decides t& /a t& ;a)a &r 2013<14 ,&u+d (e ta*ed
uesti&) 9-4
"an is 1 -ea"s o& a+e and wo"s at a "etai% out%et on Satu"da- and Tu"sda- e(enin+s ea"nin+ a tota% o& D5'000 in 2013E2014@ "an as sa(ed is ea"nin+s &"om is )a"t time em)%o-ment and ea"ns inte"est on sa(in+s o& D150 in te 2013E2014@ Fu"in+ te 2013E2014 -ea" "an a%so "e!ei(ed &u%%- &"aned di(idends o& D140 on sa"es "an?s )a"ents t"ans&e""ed to im as a +i&t@ E*/+ai) t& =ra)k te ta* rates tat ,&u+d a//+ t& te i)c&me recei'ed duri) 2013<2014
Lecture !e) !a*ati&) & /art)ersi/ i)c&me Su/era))uati&) 7eadin+s &"om Australian Taxation Law 2014 CC: &o" tis wee?s %e!tu"e@
!a*ati&) & /art)ersi/ i)c&me Gene"a% )"in!i)%es BB W 16B000 to 16B0/0 Taxation issues &"om te !"eation o& a )a"tne"si) – W16B090 Taxation o& )a"tne"si) in!ome BB W 16B200 to 16B320 Can+e in !om)osition o& a )a"tne"si) – W16B400 to 16B440 Lia.i%it- to %od+e )a"tne"si) "etu"ns BB W 16B/00
Su/era))uati&) $nt"odu!tion BBW 23B000 to 23B045 Taxation o& su"eannuation &unds BB W 23B05 to 23B095 Tax !on!essions &o" su)e" !ont"i.utions W BB 23B100 to 23B125 Su)e"annuation ene&its W BB 23B400 #rese)tati&) uesti&)s re+ati) t& Lecture !e) materia+ t& (e /rese)ted i) )e*t ,eeks c+ass
23 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
uesti&) 10-1
"ed and Wi%ma a"e eIua% )a"tne"s in a !om)ute" .usiness@ "ed and Wi%ma a"e Noined .- a ti"d )a"tne" ;%aine> in te !om)ute" .usiness on 1 June 2014 and unde" te te"ms o& te new )a"tne"si) ea! )a"tne" is entit%ed to oneBti"d o& te net )a"tne"si) in!ome o" %oss@ As at 31 a- 2014 te net in!ome o& te )a"tne"si) is D1/5'000 and &o" te mont o& June net in!ome o& te )a"tne"si) is D30'000@ E*/+ai) te sare & )et i)c&me deri'ed ( te /art)ers r&m te c&m/uter (usi)ess &r te ear e)ded 30 u)e 2014
uesti&) 10-2
*i!o and Sau% Noint%- own an in(estment )"o)e"t- and a(e an a+"eement to sa"e te in!ome@ Tei" )a"tne"si) as a net )a"tne"si) %oss o& D25'000 in 2013E14@ *i!o wo"s as a tea!e" and as em)%o-ment in!ome in 2013E14 o& D90'000@ Sau% as no ote" in!ome as e is stud-in+ &u%%B time@ *i!o and Sau% de!ide tat *i!o !an mae .ette" use o& te )a"tne"si) %oss .e!ause e mi+t .e a.%e to o&&set it a+ainst is tea!in+ in!ome and so "edu!e is tax %ia.i%it-@ So te- a+"ee tat' &o" 2013E14' *i!o as te "i+t to 100O o& te net )a"tne"si) %oss@ E*/+ai) te ta* c&)seue)ces & tese acts uesti&) 10-3
Te oome" )a"tne"si) as t"ee eIua% )a"tne"s@ o" 2012E13' te"e was a net )a"tne"si) %oss o& D20'000' .ut .usiness im)"o(ed in 2013E14 and te )a"tne"si) net in!ome was D315'000@ e!ause o& te ext"a wo" )e"&o"med .- #a"tne" A du"in+ te 2013E14 -ea"' te t"ee )a"tne"s a+"eed at tei" )a"tne"s? meetin+ on 20 June 2014 tat #a"tne" A wou%d .e )aid a
uesti&) 10-4
:anna and 7o- a"e wi&e and us.and@ :anna as "un a (e"- su!!ess&u% ai"d"essin+ .usiness &o" man- -ea"s and se de!ides to "est"u!tu"e it so tat it o)e"ates as a )a"tne"si) wit e" and 7o-' te two )a"tne"s@ A!!o"din+ to te )a"tne"si) a+"eement' 7o- and :anna a(e an eIua% inte"est in te net in!ome o" %oss o& te )a"tne"si) &"om -ea" to -ea"' and 7o- is "es)onsi.%e &o" te administ"ati(e tass asso!iated wit te .usiness@ $n &a!t' te "unnin+ o& te .usiness does not !an+e wen it is "est"u!tu"ed' and :anna !ontines to .e 100O "es)onsi.%e@ 7o- !ontinues to )%a- +o%& as .e&o"e and' a)a"t &"om si+nin+ do!uments wen :anna ass' e )%a-s no )a"t in te .usiness@ o" 2013E14' te net in!ome o& te )a"tne"si) is D210'000' and' a!!o"din+ to te )a"tne"si) a+"eement' .ot :anna and 7o- a(e a net inte"est o& D105'000@ 24 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
E*/+ai) &, te )et i)c&me & te /art)ersi/ &r 2013<14 ,&u+d (e ta*ed
uesti&) 10-5
Te 7ead #a"tne"si) as 4 )a"tne"s and o)e"ates a .oo so)s in S-dne- and Au!%end ;*Q>@ Wi%st t"ee o& te )a"tne"s a"e "esidents o& Aust"a%ia one is "esident in *ew o" ;MS> and maes .usiness de!isions wit te )a"tne"s "emote%-@ Fu"in+ te -ea" 2013E2014 te 7ead #a"tne"si) de"i(ed net in!ome o& D350'000 o& wi! /0O "e%ates to Aust"a%ian .oo sa%es and 20O sa%es to *ew Qea%and .oo sa%es@ a! )a"tne" is entit%ed to 25O o& te net in!ome o& te 7ead )a"tne"si)@ Ad'ise eac /art)er &) te ta* treatme)t & teir sare & /art)ersi/ )et i)c&me Cat ,&u+d (e te ca/ita+ ai)s ta* im/+icati&)s t& te $ead #art)ersi/ i te Sd)e (&&k s&/ (usi)ess assets ,ere s&+d duri) te 2013<2014 earD uesti&) 10-6
Te Q Co m)%o-ees Su)e"annuation und ;Rte Su)e"annuation undR> is a !om)%-in+ su)e"annuation &und set u) .- Q Co #t- Ltd to )"o(ide "eti"ement .ene&its &o" its em)%o-ees@ 7e(enue and ex)enditu"e &o" te -ea" ended 30 June 2014 is as &o%%owsH $e'e)ue
Cont"i.utions "e!ei(ed &"om Q Co in "es)e!t o& its em)%o-ees D105'000 o%unta"- a&te" tax !ont"i.utions &"om Q Co em)%o-ees D35'000 $nte"est B B
&"om Aust"a%ian sou"!es D250'000 &"om *ew Qea%and sou"!es ;net o& wito%din+ tax D1'000> D9'000
#"o!eeds on sa%e o& sa"es D65'000 ;Te sa"es so%d we"e )a"t o& te &unds )o"t&o%io and we"e a!Iui"ed in Ju%- 19/3 &o" D12'000@ Tei" ma"et (a%ue as at 30 June 19// was D1/'000> E*/e)diture >e*c+udi) i)'estme)ts?
7eti"ement .ene&its )aid D99'000 T"ustees administ"ation &ee D3'000 A!!ountin+ and audit &ees D2'000 $nsu"an!e )"emiums B deat and disa.i%it- D12'000
a+cu+ate te ta*a(+e i)c&me a)d ta* /aa(+e & te Su/era))uati&) =u)d &r te ear e)ded 30 u)e 2014. maki) reere)ces t& te re+e'a)t statut&r /r&'isi&)s
25 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
Lecture E+e'e) &m/a)ies 7eadin+s &"om Australian Taxation Law 2014 CC: &o" tis wee?s %e!tu"e@
&m/a)ies (e"(iew BB W 1/B000 Com)anies BB W1/B010 Co")o"ate tax %osses' net !a)ita% %osses and .ad de.ts W19B000 to 19B040 W19B00 W19B090 to 19B095 W19B140 to 19B20 Com)an- dist"i.utions – W1/B200 to 1/210 $m)utation s-stem BB W 1/B100 to 1/B130 W1/B3/9 to 1/B394 "anin+ issues &o" !om)anies BB W1/B330 to 1/B350 "anin+ a!!ounts – W1/B30 to 1/B3/9
#rese)tati&) uesti&)s re+ati) t& Lecture E+e'e) t& (e /rese)ted i) )e*t ,eeks c+ass uesti&) 11-1
Anna is a tax "esident wo )"o(ides te &o%%owin+ detai%s o& e" in!ome and ex)enses du"in+ te -ea" ended 30 June 2014H Sa%a"- BB D5'000 ;D16'000 tax wite%d .- e" em)%o-e" du"in+ te -ea"> Fi(idend ;&u%%- &"aned> "e!ei(ed &"om sa"es in :# BB D4'200 Fi(idend ;50O &"aned> "e!ei(ed &"om sa"es in Stowe BB D2'00 Fedu!ti.%e ex)enses BB D1'/00 Anna is not ma""ied and as no !i%d"en@ Se does not a(e )"i(ate ea%t insu"an!e@ a+cu+ate te ta* /aa(+e ( A))a &r te ear e)ded 30 u)e 2014
uesti&) 11-2
AC #t- Ltd ;AC> is an Aust"a%ian "esident )"i(ate !om)an- and on 1 Ju%- 2013 te &"anin+ a!!ount .a%an!e was D45'000@ AC )aid !om)an- in!ome tax du"in+ te -ea" ended 30 June 2014 as &o%%owsH 21 Ju%- 2013 D35'000 21 !to.e" 2013 D35'000 21 Janua"- 2014 D35'000 21 A)"i% 2014 D6'000 AC a%so )aid GST o& D60'000 on 2/ !to.e" 2013@ AC "e!ei(ed a &u%%- &"aned di(idend o& D2'000 on 1 *o(em.e" 2013 and a%so "e!ei(ed an un&"aned di(idend o& D30'000 on 12 Fe!em.e" 2013@ AC )aid a 50O &"aned di(idend o& D120'000 on 1 e."ua"- 2014 and a 100O &"aned di(idend o& D60'000 on 1 June 2014@ 26 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
#re/are a ra)ki) acc&u)t &r AB &r te ear e)ded 30 u)e 2014
uesti&) 11-3
#"ado' a )"i(ate !om)an-' )a-s a di(idend o& D1'400 on 1 Ju%- 2013 wit D540 &"anin+ !"edits atta!ed@ Te on%- ote" time #"ado )a-s a di(idend du"in+ te &"anin+ )e"iod is on 1 e."ua"2014' wen it )a-s a di(idend o& D2'/00 wit &"anin+ !"edits o& D1'200 atta!ed@ E*/+ai) te ta* c&)seue)ces &r #rad& a)d &r te sare&+der ,& is /aid te di'ide)d &) 1 =e(ruar 2014
uesti&) 11-4
#e"&e!t #t- Ltd as a de&i!it &"anin+ a!!ount .a%an!e o& D1/'000 at 30 June 2014 and tota% &"anin+ !"edits o& D220'000 &o" te -ea" ended 30 June 2014@ E*/+ai) >i? te ta* c&)seue)ces &r #erect #t Ltd r&m a'i) tis deicit i) te ra)ki) acc&u)t at 30 u)e 2014. a)d >ii? &, te ta* c&)seue)ces ,&u+d (e diere)t i te deicit (a+a)ce at 30 u)e 2014 ,as :35.000 uesti&) 11-5
Ja!o. is a &o"ei+n "esident o& Aust"a%ia &o" 2013E2014 and is on%- Aust"a%ian sou"!ed in!ome du"in+ te -ea" a"e D2'100 &u%%- &"aned di(idends &"om sa"es e o%ds in an Aust"a%ian !om)an-' A%% eta%s #t- Ltd@
E*/+ai) t& ac&( ,at i)c&me ta* +ia(i+it e ,i++ i)cur i) Austra+ia &) te di'ide)ds r&m A++ Meta+s #t Ltd Cat ,&u+d (e tat ta* +ia(i+it i te di'ide)ds ,ere &)+ 40 ra)kedD uesti&) 11-6
Si)w"e!e"s #t- Ltd ;KSi)w"e!e"s=> "uns a .usiness )u"!asin+ o%d .oats and se%%in+ te s)a"e )a"ts to a se%e!t num.e" o& !ustome"s in Aust"a%ia and *ew Qea%and@ Te main o&&i!e is in S-dne-@ & te 90 issues sa"es in Si)w"e!e"s' 30 sa"es a"e e%d ea! .- Sane' C%ai"e and #at as at 30 June 2013@ Si)w"e!e"s as !a""-&o"wa"d in!ome tax %osses tat "e%ate to te -ea" ended 30 June 2013 .ut &o"!asts a"e &o" an in!"ease in sa%es o(e" te next two -ea"s@ Fes)ite te )ositi(e &o"e!asts Sane and C%ai"e de!ide to se%% a%% o& tei" sa"es to an un"e%ated !om)an- Si) to So"e #t- Ltd on 20 Fe!em.e" 2013@ A&te" Si) to So"e #t- Ltd )u"!ased te sa"es &"om Sane and C%ai"e temo(ed te main o&&i!e to "is.ane and a%so &o!ued on sa%es o&&so"e@ Ad'ise Si/,reckers i te ca) a//+ te ta* +&sses deri'ed duri) te ear e)ded 30 u)e 2013 aai)st assessa(+e i)c&me deri'ed ater te sa+e & sares ( Sa)e a)d +aire #+ease reer t& re+e'a)t secti&)s a)d case +a,
2 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
Lecture !,e+'e =ri)e Be)eits !a* >=B!? 7eadin+s &"om Australian Taxation Law 2014 CC: &o" tis wee?s %e!tu"e@
=ri)e Be)eits !a* "in+e .ene&its tax – e- desi+n &eatu"es BB W 26B000 to 26B040 Ste)s in taxin+ &"in+e .ene&its BB W 26B100 to 26B300 $n!ome tax' T and GST – W26B330 and 26B340 7e)o"ta.%e &"in+e .ene&its BB W26B350 Sa%a"- sa!"i&i!e a""an+ements BB W26B360 S)e!i&i! &"in+e .ene&itsH BB Ca" &"in+e .ene&it BB W26B400 to 26B405 Loan &"in+e .ene&it BB W26B450 to 26B455 x)ense )a-ment &"in+e .ene&it – W26B500 to 26B505 #"o)e"t- &"in+e .ene&it BB W26B550 to 26B555 7esidua% &"in+e .ene&it – W26B650 to 26B660 #rese)tati&) uesti&)s re+ati) t& Lecture !,e+'e t& (e /rese)ted i) )e*t ,eeks c+ass
uesti&) 12-1
""o% !ommen!es em)%o-ment at A!to Se!u"ities on 30 Se)tem.e" 2013 and is )"o(ided wit te use o& a !a" tat A!to "e!ent%- )u"!ased &o" D60'000@ :e is a%%owed to +a"a+e te !a" at is ome at a%% times@ Fu"in+ te 2013E14 T -ea"' ""o% d"o(e te !a" &o" 23'000 m and did not maintain a %o+.oo@ ""o% )a-s D2000 a -ea" towa"ds te !ost o& te !a" in!u""ed .- A!to@ E*/+ai) >i? te t/e & ri)e (e)eit /r&'ided ( Act&. a)d >ii? te ta*a(+e 'a+ue & te ri)e (e)eit
uesti&) 12-2
A%i is )"o(ided wit a !a" .- is em)%o-e" on 1 A)"i% 2013 ;Cost D55'000 GST in!%usi(e>' and e +a"a+es te !a" at is ome ea! ni+t du"in+ te 2013E14 T -ea"@ A%i t"a(e%%ed 40'000 i%omet"es in te !a" du"in+ te -ea"' and te odomete" and %o+.oo "e!o"ds sow tat 15'000 i%omet"es we"e &o" .usiness )u")oses and 25'000 i%omet"es we"e &o" )"i(ate )u")oses@ Te o)e"atin+ !osts o& te !a" ;not in!%udin+ deemed de)"e!iation and deemed inte"est> we"e D'00 ;GST in!%usi(e>@ A%i did not mae an- !ont"i.ution' .ut )"o(ided a%% te ne!essa"- do!uments &o" is em)%o-e" to !a%!u%ate is T %ia.i%it-@ Assumi) te em/+&er e+ects t& use te &/erati) c&st (asis. e*/+ai) a)d ca+cu+ate te ta*a(+e 'a+ue & te car ri)e (e)eit
2/ 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
uesti&) 12-3
Connie is em)%o-ed as ma"etin+ mana+e" &o" a !%otin+ "etai%e" and du"in+ te 2013E14 T -ea" se "e!ei(es te &o%%owin+H ;1> a mo.i%e )one a%%owan!e o& D100 )e" mont to !o(e" te estimated !ost tat se in!u"s usin+ e" mo.i%e )one to mae .usiness !a%%s@ ;2> "eim.u"sement o& te !osts o& D1'500 se in!u""ed in attendin+ a t"ainin+ !ou"se in e%.ou"ne@ Te t"ainin+ !ou"se was a%% da- and assisted e" in de(e%o)in+ te si%%s "eIui"ed &o" e" "o%e as te ma"etin+ mana+e"' and ;3> Connie is a%%owed to tae &o" e" )e"sona% use !%otin+ tat as a ma"et (a%ue o& D5'000@ E*/+ai) te i)c&me ta* c&)seue)ces &r &))ie r&m tese tra)sacti&)s a)d te =B! c&)seue)ces &r er em/+&er
uesti&) 12-4
Sau% ass is em)%o-e" &o" a %ow inte"est %oan o& D100'000 so tat e !an use D60'000 to )u"!ase eIui)ment &o" a sma%% .usiness e o)e"ates on te weeend and D40'000 to tae te &ami%- on an o(e"seas o%ida-@ Te em)%o-e" a+"ees to a %oan o& D100'000 at 5O inte"est' and te %oan !ommen!es on 1 Au+ust 2013 and !ontinues unti% 31 a"! 2014@ Fu"in+ te 2013E14 T -ea"' Sau% a%so "e!ei(es &"om is em)%o-e" a %a)to) !om)ute" and a mo.i%e )one tat e is ex)e!ted to use in is wo"@ E*/+ai) te =B! c&)seue)ces &r Sau+s em/+&er a)d te i)c&me ta* c&)seue)ces &r Sau+ Cat is te re/&rta(+e ri)e (e)eit am&u)t &r 2013<2014D
uesti&) 12-5
o%!on Ltd em)%o-s 20 em)%o-ees in its !a" "e)ai" .usiness@ e!ause te wo" site is not !%ose to )u.%i! t"ans)o"t' most o& te em)%o-ees need to d"i(e to wo"@ To e%) tem wit tei" ex)enses' o%!on "ea!es an a+"eement wit a se"(i!e station nea".- &o" te em)%o-ees to .e a.%e to )u"!ase )et"o% at a )"i!e tat is .e%ow te )"i!e tat is o&&e"ed to te )u.%i! +ene"a%%-@ Te em)%o-ees sow tei" sta&& !a"d to )"o(e tei" entit%ement to te !ea) )et"o%@ ne em)%o-ee wa%s to wo"' .ut e" us.and uses te em)%o-ee?s sta&& !a"d to )u"!ase )et"o% at te !ea) )"i!e@ E*/+ai) te =B! c&)seue)ces & tese arra)eme)ts &r ;&+c&) a)d te i)c&me ta* c&)seue)ces &r te em/+&ees
Ceek !irtee) $e'isi&) BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 29 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
E*am/+es & ,ritte) e*/+a)ati&) & /rese)tati&) uesti&) uesti&) ")e >r&m a /re'i&us semester?
Te!t"oni! ui%din+s #t- Ltd owns t"ee .ui%din+s in te "is.ane !ent"a% .usiness dist"i!t@ ne o& te .ui%din+s as Nust .een !om)%eted and a num.e" o& )"o)osed tenants a"e !om)etin+ to o.tain te %ease o& te to) &%oo" o&&i!es@ $n %i+t o& te !om)etition to %ease te to) &%oo" o&&i!es' Te!t"oni! is a.%e to demand not on%- a mont%- %ease )a-ment o& D/0'000 .ut a%so an u)&"ont )a-ment on !ommen!ement o& te %ease o& D50'000@ E*/+ai) te i)c&me ta* treatme)t & te /ame)ts i) res/ect & te t&/ +&&r &ices !e issues Te"e a"e two taxation issues e"eH te taxation o& te mont%- %ease )a-ments and te taxation o& te D50'000 u)&"ont )a-ment ;a %ease )"emium>@ !e +a, Lease )a-ments ;"ent> a"e te )"i!e )aid .- a tenant &o" te "i+t to use an owne"?s )"o)e"t- ;te o&&i!es e"e>@ Taxation %aw t"eats "ent as o"dina"- in!ome .e!ause it exi.its te !a"a!te"isti!s o& <)e"iodi!it-' "e!u""en!e and "e+u%a"it-= ;Dixon 1952>@
A )"emium is a oneBo&& %um) sum )a-ment .- a )otentia% tenant to indu!e te %and%o"d to a%%ow te tenant to ente" te %ease ; Australian Mercantile Land and Finance 1929>@ $t is +ene"a%%- !a)ita% in !a"a!te" .e!ause it is )aid &o" te "i+t o& a!!ess "ate" tan &o" te !ontinuin+ use@ Tis means a )"emium was +ene"a%%- taxB&"ee u) to 19/5 .ut is su.Ne!t to !a)ita% +ains tax toda-@ As an ex!e)tion' a )"emium !an .e o"dina"- in!ome i&' %ie in Kosciusko Thredbo 19/4' te "e!ei)t o& )"emiums is an o"dina"- )a"t o& a tax)a-e"?s .usiness o" i&' %ie in Australian Mercantile Land and Finance 1929' it is "ea%%- "ent "ate" tan a )"emium@ $eaci) a s&+uti&) $n tis !ase' ;1> te "ent is !%ea"%- o"dina"- in!ome' .ut ;2> it is un!%ea" ow te )"emium wou%d .e taxed@ Wete" te )"emium is !a)ita% o" o"dina"- in!ome de)ends on in&o"mation a.out Te!t"oni!?s .usiness wi! asn?t .een +i(en@ o" exam)%e' we a"e not to%d wete" tis is an iso%ated e(ent o" one o& a num.e" o& o!!asions on wi! a )"emium is "e!ei(ed .- Te!t"oni!@ C&rd c&u)t 230 ,&rds
uesti&) !,& >r&m a /re'i&us semester?
$n Janua"- 2001 $n+"id )u"!ased a ouse in St"at&ie%d &o" D1/4'500@ $n+"id %i(ed in te St"at&ie%d ouse unti% Ju%- 2005 wen se a!!e)ted a No. and mo(ed to Cai"ns@ $n+"id "ented te ouse &"om Ju%- 2005 to Au+ust 2010 and at no sta+e did se own anote" ouse as se e"se%& "ented in Cai"ns@ n 1 Au+ust 2010' se "etu"ned to S-dne- and mo(ed .a! into te ouse on tat date and made it "ead- &o" sa%e@ Se %i(ed in te ouse unti% 1 *o(em.e" 2010 wen it was so%d &o" D/35'000 unde" a !ont"a!t dated 1 !to.e" 2010@ Ad'ise I)rid &) te ca/ita+ ai)s ta* issues tat arise ,it res/ect t& te sa+e & te &use i) Stratie+d !e issue Te issue e"e is te CGT t"eatment o& te !a)ita% +ain tat a"ises on te sa%e o& te ouse@
30 2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
