Homework answers / question archive / HI6028 Taxation Theory, Practice & Law Individual Assignment  Case Studies of Specific Deductions and Tax Liability   Students are required to follow the instructions by your lecturer to confirm any relevant information

HI6028 Taxation Theory, Practice & Law Individual Assignment  Case Studies of Specific Deductions and Tax Liability   Students are required to follow the instructions by your lecturer to confirm any relevant information

Taxation

Share With

---

HI6028 Taxation Theory, Practice & Law

Individual Assignment 

Case Studies of Specific Deductions and Tax Liability

 

Students are required to follow the instructions by your lecturer to confirm any relevant information. You also need to follow any relevant announcement on Blackboard to confirm the due date and time of the assignment. 

  

The individual assignment will assess students on the following learning outcomes: 

1. Demonstrate an understanding of the Australian income tax system, the concept of FBT, Ordinary Income, general anti-avoidance provisions and income tax administration. (ULO 1). 
2. Identify and critically analyse taxation issues. (ULO 2). 
3. Interpret the relevant taxation legislations and case law. (ULO 3). 

Apply taxation principles to real life problems. (ULO 4).  Max 1500 words (acceptable to be 10% above or below this word limit).

The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.

Harvard Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Adopted Harvard referencing style. You also must refer to relevant legislation and/or case law in your answer. Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Harvard referencing style. Penalty for not providing references is 5 marks.

Note: Assessment task is set around the work that you have done in class. You are not expected to go outside the content of the unit, but you are expected to explore it.

 

Assignments’ Instructions and Requirements  

  

Question 1                                                                                                                                                                    (10 Marks) 

 

An owner of a Cinema Hall, on ascertaining that a portion of the ceiling of the hall was in need of repairs, decided to replace the whole of the ceiling with different but better materials. The new ceiling, in addition to enhancing the appearance of the hall, improved the acoustics. The total cost of the material and of erecting the new ceiling was $320,000. It was estimated that the cost of repairing the ceiling would have been $220,000. 

 

With reference to Income Tax Assessment Act 1997 and relevant case law, discuss the amount, if any, allowable as a deduction for income tax purposes.  

 

Kindly use the four sections of:

1. Facts of the scenario 
2. Relevant laws and cases 
3. Application of laws and cases 
4. Conclusion 

(Maximum 800 words)

QUESTION 2 - (15 MARKS) 

 

A new client, Mary, is your first client. She needs to lodge his income tax for 2021/22. Further, she wants to know about some tax-related provisions and practices.  She asks some questions - what are the differences between taxable income, ordinary income, and statutory income? What types of ordinary and statutory income do not constitute assessable income? (Maximum 700 words)

Furthermore- 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 (Mary) with the information below:

 

• Mary is a resident single mom with one dependent child (4 years old) taxpayer of Australia for the tax year 2021-2022
• Her Taxable Salary earned is $110,000 (Including tax withheld) having no private health insurance.
• She had a $12,000 deduction. 
• Mary has a student loan outstanding for his previous studies at Queensland University of $32,000.
• Mary’s employer pays superannuation guarantee charge of 9.5% on top of her salary to her nominated fund.
• Mary earned a passive income of $5,000 from the investments in shares 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 of rates from ATO website. 

https://www.paycalculator.com.au/

 

Submission guide: Strictly NO excel sheet(s) or the screenshots of excel calculations and/or tables are allowed, and NO marks will be granted if these are submitted. But, no referencing is required for this question. 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
Answer tax related questions	5%
Total Assessable Income	1 %
Total Taxable Income	1 %
HELP repayment amount	1 %
Medicare Levy	1 %
Medicare Levy Surcharge	1 %
Total Tax Liability	3 %
Net Tax Liability (Total Tax Liability less any applicable tax offset if any)	2 %