Economics Exam Paper

Department of Accounting
Faculty of Business, Economics and Law

taxation/acc3tax

Subject Learning Guide

Semester 1
2013
Bundoora Campus

Subject Coordinator: Leslie Nethercott

ENQUIRIES
Leslie Nethercott
Associate Professor
104 Social Sciences Building
La Trobe University
Victoria 3083
T 03 9479 5178
F 03 9479 2356
E [e-mail] latrobe.edu.au/fbel Subject Details
GENERAL DETAILS
Subject Code:
ACC3TAX
Subject Title:
TAXATION
Teaching Period:
SEMESTER 1/2013
Location(s):
BUNDOORA CAMPUS
Credit Points:
15
Mode:
1 two-hour lecture
1 one-hour tutorial
*locations and times of lectures and tutorials are available at the online timetable.*
Level
Third year

ENROLMENT
REQUIREMENTS
Prerequisites:
Introductory Financial Accounting (ACC1IFA) AND Law of Business Association (LST2LBA).
Assumed Skills & Knowledge:
Taxation is taught on the assumption that students have completed the subject prerequisites as noted above.
Special Study Requirements:
AT HOME STUDY: A minimum of 7 hours of at-home study per week is essential for the correct assimilation and comprehension of contents delivered in the lectures.
TUTORIALS: Tutorial classes are run on a discussion-basis system. Tutorial exercises must be answered before tutorial classes. No model answers will be provided during tutorials; students must work out their own answers and discuss any questions.
SPECIAL NEEDS: Students with special needs whose participation in this subject might be limited by any study requirements are encouraged to consult the Equality and Diversity Centre (EDC). Further information and contact details for the EDC are available at http://www.latrobe.edu.au/equality.

STAFF CONTACTS
Subject Coordinator:
Associate Professor Leslie Nethercott
Email:
[e-mail]
Tel:
03 9479 5178
Location:
Room 104, Social Sciences Building, Bundoora Campus

SUBJECT DESCRIPTION
This subject develops an understanding of Commonwealth income tax legislation and the implications of income tax on individuals and businesses. A practical approach is taken to the subject matter. Topics include the general concepts of assessable income and allowable deductions, (including substantiation provisions, an introduction to capital gains and fringe benefits tax. The taxation of entities will also be covered including; the taxation of partnerships, companies and trusts. The subject will also cover: returns and assessments, objections and appeals.

SUBJECT INTENDED LEARNING OUTCOMES (SILOS)
Upon successful completion of this subject, students should be able to:
1
Demonstrate an understanding of the operation of the Australian income tax system.
2
Interpret the relevant legislation and common law to be able to make informed judgements on issues relating to the Australian taxation framework, policy issues and the application of the law in a variety of business/taxable entities such as partnerships, companies and trusts.
3
Formulate appropriate business strategies to ensure compliance with the provisions of the relevant legislation and be aware of the potential effects of possible changes in taxation law.
4
Demonstrate an understanding of legal principles and their application, specifically in relation to taxation and case law.
5
Calculate taxable income and tax payable for all types of taxable entities.

FACULTY GRADUATE CAPABILITIES
The following Faculty Graduate Capabilities (FGCs) are evaluated in this subject:

FGC
FGC Point a Writing
Capstone: Assessed by completion of individual assignment, group assignment and final written exam. b Critical Thinking/Analysis, Creative problem solving/synthesis
Capstone: Assessed by completion of individual and group assignments and final written exam. c Team Work
Capstone: Assessed by completion of one major group case study. d Information literacy
Capstone: Assessed by completion of individual and group assignments and final written exam.

LEARNING ACTIVITY SUMMARY

Lecture: INTRODUCTION, INCOME TAX EQUATION, STRUCTURE OF THE INCOME TAX ASSESSMENT ACT (ITAA); RESIDENCE AND SOURCE

INTRODUCTION
CTSG ITAA97, ss 1-1, 1-2, 1-3, 2-1, 2-5, 2-10, 2-15, 2-20, 2-25, 2-30, 2-40, 2-45, 3-1, 3-5, 3-10, 3-15, 4-1, 4-5, 4-10, 4-15
FT Chapters 4, 8, 10 and 11
RESIDENCE AND SOURCE
CTSG ITAA97, ss 6-5(2), 6-5(3), 6-10(4), 6-10(5)
FT Chapter 14
Rulings IT 2650, TR 98/17
ATC Applegate, De Beers Consolidated Mines, Efstathakis , Esquire Nominees, French, Jenkins, Levene, Malayan Shipping, Mitchum, Thorpe Nominees

Week 1

Tutorial: INTRODUCTION, INCOME TAX EQUATION, STRUCTURE OF THE INCOME TAX ASSESSMENT ACT (ITAA); RESIDENCE AND SOURCE

Tutorial Problems: Questions 1 and 2 (below), plus ATSM question 297
Additional ATSM questions: 1, 2, 4

Question 1
What is the difference between?
a) Assessable income and taxable income?
b) A tax deduction and a tax offset?
c) Ordinary income and statutory income?

Question 2
Bert Jones, a resident Australian employee received the following amounts for the year ended 30 June 2013:
$40,000 salary and wages from sources in Australia;
$ 300 from tips as a part time waiter
A bonus of $1000 from his employer paid into his bank account on 2 July 2013
$850 dividend from Apex Ltd a United States based company (15% withholding tax had been deducted)
$1,000 bank interest. Bert did not notify his bank of his tax file number, so TFN tax of $485 was withheld from the bank.
(1) Calculate the assessable income of Bert for the year ended 30 June 2013
(2) Assuming Bert does not have any deductions, what is the tax payable on the taxable income derived?
(3) Discuss the tax implications if Bert had a wife who derived $3,000.

Week 1
Lecture: INCOME FROM ORDINARY CONCEPTS; CHARACTERISTICS OF A BUSINESS; PERSONAL SERVICES INCOME
ASSESSABLE INCOME

INCOME – ORDINARY CONCEPTS
CTSG ITAA36, ss 6(1); ITAA 97 ss 6-1, 6-5, 6-10, 6-15, 6-20, 6-25, 995-1
FT Chapter 15
ATC Cooke & Sherden, Dixon, Hayes, Kelly, Payne, Scott, TennantvSmith
CHARACTERISTICS OF A BUSINESS
CTSG ITAA97, ss 6-5, 995-1
FT Chapter 15.5
ATC Arthur Murray, Babka, Barratt, Brajkovich, Carden, Dunn, Evans, Ferguson, Firstenberg, Henderson, Martin, Thomas, Trautwein
PERSONAL SERVICES INCOME
CTSG ITAA97, Div 84 – 87
FT Chapter 34.3

Week 2
Tutorial: INCOME FROM ORDINARY CONCEPTS; CHARACTERISTICS OF A BUSINESS; PERSONAL SERVICES INCOME
ASSESSABLE INCOME

Tutorial Problems: Question 3 (below), plus ATSM questions 298, 515, 516.
Additional ATSM questions: 11, 18

Question 3
Explain, giving reasons, whether any of the following amounts are assessable and, if so, the amount to be included in assessable income.
Indicate what, if any, additional information would assist in deciding this issue.
a) John works as a chauffeur for Richard Pratt. At Christmas time, John received a crate of whisky. The whisky has a retail value of $450. However, Richard was able to obtain it through his connections for $200.
b) Rebecca works as a barmaid on a part-time basis, whilst she is completing her Business degree. In addition to her salary, Rebecca receives about $60 per week in tips from satisfied customers.
c) Nick is a fulltime student. He is able to afford to come to university because he receives a scholarship of $3,000 a year from a company in his hometown of Sale. The terms of the scholarship require Nick to work for the company for a minimum of three years after graduation.
d) Harry is an architect. He wins $64,000 after appearing on Who Wants to Be A Trillionaire.
e) Jim is a career stockbroker, and a regular and frequent gambler, betting both on horse and greyhound racing. He has made a total profit of $275,000 from this source, which has financed his extravagant
life-style.

Week 2
Lecture: STATUTORY INCOME; COMPENSATION PAYMENTS AND INCOME FROM ISOLATED TRANSACTIONS

COMPENSATION PAYMENTS
CTSG ITAA97, ss 6-1, 6-5, 6-10, 6-20, 6-25, 15-30
FT Chapter 15.8
ATC Californian Oil, Federal Coke, Allied Mills, GKN, Kwikform Services, Heavy Minerals, McLaurin, Phillips, Scott, Spedley Securities, Van Den Bergh
ISOLATED TRANSACTIONS
CTSG ITAA97, ss 6-1, 6-5, 6-10, 6-15, 6-20, 6-25, 15-15
FT Chapter 15.3 – 15.6
ATC Cyclone Scaffolding, Hyteco, McClelland, Memorex, Myer Emporium, Scottish Australian Mining, Westfield, Whitfords Beach

Week 3
Tutorial: STATUTORY INCOME; COMPENSATION PAYMENTS AND INCOME FROM ISOLATED TRANSACTIONS
COMPENSATION PAYMENTS

Tutorial Problems: ATSM questions 302, 521,528
Additional ATSM questions: 33, 37

Week 3
Lecture: STATUTORY INCOME (CONTINUED); EXEMPT INCOME; SUPERANNUATION AND EMPLOYMENT TERMINATION PAYMENTS)

SUPERANNUATION
CTSG Divisions 301-302 & Div 307
ETP’s Divisions 80-83
FT Chapters 26 & 39
ATC Freeman, Reseck
OTHER STATUTORY & EXEMPT INCOME
CTSG ITAA97, ss 6-1(3), 6-1(4), 6-15, 6-20, Divs 11, 50, 51, 52
FT Chapters 18 &19

Week 4
Tutorial: STATUTORY INCOME (CONTINUED); EXEMPT INCOME; SUPERANNUATION AND EMPLOYMENT TERMINATION PAYMENTS)

Tutorial Problems: ATSM questions 305, 506, 524
Additional ATSM questions: 6, 7

Week 4
Lecture: CAPITAL GAINS TAX

CAPITAL GAINS TAX
CTSG ITAA97, s 15-15, and Divs 100, 102, 103, 104, 106, 108, 109, 110, 112, 114, 116, 118, 121
FT Chapter 24
ATC Krakos Investments, Murray, Orica z Week 5
Tutorial: CAPITAL GAINS TAX

Tutorial Problems: Question 4 (below), plus ATSM questions 332, 336
Additional ATSM questions: 46, 48, 49

Question 4
During the year ending 30.06.13 Christine Wilson:
Sold her BHP shares in March for $10,000 that she purchased in September 1992 for $2,500 Sold her ANZ shares in June for $40,000 that she purchased in 1984 for $3,000 Sold her Telstra shares for $20,000 (she bought them in 2000 for $25,000)
Sold a painting which was bought in 2006 for $1,200. It was acquired at a cost of $600
Sold some shares in Fosters. They were acquired on 1 August 2010 for $4,000 and sold for $2,500 in June 2013
Sold an antique jug. It was purchased on 18 October 2010 for $1,200 and sold for $2,000 in June 2013
Advise Christine of the income tax consequences of the above transactions and determine the net capital gain for the period.

Week 5
Lecture: FRINGE BENEFITS TAX AND SECTION 21A (ITAA36)

FRINGE BENEFITS TAX
CTSG ITAA36, ss 21A; FBTAA, ss 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, 20, 20A, 21, 22, 22A, 23, 24, 30, 31, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 57, 58F, 58H, 58K, 58P, 58Y, 58Z, 62, 65J, 66, 136, 136AA, 148
FT Chapter 25

Week 6
Tutorial: FRINGE BENEFITS TAX AND SECTION 21A (ITAA36)

Tutorial Problems: Question 5 (below), plus ATSM questions 349, 544
Additional ATSM questions: 75, 79

Question 5
Mary Myers is employed as a senior manager by Dupree Ltd, which sells a range of cosmetic products. Mary received a salary of $80,000 plus the following benefits for the year ending 30.06.13
A $100,000 loan at an interest rate of 5% per annum. This was provided on 1 April 2013. Mary used $60,000 of the loan to purchase shares in Telstra, while the remaining $40,000 was used to reduce the mortgage on her home.
A cash bonus of $5,000 as Mary exceeded sale targets by 5%. This was paid on 1 July 2013.
Payment of Mary’s golf club membership of $1,200.
Payment of her home total phone bill of $1,500 for the year. Mary estimated that she used the phone 40% for business purposes.
Provision of a laptop computer for work purposes. It cost $2,500.
Provision of a company car. It is a Ford Fiesta. The cost of the car was $20,000. In the first 3 months it travelled 5,000 kilometres.
An entertainment allowance of $ 2,000.
Advise Mary of her taxable income and the Fringe Benefits Tax on the above employment package for the period ending 30.06.13.

Week 6
Lecture: GENERAL ALLOWABLE DEDUCTIONS

ALLOWABLE DEDUCTIONS
CTSG ITAA97, s 8-1
FT Chapters 16
ATC AGC Advances, BP Australia, Broken Hill Theatres, Charles Moore, Coles Myer Finance, Finn, Fletcher, Griffin, Coal Mining, Hallstroms, Hatchett, Herald and Weekly Times, Highfield, James Flood, John Fairfax, Lodge, Lunney, Magna Alloys, Martin, Nevill, Payne, Placer Pacific, RACV Insurance, Ronpibon Tin, Snowden & Willson, Softwood Pulp & Paper, Sun Newspapers

Week 7
Tutorial: GENERAL ALLOWABLE DEDUCTIONS

Tutorial Problems: ATSM questions 371, 553, 556
Additional ATSM questions: 116, 117

Week 7
Lecture: REPAIRS, CAPITAL ALLOWANCE AND DEPRECIATION

REPAIRS
CTSG ITAA97, s 25(10)
FT Chapter 20.3
ATC Law Shipping, Lindsay, Rhodesia Railways, Thomas, Western Suburbs
CAPITAL WORKS
CTSG ITAA97, Div 43
FT Chapter 22
DEPRECIATION
CTSG ITAA97, Divs 40, 43
FT Chapter 22
ATC Faichney, Imperial Chemicals, Scottish and Newcastle, Wangaratta Woollen Mills

Week 8
Tutorial: REPAIRS, CAPITAL ALLOWANCE AND DEPRECIATION

Tutorial Problems: Question 6 (below), plus ATSM questions 389, 404, 567
Additional ATSM questions: 101, 114

Question 6
For the year ended 30 June 2013, Harry Spotter incurred the following costs to business premises he acquired in August 2012:
Repairs costing $795 to the roof, which was leaking due to a recent storm.
Painting of the exterior of the building - cost $1,700.
Replacement of the vinyl flooring in the reception area - cost $2,500.
Resealing of the customer car park as required by the local Council – cost $7,500.
Payment of $350 to ‘Jim’s gardening’ for the removal of a dead tree that fell in the recent storm.
Erection of new signs for the business premises.
Advise Harry what deductions may be claimed in respect of the above expenditure for the year ended 30 June 2013.

Week 8
Lecture: OTHER ALLOWABLE DEDUCTIONS & SUBSTANTIATION PROVISIONS

OTHER ALLOWABLE DEDUCTIONS
CTSG ITAA97, ss 25-5, 25-25, 25-35, 25-45, Divs 30, 36; ITAA36, s 82
FT Chapter 20
ATC Point
NON-DEDUCTIBLES AND SUBSTANTIATION PROVISIONS
CTSG ITAA36, s 82A; ITAA97, s 26-5, 26-10, 26-20, 26-30, 26-35, 26-40, 26-45, 26-50, Divs, 28, 34, 900, Divs 200 – 207
FT Chapter 21

Week 9
Tutorial: OTHER ALLOWABLE DEDUCTIONS & SUBSTANTIATION PROVISIONS

Tutorial Problems: Questions 7 and 8 (below), plus ATSM question 391
Additional ATSM questions: 141, 143

Question 7
Edward is employed as an engine driver on a tourist steam train. For the year ended 30 June 2013, he has incurred the following expenditure:
(i) Watch on a chain ($125): The watch helps Edward ensure that the train starts and reaches its destination on a timely basis. Edward purchased a watch on a chain as he considered it would be more in keeping with the era of steam train travel. Before each trip, Edward usually puts on a small theatrical display by taking out his watch in full view of passengers, checking the departure time and advising passengers to board the train, which must depart "on time".
(ii) Stop Watch ($150): Edward is required to keep a log of time and distances travelled. This gives his employer an idea of how well the train is working and when its engine may be due for its next maintenance.
(iii) Overalls ($55); Gloves ($20); Leather boots ($49): Edward wears these items both for warmth in the open cabin on cold days and to protect him from sparks from the fire when he has to shovel coal.
(iv) Sunglasses ($210): In winter there is often snow alongside the tracks and Edward uses sunglasses to reduce the glare. Edward also uses the sunglasses when the train travels west in the afternoon and east in the morning.
(v) Additional Shampoo ($70): Every day after Edward drives the engine he has to wash his hair, as it is usually full of soot. Edward estimates that he would normally wash his hair once a week. The above amount represents the cost of shampoo for the four extra days a week he must wash his hair.
(vi) Laundry of overalls ($230): This relates to the cost of additional washing powder required at home to clean the soot out of his overalls.
(a) Advise Edward what tax deductions are available to him in respect of the above items.
(b) Explain to Edward the substantiation requirements in relation to any deductions noted in (a).

Question 8
Henry Bird purchased a new car with a 2,200 cc non-rotary engine on 1 July 2012 for $50,000. For the year ended 30 June 2013, the car travelled 18,000 kilometres, of which 3,000 related to business use. The running costs of the car were:
Bank finance costs  6,500
Registration  700
Petrol  1,800
Maintenance  1,000
Depreciation  12,500
(a) Having regard to the substantiation provisions, which method will provide Henry with the greatest deduction?
(b) If Henry’s business use was 7,000 kilometres, how would this change your answer?
(c) If the car cost $ 60 000 how would this affect your answer?

Week 9
Lecture: TAXATION OF COMPANIES AND DIVIDENDS

TAXATION OF COMPANIES AND DIVIDENDS
CTSG ITAA36, ss 6(1), 6AC, 44, 46, 46F, 47, 108, 109, 128B(3)(ga): ITAA97, s 995-1, Divs 200 - 207
FT Chapter 27
ATC Slate, Uther

Week 10
Tutorial: TAXATION OF COMPANIES AND DIVIDENDS

Tutorial Problems: ATSM questions 443, 592
Additional ATSM questions: 216, 221

Week 10
Lecture: TAXATION OF PARTNERSHIPS AND TRUSTS

TAXATION OF PARTNERSHIPS
CTSG ITAA36, ss 6(1), 90, 91, 92; ITAA97, s 995-1
FT Chapter 28
ATC Beville, Everett, Galland, McDonald
TAXATION OF TRUSTS
CTSG ITAA36, ss 6(1), 95, 95A, 96, 97, 98, 99, 99A, 100, 100A, 101, 102, Div 6AA; ITAA97, s 995-1
FT Chapter 29, 34.4, 34.5, 34.6
ATC Harmer, Hobbs, Taylor, Truesdale

Week 11
Tutorial: TAXATION OF PARTNERSHIPS AND TRUSTS

Tutorial Problems: Question 9 (below), plus ATSM questions 420, 423, 431
Additional ATSM questions: 183, 184, 202

Question 9
The Richards family discretionary trust received the following income for the year ended 30 June 2013:
Interest $8,000
Rent $12,000
Unfranked dividends $2,000
Expenses incurred $8,857
The trustee exercised his discretion to distribute the income of the trust as follows:
To wife, onequarter  $4,000
To son, John, onequarter $4,000
To daughter, Jane, onequarter, to be accumulated until she turns 18  $4,000
The remainder was capitalised.
On 30 June 2013, the ages of the children are: John 20; Jane 14.
John has told the trustee that he does not want anything to do with the trust and has returned all cheques sent to him in the past. However, during the year, the trust did pay $4,000 for private health insurance for John without his knowledge.
(a) Calculate the net income of the trust for the year ended 30 June 2013.
(b) Explain how the income of the trust will be assessed.
(c) Would your answer be different if Jane 's share was not accumulated on her behalf?
Week 11
Lecture: TAX ADMINISTRATION AND TAX AVOIDANCE

TAX AVOIDANCE
CTSG ITAA36 Part IVA: S177A –177E
FT Chapter 33
ATC Bunting, Gulland, Watson and Pincus, Jackson, Peabody, Slutzkin, Spotless Services, Tupicoff, WD & HO Wills
TAX ADMINISTRATION
CTSG ITAA36, ss 6(1), 161, 162, 166, 166A, 167 - 170AA, 171 - 175, 177, 207, 207A, 209, 214A, 222 – 226, 262A, 263, 264; TAA, Pts 111, IVAAA, IVAA, IVA, IVC;
ADJRA ss 3, 5, 6, 7, 8, 10, 11, 13, 15, 16
FT Chapters 57 & 60
ATC Allen Allen & Hemsley, Citibank, Dalco , Stergis

Week 12
Tutorial: TAX ADMINISTRATION AND TAX AVOIDANCE

Tutorial Problems: Question 10 (below), plus ATSM questions 461, 463, 600
Additional ATSM questions: 245, 249, 62

Question 10
Joe Bronson operates a computer advisory practice by himself. During the year ending 30.06.2013 he earned $ 175,000 taxable income. However a financial adviser suggested he form a company to conduct his practice as this would reduce his tax substantially.
As a result Computer Advisory Pty Ltd was formed in January 2013 and all the income was redirected to the company and Joe was paid a salary of $ 40,000.
The shares in the company were owned by his wife and himself.
(a) Advise Joe whether the tax effectiveness of the restructure?
(b) What penalties may the Commissioner impose on the restructure?

Week 12
Lecture: GOODS AND SERVICES TAX (GST) & REVISION
GOODS & SERVICES TAX
CTSG Various sections: 7-1 to 42-5
FT Chapter 9
Week 13
Tutorial: No tutorial on week 13. Extended consultation time (to be scheduled) for revision questions.

Week 13

ASSESSMENT AND FEEDBACK SUMMARY
Assessment Tasks:
Due Date
%
Comments
Individual Assignment (case study)
Thursday, 18 April 2013
10
See general assignment instructions below.
Word limit: 850 words.
Professional presentation and logical/legal reasoning, with correct application of cases are assessed.
Group Assignment (case study + completion of Company Tax Return)
Monday, 13 May 2013
20
Groups of 3 students.
Word limit: Part A – 1000 words / Part B – 500 words.
Professional presentation and logical/legal reasoning, with correct application of cases are assessed. Tax Return Forms must be downloaded from the ATO website.
Refer to Assignment Case in Annex 1, at the end of this subject guide.
Final Exam
To be advised
70
Written exam. Duration: 3 hours.
Dates and venues will be available at the campus website.
Final exam is closed book.
No alternative times or extensions are available for final examinations. Students who do not sit for final examination at the scheduled time will be awarded a mark of zero.
In rare and extenuating circumstances, a student may not be able to sit a final exam because of illness or misadventure. If you miss a final exam, you must lodge an application for special consideration within 72 hours of the test or examination time. You must also explain/provide evidence (ex. Medical certificates) of the special circumstances to your coordinator. For more information, please refer to Special Consideration section detailed in the General Instructions below.
Hurdle requirement: in order to pass the subject, students must achieve at least 40% of the final examination, combined with an overall total of 50%.
ASSIGNMENTS/EXAMS GENERAL INSTRUCTIONS:
1. Statement of Authorship:
A Statement of Authorship (coversheet) form must be completed and stapled to the front of each assignment that is submitted. Statement of Authorship forms can be downloaded at: http://www.latrobe.edu.au/students/fbel/faculty-resources/forms .
It is your responsibility to read the Statement of Authorship (http://www.latrobe.edu.au/plagiarism/authorship.html) before attaching this document to your assignment. Attachment of a signed Statement of Authorship form will be taken as confirmation that you have read this statement and agree with it.
2. Collusion:
Where another student’s work has been copied, it will be assumed that both parties cheated and results for both assignments will be cancelled. If you allow, deliberately or negligently, another student to cheat by giving access to accounts or computers containing work which is subsequently copied from your files by that student, it will be assumed that you assisted in that cheating. It is your responsibility to keep that work secure. Please retain a copy of your assignment. For more information regarding collusion and plagiarism and the consequences thereof, please refer to http://www.latrobe.edu.au/students/learning/academic-integrity/collusion and http://www.latrobe.edu.au/students/learning/academic-integrity/plagiarism.
3. Plagiarism:
“One form of academic cheating is plagiarism: the reproduction of someone else’s words, ideas or findings and presenting them as one’s own without proper acknowledgment. There are many forms of plagiarism, including the following: direct copying of sentences, paragraphs or other extracts from someone else’s published work (including on the Internet and in software) without acknowledging the source paraphrasing someone else’s words without acknowledging the source using facts and information derived from a source without acknowledging it using ideas directly derived from an identifiable author without acknowledging the source producing assignments which should be the student’s own, independent work in collaboration with and/or using the work of other people (e.g. a student or tutor).”
For more information about plagiarism, see: http://www.latrobe.edu.au/students/learning/academic-integrity/plagiarism.
Plagiarism and copying the work of other students are forms of cheating and will be treated accordingly. Students found guilty of academic misconduct may receive penalties ranging from a requirement to participate in academic counselling or a reduction in marks for an individual piece of assessment for minor cases, through to suspension from your course in serious cases or repeat offences.
To ensure that you are not guilty of plagiarism you must, in all your written assignments, declare all sources from which you have obtained materials or ideas.
4. Assignment format:
Credit will be given in assignments which show readings from other sources. Please ensure you acknowledge the source of your article by referencing using the Harvard system. For tips on acknowledgement, referencing and plagiarism please refer to: http://www.latrobe.edu.au/learning/referencing.html. Remember you must reference any material you use which is not your own. You should also refer to Faculty’s Student Study Guide (available from the Faculty Office). La Trobe University online journals (http://www.lib.latrobe.edu.au/) are also a useful resource.
Use academic formal language. Avoid colloquial language and spelling, grammatical and typographical errors. Repeated errors of this kind will be penalised. Format your assignment as specified below:
Font: Times New Roman, size 12
Line spacing: 1.5 between lines.
Margins (left and right): 3.5cm or 1.5 inches (this allows space for comments to be made by the assessor).
Printing: Size A4 white paper, printed in one side only.
Numbering: pages must be numbered consecutively.
Stapling: staple the pages in the top left hand corner.
Word count: assignments must follow the specified word length, although a tolerance of 10% is allowed without penalty.
Other specifications: Please do not use folders or plastic sleeves.
5. Submission procedures vary from campus to campus. Please see details below:
Bundoora: Students will usually be required to submit their assignments by the due date and time to the relevant Assignment Box located on the 1st or 2nd level of the Donald Whitehead Building. Late Assignments must be placed in the Late Assignment Box, which is cleared daily. Note: Student Services staff DO NOT accept assignments on behalf of lecturers.
6. Submission of work after the due date:
Unless an extension is specifically granted via the Application for Extension/Re-weighting of Assessment form (available at http://www.latrobe.edu.au/students/fbel/assets/downloads/2010%20Downloads/2010-flm-application-for-extension.pdf , late work will be penalised as follows:
A piece of assessment submitted after the due date without prior approval will be subject to a penalty. The penalty will be 10% of the assessment mark per day up to a maximum of 3 days (whether week days, part days, weekends or public holidays or combinations thereof) after the due date. Work submitted after 3 days will be returned un-assessed.
Students seeking extended time for submitting work must apply to the subject coordinator no less than 48 hours prior to the submission date. An application for extended time should be made using the ‘Application for Extension or Re-Weighting of Assessment’ form available from the Student Services Officer at your campus: or at http://www.latrobe.edu.au/students/fbel/assets/downloads/2010%20Downloads/2010-flm-application-for-extension.pdf .
The form must include all circumstances pertaining to the requirement for additional time and supporting documentation (e.g. medical certificates) should be attached. Upon completion the form should be submitted directly to the subject coordinator. The subject coordinator will review the application within 24 hours of submission and inform the student of the outcome by completing the second part of the form. Where extended time is granted, a copy of the form should be attached to the assignment upon submission. All appeals against a decision regarding an extension of time should be made in writing to the Head of School, within 24 hours of that decision.
7. Passing the subject:
In order to pass this subject, students must: achieve at least 40% on the final examination achieve a minimum aggregate mark of 50% for the subject
Failure to meet these required standards will result in a fail in this subject. The final grades in the subject and in each of the assessment tasks will be allocated according to the following scale:
A (80-100%) B (70-79%) C (60-69%) D (50-59%) N (49% or less)
The following table is included to help in your understanding of what examiners look for when assessing written work; it suggests factors or qualities they look for to determine the levels of understanding and performance being demonstrated, and to differentiate between the various grades.

Achievement
A 80-100%
B 70-79%
C 60-69%
D 50-59%
Fulfilment of overall task intent
Sophisticated concepts communicated through advanced use of technique Exceeds or refines the basic task requirements.
Material presented is strongly linked to task; comprehension of task is high.
Sound conceptual development, problems encountered have been satisfactorily solved, resulting in well presented work
Broadly completed but some parts are superficially treated, misunderstood or nearly overlooked.
Use of information (including evidence and examples)
Evidence of critical or thoughtful sorting and selection. Comprehensive and accurate. Conclusions fully supported by the evidence.
Conclusions are fully supported by appropriate and well organised data. May be some minor omissions. Sources fully referenced.
Well researched with good use of material. Most information is appropriate, consistent and supportive of the conclusions drawn. Sources of information acknowledged.
Generally accurate and appropriate; some incomplete, unsupported or inconsistent information. Requires greater effort at substantiation and wider research.
Achievement
A 80-100%
B 70-79%
C 60-69%
D 50-59%
Application of theories &/or concepts dealt with in the topic or subject
Creative or reflective processing of theories; understanding of how and why they are used; critical and evaluative thinking.
Critical or evaluative thinking about how concepts/theories are applied; little inaccuracy or misunderstanding.
Relevant concepts, etc. applied in a generally appropriate and thoughtful way. No major misunderstandings; logical connections between ideas; no serious omissions.
Generally very limited application; some misunderstanding or quite superficial treatment.
Structure and organisation
Structure and sequence are used effectively to help integrate ideas or support logical argument. Soundly structured throughout.
Ideas are sequenced in a logically satisfying way; connections between different themes or sections are well made.
Sequence and structure are logical and easy to follow. Introductory and concluding sections used effectively.
Well enough structured to make sense; could be better organised and more tightly focused upon the topic. Instances of irrelevance or confusion.
Use of language and adherence to academic conventions
Powerful, confident and precise use of language; mastery of style and tone. Near perfect acknowledgement of sources throughout the paper
Language use demonstrates precision and expressiveness as well as clarity. Evidence of appropriate citation of work
Language is generally sound and clear throughout. Some evidence of appropriate citation of work.
Clear enough to be understood; some confused or unclear expression. Spelling, punctuation & grammar generally satisfactory but likely to need attention. Poor referencing

8. Special Consideration
Under special circumstances students may require special consideration regarding exam marking. Special consideration forms can be downloaded at: http://www.latrobe.edu.au/students/forms/search-results. You must include a doctor’s certificate or other supporting evidence of your special circumstances with this form.
Special Consideration is an equity measure to ensure that the assessment of students takes account of temporary adverse circumstances that impact negatively on individual students’ ability to demonstrate their learning achievements in an assessed task.
Students who consider that their performance in an assessed task was adversely affected by compelling or compassionate circumstances may apply to the University for Special Consideration. It is not a substitute for knowledge or skills you should have learned and because of this you will not be granted special consideration for your performance throughout a semester.
IMPORTANT NOTE: An application for special consideration does not guarantee that you will be granted a special examination or an adjustment to your results. The Committee reviews each application on an individual basis. In most cases, you will NOT be given a second opportunity to sit an examination as a result of an application for special consideration. The Committee only approves second examinations in extraordinary cases.
If you do not submit your application on the Faculty of Law and Management’s Application for Special Consideration form then your application will not be considered.
If your application does not contain all of the information requested and the required supporting documentation then your application will not be considered.
If your application is not submitted within the required time frame after the due date of the assessed task then your application will not be considered.
Applications for special consideration will be considered by a Faculty Committee comprised of academic staff members. Once the Committee has assessed your application, your subject co-ordinator will be notified of the results of the application. The decisions of the Special Consideration Committee are final and cannot be changed by Subject Co-ordinators. Please do not contact Subject Co-ordinators regarding the outcome of special consideration applications.
If you have queries about the Committee’s decisions, you should submit those queries in writing to the Committee’s email address: [e-mail]. All inquiries should be submitted not later than 14 days after the release of final results.

Special Consideration FAQ
A) Who should apply for special consideration?
A student who is unable to sit an examination due to illness or other cause.
A student who considers that his or her performance in an assessed task has been adversely affected by illness or other cause immediately prior to the due date of the assessed task.
B) What are common reasons for requesting special consideration?
Requests for special consideration must be for serious circumstances beyond the control of the student and will usually fall within the following causes:
Serious illness or psychological condition – e.g. hospital admission, serious injury, severe illness, severe anxiety, or depression (not on-going conditions). Medical certificates must accompany the special consideration request.
Loss or bereavement – e.g. death of a close family member.
Hardship/trauma – e.g. victim of crime, sudden loss of income or employment, family relationship breakdown, severe disruption to domestic arrangements.
C) When should you apply for special consideration?
Applications should be submitted to the local Student Administration Office of the University not later than 72 (seventy-two) hours after the due date of the assessed task.
D) What outcomes are possible?
Applications will be assessed and will be assigned one of the following outcomes: reschedule an Assessment Task; or set a substitute Assessment Task; or allow extra time to complete an Assessment Task; or award a reasonable adjustment of mark for the Assessment Task or subject for which special consideration is sought; or recommend that the Chief Examiners offer a formal Special Examination; or decide that there are insufficient grounds for the award of special consideration.
E) How should you make application for special consideration?
You must obtain a copy of the official Faculty of Business, Economics & Law Application for Special Consideration form from the following website: http://www.latrobe.edu.au/students/exams/documents/Application-for-Special-Consideration-FLM.pdf
All of the information requested on the form must be filled out.
You must supply evidence of the reason you are applying for special consideration. For example, if it is medically related you must have a registered medical practitioner fill out the section in the Application Form and sign it. Medical certificates must be completed by a registered medical practitioner, that is, it must include a Medicare Provider Number (this is normally a 5 or 6-digit number followed by 2 letters). Certificates that do not include a Medicare Provider Number will not be accepted. The medical certificate must state that in the medical practitioner’s opinion you were or will be unfit to attend an assessment task or have been or will be adversely affected by illness. Medical certificates in which the medical practitioner reports that you claim to be unwell will not be accepted. The medical certificate must cover the date on which the assessment is held.
If you are unable to complete an assessment component or your study is adversely affected due to a non-medical reason, you are encouraged to provide as much documentary evidence as you can to support your application. This should be objective evidence from an independent source. Documentation may include a death notice or certificate, a police report, a letter from an employer, a current letter from La Trobe Counselling Services or La Trobe Equality and Diversity Centre. If you have questions or concerns about documentation, see Student Administration on your campus for advice. Students can contact the Committee: [e-mail] with queries about documentation.
You must lodge the special consideration form and the supporting documentation to Student Administration at your campus.
F) How will you know the outcome of your application?
The Committee’s decisions are emailed to your University email address. Please check your email for outcomes.
G) What circumstances are not normally covered by special consideration?
The following circumstances are not normally matters covered by special consideration:
Ongoing medical conditions: if you need support because of a disability, mental health issue, or ongoing medical condition, this is not normally a matter for special consideration. For this type of long-term assistance, contact the Equality and Diversity Centre on your campus as soon as you become aware of the need for assistance and as early in the semester as possible.
Timetable clashes: if you have timetable clashes, exams scheduled close together, or more than the usual number of exams because you have been allowed to overload your enrolment, you will not be eligible for special consideration.
Travel plans: special consideration will not be granted to accommodate travel plans, attendance at social events such as weddings, visits with relatives/friends or any discretionary activities.
Visa requirements: Special consideration will not be granted because of avoidable issues related to visa requirements.
Special consideration will not be granted for extensions. You should use the Application for Extension/Reweight of Assessment form available from Student Services Office. http://www.latrobe.edu.au/lawman/currentstudents/faculty/administration/special-consideration.html
9. Academic Language and Learning (ALL) Unit:
The Academic Language and Learning (ALL) unit works closely with teaching staff in all Faculties and campuses to ensure that all La Trobe students – including those from non-English-speaking backgrounds – develop high-level academic speaking, writing, reading, and numeracy skills required for successful learning in their courses. To achieve those ends, the ALL Unit staff: collaborate on course and subject design; advise on teaching and learning strategies; teach/co-teach special undergraduate and postgraduate subjects, tutorials and workshops; and provide professional development for staff.
If you would like help with writing and research skills and your assignments please contact the Faculty Academic Language and Learning team at the following email address [e-mail].

LEARNING RESOURCES
Reading Type
Title
Author and Year
Publisher
Mandatory (Legislation)
Core Tax legislation and Study Guide
Barkoczy, 2013, 16th edition
CCH
Mandatory (Textbook)
Foundations of Tax
Barkoczy, 2013, 5th edition
CCH
Mandatory (Exercises)
Australian Taxation Study Manual (in ATSM exercises, please substitute all mentions to “30.06.2012” for “30.06.2013”)
Nethercott, Richardson and Devos, 2012, 22nd edition
CCH
Optional (Textbook/References)
2013 Master Tax Guide
CCH, 2013, 52nd edition
CCH
Optional (Cases)
Australian Tax Casebook
Barkoczy, 2012, 11th edition
CCH

STUDENT FEEDBACK ON SUBJECT SURVEY
The Student Feedback on Subjects Survey is part of the quality assurance process that occurs across the university. In this survey you are invited to tell us about your learning experiences in this subject. We want you to tell us of your experience in this subject. Your views will be taken seriously and will assist us to enhance this subject for the next group of students. Your feedback will also contribute to the text for ‘Summary of Previous Student Feedback’ in the ‘Subject at a Glance’ section above so please take the time to tell us your views. The surveys are anonymous and will be distributed 1‐3 weeks prior to the end of the teaching period.

LEARNING MANAGEMENT SYSTEM (LMS)
This subject has a LMS site where you will find:
Lecture notes will be posted at a time preceding the lecture
Electronic version of the Learning Guide
Notices to students from the Lecturer
Contact details and consultation times for the Lecturer and Tutors
The LMS can be accessed at: https://www.latrobe.edu.au/lms/login/ by using your Username and Password provided to you on your Statement of Account. If you are having trouble accessing the LMS or want to find out more about LMS, please see the website at: http://www.latrobe.edu.au/studentlmsinfo/moodle/index.html
Access to the ACC3TAX subject web page is password-protected and is available only to those students currently enrolled. It also contains links to the following sites: www.austlii.edu.au (administered by the Australasian Legal Information Institute, this site contains recent cases and legislation); www.ato.gov.au (set up by the Australian Taxation Office, this site contains recent tax rulings and press releases).

ACADEMIC INTEGRITY
Academic integrity means being honest in academic work and taking responsibility for learning the conventions of scholarship. La Trobe University views this seriously as evidenced by the following extract:
Academic honesty is a fundamental principle in teaching, learning, research and scholarship. The University requires its academic staff and students to observe the highest ethical standards in all aspects of academic work and it demonstrates its commitment to these values by awarding due credit for honestly conducted scholarly work, and by penalising academic misconduct and all forms of cheating.
Academic Integrity Procedures (2010, p.
1 of 6)
Academic misconduct includes poor referencing, plagiarism, copying and cheating. You should familiarise yourself with your responsibilities in relation to Academic Integrity and if you have any questions, direct them to your Course Coordinator. Information can be found on the website at: http://www.latrobe.edu.au/learning/integrity.html.

LIBRARY
The Library has many valuable physical and online learning resources that can help you with your study. On campus students should get to know the physical Library environment by going on a Library Tour. All students should get familiar with the Library website where online resources include:
LibGuides [http://latrobe.libguides.com/index.php] – providing specific discipline and subject guides;
LibSkills [http://latrobe.libguides.com/libskills] – to teach you library research and information literacy skills;
LibChat [http://www.lib.latrobe.edu.au/] ‐ a library discussion forum allowing you to chat with a Librarian;
Academic Referencing Modules [http://latrobe.libguides.com/referencingmodules] – to assist you to understand specific referencing
styles;
Academic Referencing Tool [http://www.lib.latrobe.edu.au/referencingtool/non‐flash/index.php] – providing detailed referencing examples; and,
Assignment Calculator [http://www.lib.latrobe.edu.au/calculator/index.php] – to assist you in time managing your assignments and submitting on time.

ANNEX 1 – GROUP ASSIGNMENT CASE

Computer Graphics

On 15 July 2012 Mary and Tom Johnson opened a graphics store “Computer Graphics” in the Waverley area. It deals with light commercial graphics and small company jobs along with some small private work. They acquired the business by paying the previous owner $400 000 for the business. This included $100 000 WDV for printing/ graphic equipment and $50 000 for furniture and office equipment

Because of heat in the printing premises and the need to reduce humidity they installed new air conditioning at a cost of $15 000 in February 2013.

Details of Computer Graphics for the year ending 30.06.13 are:

Cash Received
$
Sales
450 000
Cash Expenditure
$
Trading Stock
65 000
Wages
95 000
Electricity
9 500
Lease Payments
60 400
Car Expenses
8 500
Cost of attending print Fair
4 000
Legal Costs
2 000
License Costs
50 000
Royalty payments
4 500
Advertising
900
Purchase of Van
24 000
Purchase of car
60 000
Equipping New Store (computers, shelving etc)
16 850
Entertainment
1 200
Air conditioner
15 000
Purchase of Business Name & premises
400 000
Print/graphic supplies
40 000
Miscellaneous Expenditure
5 400

Notes:

(1) Sales (on 30.06.2013)
Sales
$
Debtors
45 000
Sales Returns
1 300
Creditors
4 800

(2) Trading Stock (Closing on 30.06.2013)
Trading Stock
$
Cost
4 000
RC
11 000
MSV
55 000
*Stock acquired at cost (paper/graphic supplies): $1200 of the stock on hand is only worth $600 due to obsolescence.

(3) Wages
$4 800 wages are owing to staff

(4) License Payments
Includes amount paid for initial rights

(5) Car Expenses
Type of car
Acquisition date
Cost ($)
Running Costs ($)
Toyota Delivery Van
01.08.12
24 000
5 000
Volvo Station Wagon
01.03.2013
60 000
3 500
*It is estimated that the van is used 100% for business and the car 40% for business.

(6) New equipment:
New equipment
Cost ($)
Shelving
2 800
Computers
14 050

REQUIRED:

PART A: Complete a Statement of Taxable Income and a Tax return for Computer Graphics the year ending 30.06.2013 with appropriate schedules and explanations.
*Word limit: 1000 words*

PART B: On 1 December 2012 Mary attended a Graphics fair in Singapore in order to update their knowledge on latest print developments. At the fair they acquired a license to install a software program with the ability to print high level graphics. This required an initial payment for the license of $ 100 000 which was to be paid in two instalments over two years. Advise computer graphics as to the deductibility of the above expenditure.
*Word limit: 500 words*

Instructions for presentation:
1) Total word limit: 1500 words (Part A = 1000 / Part B = 500)
2) Neatness and presentation will be considered in the grading.
3) There will be a penalty of 1 mark per day for late submissions.
4) Due date: Monday 13th May at 4pm.
5) The assignment should be completed in groups of three as allocated by your tutor.