Microsoft Word - HA3042 Individual Assignment T2 2019 Assessment Details and Submission Guidelines Trimester T2 2019 Unit Code HA3042 Unit Title Taxation Law Assessment Type Assignment Assessment...

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Microsoft Word - HA3042 Individual Assignment T2 2019 Assessment Details and Submission Guidelines Trimester T2 2019 Unit Code HA3042 Unit Title Taxation Law Assessment Type Assignment Assessment Title Individual Assignment Purpose of the assessment (with ULO Mapping) Students are required to follow the instructions by your lecturer to confirm anyrelevantinformation.Youalsoneedtofollowanyrelevant 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. Practical skills and knowledge of tax law concepts (ULO 1). 2. Ability to nalyse tax law issues (ULO 2). 3. Ability to pply legal tax principles (ULO 3). Weight This assignment task accounts for 20 % of total marks in this unit. Total Marks This assignment task accounts for 20 marks of total marks in this unit. Word limit Max 2000 words (acceptable to be 10% above or below this word limit) Due Date Refer to the Unit Outline, as Normal Mode & Block Mode have different due dates. Submission Guidelines · Answer all questions. · This assignment along with a completed Assignment Cover Page is to be submitted on Blackboard by the due date in soft-copy only (via Safe assign – Blackboard). · The assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook. · It is the responsibility of the student submitting the work to ensure that the work is in fact his/her own work. Incorporating another’s work or ideas into one’s own work without appropriate acknowledgement is an academic offence. Students should submit all assignments for plagiarism checking (Via SafeAssign) on Blackboard before final submission in the subject. For further details, please refer to the Unit Outline and Student Handbook. · 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. · Reference sources must be cited in the text of the report, and listed HA3042 Taxation Law Individual Assignment T2.2019 appropriately at the end in a reference list using 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. · For further details, please refer to the Subject Outline and Student Handbook. · 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. Purpose: Individual Assignment Specifications This assignment aims at assessing students on the Learning Outcome from 1 to 3 as mentioned above. Assignment Structure should be as the following: Question 1: Capital Gains Tax Weighting A. The capital gain in relation to the family home 2 Marks B. Capital gain or loss made from the car 1 Mark C. The capital gain in relation to the sale of the business 3 Marks D. The capital gain in relation to selling the furniture 2 Marks E. The capital gain in relation to selling the paintings 2 Marks QUESTION 1 TOTAL MARKS: 10 MARKS Question 2: Capital Allowance Weighting Issue: Identify and discuss the problem. 1 Mark Law and Application: Discussion of the first element of the cost of the CNC machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. 3 Marks Law and Application: Discussion of the second element of the asset’s cost, i.e. the start time for calculating the decline in the value of the CNC machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. 3 Marks Concluding discussions: Concluding discussions regarding the exact start time of holding the CNC machine for depreciation purposes, and the total cost of the machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. 2 Marks Conclusion: Stand back and play ‘the judge.’ Choose the argument and conclusions you think is the strongest and articulate what you believe to be the appropriate answer. 1 Mark QUESTION 2 TOTAL MARKS: 10 MARKS Assignments’ Instructions and Requirements QUESTION 1(10 MARKS) Jasmine is an Australian resident. She is 65 years old and born in the UK, is now selling her Australian assets as she is retiring from her business as a cleaner and going back to the UK. Jasmine is selling the following assets: A. Jasmine’s home was purchased in 1981 for $40,000 and now worth $650,000. This home was Jasmine’s main residence since she purchased the house. B. Jasmine purchased a car in 2011 for $31,000 and is now worth around $10,000. C. Jasmine commenced her ‘small cleaning business’ herself and now found a buyer to take over the cleaning business for $125,000. The sale price includes $65,000 for all of the business equipment, which cost $75,000, and $60,000 for goodwill. D. Jasmine is also selling her furniture for $5,000. No single item offered for sale cost more than $2,000. E. Jasmine has several paintings and is now selling them all for $35,000. All of her paintings were purchased in second hand shops or markets and no single painting cost more than $500. The one exception was a painting she purchased direct from an artist for $1,000. This painting is being sold for $5,000. Advise Jasmine of the CGT consequences of the above sales. Include relevant legislative references to support your answer. QUESTION 2(10 MARKS) John owns a motor vehicle parts and accessories manufacturing company. The business produces certified BMW parts. John purchased an industrial computer numerical control (CNC) machine imported from Germany on 1 November 2014 for $300,000. John visited the CNC factory to inspect the CNC machines and place his order. The only reason for his visit to Germany was to purchase the CNC machine. The trip to Germany cost John $12,000. The CNC machine needed to be installed by specialists and bolted to his factory floor. The installation of the CNC machine was completed on 15 January at a cost of $25,000. Once the CNC machine was installed and John started using the CNC machine he discovered that the CNC machine required an additional guiding rod to make it more effective. This guiding rod was installed on 1 February at a cost of $5,000. Calculate the cost of the CNC machine for the purpose of calculating the capital allowance. What is the start time for calculating the decline in value of the asset? Include relevant legislative references to support your answer. Assignment Structure should be as the following (students’ responses involves calculations, and students must refer to the relevant legislation and cases whenever required according to the questions). For question 1, address the following elements: A. The capital gain in relation to the family home B. Capital gain or loss made from the car C. The capital gain in relation to the sale of the business D. The capital gain in relation to selling the furniture E. The capital gain in relation to selling the paintings For question 2, address the following parts: Issue: Identify and discuss the problem. Law and Application: Discussion of the first element of the cost of the CNC machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. Law and Application: Discussion of the second element of the asset’s cost, i.e. the start time for calculating the decline in the value of the CNC machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. Law and Application: Concluding discussions regarding the exact start time of holding the CNC machine for depreciation purposes, and the total cost of the machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. Conclusion: Stand back and play ‘the judge.’ Choose the argument and conclusions you think is the strongest and articulate what you believe to be the appropriate answer. Marking criteria Marking criteria Weighting For Question 1, students need to answer the following elements correctly: A. The capital gain in relation to the family home 2 Marks B. Capital gain or loss made from the car 1 Mark C. The capital gain in relation to the sale of the business 3 Marks D. The capital gain in relation to selling the furniture 2 Marks E. The capital gain in relation to selling the paintings 2 Marks Question 1 Weight 10 MARKS Issue: Identify and discuss the problem. 1 Mark Law and Application: Discussion of the first element of the cost of the CNC machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. 3 Marks Law and Application: Discussion of the second element of the asset’s cost, i.e. the start time for calculating the decline in the value of the CNC machine. Set out the legal principles that will be used to address the 3 Marks problem. Source legal principles from cases and legislation. Law and Application: Concluding discussions regarding the exact start time of holding the CNC machine for depreciation purposes, and the total cost of the machine. Set out the legal principles that will be used to address the problem. Source legal principles from cases and legislation. 2 Marks Conclusion: Stand back and play ‘the judge.’ Choose the argument and conclusions you think is the strongest and articulate what you believe to be the appropriate answer. 1 Mark Question 2 Weight 10 MARKS TOTLA WEIGHT: 20 MARKS Marking Rubric Excellent Very Good Good Satisfacto ry Unsatisfac tory Marks Allocation For Question 1, students need to answer the following elements correctly The Student Very good Majority of The area The 2 Marks capital knows how identificatio relevant of CGT law relevant gain in to use the n of the issues is correctly area of law relation to ITAA 1997, CGT identified identified in relation the family know how to consequenc and but the to the home. apply the law es of the discussed statement family in a real family home in relation does not home is scenario and and to the clearly not understand discussion family describe identified. the different of the home. the legal CGT issues. problem/s consequenc and es in relation conclusion to the family s that need home. to be
Answered Same DaySep 09, 2021HA3042

Answer To: Microsoft Word - HA3042 Individual Assignment T2 2019 Assessment Details and Submission Guidelines...

Pulkit answered on Sep 17 2021
138 Votes
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Jasmine an Australian resident who is 65 years old has cleaning business is now moving from the U.S. to the U.K. as she now wants to take retirement and want to settle in the U.K. but the selli
ng of different assets in the U.S. will attract capital gain taxation under Section 104-5 ITAA 1997 as she hands over his running business to another person along with it she also sell off her car, furniture and painting which will attract Capital gain tax and accordingly tax liability has to be calculated accordingly. In the following Para, the liability with respect to different asset sold will be analyzed and accordingly, net tax liability will be calculated by analyzing the different conclusions.
A. Jasmine sell off his residential house which she purchased in 1981 and use it for residential purpose only and it was not been used for commercial purpose like renting it out, used for the purpose of business etc. and it has used wholly for the residential purpose during the period it was owned by the Jasmine.
As per Australian taxation there will be no tax liability on the sale of residential property which was used wholly for the purpose of the residence as it is specifically excluded exemption of Capital gain tax is not available on the vacant block or the block which is vacant and has not been used for residence exemption is not available in this case as the block has not been used fully for the purpose of residence.
B. In the present situation the Capital gain tax liability has to be examined on the sale of car which was assumed that it has been used for the personal purpose only which was purchased for $31000 and now its market value is $10000 as according to Australian taxation there will be no Capital gain tax as well as treatment of Capital losses on the sale of personal assets as well as depreciable assets so in the present case there will no tax liability on the sale of car as it was used for personal purpose and as per the provision the depreciable asset, as well as the personal asset, has to be specifically excluded for the purpose of calculation of capital gain tax.
C. The tax liability on Jasmine on the transfer of running business to another as it has to be examined by analyzing the following points i.e. the business of Jasmine is considered to be small business as according to define small business means business whose net assets worth is $6 million with the control exercised by one person who holds 50% or more economic interest along with it 50% or more voting power or this condition can be exercised by two person to satisfy the definition and along with it has to satisfy other conditions in order to avail the Capital gain exemption which is that the person who sells the business is of no age over 55 and the amount has been invested in superannuation fund with total limit of $500000 during lifetime or the gain from Capital assets is reinvested on the replacement of the asset or the person who is selling the business is due to retirement and has carried over the business for minimum 15 years all the above mention condition if satisfied than the person is eligible to avail exemption.
In the present case of Jasmine there will be no Capital gain tax as...
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