LAW6001 Assessment 3 Case Study Page 1 of 7 ASSESSMENT BRIEF Subject Code and Title LAW 6001 Taxation Law Assessment Assessment 3: Case Study Individual/Group Individual Length 2000 words +/- 10%...

Taxation law assignment


LAW6001 Assessment 3 Case Study Page 1 of 7 ASSESSMENT BRIEF Subject Code and Title LAW 6001 Taxation Law Assessment Assessment 3: Case Study Individual/Group Individual Length 2000 words +/- 10% Learning Outcomes This case study must be presented as an individual effort. The case study requires individual research. The course manual and set texts are intended to be the starting point of the research. It is expected the student will survey the relevant literature, including decided cases, and select appropriate additional resources. The case study is designed to incorporate uncertainty. The student is expected to develop a piece of work which is written advice for their client. It must therefore identify the facts and issues presented by each aspect of the case study, identify and apply the relevant legislation and/or case law, come to a conclusion and make a recommendation to the client. Specific learning outcomes b) Explain ethical and professional responsibilities of tax agents under the including obligations under the Tax Agent Services Act 2009 (TASA) and Tax Agent Services Regulations 2009 (TASR). c) Interpret and apply selected sections of the Income Tax Assessment Act ITAA36 and ITAA 97. d) Identify and analyse the tax treatment of various types of income and deductions. e) Effectively apply taxation law in determining tax outcomes in various scenarios and structures. Submission By 11:55pm AEST/AEDT Sunday of Week 10 Weighting 20% Total Marks 50 marks LAW6001 Assessment 3 Case Study Page 2 of 7 Context This assessment assesses your research skills, your ability to synthesise an original piece of work to specific content requirements and your ability to produce a comprehensible piece of advice which addressing the client’s needs. It also assesses your written communication skills. The ability to deliver to a brief is an essential skill in the workplace. Clients may well approach advisors seeking a combination of specific information needs and advice on the tax implications of a particular arrangement in the Australian tax jurisdiction. It is therefore important to be able to identify all the issues presented by an arrangement and to think about the potential consequences of different approaches to addressing the client’s needs. Instructions: Your case study needs to identify and discuss the tax implications of the various issues raised. In order to produce your case study, you will need to review relevant case law and legislation. The subject manual and set texts are starting points only, you will be expected to use these initial materials to identify potential useful resources. You will then need to review your selected resources to see if they value add to your analysis. Your case study is not just a list of answers. Your reasons for your conclusions and recommendations must be based on your research into the relevant cases and legislation. LAW6001 Case Study T2 2018 Question 1 (10 marks) With reference to the UK Australia Double Tax Agreement explain: a) the meaning of the term Permanent Establishment. b) how the business profits of an enterprise incorporated in the UK are taxed in Australia. c) whether contracts made through an independent agent would result in a Permanent Establishment Question 2 (10 marks) Andrew McSwington is a highly regarded MLB prospect born in Adelaide. During the Australian off season he first travelled to Mexico to play in the Fall League for 2 months and then went to America to play in the minor leagues for 15 months. He signs the contract stipulating he is to be paid $145 000 for the 15 months in Adelaide and joins the minor league team shortly after. The contract states he is to be paid monthly into a bank account in the Turks and Caicos Islands Andrew decides to purchase a home in America to use it as a base during the home and away series and rent it out for the remainder of the income year when he returns to Australia. LAW6001 Assessment 3 Case Study Page 3 of 7 Discuss with reference to relevant case law: 1. Whether Andrew a resident of Australia for tax purposes 2. The source of the $145 000 paid for his baseball skills 3. Whether he is liable for taxation in Australia on the $145000 for his baseball skills 4. Whether Andrew is liable for tax on the rental income received from America during the balance of the year Question 3 (15 marks) What is the “first strand” of the decision in FC of T v The Myer Emporium Ltd 87 ATC 4363? Did the courts apply the first strand in Westfield Ltd v FC of T 91 ATC 4234 ? Compare and contrast the decisions in FCT v Myer and FCT v Westfield and suggest an explanation for the difference in the Court’s decisions. Comment on whether the decision support the distinctions made between income and capital in the Australian taxation system. Question 4 (15 marks) a) With reference to Softwood Pulp and Paper v FCT 1976 explain whether a deduction is available for interest paid on a loan during the preparatory stages of a business. b) With reference to Ronpibon Tin NL v. Federal Commissioner of Taxation (1949) 78 CLR 47 explain the importance of the ‘incidental and relevant test” in determining whether interest paid on loans in deductible. c) With reference to FC of T v. Brown 99 ATC 4600; (1999) 43 ATR 1 explain whether interest paid on loans can be deductible after business activities have stopped d) Comment, with reference to the Tax Agent Code of Conduct, on the role the tax advisor has in ensuring their client’s compliance with all relevant taxation laws, particularly in terms of interest deductions after business activities has ceased. LAW6001 Assessment 3 Case study Page 4 of 7 Learning Rubrics Assessment Attributes Fail (Unacceptable) Pass (Functional) Credit (Proficient) Distinction (Advanced) High Distinction (Exceptional) Grade Description (Grading Scheme) Evidence of unsatisfactory achievement of one or more of the learning objectives of the course, insufficient understanding of the course content and/or unsatisfactory level of skill development. Evidence of satisfactory achievement of course learning objectives, the development of relevant skills to a competent level, and adequate interpretation and critical analysis skills. Evidence of a good level of understanding, knowledge and skill development in relation to the content of the course or work of a superior quality on the majority of the learning objectives of the course. Demonstration of a high level of interpretation and critical analysis skills. Evidence of a high level of achievement of the learning objectives of the course demonstrated in such areas as interpretation and critical analysis, logical argument, use of methodology and communication skills. Evidence of an exceptional level of achievement of learning objectives across the entire content of the course demonstrated in such areas as interpretation and critical analysis, logical argument, creativity, originality, use of methodology and communication skills. Knowledge and understanding Limited understanding of required concepts and knowledge Key components of the assignment are not addressed. Knowledge or understanding of the field or discipline. Resembles a recall or summary of key ideas. Often conflates/confuses assertion of personal opinion with information substantiated by evidence from the Thorough knowledge or understanding of the field or discipline/s. Supports personal opinion and information substantiated by evidence from the research/course materials. Demonstrates a capacity to explain and apply relevant concepts. Highly developed understanding of the field or discipline/s. Discriminates between assertion of personal opinion and information substantiated by robust evidence from the research/course A sophisticated understanding of the field or discipline/s. Systematically and critically discriminates between assertion of personal opinion and information substantiated by robust evidence from the research/course materials and extended reading. http://www.tua.edu.au/media/50742/a240_grading-scheme.pdf LAW6001 Assessment 3 Case study Page 5 of 7 30% 0 - 14.9 research/course materials. 15-19.4 19.5- 22.4 materials and extended reading. Well demonstrated capacity to explain and apply relevant concepts. 22.5 - 25.4 Mastery of concepts and application to new situations/further learning. 25.5- 30 Critical reasoning, presentation and defence of an argument and/or position 30% Specific position (perspective or argument) fails to take into account the complexities of the issue(s) or scope of the assignment. Makes assertions that are not justified.