Page 1 Kaplan Business School Assessment 3 Outline Assessment 3 Information Subject Code: ACC304 Subject Name: Taxation Law Assessment Title: Assessment 3- Individual assignment Assessment Type: Individual Assignment – Written letter of advice, Capital Gains Tax calculations Weighting: 20 % Total Marks: 20 Due Date: Monday of Week 10 at 19:55 (AEST) Your Task • This assignment must be presented as an individual effort. • The assignment requires individual research using a range of tax resources. It is expected you will survey the relevant literature, including decided cases, and select appropriate additional resources. • You are expected to identify the facts and issues presented by each question, identify and apply the relevant legislation and/or case law, and reach a conclusion. • This assessment assesses your research skills, your ability to synthesise an original pieceof work to specific content requirements. It also assesses your written communication skills. • Your reasons for your conclusions and recommendations must be based on your research into the relevant cases and legislation. Please check the marking sheet (included below) for Part A to ensure that you have followed all the guidelines Required Draft a business letter to Julie Palmer. In the letter, students must 1) Identify any discrepancies by reconciling the bank statement against the claims made by Julie Palmer (table 1 provided). 2) Recalculate the assessable income and allowable deductions with explanations. Include section numbers and/or cases in your explanations. 3) Advise any further actions required due to the discrepancies. Page 2 Kaplan Business School Assessment 3 Outline Assessment Description You are working as a tax agent at Rocket Tax Pty Ltd (456 George Street Sydney NSW 2000) and one of your clients (Julie Palmer: Unit 15/69 Smail Street Ultimo NSW 2007) has come to you for assistance. Julie is a self-employed web designer and due to her heavy work load and unpredictable working hours has not had the time to sort out her tax matters. Julie spends a lot of time organising her business expenses for tax, however she has lost a few receipts and tax invoices for the last quarter of the financial year. She said that she has already lodged the tax return based on the details provided in Table 1 (she estimated income & expenses for the June quarter 2020, as listed in the table 1 below). Table 1: estimated income & expenses Business income $10,000 Education expenses $2,000 Software subscription $800 Internet expenses $225 Telephone expenses $240 Rent $6,000 Income tax expense (PAYG instalment) $1,200 Travel to work (city rail) $500 Health insurance $300 Child care $1,000 Uniform $200 Depreciation on Computer (3 years useful life) $567 During December 2020, Julie advises you that she found the missing bank statement and receipts, which list the business income and expenses & other payments for the period June quarter 2020. Assume all amounts were correctly reported for other periods. Julie asked you to review the following Bank statement and identify discrepancies in the income/expense claims made versus the actual income/expenses incurred. Details of the Bank statement are as follows: Period: 01 April 2020 to 30 June 2020 Date Transaction details Withdrawal Deposit Balance Opening balance (April 2020) 7,500 1/04/2020 Paid for workshop webinar – Design course 160 7,340 3/04/2020 Storage boxes for shoes 255 7,085 4/04/2020 Monthly city rail (home to work) 150 6,935 9/04/2020 Fitness first (direct debit) 99 6,836 13/04/2020 Vodafone (direct debit) 80 6,756 12/04/2020 Services Income 4,500 11,256 15/04/2020 Electricity (Energy Australia) Home 375 10,881 14/04/2020 Medi Bank Private (Health) 95 10,786 16/04/2020 Telstra Internet 75 10,711 17/04/2020 Office rent 2,000 8,711 23/04/2020 Bavarian café - cake for birthday 255 8,456 25/04/2020 Interest charges on her personal loan 125 8,331 28/04/2020 March quarter PAYG instalment tax paid 8,331 1/05/2020 Paid for workshop webinar – Design course 60 8,271 Page 3 Kaplan Business School Assessment 3 Outline 4/05/2020 Monthly city rail (home to work) 150 8,121 8/05/2020 Jobkeeper payments - Business participant 3,000 11,121 9/05/2020 Fitness first (direct debit) 99 11,022 13/05/2020 Vodafone (direct debit) 80 10,942 14/05/2020 Medi Bank Private (Health) 95 10,847 15/05/2020 Gas (Energy Australia) Home 155 10,692 16/05/2020 Telstra Internet 75 10,617 17/05/2020 Office rent 2,000 8,617 23/05/2020 Dodo Coffee 80 8,537 1/06/2020 Yearly software subscription 800 7,737 4/06/2020 Monthly city rail 150 7,587 7/06/2020 Cash Boost from the ATO 5,000 12,587 9/06/2020 Fitness first (direct debit) 99 12,488 10/06/2020 Jobkeeper payments - Business participant 4,500 16,988 13/06/2020 Vodafone (direct debit) 80 16,908 14/06/2020 Medi Bank Private (Health) 95 16,813 15/06/2020 Apple computer for 100% work purposes 1,700 15,113 16/06/2020 Telstra Internet 75 15,038 17/06/2020 Office rent 2,000 13,038 23/06/2020 HBA Learning Institute for Design course 1,200 11,838 25/06/2020 Services income 5,500 17,338 28/06/2020 Jumbo Child care 980 16,358 30/06/2020 Blouse and black pants 150 16,208 Closing income (Month ending June 2020) 16,208.00 Additional information: • Julie’s business is not registered for GST as her annual income is less than $75,000. • Julie uses her phone and internet 40% for work purposes. • Julie pays child care fees so that she can go to work. • Julie purchased blouse and black pants only to wear at work. Task: You are required to: Draft a business letter to Julie Palmer. In the letter, students must 1) Identify any discrepancies by reconciling the bank statement against the claims made by Julie Palmer (table 1 provided). 2) Recalculate the assessable income and allowable deductions with explanations. Include section numbers and/or cases in your explanations. 3) Advise any further actions required due to the discrepancies. Page 4 Kaplan Business School Assessment 3 Outline Part A Assignment Rubric: 20% Written Letter of Advice Components High Distinction 85 – 100% (Marks 8.5 to 10.0) Distinction 75 - 84% (Marks 7.5 to 8.49) Credit 65 – 74% (Marks 6.5 to 7.49) Pass 50 – 64% (Marks 5 to 6.4) Fail 0 – 49% (Marks 0 to 4.9) Written Letter 20% The letter clearly identifies and addresses all the technical issues raised & provides clear, correct & decisive answers displaying an outstanding understanding of each of the technical issues. * It is easy for the client (nonaccountants) to understand. The Letter clearly identifies and addresses most of the technical issues raised by the client and provides clear, correct and decisive advice displaying a good understanding of most of the technical issues. * It is easy for the client (nonaccountants) to understand. The Letter clearly identifies & addresses some of the technical issues raised by the client and provides reasonably clear, correct and decisive advice displaying a reasonably good understanding of some of the technical issues. * It is relatively easy for the client to understand. The Letter identifies and addresses some of the technical issues raised by the client and provides fairly clear, but not always correct and/or decisive advice. It displays a reasonable understanding of some of the technical issues raised. * It is relatively easy for the client to understand. The Letter does not identify or address the technical issues raised by the client It displays a lack of understanding of some or most of the technical issues raised. *It is difficult for the client to understand. * It does not give correct clear and/or decisive advice on most of the issues raised . Page 5 Kaplan Business School Assessment 3 Outline Important Study Information Academic Integrity Policy KBS values academic integrity. All students must understand the meaning and consequences of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct Policy. What is academic integrity and misconduct? What are the penalties for academic misconduct? What are the late penalties? How can I appeal my grade? Click here for answers to these questions: http://www.kbs.edu.au/current-students/student-policies/. Word Limits for Written Assessments Submissions that exceed the word limit by more than 10% will cease to be marked from the point at which that limit is exceeded. Study Assistance Students may seek study assistance from their local Academic Learning Advisor or refer to the resources on the MyKBS Academic Success Centre page. Click here for this information.