Teaching Period 1, 2020 ACC30005 Taxation Assignment 3: Team assignment Word/time limit: 2500 words (+/- 10%)Weighting: 20%Due date: 5pm AEST Monday 25 May 2020 (Week 11) After you have read this...

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Teaching Period 1, 2020


ACC30005 Taxation


Assignment 3: Team assignment

Word/time limit: 2500 words (+/- 10%)Weighting: 20%Due date: 5pm AEST Monday 25 May 2020 (Week 11)

After you have read this information, head over to theAssignment 3 Q&Adiscussion board to ask any questions and see what your peersare saying about this assignment.



Assignment overview



Assignment details


This is ateam assignmentand is to be prepared in teams ofthree students.In4.6 Discussion 2: Describe yourself, you will be given the opportunity to form your teams based on who you think you will work best with. Read6.6 Activity: Working with your teamand work through theTeam contract and contribution table conversation worksheet (DOC 63.8 KB)

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with your team members. The completed team contract and team contribution table conversation worksheet should be included in the assignment appendix. While this is a team submission and you will be assessed as a team, each team member is required to also submit an individual copy of their team's assignment.


Instructions


Carol McKendrick has engaged Tax Advisors Pty Ltd to advise her of all her tax issues that will arise from the documents provided in respect of the income year ending 30 June 2019.


Based on the followingCase study (PDF 344 KB)

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, your partner has requested that your team prepare a letter of advice to Carol McKendrick, whichidentifiesall relevant tax issues that will arise,critically analysesandappliesthe taxation treatment to the issues—i.e. you will need to argue and support your view and consider differing views (if applicable)—and finally, indicates your recommended action based on your better view—i.e. your conclusion (IRAC principle).


Be sure to consider all issues, including but not limited to, issues that may not be as obvious—for example, tax accounting, tax periods, potential levies, surcharges, offsets and substantiation requirements.


You must ensure that your analysis used to determine your recommended action is fully supported with relevant authority—for example, tax legislation and case law.



The letter must not exceed 2500 words, excluding footnotes and the reference list. Assignments exceeding 2750 words (+10%) will not be assessed and you will receive zero marks (Fail grade). You must indicate your word count on the cover sheet.


If you need more information, ensure you clearly state what information you need and why it is required.


It is highly recommended that you begin categorising the list of transactions as a team and look at the assignment requirements in its entirety—for example, the various employment, business and investment issues—before assigning individual member tasks under the group contract.


Structure



Note:Assignments should be typed, one and half spaced, and on one side of the paper only. It is your responsibility to submit your assignment on the due date. It is recommended that you retain a copy of your assignment.



  • Marks will be awarded based on the detail provided and correctness of the response.

  • Your team must apply theIRAC principlewhen addressing the relevant issues (i.e. I= identify the key issues; R= cite the relevant legislative provisions and case law (rules) where appropriate; A = apply the relevant rules to the facts presenting arguments for and against; and C = form a conclusion based on your stronger argument).

  • If your team needs to makeassumptionswhen responding to any question, the assumption and the reason for the assumption must be clearly specified in your response.


Supporting resources




Submission details overview



Assignment criteria



Request for assignment extension



Assessment declaration


All students must agree to the following declaration when submitting assignment items.



Declaration and Statement of Authorship



  1. I have not impersonated, or allowed myself to be impersonated by any person for the purposes of this assignment.

  2. This assignment is my/our original work and no part of it has been copied from any other source except where due acknowledgement is made.

  3. No part of this assignment has been written for me by any other person except where such collaboration has been authorised by the lecturer/teacher concerned.

  4. I have not previously submitted this work for this or any other course/unit.

  5. I give permission for my assignment response to be reproduced, communicated, compared and archived for plagiarism detection, benchmarking or educational purposes.


I understand that:



  • Plagiarism is the presentation of another person's work as though it is your own. It is a form of cheating and is a very serious academic offence that may lead to exclusion from the university.

  • Plagiarised material may be drawn from published and unpublished written documents, interpretations, computer software, designs, music, sounds, images, photographs, and ideas or ideological frameworks gained through working with another person or in a group.

  • Plagiarised material can be drawn from, and presented in, written, graphic and visual form, including electronic data and oral presentations. Plagiarism occurs when the origin of the material used is not appropriately cited.


I agree and acknowledge that:



  1. I have read and understood the Declaration and Statement of Authorship above.

  2. I accept that use of my Swinburne account to electronically submit this assignment constitutes my agreement to the Declaration and Statement of Authorship.

  3. If I do not agree to the Declaration and Statement of Authorship in this context, the assessment outcome may not be valid for assessment purposes and may not be included in my aggregate score for this unit.

  4. I am aware that it is not acceptable to resubmit the same piece of work (in part or as whole) for multiple assignments without permission from the Unit Coordinator.


Penalties forplagiarismrange from a formal caution to expulsion from the university, and are detailed in theStudent Academic Misconduct Regulations 2012.

Answered Same DayApr 19, 2021ACC30005Swinburne University of Technology

Answer To: Teaching Period 1, 2020 ACC30005 Taxation Assignment 3: Team assignment Word/time limit: 2500 words...

Preeta answered on May 24 2021
165 Votes
To Carol McKendrick,
Tax advice will be provided to you for the purpose of income statement. You are employed as a flight attendant since 2001 at Compass Airways Limited (‘Compass’) and also conduct business as a sole trader. The business is to import widgets in Australia from an US company, Widgets Inc. She was the exclusive distributor of the product in Australia. If a business is conducted by only one person and she is the owner of all the business assets as well as is also liable for all the liabilities of the business, then it is considered to be a sole trader business and the tax will be imposed on owner. All the business income and the expenses to be claimed as deduction are to be reported through the income tax return of the individual (Australian Taxation Office).
Issues:
· The first thing to be checked for tax purpose is if the assessee is actually the resident of the country in which taxation is to be made. As in this case, the country will be Australia. It is to be checked if Carol McKendrick is actually the resident of Australia. She is a flight attendant and spent most of her time at international ports and away from her home in Australia. If she would have lived continuously in the country, this test would not have been necessary.
· Tax rate for foreign residents is to be checked since Carol could not qualify to be an Australian resident.
· Since Carol is conducting a business, so eligibility for GST is to be checked.
· Some payment has been made as redundancy payment of amount $7,500 by Carol to her employees.
· Stocks have been purchased of Widgets, the company with which business is carried out. It is to be checked if capital gain will be imposed on that.
· For the above mentioned stocks, Carol received dividend worth $700, which were fully franked. Now the question arise if tax is to be paid on it.
· Carol sold a property. The capital gain on that property is to be checked.
· A small office at the Mascot Business Centre was taken by Carol on rent for the business purpose. The lease was for 12 months but out of 12 months, 2 months’ rent was free. The actual cost of free rent was $12,000. The issue is if this amount can be claimed for tax deduction.
· Carol took a loan of $70,000 from Victorian State Bank. The loan was taken for the purpose of the business and the loan is secured against her own home. The interest on the loan is 7.35% p.a, which is around $5,145 in a year. No details have been provided regarding the installments to be paid for the payback of the loan. Till now only $10,000 has been spent on a BMW car which she intended to use for the purpose of the business.
· There were three types of fixed assets held by Carol, which are Computer, printer and Furniture. Those were used both for the purpose of business as well as private. The issue is on the treatment of depreciation for such fixed assets in the income tax return.
Relevant legislative provisions:
· The residency test, domicile test and 183 days test is to be carried out to check if Carol can be considered to be Australian resident for tax purpose (Australian taxation Office). As per the residency test, is a person has permanent dwelling in Australia for a considerable period of time, can be considered a resident. The residency test can be substantiated by family or business ties, employment ties, physical presence, etc. Then moving on to domicile test, a person should have a permanent home by law in Australia. The domicile can be by origin or by choice or by law. The home should be absolutely permanent that is a place where person goes to sleep. As per 183 days test, if the person has stayed in Australia for 183 days that is at least for the half of the year, she is a resident.
· The foreign residents cannot enjoy the tax free thresholds and need to pay tax on all the amounts earned in Australia. Foreign resident tax rates 2019–20 is to be applied on carol (Australian taxation Office). Such tax rates are as follows:

    Taxable Income
    Tax Rate
    0 - $90,000
    32.5%
    $90,001 – $180,000
    $29,250 + 37% for the amount above $90,000
    $180,001 and above
    $62,550 + 45% for the amount above $90,000
· GST registration can be made voluntarily by a business organization or it can be made after it is absolutely required by law. There are certain threshold limits which are to be checked and if any of the limits is crossed, then within 21 days, registration for GST is to be made (Australian taxation Office). The threshold limits are as follows:
· When the GST turnover exceeds $75,000. GST turnover is...
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