n Taxation and Revenue Law, there is only ONE ASSIGNMENT. This assignment compulsory and must be submitted by all students. The assignment will constitute 20% of the final mark in this subject.
Assignments must be submitted by the due date unless an extension has been granted. Extensions need to be requested by email prior to the assignment due date cand specific supporting evidence provided. Late assignments attract a penalty of one mark out of 20, or 5% of the total marks available, per day. A pass mark is 50% Assignments that are received more than ten days after the published due date will? not be accepted. Please note that students granted an extension must still submit *heir assignment within ten days of the original assignment due date.
Assignments are assessed according to the -Assignment Grading and Assessmen Criteria- outlined in the Guide to the Presentation and Submission of Assignments.
fThis guide also contains the rules and guidelines regarding the presentation of ssignments and instructions on how to submit an assignment and is available from he Guides and Policies section of Canvas. Please read this guide carefully before completing and submitting this assignment.
he maximum word len th for this assi nment is 1200 words, Please read carefull the specific instructions on answering the Taxation assignment below.
Completed assignments should be lodged through and received
(Australian Eastern Standard Time) on
Please download the Assignment Coversheet. The coversheet will be the first page of your assignment. Save it with the name you intend to use for the assignment and begin your answer on the second page. Make sure you complete the Assignment Coversheet by entering in your Full Name and Address Details.
INSTRUCTIONS ON ANSWERING THE TAX ASSIGNMENT
ANSWER the question in the same ORDER as issues are raised in the question. There is often a logic behind the examiner raising the issues in the particular order in the question.
2. The answer must have STRUCTURE. In other words, you must lay the basis for coming to your conclusion on an issue.
3. Generally the manner of structuring your answer will involve the following:
identifying the issue;
• making reference to the statute law — particularly identifying which section you are considering (and why you are starting with that section). If parts or phrases of
the section are particularly relevant to your answer identifying those parts or phrases in your answer without writing out the whole section;
• making reference to relevant case law — do not refer to the facts but the principle established by the cases;
• the relevant law/case law will often contain a test that must be satisfied — state the test clearly using your own words; apply the law/test to your facts and come to a conclusion.
4. USE paragraphing for each new concept. Lack of paragraphing demonstrates a disguising, or lack of understanding, of the issues, and suggests the writer is not prepared to identify and deal with each issue separately.
5. DO NOT have an introduction or any -canvassing- of the issues/law generally at the beginning of your answer. Just identify and start with the first issue raised by the question.
6. DO NOT have a conclusion at the end of the question.
7. DO NOT provide footnotes, bibliography or give citations to the cases. (Note that this advice, and that given in 5 and 6 above, is specific to this subject and is given in the context of problem-based tax questions.)
8. DO NOT discuss the law in isolation from the facts in the question. In marking the question a line will be put through the purported -answer- up to that point where you start dealing with the question.
9. DO NOT use standard check lists. This tends to give everything in the check list equal weight when some issues are raised in the question and others are not. Also do not put headings such as -Issue-, -Law-, -Application-.
10. DO NOT offer personal views or opinions such as whether you think something is fair or not.
1 1 . DO proof-read your answer before submitting it. Check that your writing is clear, concise and accurate.
George is a computer programmer and is employed by Agron Computer Systems Ltd (Agron Computer) in the role of senior website designer. As part of this role George is responsible for supervising the work of three other employees including Mary.
George is paid an annual salary of $200,000.
On weekends and outside normal working hours George also carries on his own business of website design for small family-owned businesses. In his own business he charges an hourly rate for his services.
One of the small family-owned businesses that George provides his services to is Sophie
Designer Clothes Pty Ltd (Sophie Designer). George is paid for designing and maintaining the website of Sophie Designer.
George is married to Kate and they have a 19-year-old son James. George also owns an apartment (in addition to the family home) which he rents to Tim for $500 per week.
Tim is a carpenter.
During the 2022 income year the following events happen:
(a) Agron Computer pays George his salary of $200,000 and a bonus of $10,000 based on a favorable job performance review.
(b) Agron Computer pays Mary $100,000 to settle a claim made by Mary against the company that George had systematically bullied her in the workplace.
(c) Agron Computer pays the membership fee of $700 for George to be a member of
the Institute of Professional Website Designers (which promotes and provides education seminars for its members) and the membership fee of $2,000 for George to be a member of his local golf club.
(d) In consideration for George providing services worth $1,000 worth to Sophie
Designer, Sophie Designer gives Kate a designer dress valued at $800.
(e) In consideration for George providing services to Sophie Designer, Sophie Designer provides George with an interest fee loan of $10,000 repayable after two years.
(f) Agron Computer at Christmas provides Kate and each of the wives of other employees with a gift voucher of $500 to purchase of toys for their children.
(g) In consideration for Tim doing repair and maintenance work worth $2,000 on his apartment George waives the obligation for Tim to pay him rent for 4 weeks.
(h) Agron Computer vacates its office premises over one weekend and moves its business to new premises. The company engages James and the children of other employees to assist in cleaning up the former office premises and gives each of them a $500 gift voucher for their services.
(i) George gives James $200 per week to mow the lawns at the family home and gives Kate $400 per week for general housekeeping such as buying the food and for paying the gardener.
(j) Sophie Designer pays fees of $1,000 to Sydney University for George to undertake a course to learn about a new computer program particularly designed to create websites for advertising designer clothes.
Advise George, Kate, James, Tim, Mary and Agron Computer as to whether they are assessable (under the income tax or fringe benefits legislation) in respect of the amounts/benefits received and provided under the above scenarios for the income year ended 30 June 2022.
Students should deal with the events in the order in which they are raised in the question above i.e., (a), (b), (c) etc.
Students are not required to consider deductibility or to undertake any calculations of the tax payable in answering this question but, if applicable, should consider the -otherwise deductible rule- under the relevant legislation.