Reference no: EM132835722

LAW 6001 Taxation Law - Laureate International Universities

Case Study - taxpayer's tax return

Learning Outcome 1: Identify and analyse the tax treatment of various types of income and deductions.

Learning Outcome 2: Effectively apply taxation law in determining tax outcomes in various scenarios and sole trader structure

Learning Outcome 3: Apply the legislation to determine the assessable income and availability and amount of the tax deduction associated with employment and business structure on an accrual basis including GST application.

Learning Outcome 4: Calculate the specific deduction associated with trading stock balances

Learning Outcome 5: Calculate depreciation using the prime cost and diminishing value method and calculate an associated balancing adjustment following the disposal of a depreciating asset

Learning Outcome 6: Preparation and calculation of individual income tax return on various income and deductions using current tax return form.

Instructions:

• Your case study needs to identify and discuss the tax implications of the various issues raised.

• A report (word document, approx. 2,000 words) must be submitted for the calculations of the assessable income; allowable deductions and taxable income of the taxpayer including identifying and discussing them. E.g., how the amounts of income & deductions have been derived. If any receipts and payments are not assessable or deductible, the reasoning for non-inclusion of these in assessable income or deductions as per relevant legislation or cases.
• Critically analyse the following case study. With respect to each task:
• Review relevant case law and legislation (ITAA1936, ITAA1997)
• Apply the law to the facts of the case study
• Reach a conclusion/ give practical advice to your client.
• You will be assessed in accordance with the Assessment Rubric.
• This case study must be presented as an individual effort. The case study requires individual research. It is expected the student will survey the relevant literature, including decided cases, and select appropriate additional resources.
• 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.
• The format of the report should be a business report and using APA referencing style

Case Study: Comprehensive Individual Tax Return

Jeremy Wild, a resident single taxpayer aged 49. Jeremy runs a mixed business and has not elected to apply any of the small business entity concessions. Jeremy uses an accrual method.

Jeremy's records disclosed the following for the 2019/20 tax year. All amounts are GST exclusive.

Required

The following Part A and Part B must be submitted as a single file in MS Word format.

Part A) Calculate Jeremy's taxable income for 2019/20 and net tax payable or refundable. Use the template provied below (add more lines if needed). Show all workings of each income & deductions of calculations and any tax offsets available for Jeremy.

Part B) Explain inclusion/exclusion of each income and deductions with reference to relevant available cases and section numbers as per ITAA36/ITAA97.

Attachment:- Taxation Law.rar