Reference no: EM133749854

Tax Law

Learning outcome 1: Describe the taxation framework in Australia and identify the concepts and principles that underpin Australian Tax Law.

Learning outcome 2. Explain how the main tax laws and regulations in Australia have been applied and identify the body of case law that informs current interpretations of the taxation regime.

Learning outcome 3. Recognise, describe and analyse taxation issues and concepts with regard to problems encountered in commercial settings.

Learning outcome 4. Demonstrate an understanding of substantive areas of taxation law including income tax, goods and services tax and fringe benefits taxes.

Learning outcome 5. Discuss the role and responsibilities of accountants with regard to taxation law and the preparation of taxation documents.

Assessment Description

This assignment requires students to work in a group of no more than 3 students and explore practical issues in taxation law. It is important for you to have time to think through how to structure and present your responses.

Part A requires students to provide responses on taxation issues.
Part B requires each member of students to present one question from Part A in a video which must be submitted individually by the due time.

Part A Group Report

Question 1

Frank migrated from Germany to Australia with his family. He had to return to Germany to see out a performance contract that had 2 years to go.
He departed one month after arriving and settling the family here.
In Germany, he stayed in the family house that they had been living in before moving to Australia.
He also retained the family car so that he could travel around for his work in Germany.
He used to swim with a local club in Germany and, on his return, resumed his association with the club.
Although he intends to join his family in Australia for good at the end of his contract, he is leaving his options open in case he is able to secure another contract.
In the 9 months that he has been back in Germany, he has only visited his family in Australia once.

Required: From the above facts, discuss if Frank is a resident of Australia for tax purposes with references to existing taxation laws and rules.

Question 2
George works as a scientist in Sophisticated Research Foundation. He uses his own car to travel to various locations to conduct experiments. He acquired the car on 1 October 2021 for $100,000. The acquisition cost was funded entirely by a loan at an interest rate of 10%. He has determined that the depreciation deduction on the car would be $3,500 for the year. In addition, George incurred the following expenses during the year:

Registration and insurance = $1,800;
Repairs and maintenance = $6,200; and
Oil and fuel costs = $5,100.
For the period 1 October 2021 to 30 June 2022, George estimates that the car travelled a total of 12,000 kilometres, 9,600 of which were for business purposes. You may assume that George has maintained all necessary records and a logbook.

Required:
Calculate George's deduction for car expenses under the logbook method by referencing to Div 28 of ITAA 1997.

Question 3

Complex Ltd manufactures and sells office furniture to local consumers. The company's books of account provide the following information for the income year of 2022-23:

Required:

Advise Complex Ltd of its income tax consequences arising from the above information by referencing to the relevant tax law.
Calculate the assessable income of Complex Ltd based upon the information above.

Part B Individual Video Presentation

This part requires each member of a group to present one question from Part A in a video which must be submitted individually by the due time.

The duration of the video should be about 5 minutes.