Reference no: EM13172053

Requirements:

1. In answering the questions, marks will be awarded for:

a) Clarity of discussion and analysis;

b) Correctness of content materials;

c) Logical flow of the discussion involved;

d) Quality of communication, e.g. correct spelling, grammar, structure, proper page numbers and referencing used.

e) Adhering to the word limit. Work that has exceeded the word limit will not be marked. You are required to record the number of words at the end of each question.

2. Students are required to work in groups of four. The groups are chosen by the students themselves.

3. Any query relating to the assignment can to be directed to the discussion forum on AUT Online.

4. This assignment must be fully typed, one sided with double-line spacing using 12 font Arial.

5. References and quotations taken from other authors must be properly acknowledged at all times using the NZ Law style guide referencing (not APA style)

6. Students are to familiarise themselves with the AUT's Rules and Regulation regarding assignment as spelt out in the study guide.

Instructions:

You are to work in a group of four for this assessment. You are to nominate your own group members and manage the group. Group members can be selected from any stream(s) of your choice. The cover sheet of the hard copy assignment must include each member's name, SID, stream and their workshop lecturer's name. Please note that since the group members have been chosen by you, it is your responsibility to manage it and to ensure that each member contributes to the assignment fairly and equitably. Any problems pertaining
to the group is solely and entirely the responsibility of the group and not the teaching team.

The discussion forum for the assignment will be open from week 1 for those who would like to form a group for the assignment. No individual assignment will be accepted. The mark awarded by the teaching team for the assignment will be the mark given for each group member with no variations between members.

It is to your best interest to find your group members appropriately who would work to maximise the assignment mark for you. Please bear in mind that this mode of assessment is similar to those in the commercial world where team work is required to achieve a group outcome.

Question 1: Fringe Benefit Tax

1. "The Fringe Benefit Tax in New Zealand was introduced in the mid 1980's as an anti-avoidance measure for employment income". Do you agree with the statement?

Discuss your answer from the perspectives of the canons of taxation and the good tax system.

Question 2: Capital - Revenue Distinction

2. Income tax law by its very nature is a complex subject. The capital-revenue distinction is one area that causes this complexity. In New Zealand the capital-revenue distinction is even more important because of the lack of a comprehensive capital gains regime. Furthermore, the term "capital" is not defined in the Income Tax Act 2007. However, there is a considerable body of case law that provides useful guidance.

By examining the following two New Zealand tax cases discuss what guidance they provide to this complex area of tax law.

a. Fullers Bay of Island v CIR (2006) 22 NZTC 19,716 (CA)

b. Case W26 (2006) 22 NZTC 12,303