Question
James, a resident Australian taxpayer, has a Bachelor of Laws degree and worked as a solicitor in Sydney since 2014. With the ongoing COVID-19 pandemic and the fact that most of his family are in Melbourne, James decided during the financial year that he wanted to leave Sydney. In November 2021, he flew from Sydney to Melbourne to attend an interview for a Solicitor position at a firm called ABC Lawyers Pty Ltd, to be a part of their Human Rights division. In December 2021, James was notified that he was successful in getting the position so at the end of January 2022 he re-located to Melbourne.
James stayed with his parents for the first month that he was in Melbourne but then moved out into his own 2-bedroom flat on 5 March 2022, which he rents at a cost of $400 per week. He was required to pay a bond of $1,600 and electricity and gas connection fee of $300.
In April 2022, James leased a new laptop which he uses to undertake an online course and do client work from home when necessary. He kept a record of usage during the year and found that the laptop was used 40% for his study, 20% of the time for work-related purposes and the balance was for private use.
In addition to the laptop, James also has a mobile phone that was used 10% of the time for work purposes. His internet use at home is estimated to be in the same proportion as his laptop use.
Whilst still living in Sydney, James was required to work from home for the period from 1 July 2021 to 31 October 2021 due to COVID-19. His timesheets for the period showed that he worked 580 hours during this time at home. He was supplied with everything necessary by his former employer to be able to work remotely.
During the year ended 30 June 2022, James had records of the following receipts and payments:
Required:
Assume you are the Accountant for James, and he has provided you with the above information during his annual interview for the preparation of his 2022 income tax return.
- With reference to legal authority, calculate James taxable income for the year ended 30 June 2022. You should include workings where relevant and details of why amounts are included or excluded from the calculation. Also, advise of any additional information or clarification you would have obtained from James to ensure the accuracy of the taxable income. (15 marks)
- Assume that James is single, has adequate private hospital insurance and no dependants. Calculate his income tax payable or refundable for the year ended 30 June 2022. (5 marks)
- Prepare a letter to James following completion of the income tax return, summarising his final tax position and noting any matters of importance that he should be aware of in relation to his taxation affairs. (5 marks)
RATIONALE
This assessment task will assess the following learning outcome/s:
- be able to identify and explain the rules of law relating to taxation law and identify the potential tension between compliance with ethical principles, and the interrelationship between laws, regulations, and the public interest.
- be able to demonstrate a capacity to engage and use legal research skills to apply the law to legal problems relating to taxation so as to reach a solution.
- be able to analyse legal rules so as to differentiate between possible outcomes to the legal issues arising from novel fact situations;
- be able to explain the importance of active listening and effective interviewing techniques to elicit facts in respect to a tax problem.
Covering Topics 1 to 10, this assignment has been designed to ensure that students are able to identify and apply legislation, rulings and case law to the issues identified as well as demonstrate the ability to analyse the issues fully and apply this knowledge to a hypothetical, practical situation. The task assesses your ability to:
- be able to use legal research skills to apply the law to legal problems relating to taxation so as to reach a solution.
- exercise critical and reflective judgment; and
- develop your written skills
MARKING CRITERIA AND STANDARDS
In assessing your assignment the marker will expect you to:
- present documents that are readable and coherent;
- use appropriate language, correct spelling and grammar;
- identify and analyse relevant issues;
- explain and apply relevant cases, rulings and legislation;
- reach a sound and well-reasoned conclusion;
- use appropriate referencing; and
- demonstrate time management skills.
PRESENTATION
General Guidance for Law Assessment Tasks:
• Word-process or type your assignment clearly.
• Clearly show the subject name, your name and the date at the beginning of the assignment.
• Use size A4 paper and leave at least a 3 cm margin on the right-hand side of the page. (This is the best format for both marking and photocopying.)
• Number each page of the assignment.
• The answers should be confined to within 10% plus or minus of the suggested word limit, reference list excluded. Assignments should be neatly typed in Times New Roman, 12 point font.
• The APA Referencing System is required. Case and statute names should be Italicised.
• Answers must be original. They should demonstrate that students not only have read and understood the Study Guide and prescribed readings but also have broadened their knowledge by having read other reference works including relevant legislation. Marks will not be awarded for duplication of paragraphs from the Modules or textbooks.
• Answers must have a complete reference list with appropriate intext referencing, listing all books, articles, websites and other materials quoted, used as a source and paraphrased. Beware of using the unacknowledged work of others. Plagiarism will result in zero marks and possible failure of the subject. (Refer to handbook rules).
• Students must, in the course of answering questions, refer to and discuss relevant case authorities and appropriate statutory provisions in order to support the propositions and submissions made.
Also note the following style guide:
1. You should use the ILAC style introduced in previous law subjects as your model to prepare your report for this assignment
2. Do not re-state the question as part of your answer. This often gets repeated in the ‘issue’ section, however that is incorrect.
3. Names of cases or statutes should be Italicised, and followed by the jurisdiction not in Italics, for example: Acts Interpretation Act 1901 (Cth). Note the abbreviation for ‘Commonwealth’ is ‘Cth’ not ‘Cwlth’.
4. Do not start a new line simply because you are starting a new sentence.
5. Start each paragraph on a new line, and leave a clear line gap after the preceding paragraph. Don’t make your paragraphs too long.
6. You must end your assignment with a reference list that is divided into three separate parts, listing statutes, cases and finally any other books / articles / on-line resources (including modules) etc
PLEASE NOTE THAT YOU WILL LOSE MARKS IF YOU DO NOT COMPLY WITH THIS STYLE GUIDE.
NOTE: Assessments for this subject are required to be submitted via Turnitin.
REQUIREMENTS
Your answer to the Problem Solving Question in this Assessment task must be fully referenced. Referencing is the acknowledgement of information sources in your work; it is the appropriate way to give credit to the original owner of an idea, piece of writing or creative work. You will be required to use the APA style of referencing and guidelines for using this style can be found
It is recommended that your name, student ID and page number are included in the header or footer of every page of the assignment.
Further details about submission in Turnitin are provided in On-line submission.
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