HI6028 Taxation Theory, Practice and Law Individual Assignment-Identification of material facts regarding The City Sky Co goods and services tax (GST) consequences

HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 1

HOLMES
INSTITUTE
FACULTY OF
HIGHER
EDUCATION

 

Assessment Details and Submission Guidelines
Trimester T2 2019
Unit Code HI6028
Unit Title Taxation Theory, Practice & Law
Assessment Type Assignment
Assessment Title Individual Assignment
Students are required to follow the instructions by your lecturer to
confirm any relevant information. You also need to follow any relevant
announcement on Blackboard to confirm the due date and time of the
assignment.
The individual assignment will assess students on the following learning
outcomes:
1. Demonstrate an understanding of the Australian income tax system,
the concepts of income and deductions, CGT, FBT, GST general
anti-avoidance provisions and income tax administration. (ULO 1).
2. Identify and critically analyse taxation issues. (ULO 2).
3. Interpret the relevant taxation legislations and case law. (ULO 3).
4. Apply taxation principles to real life problems. (ULO 4).
Weight This assignment task accounts for 20 % of total marks in this unit.
Total Marks This assignment task accounts for 20 marks of total marks in this unit.
Word limit Max 2000 words (acceptable to be 10% above or below this word limit).
Due Date Refer to the Unit Outline, as Normal Mode & Block Mode have different
due dates.
Submission
Guidelines
All work must be submitted on Blackboard by the due date along with
a completed Assignment Cover Page.
The assignment must be in MS Word format, no spacing, 12-pt Arial
font and 2 cm margins on all four sides of your page with appropriate
section headings and page numbers.
Reference sources must be cited in the text of the report, and listed
appropriately at the end in a reference list using Harvard referencing
style.

Purpose of the
assessment (with
ULO Mapping)

HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 2
Individual Assignment Specifications
Purpose:
This assignment aims at assessing students on the Learning Outcome from 1 to 4 as
mentioned above.
Instructions: Please read carefully to avoid mistakes.
Answer all questions.
This assignment along with a completed Assignment Cover Page is to be submitted on
Blackboard by the due date in soft-copy only (via Safe assign – Blackboard).
The assignment is to be submitted in accordance with assessment policy stated in the
Subject Outline and Student Handbook.
It is the responsibility of the student submitting the work to ensure that the work is in
fact his/her own work. Incorporating another’s work or ideas into one’s own work
without appropriate acknowledgement is an academic offence. Students should submit
all assignments for plagiarism checking (Via SafeAssign) on Blackboard before final
submission in the subject. For further details, please refer to the Unit Outline and
Student Handbook.
Late submissions will be subject to Holmes Institute policy on student assessment
submission and late penalties (please refer to subject outline and Student handbook).
The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm
margins on all four sides of your page with appropriate section headings and page
numbers.
Reference sources must be cited in the text of the report, and listed appropriately at the
end in a reference list using Harvard referencing style. You also must refer to relevant
legislation and/or case law in your answer. Reference sources must be cited in the text
of the report, and listed appropriately at the end in a reference list using Harvard
referencing style.
All assignments are expected to strictly follow Holmes Institute’s Academic Conduct
and Integrity Policy and Procedures. A copy of the Policy is available on the Holmes
Institute home page. (About Holmes > Policies) This policy is also explained in your
Student Handbook.
Plagiarism and contract cheating in any form will not be tolerated and will have severe
consequences for the groups found committing the same, including receiving zero (0)
for the entire assignment and possible failure in the entire unit.
For further details, please refer to the Subject Outline and Student Handbook.
Note: Assessment task is set around the work that you have done in class. You are not
expected to go outside the content of the unit but you are expected to explore it.

HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 3
Assignment Structure should be as the following:

Question 1: The goods and services tax (GST) Weighting
Identification of material facts regarding The City Sky Co goods and services
tax (GST) consequences discussed in the assignment question.
1 %
Identification and analysis of legal issues / legal question and relevant
laxation law.
2 %
Thorough yet succinct application of tax law to material facts. 3 %
Detailed and accurate conclusions are reached from the discussion. 1 %
Correct information and taxation law have been used and properly cited. A
detailed analysis has been performed.
2 %
Shows excellent understanding of the cases and/or section of legislation, its
context and application of taxation law.
1 %
QUESTION 1 TOTAL MARKS: 10 %
Question 2: Capital gains tax (CGT) Weighting
Identification of material facts regarding the capital gain tax (CGT)
consequences of Emma’s transactions discussed in the assignment
question.
1 %
Identification and analysis of legal issues / legal question and relevant
laxation law.
2 %
Thorough yet succinct application of tax law to material facts. 3 %
Detailed and accurate conclusions are reached from the discussion. 1 %
Correct information and taxation law have been used and properly cited. A
detailed analysis has been performed.
2 %
Shows excellent understanding of the cases and/or section of legislation, its
context and application of taxation law.
1 %
QUESTION 2 TOTAL MARKS: 10 %

HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 4
Assignments’ Instructions and Requirements
QUESTION 1- (10 MARKS)
The City Sky Co is a property investment and development company. Recently the
company purchased a vacant piece of land south of Brisbane on which it is planning to
build 15 apartments to sell. The City Sky Co has engaged the services of the local lawyer,
Maurice Blackburn, to provide the legal services required for the development for $33,000.
Maurice Blackburn runs an established sole trader business and turns over revenue of
$300,000 per year.
Advise The City Sky Co of the input tax credit entitlements that they may be entitled to.
Assume that The City Sky Co is registered for GST purposes.
QUESTION 2 – (10 MARKS)
Emma has provided to you a listing of the transactions she has undertaken throughout the
financial year to assist you in completing her 2015 income tax return.
Sale of a block of land for $1,000,000: Emma purchased the land as an investment in
1991. The purchase price was $250,000, plus $5,000 in stamp duty, $10,000 in legal fees.
To fund the purchase, she took out a loan on which she paid interest totalling $32,000.
During the period of ownership her council rates, water rates and insurance totalled
$22,000. In January 2005 a dispute occurred with a neighbour over the use of the land and
legal fees incurred amounted to $5,000 in resolving this dispute. Before putting the property
on the market $27,500 was spent to remove a number of large dangerous pine trees that
were on the land. Advertising, legal fees and agent’s fees on the sale of the land were
$25,000.
Sale of Emma’s 1000 shares in Rio Tinto for $50.85 per share: Emma paid brokerage
fee of 2% on the sale. Emma initially purchased the shares for $3.5 per share in 1982.
Sale of a stamp collection Emma had purchased, from a private collector, in January
2015 for $60,000:
Emma sold the collection at auction for $50,000. Auction fees totalled
$5,000 for the sale.
Sale of a grand piano for $30,000: It was initially bought for $80,000 in 2000.
HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 5
Advise Emma of the capital gain tax (CGT) consequences of her transitions. Ignore
indexation. Your answer must include references to relevant tax law and or cases.
Assignment Structure should be as the following (students’ responses involves
calculations, and students must refer to the relevant legislation and/or cases
whenever required according to the questions).
Marking criteria

Marking criteria Weighting
Question 1
Identification of material facts regarding The City Sky Co goods and
services tax (GST) consequences discussed in the assignment question.
1 Mark
Identification and analysis of legal issues / legal question and relevant
laxation law.
2 Marks
Thorough yet succinct application of tax law to material facts. 3 Marks
Detailed and accurate conclusions are reached from the discussion. 1 Mark
Correct information and taxation law have been used and properly cited. A
detailed analysis has been performed.
2 Marks
The work shows excellent understanding of the cases and/or section of
legislation, its context and application of taxation law.
1 Mark
QUESTION 1 TOTAL MARKS: 10 MARKS
Question 2
Identification of material facts regarding Emma’s capital gain tax (CGT)
consequences discussed in the assignment question.
1 Mark
Identification and analysis of legal issues / legal question and relevant
laxation law.
2 Marks
Thorough yet succinct application of tax law to material facts. 3 Marks
Detailed and accurate conclusions are reached from the discussion. 1 Mark
Correct information and taxation law have been used and properly cited. A
detailed analysis has been performed.
2 Marks
The work shows excellent understanding of the cases and/or section of
legislation, its context and application of taxation law.
1 Mark
QUESTION 2 TOTAL MARKS: 10 MARKS

HI6028 Taxation Theory, Practice and Law Individual Assignment T2.2019 6
Marking Rubric

Excellent Very
Good
Good Satisfactory Unsatisfactory
Demonstrated
ability to
identify issues
relating to
taxation law :
Knowledge and
understanding.
Comprehensive
identification of
key issues.
Frequent links
drawn across
topics or to
extraneous
materials.
Student property
generates
questions and
problems around
a case.
Very good
identificatio
n and
discussion
of issues.
Several
links drawn
across
topics or to
extraneous
materials.
Majority of
relevant
issues
identities and
discussed.
Some links
drawn across
topics or to
extraneous
materials.
Some relevant
issues
overlooked or
misunderstood.
Few links
made drawn
across topics
or to
extraneous
materials.
Failure to identify
and discuss
relevant issues.
No links made
drawn across
topics or to
extraneous
materials.
Ability to
synthesise
material in
order to raise
issues or
construct a
persuasive
argument.
Ability to
engage in a
reflective
discourse:
Synthesis
analysis and
argument.
Thorough
analysis and
synthesis of
issues.
Persuasively
argued
throughout,
contrary
arguments
anticipated.
Excellent critical
evaluation of
other metrical
and appropriate
response.
Detailed
conclusion is
reached from the
discussion.
Very good
analysis,
argument
well
developed
and
supported,
some
critical
evaluation
of other
material
and
appropriate
response.
Conclusion
is reached
from the
discussion.
Some
analysis of
issues:
argument
may be
under
developed or
unpersuasive.
Limited
critical
evaluation
and response
to other
material.
Conclusion is
reached but
do not
supports the
analysis.
Mainly
descriptive with
little analysis of
issues basic
argument is
unclear or use
undeveloped
or not well
supported.
Limited
reference to
other material.
The response
shows some
understanding
of the case, its
context and
application of
tax law.
Insufficient
analysis argument
is lacking or
unsound, failure to
use relevant
materials, or use
of materials may
indicate confusion
or
misunderstanding.
No response to
other material. No
conclusion is
given.
Writing
presentation
and referencing
Clear and logical
organisation;
precise and
concise writing.
Minimal errors in
expression,
grammar,
spelling or
punctuation.
Excellent and
complete
referencing.
Grammar and
spelling are
correct.
Very good
structure
and
organisatio
n.
Generally
well
written.
Occasional
minor flaws
in
expression,
grammar,
spelling or
punctuatio
n. Correct
and
complete
referencing
.
Generally
coherent
structure a
with
occasional
deficiencies;
reasonably
well written.
Some flaws in
expression,
grammar,
spelling or
punctuation
Some defects
in structure
and
organisation;
writing may be
difficult to
follow in parts.
Flaws in
expression,
grammar,
spelling or
punctuation; a
number of
missing,
incomplete or
incorrect
footnote
citations.
Referencing
omissions.
Structure and
organisation
incoherent or
lacking; poorly
written, difficult to
follow. Frequent or
repeated flaws in
expression,
grammar, spelling
or punctuation;
inadequate
citation of sources.
Errors in
referencing.

 

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