Assessment Task – Tutorial Questions
Unit Code: HI6028
Unit Name: Taxation Theory, Practice and Law
Assignment: Tutorial Questions 1
Due: 11:30pm 22nd May 2020
Total Assignment Marks: 50 marks
Purpose: This assignment is designed to assess your level of knowledge of the key topics covered in
Unit Learning Outcomes Assessed:
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;
2. Identify and critically analyse taxation issues;
3. Interpret the relevant taxation legislations and case law;
4. Apply taxation principles to real life problems.
Description: Each week students were provided with three tutorial questions of varying degrees of
difficulty. These tutorial questions are available in the Tutorial Folder for each week on Blackboard.
The Interactive Tutorials are designed to assist students with the process, skills and knowledge to
answer the provided tutorial questions. Your task is to answer a selection of tutorial questions for
weeks 1 to 5 inclusive and submit these answers in a single document.
The questions to be answered are:
With reference to relevant legislation, case law and secondary sources, briefly explain different
functions of taxation. (10 marks, maximum 300 words)
Amandeep born in India and migrated to Australia. He lives in Australia permanently. He still holds
Indian passport. Amandeep works with the New Zealand Princess Cruises tours and most of the
income year is in New Zealand. He signed an employment contract for this position in the company’s
Australian office in Sydney. Amandeep has two kids that are living with his wife Sandeep in Sydney.
Three years ago, Amandeep purchased a unit apartment in Sydney. Amandeep and his wife holding
dividend yielding shares in an Indian public company called Hindustan Unilever. Amandeep and
Sandeep have an Australian bank account as well. Amandeep’s employer pays his salary to this bank
account every fortnight.
Biannually Amandeep receives a holiday package from his employer, New Zealand Princess Cruises
tours and he is using this package with his family traveling in Australia interstates or moves to India to
visit his in laws.
With reference to the relevant laws, discuss whether Amandeep is an Australian resident for tax
purposes and also critically discuss whether Amandeep needs to pay income tax on his salary and
investment income explained above. (10 marks, maximum 400 words)
Gary owns a commercial building and leased his premises to John to conduct a bakery business. Under
the lease contract, John is obliged to repair any modified or damaged parts of the building after the
lease term. However, John fails to repair Gary’s building, which was damaged due to machinery and
fixtures’ instalments. John agreed to pay Gary $3,100 to cover the repair expenses.
With reference to relevant legislation and case law discuss the tax treatment of this payment for Gary.
(10 marks, maximum 300 words)
John owns a convenience shop called City Conv. The following events occurred for John during 2019-
2020 financial year.
(i) John incurred legal expenses as he was sued for false advertising.
(ii) John purchased new fridge to the shop – $800. In addition, his builder added more space to the
shop front. This cost him $22,000.
(iii) John ordered 1000 new T-shirts with printed City Conv’s logos for marketing purposes. These costs
(iv) John received a City of Sydney fine for putting his sales item for display outside his shop without
a permit. He required to apply for a permit to use the footpath.
With reference to relevant legislation and case law advise John on the assessability and/or
deductibility of above events. (10 marks, maximum 300 words)
A. Alex purchased a CNC machine on 1st October 2019 at a cost of $110,000 (including GST). This
machinery is estimated to have a useful life of seven years.
B. Alex purchased a Holden car on 1 May, 2019 at a cost of $63,000, estimated to have a useful
life of five years.
With reference to relevant legislation and case law, discuss and calculate what amount is allowed as
a deduction for the decline in value of the machinery and the Holden car discussed above, using both
prime cost and diminishing value methods. (10 marks, maximum 200 words)
The assignment has to be submitted via Blackboard. Each student will be permitted one
submission to Blackboard only. Each student needs to ensure that the document submitted
is the correct one.
Academic honesty is highly valued at Holmes Institute. Students must always submit work
that represents their original words or ideas. If any words or ideas used in a class posting or
assignment submission do not represent the student’s original words or ideas, the student
must cite all relevant sources and make clear the extent to which such sources were used.
Written assignments that include material similar to course reading materials or other
sources should include a citation including source, author, and page number.
In addition, written assignments that are similar or identical to those of another student in
the class is also a violation of the Holmes Institute’s Academic Conduct and Integrity Policy.
The consequence for a violation of this policy can incur a range of penalties varying from a
50% penalty through to suspension of enrolment. The penalty would be dependent on the
extent of academic misconduct and the student’s history of academic misconduct issues.
All assessments will be automatically submitted to SafeAssign to assess their originality.
For further information and additional learning resources, students should refer to their Discussion
Board for the unit.