代写 BU3112 / BX3112 / LA4023 Taxation Law

代写 BU3112 / BX3112 / LA4023 Taxation Law

BU3112 / BX3112 / LA4023 Taxation Law
Test 1 - 2016
 
Instructions: (read carefully)
 
1.    This test is worth 20%. Marks are shown at the end of each question.
 
2.    Typed answers of no more than 800 words in total must be electronically lodged by 10 am Monday 4 April. No references or bibliography are required although you should cite relevant legislation and case law in the body of the paper where relevant. Do not write out sections.
 
3.    Ensure that your name, student number and the number of words are on the typed paper. Do not include the questions with your typed answer.
 
4.    The test is under open book conditions. It must be your own work. Do not work in groups. Plagiarism must not occur. Do not copy from another student. Refer to the JCU Policy Library Academic Misconduct and Plagiarism, which can be accessed at: www.jcu.edu.au/policy/student. By submitting your answers you are acknowledging that the answers are entirely your own work.
 
5.    Internal students: You must submit a hardcopy of your answers to the College of Business, Law and Governance Office. The assignment box in Cairns is located in building A1 on level 2 (just outside the Office). The assignment box in Townsville is located in building DA27 on level 3 (just to the right of the central stairs). In both cases please use an assignment cover sheet that has been time and date stamped. State the time and date when you lodged electronically.
                                            
6.    External students: email your paper to justin.dabner@jcu.edu.au by the due time. State the time and date when you lodged electronically and your name on the word document.
                                                  
7.    All students must lodge electronically via the LearnJCU website. Your electronic copy of the assignment must be submitted before the due time. Note the link on the web site to the University’s policy on submitting electronically: http://www.jcu.edu.au/business/public/groups/everyone/documents/guide/jcuprd1_062716.pdf
                                              
8.    Penalty for late submission (including a failure to submit a hard copy (internal students) or email a copy (external students): the penalty for late submission without an extension having been granted is the loss of 50% of the total marks available (for the piece of assessment)vanishing down to a mark of ZERO after 24 hours.
                                      
9.    Penalty for over-length: only the first 800 words will be assessed. State the number of words.

Question 1
Discuss the assessability or otherwise of the following amounts (do not discuss the capital gains tax provisions):
(a)          Paul approaches the owner of a corner store and asks him to cash a cheque made out for $2,000 and post-dated for 6 months. The shopkeeper agrees to cash the cheque for $1800, as he has done in the past, thereby making a $200 gain. (3 marks)
 
(b)          In 2005 Peter purchased an old house in the Strand with a view to building a hotel on the site. The local economy is now in a slump so he wishes to simply sell the property instead.  He is considering enhancing the site prior to sale by demolishing the house and, possibly, sub-dividing the land in order to maximise his return.  He has heard that capital gains are discounted by 50% for tax purposes. Advise him as to whether and in what circumstances the proceeds from the sale of the property might be treated as assessable income rather than a capital gain. (4 marks)
 
(c)          Bruce owns a service station.  One of the lines he stocks is Wynns Car Care products.  Wynns withdraws the agency as it has instructions from Head Office to withdraw its products from sale in service stations.  It pays Bruce $10,000 compensation. 
 
Unfortunately, stressed by the impact on his business he trips whilst at work and breaks a leg. He can’t work for 6 weeks but has accident insurance that pays him compensation over this period. The insurance company also reimburses him for his medical expenses. Is the compensation and/or reimbursement assessable?
(3 marks)
 
 
代写 BU3112 / BX3112 / LA4023 Taxation Law

 
Question 2 
 
(a)          Jane purchased a secretarial business taking out an unsecured loan from Town Bank.  The loan was for a 7 years period.  After 3 years she sold the business at a loss and some of the loan remained outstanding.  Can she claim a tax deduction for the interest payable on the loan since the business was sold?
 
Would it make any difference if she used the proceeds from the sale of the business to go on a holiday rather than pay off the loan?
 
If a deduction for the interest is available what would be the effect of refinancing the loan (at a lower rate)? (5 marks)
 
(b)          XYZ Pty Ltd finished the 2013/14 tax year with trading stock at cost of $2 million.  During 2014/15 sales totaled $12 million and purchases $6 million.  Closing stock at 30 June 2015 was $3 million.  This stock had a replacement value of $4 million and a market selling value of $1 million.  If the company has generated a profit for the 2014/15 year, which closing stock valuation ought it to adopt? Calculate the contribution to taxable income in each case. (Ignore GST.)(3 marks)
 
(c)          What is meant by the term “negative gearing” and why is it attractive from a tax planning perspective? (2 marks)

代写 BU3112 / BX3112 / LA4023 Taxation Law