Assignment questions – semester two of 2016- TLAW604
Question # 00388993
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Updated on: 09/18/2016 12:56 AM Due on: 09/18/2016
Assignment questions – semester two of 2016- TLAW604
Total 50 marks
The assignment (research project) consists of 2 questions.
Students must answer both questions.
QUESTION 1 (25 marks)
AusCo, an Australian company instructs Mr Liang, a Chinese lawyer, who is located in
China, to provide them with a report on various aspects of the consumer law in China. AusCo
is situated in Australia. AusCo requires the information for their manufacturing business,
which is operated exclusively in Australia. AusCo manufactures robotic kangaroos. AusCo is
considering exporting its robots to China, as the Australian market is completely saturated.
Mr Liang researches and drafts the report in China, and then forwards it to AusCo in
Australia. Mr Liang charges AusCo a professional fee for the report.
Required:
a. Briefly consider whether or not there is a taxable supply by Mr Liang for Australian
GST purposes?
b. Would your answer to question (a) above, change, if Mr Liang (located in China)
merely gives the information over the telephone to AusCo (located in Australia) in a
conference call, as the information is already in Mr Liang’s possession?
c. AusCo (an Australian company, located in Australia) now applies for a loan from
ABC bank (also located in Australia). ABC bank instructs Mr Liang to provide a
written report to the bank on consumer law in China, for the purposes of assessing the
above loan application. Mr Liang (who is based in China) researches and drafts the
report in China for ABC Bank. Mr Liang then forwards it to ABC Bank in Australia.
Mr Liang invoices ABC Bank for the fee. Briefly consider whether or not there is now
a taxable supply by Mr Liang for Australian GST purposes?
Note: You are required to set out your reasons for your answers in the above question,
including brief references to any relevant legislation, case law, and tax rulings.
QUESTION 2 (25 marks)
Billie Bob Billington is considering purchasing a second warehouse on a separate piece of
land in New South Wales (NSW), costing a total of $880 000, for the purpose of storing his
goods, which form part of his stock in trade in his retail business. Alternatively, Billie is
considering adding 3 extra, large, rooms on to his house, and using those rooms to store the
goods for his retail business. His house is also located in NSW, and is currently valued at
$2 500 000.
Required:
Advise Billie Bob Billington on the advantages and disadvantages of the two proposals that
are currently under consideration, by critically taking into account any tax implications that
are associated with the different proposals.
Note: You are required to set out your reasons for your answers in the above question,
including brief references to any relevant legislation, case law, and tax rulings.
Total 50 marks
The assignment (research project) consists of 2 questions.
Students must answer both questions.
QUESTION 1 (25 marks)
AusCo, an Australian company instructs Mr Liang, a Chinese lawyer, who is located in
China, to provide them with a report on various aspects of the consumer law in China. AusCo
is situated in Australia. AusCo requires the information for their manufacturing business,
which is operated exclusively in Australia. AusCo manufactures robotic kangaroos. AusCo is
considering exporting its robots to China, as the Australian market is completely saturated.
Mr Liang researches and drafts the report in China, and then forwards it to AusCo in
Australia. Mr Liang charges AusCo a professional fee for the report.
Required:
a. Briefly consider whether or not there is a taxable supply by Mr Liang for Australian
GST purposes?
b. Would your answer to question (a) above, change, if Mr Liang (located in China)
merely gives the information over the telephone to AusCo (located in Australia) in a
conference call, as the information is already in Mr Liang’s possession?
c. AusCo (an Australian company, located in Australia) now applies for a loan from
ABC bank (also located in Australia). ABC bank instructs Mr Liang to provide a
written report to the bank on consumer law in China, for the purposes of assessing the
above loan application. Mr Liang (who is based in China) researches and drafts the
report in China for ABC Bank. Mr Liang then forwards it to ABC Bank in Australia.
Mr Liang invoices ABC Bank for the fee. Briefly consider whether or not there is now
a taxable supply by Mr Liang for Australian GST purposes?
Note: You are required to set out your reasons for your answers in the above question,
including brief references to any relevant legislation, case law, and tax rulings.
QUESTION 2 (25 marks)
Billie Bob Billington is considering purchasing a second warehouse on a separate piece of
land in New South Wales (NSW), costing a total of $880 000, for the purpose of storing his
goods, which form part of his stock in trade in his retail business. Alternatively, Billie is
considering adding 3 extra, large, rooms on to his house, and using those rooms to store the
goods for his retail business. His house is also located in NSW, and is currently valued at
$2 500 000.
Required:
Advise Billie Bob Billington on the advantages and disadvantages of the two proposals that
are currently under consideration, by critically taking into account any tax implications that
are associated with the different proposals.
Note: You are required to set out your reasons for your answers in the above question,
including brief references to any relevant legislation, case law, and tax rulings.
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Rating:
/5
Solution: Assignment questions – semester two of 2016- TLAW604