Taxation Law (BBAL501)-Group Assignment Number of group members:2

Subject: Taxation Law (BBAL501)
Title:Group Assignment
Number of group members:2
Submission type:Soft copy (Turn-it-in submission)
Due Date:Week 5.1
Weighting/Value:20%
Details of task:Students are required to answer all the four questions as per the given requirements.

Marking Criteria
Students are evaluated on their skills to explain and apply their knowledge of the relevant Australian
Tax Laws using the three step process. Briefly the process is:
1. Identification of correct legal issues;
2. Articulation of arguments and application of law to facts; and
3. Depth of analytical thinking shown in logical reasoning and calculations.
4. Conclusion
Marking Rubric:
This is a group assignment. It has four (2) scenarios/problem based questions. The weightage is 20%
of the overall assessment. Forty 46 marks are available for 2 scenario based questions. Questions will
be assessed as per the instruction given below:

Requirement
1) Proper analysis of the scenario by identifying
the correct legal issues. Articulation of
arguments and application of law to facts.
2) Evidence of analytical thinking shown in
logical reasoning, calculations and
recommendations.

Marking Criteria
9.0-10.0: Detail analysis of the scenario using
relevant Tax Law and sections. Proper
application of Law matching the scenario. All
data used correctly. Correct calculations with
proper recommendations.
7.0-8.0: Partial analysis of the scenario using
appropriate Law. Application of Law matching
the scenario. All data used correctly. Correct
calculations with proper recommendations.
5.0-6.0: Short description of the scenario using
appropriate Act only. Application of Law partially

matching the scenario. Correct use of partial
data. Correct calculations with short
recommendations.
3.0-4.0: Short description of the scenario with
no analysis but using appropriate Act only. No
application of Law. Partial correct calculations.
No conclusion given.
1.0-2.0 No description of the scenario. No
Analysis. Identification of correct law matching
the scenario. Shows little ability to collect,
organize and present information.
0.0 No attempt was made to present the report.
No analysis. No identification of laws. No
Calculations.

Scenario-1: Topic: Residence and Source

(Marks-20)

Bradley is a Professor of Chemistry at the University of London. He comes to Australia under a
contract to work for eight months (January to August) on a research project. He is married and has
got two school going kids aged 9 & 12 who are currently living with his wife Mary in London. Bradley
and Mary have got a small family business in London which will be managed by Mary while Bradley is
in Australia for research purpose.
Bradley intends to leave Australia after he finishes the project. While staying in Australia Bradley
takes on an eight months lease for a small furnished house near work. He also buys a Toyota 1995
model car in February. He regularly makes contact with his family via skype also prefers writing
letters to his two kids. On weekends he visits his friends and colleagues houses. During his stay he
also went to Sydney and Adelaide for a short trip.
Bradley has opened a bank account with Commonwealth Bank of Australia (CBA). His salary gets
deposited to CBA by his employer on the 30th of the month. As soon as he receives his salary he
transfers a part of it to his wife in London for family expenses.
Bradley has got a house in London, his country of domicile. He is also a regular taxpayer in London.
Required:
Bradley has come to you for a professional advice as one of his colleagues has told him that he has to
pay tax in Australia for his Australian sourced income. Is Bradley a resident of Australia for tax
purpose? Why or why not? Demonstrate Bradly’s situation and establish your opinion with a full
analysis of relevant source and act.

Scenario-3: Topic: Assessable Income, Deductions & Capital Gain (Marks-20)
Erin is a tax accountant. During the tax year 2015-2016 she has received the following amounts:
> Salary and wages income of $98,000.
> A bank term deposit of $50,000, which earned interest of $4,200.
> A rental property from which she received $500 per week for 50 weeks of the year.
> Winnings of $10,000 on the poker machines.
> $500 from selling to friends, eggs that her chickens laid.
> A holiday bonus of $1,000 from her employer.
> A watch worth $200 from a happy client.
Erin also has a capital gain from collectables of $1200 and capital losses from collectables $500.
In 23rd March 2016 Erin sold an apartment that she purchased during January 1st, 2000. Purchase
price of the apartment was $60,000. Erin was able to sell the apartment at $220,000.
Erin also work part time for a charitable organisation. Her earning from the charitable organisation
during 2015-2016 was $700.
She has collected all her tax receipts for the following payments:
1. Mobile phone bill $1500 (Business 50%)
2. Electricity bill $3600 (Business 20%)
3. Membership fee $350 for CPA Australia
4. Membership fee for the charitable organisation she is working $150
Required:
a) What is Erin’s total ordinary income for 2015-2016 tax years? Mark-10
b) Calculate the total capital gain/loss for Erin for year 2015-2016. Mark-10
c) Calculate total Taxable Income for Erin for year 2015-2016. Mark-10

Mark-40

d) Apply the relevant tax rate to calculate her actual tax payable/refund for the year 2015-2016.
Mark-10

Source:
Sadiq,K., Coleman, C., Hanegbi, R., Jogarajan,S., Krever, R.,Obst, W.,& Ting, A.(2014). Principles of
Taxation Law, General ed.Thomson and Reuters,Sydney.
Nethercott, L., Richardson, G.,&Devos,K. (2013). Australian Taxation Study Manual, (CCH, Sydney).