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ACCG 924

Taxation Law
Session 2, 2014
Assessment Guide
Note – this is NOT the Unit Guide
The ofcial Unit Guide is available online and is accessed separately through
iLearn for this unit. The Assessment Guide should be read in conunction !ith
the Unit Guide.
"epartment of Accounting and #orporate
Governance
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
MACQUARIE UNIVERSITY
FACULTY OF BUSINESS AND ECONOMICS
ASSESSMENT GUIDE
Unit: ACCG924 Taxation Law
Study Period: Session 2, 2014
Unit Convenor: r Catriona Lavermi!o!!a
Credit "oints: 4 !redit "oints
Students in this unit MUST read the onine Unit Guide !are"u# at the
start o" session and $e a%are o" its !ontents throu&hout the session'
T#e Unit Guide !ontains im"ortant in$ormation a%out t#e unit & i$ anyt#in'
in t#e unit 'uide is un!(ear, "(ease !onsu(t wit# t#e Unit Convener) This
Assess(ent Guide )ro*ides si&ni"i!ant additiona detai re&ardin&
assess(ent and other earnin& reated issues' Some items in t#e Unit
Guide are inevita%(y re*stated in t#is Assessment Guide) +t is im"ortant
t#at you understand $u((y t#at, in t#e event t#at t#ere is any di$$eren!e in
t#e way t#at t#is assessment 'uide states a matter and t#e way t#at t#e
Unit Guide ex"resses t#e same matter, t#en t#e Unit Guide is to %e
re'arded as %ein' t#e o$$i!ia( "osition o$ t#e e"artment)
ABOUT T+IS UNIT
T#is unit detai(s and ana(yses t#e (aws re(atin' to in!ome tax, $rin'e %ene$its tax and t#e
'oods and servi!es tax in Austra(ia) Students !om"(etin' t#is unit wi(( review (e'is(ative
"rovisions, !ase (aw and ru(in's and a""(y t#eir ,now(ed'e o$ t#e taxation (aws to a
variety o$ $a!t situations and !ase studies as we(( as "arti!i"ate in 'rou" dis!ussion)
TEAC+ING STAFF
Na(e Roe in unit E(ai
S#ir(ey -ur"#y Le!turer s#ir(ey)mur"#y.m/)edu)au
0i!toria La,is
Patri!, Ga((a'#er
Tom 12Su((ivan
-in' 3on'*Too*4uen
Catriona Lavermi!o!!a
Le!turer
Le!turer
Le!turer
Le!turer
Unit Convenor
vi!toria)(a,is.m/)edu)au
"atri!,)'a((a'#er.m/)edu)au
tom)osu((ivan.m/)edu)au
min')won'*too*yuen.m/)edu)au
!atriona)(avermi!o!!a.m/)edu)au
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2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
CONTACTING STAFF AND SU,,ORT
All correspondence related to administrative matters must be submitted via the
unit’s email address at ACCG924@mq.edu.au. Any questions relating to the
technical material should be submitted via the ilearn unit website General
!iscussion" so that all students will be able to view the questions and responses
and reduce duplication
#tudents are also advised to chec$ i%learn and their emails o&ten as
announcements' advice or help with issues will be posted on i%learn and sent by
email throughout the semester.
Sta$$ tea!#in' in t#e unit wi(( %e avai(a%(e $or individua( !onsu(tation wit# students) A
timeta%(e o$ w#en sta$$ wi(( %e avai(a%(e wi(( %e "osted on t#e unit2s iLearn site)
Students ex"erien!in' si'ni$i!ant di$$i!u(ties wit# any to"i! in t#e unit must see,
assistan!e immediate(y) 4ou are en!oura'ed to see, #e(" at a time t#at is !onvenient to
you $rom a sta$$ mem%er tea!#in' on t#is unit durin' t#eir re'u(ar !onsu(tation #ours) +n
s"e!ia( !ir!umstan!es, an a""ointment may %e made outside re'u(ar !onsu(tation #ours)
Sta$$ wi(( not !ondu!t !onsu(tations %y emai() 4ou may, #owever, "#one sta$$ durin' t#eir
!onsu(tation #ours)
Tutor !onsu(tation sessions wi(( %e run at t#e Consu(tation 5oom at 647104)
+n order to 'ain a!!ess to sta$$ (o!ated at (eve(s 1, 2 and 8 o$ %ui(din' 64A durin' t#eir
!onsu(tation #ours "(ease rin' t#e sta$$ mem%er $rom t#e "#ones avai(a%(e in t#e (o%%y
9"#one num%ers o$ re(evant sta$$ mem%ers wi(( %e "rovided on iLearn and are avai(a%(e
next to t#e "#ones:)
CLASSES
• T#e t#irteen t#ree*#our seminars ea!# wee, wi(( !onsist o$ a (e!ture and tutoria(
!om"onent as detai(ed (ater in t#is Assessment Guide)
• C(ass attendan!e $or t#is unit is !om"u(sory)
REQUIRED AND RECOMMENDED TE-TS AND.OR MATERIALS
,res!ri$ed te/t$oo0s1
• 3oe((ner, 7ar,o!;y, -ur"#y, 6vans and Pinto Australian Taxation Law 2014 CC<
24t# 6dition
• 7ar,o!;y, S) Core Tax Legislation and Study Guide 2014 CC<)
Re!o((ended te/t$oo0s1
T#e $o((owin' is not s"e!i$i!a((y re/uired %ut may %e used $or additiona( readin')
• Australian Master Tax Guide 2014 =2nd 6dition CC<
• >et#er!ott L? and ot#ers Australian Tax Study Manual: Questions and Suggested
Solutions 2014 24t# 6dition CC<
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2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
• 7ar,o!;y S Australian Tax Casebook 2014 12
t#
6dition CC<
T#e "res!ri%ed and re!ommended texts !an %e "ur!#ased $rom t#e -a!/uarie University
Co*o" 7oo,s#o" and are avai(a%(e in t#e -a!/uarie Li%rary)
Additiona Resour!es1
T#e University (i%rary #as numerous resour!es re(atin' to taxation (aw #owever you may
$ind "arti!u(ar(y use$u( t#e on*(ine resour!es @Tax2 resour!es avai(a%(e t#rou'# t#e (i%rary
data%ases, s"e!i$i!a((y CC<*1n(ine)
Additiona( resour!es wi(( %e made avai(a%(e on t#e i(earn unit we%site $or you to down(oad
and read)
LEARNING OUTCOMES
1n t#e !om"(etion o$ t#is unit a student wi(( %e a%(e to:
1) +denti$y, ana(yse and a""(y t#e (aw re(atin' to in!ome taxation)
2) +denti$y, ana(yse and a""(y t#e (aw re(atin' to GST)
8) +denti$y, ana(yse and a""(y t#e (aw re(atin' to A7T)
4) +nter"ret t#e re(evant tax (aws and re(ated (e'a( "re!edents and a""(y t#em to a
"ro%(em or $a!t situation)
=) etermine a "arti!u(ar tax"ayerBs $ina( in!ome tax, GST and A7T (ia%i(ity)
C) Present ver%a((y and in writin' !on!(usions as to t#e tax im"(i!ations arisin' $rom a
"arti!u(ar set o$ $a!ts)
TEAC+ING AND LEARNING STRATEGY
Le!ture notes wi(( %e "(a!ed on i*(earn %e$ore a !(ass) T#ese notes are on(y t#e !ore
notes and t#ey are >1T intended to stand a(one nor in "(a!e o$ (e!ture attendan!e) T#ey
are "rovided $or your !onvenien!e) 4ou must a(so "ro"er(y !onstru!t your own notes
%ased on your own readin's o$ t#e a((o!ated materia(s and any additiona( !omments,
su""(ements and !orre!tions to t#ese notes w#i!# may o!!ur durin' (e!tures & w#i!# you
-UST attend)
ou s!ould not rely on le"turer #ro$ided notes %or %ull study #ur#oses nor as t!e %inal
indi"ator o% exa& "ontent' ou are re(uired to and ex#e"ted to read all text and
legislati$e re%eren"es and also to take into a""ount "o&&ents) additional &aterials and
illustrations and exa&#les w!i"! &ay also be gi$en in le"tures'
The three2hour se(inars %i !onsist o" a))ro/i(ate# 3 hour e!ture !o()onent
and 4 hour tutoria !o()onent' It is e/)e!ted that ALL students ha*e )re)ared
ans%ers to ea!h %ee05s tutoria 6uestions ,RIOR to the se(inar'
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2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
Assess(ent Tas0s
Tas0 7ei&ht Due Date Brie" Des!ri)tion
C(ass
"arti!i"ation
10D +n C(ass +n !(ass "resentation and written re"ort
1n*(ine /ui; 1=D 3ee, 4
ue 29 Au'ust
2014
= S#ort answer /uestions and = mu(ti"(e
!#oi!e /uestions
Case study 2=D 3ee, E
ue 10 1!to%er
2014
Ana(yse a set o$ $a!ts and "re"are
advi!e
Aina(
examination
=0D 6xamination
"eriod
Aina( examination
849 Cass )arti!i)ation 84:;9
6a!# student wi(( %e a((o!ated a /uestion and wi(( %e re/uired to 'ive one ora
)resentation ana(ysin' and answerin' t#e issues in t#e /uestion) T#e "resentation
9%orth < (ar0s: must not %e (on'er t#an F minutes) Presentations wi(( %e mar,ed on t#e
%asis o$ t#e (eve( o$ "re"aration, understandin', a!!ura!y and a%i(ity to ex"(ain t#e ,ey
issues)
6a!# student wi(( a(so %e re/uired to su%mit a %ritten ana#sis 9maximum 800 words: o$
t#e issues, t#e (aw and #ow to a""roa!# so(vin' t#e /uestion t#at t#ey #ave %een
a((o!ated) T#is written ana(ysis 8%orth < (ar0s: must %e "resented to t#e (e!turer in
!(ass on t#e day o$ t#e "resentation) T#is written ana(ysis &ust not be a re#eat o% t!e
#resentation' +t s#ou(d instead %e an ex#lanation o$ t#e issues arisin' $rom t#e /uestion,
t#e taxation (aw re(evant to t#ose issues and a su''estion o$ #ow t#e issues !an %e
so(ved %y a""(i!ation o$ t#e (aw) T#e written ana(ysis s#ou(d not in!(ude !a(!u(ations or
numeri!a( ex"(anations)
Two exa&#les o$ t#e ty"e o$ written ana(ysis t#at you are re/uired to su%mit are in!(uded
at t#e end o$ t#is Assessment Guide)

>o extensions wi(( %e 'ranted) Students w#o #ave not su%mitted t#e tas, "rior to t#e
dead(ine wi(( %e awarded a mar, o$ 0 $or t#e tas,, ex!e"t $or !ases in w#i!# an
a""(i!ation $or isru"tion to Studies is made and a""roved
839 On2ine Qui= 84<;9
T#e on*(ine /ui; wi(( !over (e!ture to"i!s 1 to 8 and re(ated tutoria( /uestions, and wi(( %e
made avai(a%(e on i(earn on 2= Au'ust 2014) T#e Gui; wi(( !om"rise a se(e!tion o$ s#ort
answer and mu(ti"(e !#oi!e /uestions and is due to %e !om"(eted %y ="m 29 Au'ust
2014) 5esu(ts wi(( %e "rovided to students via iLearn)
>o extensions wi(( %e 'ranted) Students w#o #ave not su%mitted t#e tas, "rior to t#e
dead(ine wi(( %e awarded a mar, o$ 0 $or t#e tas,, ex!e"t $or !ases in w#i!# an
a""(i!ation $or isru"tion to Studies is made and a""roved
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2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
8>9 Case stud# 83<;9
T#e !ase study wi(( !over (e!ture to"i!s 2 to F and re(ated tutoria( /uestions, and is due to
%e (od'ed via turnitin and i(earn %y ="m 10 1!to%er 2014) T#e !ase study wi(( re/uire
students to "rovide a detai(ed ana(ysis o$ a $a!t situation a""(yin' t#e taxation (aws to
arrive at a !on!(usion in t#e $orm o$ a "ie!e o$ advi!e) Guide(ines to mar,in' t#e !ase
study wi(( %e "rovided on i(earn a$ter t#e !ase study mar,s are returned to students)
>o extensions wi(( %e 'ranted) Students w#o #ave not su%mitted t#e tas, "rior to t#e
dead(ine wi(( %e awarded a mar, o$ 0 $or t#e tas,, ex!e"t $or !ases in w#i!# an
a""(i!ation $or isru"tion o$ Studies is made and a""roved
8?9 End o" session "ina e/a(ination 8<:;9
T#e end o$ session examination wi(( !over (e!ture to"i!s C to 12 and re(ated tutoria(
/uestions, and wi(( %e #e(d in t#e examination "eriod 1F >ovem%er 2014 to = e!em%er
2014)
To )ass the unit@ students (ust ,ASS the "ina e/a(ination and a!hie*e an o*era
)ass (ar0'
University $ina( exam !onditions a""(y)
Materias that (a# $e ta0en into the e/a(
4ou are "ermitted to ta,e t#e $o((owin' materia(s into t#e $ina( examination:
• 4our own #andwritten notes)
• A !a(!u(ator)
• 7ar,o!;y, S) Core Tax Legislation and Study Guide 2014 CC<) T#is may %e
written on, mar,ed u" %y #and or ta''ed as you see $it)
You are NOT )er(itted to ta0e into the e/a( an# other ite(s A #ou are not@ "or
e/a()e@ ao%ed to ta0e #our te/t$oo0 Australian (a)ation *aw into the e/a('
Si(iar#@ no )hoto!o)ies are )er(itted nor an# !o()uter do%noads or )rinted
out)ut o" an# t#)e'
Fina E/a(ination
A $ina( examination is in!(uded as an assessment tas, $or t#is unit to "rovide assuran!e
t#at:
i: t#e "rodu!t %e(on's to t#e student and
ii: t#e student #as attained t#e ,now(ed'e and s,i((s tested in t#e exam)
A 8 #our $ina( examination 9"(us 10 minutes readin' time: $or t#is unit wi(( %e #e(d durin'
t#e University 6xamination "eriod)
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2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
4ou are ex"e!ted to "resent yourse($ $or examination at t#e time and "(a!e desi'nated in
t#e University 6xamination Timeta%(e) T#e timeta%(e wi(( %e avai(a%(e in ra$t $orm
a""roximate(y ei'#t wee,s %e$ore t#e !ommen!ement o$ t#e examinations and in Aina(
$orm a""roximate(y $our wee,s %e$ore t#e !ommen!ement o$ t#e examinations)
#tt":HHstudents)m/)edu)auHstudentIadminHexamsH
T#e on(y ex!e"tion to not sittin' an examination at t#e desi'nated time is %e!ause o$
do!umented i((ness or unavoida%(e disru"tion) +n t#ese !ir!umstan!es you may wis# to
!onsider a""(yin' $or isru"tion to studies) T#e University2s "o(i!y on isru"tion to
Studies !an %e $ound at
#tt":HHwww)%usinessande!onomi!s)m/)edu)auH!urrentIstudentsHunder'raduateH#owIdoIi
Hdisru"tionItoIstudies
I" a Su))e(entar# E/a(ination is &ranted as a resut o" the Disru)tion to Studies
)ro!ess the e/a(ination %i $e s!hedued as )er the Su))e(entar# E/a(ination
ti(eta$e o" the Fa!ut# o" Business and E!ono(i!s' ,ease note that the
su))e(entar# e/a(ination %i $e o" a si(iar "or(at as the "ina e/a(ination'

T#e -a!/uarie university examination "o(i!y detai(s t#e "rin!i"(es and !ondu!t o$
examinations at t#e University) T#e "o(i!y is avai(a%(e at:
#tt":HHwww)m/)edu)auH"o(i!yHdo!sHexaminationH"o(i!y)#tm
7EEBLY CURRICULUM
Wee Le!tu"e #"esentation Semina" date
01 Lecture 1
$nt"odu!tion to taxation %aw
Tax &o"mu%a' tax "ates and tax
o&&sets
Administ"ati(e as)e!ts o&
taxation
*o )"esentations
Wee !ommen!in+ 4 Au+ust
02 Lecture 2
Gene"a% )"in!i)%es o& in!ome
$n!ome &"om )e"sona% exe"tion
, 1' 2' 3' 4 and 5
"e%atin+ to Le!tu"e
1 Wee !ommen!in+ 11 Au+ust
03 Lecture 3
$n!ome &"om )"o)e"t-
$n!ome &"om .usiness
$nte"nationa% as)e!ts o& taxation
, 1' 2' 3 and 4
"e%atin+ to Le!tu"e
Two
Wee !ommen!in+ 1/ Au+ust
04 Lecture 4
Tax A!!ountin+
Gene"a% dedu!tions
, 1' 2' 3 and 4
"e%atin+ to Le!tu"e
T0"ee Wee !ommen!in+ 25 Au+ust
05 Lecture 5
S)e!i&i! dedu!tions
T"adin+ sto!
, 1' 2' 3 and 4
"e%atin+ to Le!tu"e
1ou" Wee !ommen!in+ 1 Se)tem.e"
06 Lecture 6
Ca)ita% a%%owan!es and !a)ita%
wo"s
2%a!0o%e ex)enses
Sma%% .usiness !on!essions
$nt"odu!tion to Ca)ita% Gains
Tax
, 1' 2' 3 and 4
"e%atin+ to Le!tu"e
1i(e
Wee !ommen!in+ / Se)tem.e"
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2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
03 Lecture 7
Ca)ita% Gains Tax
, 1' 2' 3' 4' 5 and
6 "e%atin+ to
Le!tu"e Six Wee !ommen!in+ 15 Se)tem.e"
Mid-Semester Break 20 Se)tem.e" to 6 4!to.e"
0/ Lecture 8
Goods and Se"(i!es Tax
, 1' 2' 3 and 4
"e%atin+ to Le!tu"e
Se(en Wee !ommen!in+ 3 4!to.e"5
09 Lecture 9
T"usts
Taxation o& mino"s
, 1' 2' 3' 4 and 5
"e%atin+ to Le!tu"e
6i+0t
Wee !ommen!in+ 13 4!to.e"
10 Lecture 10
#a"tne"s0i)s
Su)e"annuation
, 1' 2' 3 and 4
"e%atin+ to Le!tu"e
*ine Wee !ommen!in+ 20 4!to.e"
11 Lecture 11
Com)anies
, 1' 2' 3' 4' 5 and
6 "e%atin+ to
Le!tu"e Ten Wee !ommen!in+ 23 4!to.e"
12 Lecture 12
1"in+e .ene&its tax
, 1' 2' 3' 4' 5
and 6 "e%atin+ to
Le!tu"e 6%e(en Wee !ommen!in+ 3 *o(em.e"
13
Lecture 13
7e(ision
, 1' 2' 3' 4 and 5
"e%atin+ to Le!tu"e
Twe%(e Wee !ommen!in+ 10 *o(em.e"
14 EXAMIA!I" #E$I"%
S!A$!S 17 &'em(er 2014
JAs -onday C 1!to%er 2014 is a "u%(i! #o(iday students in t#e -onday !(asses wi(( %e
advised o$ an a(ternative seminar to attend t#at wee,)
/
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
Lecture ")e
I)tr&ducti&) t& ta*ati&) +a,
!a* -&rmu+a. ta* rates a)d ta* &--sets
Admi)istrati'e as/ects &- ta*ati&)
7eadin+s &"om Woe%%ne"' 2a"o!8-' 9u")0-' 6(ans and #into Australian Taxation Law 2014 CC:
;"e&e""ed to in t0is unit out%ine as <W=> &o" t0is wee?s %e!tu"e@
I)tr&ducti&) t& ta*ati&) +a,
W0at is a taxA BB W 1B550
Aust"a%ian taxation s-stem BB W 1B310 to 1B520
Constitutiona% as)e!ts o& taxation BB W 1B530 to 1B620
!a* -&rmu+a. ta* rates a)d ta* &--sets
W 2B000 to 2B040C W 2B100 to 2B150
W 2B200C W 2B300 to 2B405
W 2B500 to 2B510C W 2B640
Admi)istrati'e as/ects &- ta*ati&)
Assessment s-stem BB W30B000 to 30B025C W30B033 to 30B040C W30B055 to 30B104
W30B140 to 30B155
Tax a))ea% )"o!ess BB W31B300 to 31B300C W33B020 to 33B0/3C W33B095
#rese)tati&) 0uesti&)s re+ati)1 t& Lecture &)e t& (e /rese)ted i) )e*t ,eek2s c+ass3
4uesti&) 1-1
G"a!e is a "esident indi(idua% w0o de"i(es sa%a"- in!ome o& D33'000 in 2013E14@ G"a!e is sin+%e'
wit0 no !0i%d"en and does not 0a(e )"i(ate 0ea%t0 insu"an!e@ Fu"in+ t0e -ea" 0e" em)%o-e"
wit00o%ds D6'000 tax &"om 0e" wa+es@
E*/+ai) 5races2s ta* +ia(i+it6 a-ter taki)1 acc&u)t &- t7e +&, i)c&me ta* &--set. t7e Medicare
+e'6 a)d t7e Medicare +e'6 surc7ar1e i- t7e6 are re+e'a)t8 5race 7as ad'ised 6&u t7at s7e
7as a 9EL# de(t t&ta++i)1 :21.0008
4uesti&) 1-2
G%ad' w0o is a "esident' !ondu!ts a sma%% .usiness in 2013E14 and ea"ns D130'000@ G%ad is sin+%e
and %i(es .- 0imse%&@ Fu"in+ t0e -ea" 0e )a-s D35'000 in!ome tax to t0e AT4 w0en 0e %od+es 0is
2usiness A!ti(it- Statements@ G%ad is sin+%e' wit0 no !0i%d"en and does not 0a(e )"i(ate 0ea%t0
insu"an!e@
E*/+ai) ,7et7er ;+ad is re0uired t& /a6 m&re ta* &r is e)tit+ed t& a ta* re-u)d ,7e) 7e
+&d1es 7is ta* retur) -&r 2013<14 a-ter taki)1 acc&u)t &- t7e +&, i)c&me ta* &--set. t7e
Medicare +e'6 a)d t7e Medicare +e'6 surc7ar1e i- t7e6 are re+e'a)t8
E*/+ai) ,7et7er 6&ur a)s,er ,&u+d (e di--ere)t i- ;+ad 7ad a ,i-e ,7& 7ad )& i)c&me -&r
t7e 6ear8
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2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
4uesti&) 1-3
9a.e% is a &o"ei+n "esident &o" a%% o& 2013E14@ :e" in!ome &o" t0e -ea" !onsists o&H ;i> D15'000
&"om in(estments in Aust"a%ia' ;ii> D50'000 &"om a !a)ita% +ain on t0e sa%e o& a )"o)e"t- in 2"itain'
and ;iii> D10'000 &o" a mont0?s ad(iso"- wo" )e"&o"med in S-dne-@ 9a.e% is ma""ied wit0 two
!0i%d"en@
E*/+ai) 7er ta* +ia(i+it6 a-ter taki)1 acc&u)t &- t7e +&, i)c&me ta* &--set. t7e Medicare +e'6
a)d t7e Medicare +e'6 surc7ar1e i- t7e6 are re+e'a)t8
4uesti&) 1-4
1"ed is unsu"e as to w0et0e" an amount o& D15'000 0e "e!ei(ed du"in+ t0e -ea" 2013E2014 is
assessa.%e@ 1"ed?s tax ad(iso" 0as said t0at t0e a"ea o& t0e tax %aw t0at "e%ates to t0e assessa.i%it- o&
t0is amount is unsett%ed and t0e"e is no !%ea" answe" t0at !an .e )"o(ided on t0is Iuestion@
Ad'ise =red &) t7e &/ti&)s a'ai+a(+e i) +&d1i)1 7is i)c&me ta* retur) -&r 2013<2014 ,it7
res/ect t& t7e :15.0008
4uesti&) 1-5
Go"tex #t- Ltd "e!ei(ed an amended assessment &"om t0e AT4 on 2 *o(em.e" 2013@ T0e
amended assessment in!"eased taxa.%e in!ome .- D23'000 on t0e .asis t0at a tax dedu!tion
!%aimed .- Go"tex in t0e 2012E2013 -ea" was not a(ai%a.%e unde" t0e "e%e(ant %e+is%ation@
E*/+ai) ,7at &/ti&)s are a'ai+a(+e t& ;&rte* t& dis/ute t7e ame)ded assessme)t i)c+udi)1
t7e acti&)s re0uired (6 ;&rte*8
Lecture !,&
5e)era+ /ri)ci/+es &- i)c&me
I)c&me -r&m /ers&)a+ e*erti&)
I)c&me -r&m /r&/ert6
7eadin+s &"om Australian Taxation Law 2014 CC: &o" t0is wee?s %e!tu"e@
5e)era+ /ri)ci/+es &- i)c&me
W 3B000 to 3B420
W 6B/00 to 6B/30C W6B/30 to 6B910
I)c&me -r&m /ers&)a+ e*erti&)
W 4B000 to 4B190
I)c&me -r&m /r&/ert6
W 5B000C W 5B200 to 5B215C W 5B300 to 5B320C W 5B400 to 5B420C W 5B500 to 5B520
#rese)tati&) 0uesti&)s re+ati)1 t& Lecture t,& materia+ t& (e /rese)ted i) )e*t ,eek2s c+ass3
4uesti&) 2-1
E*/+ai) ,7et7er t7e -&++&,i)1 ,&u+d (e &rdi)ar6 i)c&me i) 2013<143
10
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
1@ a !a" wo"t0 D50'000 won .- a &a"me" &o" ado)tin+ en(i"onmenta%%-B&"iend%- &a"min+ )"a!ti!es
2@ D100 "e!ei(ed .- a &u"nitu"e s0o) w0en it added GST to t0e D1'000 )"i!e o& a !0ai" it so%d
3@ a D/'000 .onus awa"ded to an em)%o-ee &o" ex!e%%ent wo" .ut sent' at t0e em)%o-ee?s "eIuest'
to )a- s!0oo% &ees owin+ in "es)e!t o& t0e em)%o-ee?s !0i%d@
4@ a )"i8e o& D50'000 won .- a student w0en s0e went to t0e !asino to !e%e."ate t0e end o& exams@
5@ !as0 o& D15'000 )aid to an em)%o-ee &o" t0e )"omise not to wo" &o" a !om)etito" on
te"mination o& em)%o-ment@
4uesti&) 2-2
E*/+ai) ,7et7er a)6 &- t7e -&++&,i)1 am&u)ts ,&u+d (e &rdi)ar6 i)c&me i) 2013<143
1@ A tota% o& D50'000 )aid to owne" o& %and %o!ated in no"t0e"n *SW !a%!u%ated .ased on D100
)e" t"ee "emo(ed &"om t0e %and@
2@ D20'000 t0at is "e!ei(ed .- a d"u+ dea%e" &o" t0e sa%e o& d"u+s' at a si+ni&i!ant )"o&it' to an
asso!iate@
3@ ,antas &"eIuent &%-e" )oints "e!ei(ed .- an a!!ountant em)%o-ed .- an a!!ountin+ &i"m in
"e%ation to wo"B"e%ated t"a(e% )aid &o" .- t0e &i"m
4@ an amount "e!ei(ed .- a moto"ist &"om an insu"an!e !om)an- to !om)ensate t0e moto"ist &o"
%oss o& wa+es and dama+e to 0e" !a" w0en s0e was in(o%(ed in an a!!ident !aused .- anot0e"
d"i(e"@
4uesti&) 2-3
W0en Ted !ommen!ed em)%o-ment as a sa%es "e)"esentati(e on 1 Ju%- 2013 0e was o&&e"ed a
sa%a"- o& D30'000 )%us an ente"tainment a%%owan!e o& D100 )e" wee@ :e was a%so entit%ed to a 0a%&
da- o&& e(e"- &o"tni+0t@
4n 1 Janua"- 2014' Ted?s )osition wit0 0is em)%o-e" !0an+ed and 0e no %on+e" wo"ed as a sa%es
"e)"esentati(e@ :e !ontinued to "e!ei(e D30'000 as sa%a"-' .ut was no %on+e" entit%ed to t0e
ente"tainment a%%owan!e o" to t0e 0a%& da- o&&@ Ted was )aid a %um) sum o& D15'000 in "etu"n &o"
+i(in+ u) t0e ente"tainment a%%owan!e and t0e time o&&@

E*/+ai) t7e ta* c&)se0ue)ces -&r !ed -r&m t7ese 'ari&us e'e)ts8
4uesti&) 2-4
Fu"in+ t0e -ea" ended 30 June 2014 Fa(id was em)%o-ed &u%%Btime as an $T !onsu%tant@ :e a%so
)%a-ed "u+.- at a (e"- 0i+0 %e(e% and was )aid D35'000 .- 2ea"s 7u+.- C%u. to !o(e" t0e !osts o&
t"a(e% inte"state to )%a- "u+.- &o" t0em@ Fa(id?s em)%o-e" sometimes a%%owed 0im to tae %ea(e
wit0out )a- to !om)ete in "u+.- tou"naments' and Fa(id "e!ei(ed D50'000 in "u+.- mat!0
)a-ments &"om 2ea"s 7u+.- !%u. du"in+ t0e -ea"@
$n June 2014 Fa(id won t0e )"i8e o& a &u%%- )aid o(e"seas 0o%ida- &"om t0e *ationa% 7u+.-
Asso!iation in "e!o+nition o& 0is ex!e%%ent )e"&o"man!e and mento"in+ o& ot0e" )%a-e"s @ T0e
o(e"seas 0o%ida- was not !on(e"ti.%e into !as0 and not t"ans&e"a.%e i& Fa(id !0ose not to use it@
E*/+ai) t7e ta* treatme)t &- t7e /a6me)ts %a'id recei'ed duri)1 2013<148
11
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
Lecture !7ree
I)c&me -r&m (usi)ess
I)ter)ati&)a+ as/ects &- ta*ati&)
7eadin+s &"om Australian Taxation Law 2014 CC: &o" t0is wee?s %e!tu"e@
I)c&me -r&m (usi)ess
W 6B000 to 6B910
I)ter)ati&)a+ as/ects &- ta*ati&)
$nt"odu!tion BB W 24B000 to 24B020
7esiden!e BB W 24B040 to 24B066
Sou"!e BB W 24B100 to 24B160
#rese)tati&) 0uesti&)s re+ati)1 t& Lecture !7ree materia+ t& (e /rese)ted i) )e*t ,eek2s
c+ass3
4uesti&) 3-1
1o" man- -ea"s' 9e"( 0as .een em)%o-ed as an a!!ountant and 0as a%so made some mone-
;a"ound D11'000 in 2014> &"om se%%in+ 0is own and ot0e" &ami%- mem.e"s )e"sona% +oods on e.a-
and ot0e" t"adin+ we.sites@ 9e"( 0as a%so w"itten and )u.%is0ed a .oo tit%ed KSe%%in+ W0at Lou
Fon?t *eed? t0at detai%s ti)s and ta!ti!s on maximisin+ t0e sa%e o& )e"sona% +oods o(e" t0e inte"net
and 9e"( se%%s ea!0 .oo &o" D15@00@ A %a"+e )u.%is0in+ !om)an- )aid 9e"( D40'000 in 9a"!0
2014 to )u"!0ase t0e !o)-"i+0t in t0is .oo@
9e"( a%wa-s %od+es a tax "etu"n .ut on%- te%%s t0e Tax 4&&i!e a.out 0is em)%o-ment in!ome' and
ne(e" a.out t0e sa%es &"om 0is ot0e" a!ti(ities@ A&te" "e!ei(in+ a ti)Bo&&' t0e Tax 4&&i!e sta"ts an
in(esti+ation into 9e"(?s a&&ai"s@
E*/+ai) 7&, Mer' is +ike+6 t& (e ta*ed &) 7is sa+es &- /ers&)a+ 1&&ds. sa+es &- 7is (&&k a)d
t7e :40.000 recei'ed -r&m t7e /u(+is7i)1 c&m/a)68
4uesti&) 3-2
W0en a new o&&i!e .%o! is .ui%t in t0e !ent"e o& S-dne-' t0e de(e%o)e" is een to 0a(e a )a"ti!u%a"
%aw &i"m as its &i"st tenant so t0at it !an use t0at &i"m?s tenan!- in its ad(e"tisements@ T0e %aw &i"m
is 0a))- to mo(e &"om its !u""ent )"emises' .ut wou%d )"e&e" to mo(e &"om t0e !ent"e o& S-dne- to
somew0e"e w0e"e t0e "ent is !0ea)e"@ $n o"de" to )e"suade t0e %aw &i"m' t0e de(e%o)e" )"omises' in
"etu"n &o" t0e %aw &i"m si+nin+ u) as a tenant &o" 10 -ea"sH
1@ a %um) sum o& D10 mi%%ion
2@ a &i(eB-ea" "entB&"ee )e"iod
3@ )a-ment .- t0e de(e%o)e" o& t0e %aw &i"m?s "emo(a% !osts' and
4@ a oneBwee 0o%ida- in 2a%i &o" ea!0 o& t0e %aw &i"m )a"tne"s@
E*/+ai) t7e c&)se0ue)ces -&r t7e +a, -irm i- it acce/ts t7e +ease i)ce)ti'es &--ered (6 t7e
de'e+&/er8
12
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
4uesti&) 3-3
#au%ine is t0e Sa%es 9ana+e" &o" #a)e" #"odu!e"s #t- Ltd ;#a)e" #"odu!ts>@ #au%ine was
)"e(ious%- %o!ated at t0e 0ead o&&i!e in S-dne- .ut is !u""ent%- wo"in+ &"om t0e $ndonesian
o&&i!e' 0a(in+ "e%o!ated t0e"e on 1 9a"!0 2014@ #a)e" #"odu!ts anti!i)ate t0at #au%ine wi%% 0ead
u) t0e $ndonesian o&&i!e &o" two -ea"s wit0 an o)tion to sta- &o" anot0e" two -ea"s@
#au%ine?s "emune"ation )a!a+e du"in+ 0e" em)%o-ment in $ndonesia in!%udes t0e &o%%owin+H
• Sa%a"- o& D220'000 )a
• Ai"&a"e !osts )aid .- #a)e" #"odu!ts &o" #au%ine to "etu"n to Aust"a%ia twi!e a -ea"
#au%ine was .o"n and 0as %i(ed a%% 0e" %i&e in S-dne- so is a %itt%e anxious a.out t0e mo(e to
$ndonesia' wit0 0e" 0us.and and two sma%% !0i%d"en' -et .e%ie(es it wi%% .ene&it 0e" &inan!ia%%- and
)"o&essiona%%-@
%iscuss #au+i)e2s status >reside)t &r )&t? -&r Austra+ia) ta* /ur/&ses -&r 2013<14 a)d t7e ta*
im/+icati&)s &- t7e tra)s-er t& I)d&)esia8
4uesti&) 3-4
,uintex Ltd manu&a!tu"es e%e!t"i!a% a))%ian!es in 9a%a-sia' is in!o")o"ated in 9a%a-sia and a%% its
s0a"es a"e 0e%d .- indi(idua%s "esident in 9a%a-sia@ ,uintex 0as an o&&i!e in S-dne- and em)%o-s
se(en sta&& t0e"e@ T0e S-dne- o&&i!e !on!%udes sa%e !ont"a!ts and is "es)onsi.%e &o" t0e ma"etin+
o& ,uintex )"odu!ts wo"%dBwide@ Two o& t0e di"e!to"s o& ,uintex a"e "esidents o& 9a%a-sia and
two a"e "esidents o& Aust"a%ia' and .oa"d meetin+s a"e +ene"a%%- 0e%d in S-dne-@
E*/+ai)3
>i? i- 4ui)te* is &r is )&t a reside)t -&r ta* /ur/&ses. a)d

>ii? 7&, t7e tradi)1 i)c&me deri'ed (6 4ui)te* ,&u+d (e ta*ed i) Austra+ia8
Lecture =&ur
!a* Acc&u)ti)1
5e)era+ %educti&)s
7eadin+s &"om Australian Taxation Law 2014 CC: &o" t0is wee?s %e!tu"e@
!a* acc&u)ti)1 @ I)c&me
W13B000 to 13B035' 13B100 to 13B160' 13B200 to 13B220
W13B300 to 13B330' 13B3/0
5e)era+ deducti&)s >Secti&) 8-1?
W10B000 to 10B240' 10B250 to 10B330
13
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
W10B420 to 10B435
W10B535 to 10B550' 10B610
Su.stantiation W10B6/0 to 10B305
9eanin+ o& in!u""edH W13B500 to 13B510C W13B541 to 13B545
#rese)tati&) 0uesti&)s re+ati)1 t& Lecture =&ur materia+ t& (e /rese)ted i) )e*t ,eek2s
c+ass3
4uesti&) 4-1
4)tex #t- Ld ente"s into 12 mont0 !ont"a!ts to su))%- !om)ute" 0a"dwa"e and so&twa"e su))o"t to
its !ustome"s in t0e 0ea%t0 indust"-@ 4n 1 Janua"- 2014' a !ustome" )a-s 4)tex D11'500 &o"
0a"dwa"e and so&twa"e su))o"t &o" t0e &o%%owin+ 12 mont0s@ T0e te"ms o& t0e !ont"a!t .etween
4)tex and t0e !ustome" )"o(ides t0at a "e&und is a(ai%a.%e' &o" t0e unex)i"ed "emainin+ da-s o&
t0e !ont"a!t' i& t0e- a"e unsatis&ied and de!ide to Iuit )a"tBwa- t0"ou+0@
Ad'ise 7&, "/te* s7&u+d acc&u)t -&r t7e :11.500 ,7e) t7e6 +&d1e t7eir i)c&me ta* retur)8
4uesti&) 4-2
7adio 24 0as an esta.%is0ed .usiness as a "adio station in t0e sma%% !ount"- town o& 7oma@ 7adio
24 is %ooin+ at settin+ u) and o)e"atin+ a t0eat"e in 7oma as we%% .ut .e%ie(es a .usiness !ase
needs to .e made &o" t0e t0eat"e and to t0at end )a-s a !onsu%tant D10'000 to unde"tae a
&easi.i%it- stud-@
E*/+ai). usi)1 t7e a//r&/riate test. ,7et7er $adi& 24 is e)tit+ed t& a ta* deducti&) -&r t7e
:10.000 e*/e)diture it 7as i)curred &) t7e -easi(i+it6 stud68
4uesti&) 4-3
9inoo' w0o is em)%o-ed as an a!!ountant' wants to u)date 0e" si%%s so en"o%s in a )ost+"aduate
a!!ountin+ de+"ee at uni(e"sit-@ Fu"in+ 2013E14' s0e in!u"s t0e &o%%owin+ ex)ensesH
• uni(e"sit- &ees
• .oos and mate"ia%s
• !ost o& t"a(e% &"om wo" to uni(e"sit-' t0en &"om uni(e"sit- to 0ome
• %i."a"- &ines &o" "etu"nin+ .oos %ate
• &ood and d"in at uni(e"sit- .etween !%asses
• !0i%d!a"e &o" w0en s0e 0as a !%ass in t0e e(enin+@
E*/+ai) ,7et7er a)6 &- t7ese e*/e)ses are deducti(+e8
4uesti&) 4-4
#ete" is a do!to" w0o is em)%o-ed at a %o!a% su"+e"-@ 4n!e a wee #ete" a%so +i(es %e!tu"es to
medi!a% students at t0e uni(e"sit- and "e!ei(es an 0ou"%- &ee &o" 0is se"(i!es@
E*/+ai) ,7et7er #eter ,&u+d (e e)tit+ed t& a deducti&) -&r t7e -&++&,i)1 e*/e)ses3
14
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
1@ !ost o& )u.%i! t"ans)o"t to and &"om 0is 0ome w0en 0e +oes to t0e Mni(e"sit- to +i(e
%e!tu"es
2@ %e+a% ex)enses in!u""ed in de&endin+ an a!tion &o" )"o&essiona% ne+%i+en!e initiated .- one
o& 0is )atients
3@ inte"est on a %oan taen out to )u"!0ase a "esidentia% "enta% )"o)e"t-
4@ !ost o& attendin+ a medi!a% !on&e"en!e in 2"is.ane@ #ete" sta-ed in 2"is.ane &o" t0e 3 da-
!on&e"en!e and anot0e" two da-s si+0tseein+@
Lecture =i'e
S/eci-ic %educti&)s
!radi)1 St&ck
7eadin+s &"om Australian Taxation Law 2014 CC: &o" t0is wee?s %e!tu"e@
S/eci-ic deducti&)s
$nt"odu!tion BB W 11B000
7e)ai"s BB W 11B020 to 11B0/0
2ad Fe.ts BB W 11B440 to 11B460
Tax %osses o& ea"%ie" -ea"s BB W 11B500 to 11B530
Losses &"om nonB!omme"!ia% .usiness a!ti(ities BB W11B550 to 11B55/
Tax "e%ated ex)enses BB W 11B560
2o""owin+ ex)enses BB W 11B565
T"a(e% .etween wo")%a!es BB W 10B435 and 11B635
Gi&ts BB W11B6/0 to 11B310
!radi)1 st&ck
W 14B000 to 14B035' 14B060 to 14B0/0' 14B160
#rese)tati&) 0uesti&)s re+ati)1 t& Lecture =i'e materia+ t& (e /rese)ted i) )e*t ,eek2s c+ass3
4uesti&) 5-1
$n Se)tem.e" 2013' Tan-a )u"!0ased an in(estment )"o)e"t- t0at was in )oo" !ondition@ 2e&o"e
%easin+ t0e )"o)e"t- to tenants' s0e )aid &o" t0e )"o)e"t- to .e )ainted t0"ou+0out@ Tenants mo(ed
in on 1 *o(em.e" 2013@ $n Janua"- 2014' t0e it!0en was dama+ed w0en t0e sto(e !au+0t &i"e'
and Tan-a was &o"!ed to "e)aint some o& t0e wa%%s and insta%% a new sto(e and dis0was0e"@ A
mont0 %ate"' a !a" !"as0ed into t0e tim.e" &en!e at t0e &"ont o& t0e 0ouse' and s0e 0ad it "e.ui%t in
."i!@
E*/+ai) ,7et7er !a)6a ca) c+aim a deducti&) -&r a)6 &- t7ese e*/e)ses8
4uesti&) 5-2
4n 1 June 2013' Swi&t Co )u"!0ased &"om Jo0n 7anda%% a ma"et "esea"!0 .usiness t0at 7anda%%
0ad .een !ondu!tin+ &o" six -ea"s@ $n!%uded in t0e )u"!0ase )"i!e was D150'000 &o" outstandin+
de.ts@ $n Fe!em.e" 2013' Swi&t Co "e!o(e"ed D20'000 &"om one de.to"@ Anot0e" de.to"' w0o
owed D130'000' o&&e"ed to )a- 20 !ents in t0e do%%a"' and t0is was a!!e)ted .- Swi&t Co in t0e
ex)e!tation t0at t0e un)aid amount !ou%d .e "e!o(e"ed as a .ad de.t dedu!tion@
E*/+ai) t7e ta* c&)se0ue)ces -&r S,i-t A& &- t7ese tra)sacti&)s8
15
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
4uesti&) 5-3
4n 1 *o(em.e" 2013' Jo0n' a s!0oo% tea!0e"' .o""owed D500'000 &"om a .an@ :e used D20'000
to t"a(e% o(e"seas wit0 0is &ami%-' D30'000 to )a- uni(e"sit- &ees &o" &u"t0e" tea!0in+ Iua%i&i!ations
and t0e ot0e" D450'000 to )u"!0ase s0a"es in 2:#@ T0e .an %oan was &o" a )e"iod o& ten -ea"s@
To esta.%is0 t0e %oan' Jo0n was "eIui"ed to )a- a D2'/00 u)&"ont &ee to t0e .an@
E*/+ai) ,7et7er B&7) ca) deduct t7e u/-r&)t -ee i) 2013<14 a)d. i- s&. t7e am&u)t &- t7e
deducti&)8
4uesti&) 5-4
Sand"a owns a sma%% .usiness and in!u"s t0e &o%%owin+ ex)enses in 2013E14H
1@ &ee )aid to a "e!o+nised tax ad(ise" &o" )"e)a"ation o& 0e" in!ome tax "etu"n ;D440> and &o"
%od+in+ an o.Ne!tion to an in!ome tax assessment ;D500>
2@ +ene"a% inte"est !0a"+e o& D250 &o" )a-in+ 0e" in!ome tax %ate in 2012E13
3@ !ost o& mea%s at "estau"ants &o" !%ients and em)%o-ees@
4@ a D950 donation to a )o%iti!a% )a"t-' and
5@ D9000 !a" "unnin+ !osts@ Sand"a uses t0e !a" &o" .ot0 .usiness and )"i(ate )u")oses@
E*/+ai) ,7et7er t7ese am&u)ts are deducti(+e -&r Sa)dra8
Lecture Si*
!reatme)t &- ca/ita+ e*/e)diture
Aa/ita+ a++&,a)ces a)d ca/ita+ ,&rks
B+ack7&+e e*/e)diture a)d sma++ (usi)ess c&)cessi&)s
I)tr&ducti&) t& ca/ita+ 1ai)s ta*
7eadin+s &"om Australian Taxation Law 2014 CC: &o" t0is wee?s %e!tu"e@
!reatme)t &- ca/ita+ e*/e)diture
Ca)ita% a%%owan!es
W 12B100 to 12B230
Ca)ita% wo"s
W 12B500 to 12B540
2%a!B0o%e ex)enditu"e
W 12B300 to 12B320
Ca)ita% a%%owan!es &o" sma%% .usiness !on!essions
4(e"(iew BB W 15B000 to 15B105
Ca)ita% a%%owan!es BB W15B300 to 15B400
I)tr&ducti&) t& ca/ita+ 1ai)s ta*
4(e"(iew BB W3B000 to 3B050
CGT e(ents BB W3B100 to 3B165C W3B330 to 3B3/0
CGT assets BB W3B500 to 3B530
16
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
#rese)tati&) 0uesti&)s re+ati)1 t& Lecture Si* materia+ t& (e /rese)ted i) )e*t ,eek2s c+ass3
4uesti&) 6-1
1iona )aid D3/'000 &o" a new !a" on 1 Au+ust 2013@ S0e uses t0e !a" 30O &o" .usiness use@ T0e
Commissione"?s dete"mination o& t0e e&&e!ti(e %i&e o& a !a" is ei+0t -ea"s' .ut 1iona se%&Bassesses
t0e e&&e!ti(e %i&e o& t0e !a" to .e &i(e -ea"s@
Assumi)1 =i&)a 7as mai)tai)ed a +&1 (&&k e*/+ai) t7e de/reciati&) deducti&). c&m/ari)1
(&t7 de/reciati&) met7&ds. -&r t7e car -&r t7e 6ear e)ded 30 Bu)e 20148
4uesti&) 6-2
4n 1 Ju%- 2011' 9axta Ltd )u"!0ased a ma!0ine at a !ost o& D200'000 &o" use in its .usiness@
9axta dete"mined t0e ma!0ine to 0a(e an e&&e!ti(e %i&e o& &i(e -ea"s and !%aimed diminis0in+
(a%ue de)"e!iation on t0at .asis@ 9axta so%d t0e ma!0ine"- &o" D100'000 on 30 June 2014@
C7at are t7e ta*ati&) im/+icati&)s &- t7ese tra)sacti&)sD
4uesti&) 6-3
2e%t!o is a manu&a!tu"in+ !om)an- t0at )u"!0ased %and &o" D2 mi%%ion on 1 Janua"- 2011@ $t
!ommen!ed to .ui%d a &a!to"- on t0e %and on 1 Se)tem.e" 2011@ Const"u!tion o& t0e &a!to"- was
!om)%eted on 1 Ju%- 2013 at a !ost o& D10 mi%%ion' and 2e%t!o uses t0e &a!to"- &o" in!omeB
)"odu!in+ )u")oses &"om t0at date@
C7at ca/ita+ ,&rks deducti&) is Be+tc& e)tit+ed t& -&r t7e 6ears 2011<12. 2012<13 a)d
2013<14D
4uesti&) 6-4
Jenni&e" "uns a sma%% "etai% .usiness and a&te" man- -ea"s o& 0a"d wo"' s0e de!ided to se%% t0e
&o%%owin+ assets in 2013E2014 and used t0e mone- s0e "e!ei(ed to t"a(e% a"ound Aust"a%iaH
1@ T"adin+ sto! o& t0e "etai% .usiness a!Iui"ed in t0e %ast 12 mont0s@
2@ Fe)"e!iatin+ assets used in t0e "etai% .usiness a!Iui"ed in June 2011@
3@ A -a!0t a!Iui"ed on 3 4!to.e" 1999 &o" D15'000@
4@ MniIue !o%%e!tion o& stam)s a!Iui"ed on 6 9a"!0 19/9 &o" D495@
5@ 29W ;moto" (e0i!%e> a!Iui"ed on 15 9a"!0 2005 &o" D35'000@
6@ 2'000 s0a"es in a )u.%i!%- %isted !om)an- a!Iui"ed on 15 A)"i% 2003 &o" D4 )e" s0a"e@
3@ A "a"e )aintin+ a!Iui"ed on 1 Ju%- 19/5 &o" D2'500@
Ad'ise Be))i-er ,7et7er t7e dis/&sa+ &- t7e a(&'e-stated assets ,i++ 1i'e rise t& a A5! e'e)t
A18
4uesti&) 6-5
13
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
T"ad 0ad .een a "esident o& Aust"a%ia a%% 0is %i&e .ut de!ided to mo(e )e"manent%- to *o"wa- to .e
wit0 0is )a"tne"@ T"ad %e&t Aust"a%ia on 1 1e."ua"- 2014 and at t0at time 0e !eased to .e a "esident@
W0en T"ad %e&t Aust"a%ia' 0e sti%% owned a unit in 7andwi!' s0a"es in 2:# and a !a"@ :e 0ad
+i(en (a"ious items o& &u"nitu"e and 0is .oos and musi! to 0is ."ot0e"@
E*/+ai) t7e ca/ita+ 1ai)s ta* c&)se0ue)ces -&r !rad. taki)1 acc&u)t &- a)6 &/ti&)s t7at are
a'ai+a(+e t& a--ect t7&se c&)se0ue)ces8
4uesti&) 6-6
E*/+ai) ,7ic7 A5! e'e)t 7a//e)s. a)d ,7e) t7e e'e)t 7a//e)s. i) t7e -&++&,i)1
circumsta)ces8
1@ Pat0 so%d 0e" .usiness to Tim and a+"eed t0at s0e wou%d not o)e"ate a simi%a" .usiness in t0e
same town &o" &i(e -ea"s@ Tim )aid Pat0 D20'000 &o" 0e" a+"eement to t0is "est"i!tion@
2@ 9e% a!Iui"ed a &a!to"- in Fe!em.e" 200/@ T0e &a!to"- was dest"o-ed .- &i"e in Janua"- 2014
and 0e "e!ei(ed !om)ensation &"om 0is insu"e" in 9a- 2014@
3@ A.e was inNu"ed and 0is de%i(e"- t"u! dama+ed &"om a !"as0 in Janua"- 2014@ A.e?s
insu"an!e !om)an- "e&used to !om)ensate 0im &o" t0e %oss .e!ause 0e 0ad not to%d t0e t"ut0
w0en 0e &i%%ed out t0e &o"m &o" t0e insu"an!e@ W0en A.e t0"eatened to +o to !ou"t to "e!o(e"
&o" 0is %osses' t0e dis)ute was sett%ed out o& !ou"t wit0 a )a-ment to A.e o& D250'000@
4@ 4n 1 June 2014' Ta"iI ente"s into an a+"eement to .u- a "enta% )"o)e"t- &o" D1'000'000@ T0e
te"ms o& t0e )u"!0ase a"e t0at Ta"iI !an tae )ossession o& t0e "enta% )"o)e"t- on 1 June 2014
and sta"t to "ent it out to tenants@ Ta"iI must )a- t0e se%%e" D200 a mont0 &o" 12 mont0s and at
t0e end o& t0e 12 mont0s' 0e wi%% .e!ome t0e owne" o& t0e"enta% )"o)e"t-@
5@ 4n 2 9a- 2014 C0a"%otte %e&t Aust"a%ia to tae u) "esiden!e in :on+ Pon+ inde&inite%-@
C0a"%otte?s on%- assets 0e%d on 2 9a- 2014 we"e s0a"es in a MP %isted !om)an- and %and in
*o"t0e"n ,ueens%and@
Lecture Se'e)
Aa/ita+ 1ai)s ta* c&)ti)ued
7eadin+s &"om Australian Taxation Law 2014 CC: &o" t0is wee?s %e!tu"e@
Aa/ita+ 1ai)s ta*
6xem)tions t0at ma- a))%- BB W3B300 to 3B320C W/B050 to /B060C W/B500 to /B540
Ca%!u%atin+ a !a)ita% +ain o" %oss BB W3B600 to 3B69/
Fete"minin+ net !a)ita% +ain o" net !a)ita% %oss &o" t0e in!ome -ea" BB W 3B900 to 3B960
Sma%% .usiness "e%ie& – W/B400 to /B450
#rese)tati&) 0uesti&)s re+ati)1 t& Lecture se'e) materia+ t& (e /rese)ted i) )e*t ,eek2s
c+ass3
4uesti&) 7-1
Janet a!Iui"ed an a)a"tment in S-dne-' unde" a !ont"a!t dated 14 Janua"- 2010' &o" D330'000 !as0
)a-a.%e on 14 9a"!0 2011 and a )"omise .- Janet to )a- an additiona% D55'000 on 14 9a"!0
1/
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
2012@ Janet )%anned to mae t0e a)a"tment a(ai%a.%e &o" "ent immediate%-' .ut t0e "ea% estate a+ent
ad(ised t0at t0e a)a"tment !ou%d not .e "ented out unti% a !oat o& )aint was a))%ied to t0e
a)a"tment?s inte"na% wa%%s ;!ost D3'500> and t0e .a%!on- "ai%in+ was "e)%a!ed ;!ost D5'500>@ A&te"
t0e wo" was !a""ied out' Janet "ented t0e a)a"tment to a tenant on a 9a- 2011 &o" D300 a wee@
Janet 0ad )aid D30'000 in stam) dut-' D1000 &o" a (a%uation o& t0e )"o)e"t- and D500 &ees to a
%aw-e" on a!Iuisition@ $nte"est on a %oan to )u"!0ase t0e a)a"tment was D650 )e" mont0 &o" t0e
&i"st 5 -ea"s o& t0e %oan@
4n 10 1e."ua"- 2014' Janet ente"ed into a !onta!t to se%% t0e a)a"tment &o" D4/0'000@
Aa+cu+ate a)d e*/+ai) t7e ca/ita+ 1ai)s ta* c&)se0ue)ces &- t7ese tra)sacti&)s8
4uesti&) 7-2
Jason is a !a")ente" and "uns 0is own .usiness .ui%din+ and insta%%in+ it!0en !u).oa"ds@ Jason
won t0e %otte"- in Janua"- 2014 and 0as de!ided to se%% 0is .usiness assets and "eti"e@ Jason is on%-
54 -ea"s o& a+e@ As a !onseIuen!e o& t0e de!ision to "eti"e Jason se%%s t0e &o%%owin+ assets on 1
9a- 2014H
• 2usiness )"emises &o" D6/0'000@ Jason 0ad in0e"ited t0is .ui%din+ on t0e deat0 o& 0is &at0e"
on 1 June 2006@ Jason?s &at0e" was a%so a !a")ente" and 0ad a!Iui"ed t0e .ui%din+ in 19/2
&o" D60'000 and it was (a%ued at D520'000 at t0e time o& 0is deat0@
• 1"ed )aid Jason an additiona% D20'000 &o" Jason?s )"omise not to !a""- on anot0e"
!a")ent"- .usiness in t0e %o!a% a"ea &o" t0e next 4 -ea"s !ommen!in+ 1 9a- 2014@
Jason 0as a !a""- &o"wa"d !a)ita% %oss o& D23'000 as at 30 June 2013 &"om t0e sa%e o& s0a"es@
Ad'ise Bas&) &) t7e ca/ita+ 1ai)s ta* im/+icati&)s &- t7e a(&'e stated tra)sacti&)s &) 1 Ma6
20148
Assumi)1 Bas&)2s (usi)ess d&es c&)stitute a sma++ (usi)ess -&r t7e /ur/&ses &- t7e sma++
(usi)ess ca/ita+ 1ai) c&)cessi&)s e*/+ai) ,7ic7 c&)cessi&) ma6 a//+6 t& t7e sa+e &- t7e
(usi)ess /remises8
4uesti&) 7-3
9ax )u"!0ased a 0ouse in S-dne- on 1 Janua"- 2002 &o" D600'000 and %i(ed in t0e 0ouse unti% 0e
was t"ans&e""ed to 2"is.ane &o" wo" on 31 Fe!em.e" 2004@ W0i%e 0e was in 2"is.ane 9ax
"ented t0e 0ouse to tenants' unti% 0e "etu"ned to t0e 0ouse on 31 Fe!em.e" 2011@ :e t0en %i(ed in
t0e 0ouse unti% 0e so%d it on 31 Fe!em.e" 2013 &o" D/00'000@
E*/+ai) t7e ca/ita+ 1ai)s ta* c&)se0ue)ces &- t7ese tra)sacti&)s8 C7at di--ere)ce ,&u+d it
make t& 6&ur a)s,er i- Ma* 7ad )&t re)ted &ut t7e 7&use duri)1 t7e /eri&d 7e ,as +i'i)1 i)
Bris(a)eD
4uesti&) 7-4
19
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
6%aine and Jo0n a"e 0us.and and wi&e and Jason is t0ei" adu%t son@ 6%aine "uns a .usiness o&
)"o(idin+ 0ome !a"e to e%de"%- )eo)%e and 0as a++"e+ated tu"no(e" o& D200'000 &o" 2013E14@ Jo0n
"uns a !a" "e)ai" .usiness wit0 an a++"e+ated tu"no(e" o& D1@6 mi%%ion &o" 2013E14@ Jason "uns a
.usiness o& )"o(idin+ tuto"in+ se"(i!es to 0i+0 s!0oo% students' and 0is a++"e+ated tu"no(e" &o"
2013E14 is D300'000@
6%aine' Jo0n and Jason ea!0 "un t0ei" .usiness as inde)endent entities wit0 se)a"ate .usiness .an
a!!ounts and em)%o-ees@ 6%aine and Jason ea!0 "un t0ei" .usiness &"om an o&&i!e in t0e &ami%-
0ome' and Jo0n "uns 0is .usiness &"om a se)a"ate %o!ation@
E*/+ai) ,7et7er E+ai)e ,&u+d (e e)tit+ed t& c+aim sma++ (usi)ess c&)cessi&)s -&r 2013<148
Lecture Ei17t
5&&ds a)d Ser'ices !a* >5S!?
7eadin+s &"om Australian Taxation Law 2014 CC: ;"e&e""ed to in t0is unit out%ine as <W=> &o" t0is
wee?s %e!tu"e@
4(e"(iew o& GST BB W23B000 to 23B043
2asi! GST "u%es – taxa.%e su))%ies BB W23B050 to 23B062
7e+ist"ation &o" GST BB W23B065
GST )a-a.%e BB W23B035
AdNustments BB W23B095
GSTB&"ee su))%ies BB W23B135 to 23B142
$n)ut taxed su))%ies BB W23B145 to 23B14/
$m)o"tation o& +oods –W23B165
GST and (ou!0e"s – W23B135
C"edita.%e a!Iuisitions and in)ut tax !"edits BB W23B0/5
Ca%!u%atin+ net amount o& GST – "emission o& GST to AT4 BB W23B115
A!!ountin+ &o" GST BB W23B125
#rese)tati&) 0uesti&)s re+ati)1 t& Lecture Ei17t materia+ t& (e /rese)ted i) )e*t ,eek2s
c+ass3
4uesti&) 8-1
E*/+ai) w0et0e" GST wou%d .e added w0en t0e &o%%owin+ su))%ies a"e made@ Lou !an assume
t0at t0e su))%ie" is !a""-in+ on an ente")"ise' t0at t0e"e is !onside"ation' t0at t0e su))%- is
!onne!ted to Aust"a%ia and t0at t0e su))%ie" is eit0e" "e+iste"ed' o" "eIui"ed to .e "e+iste"ed@
1@ t0e )"o(ision o& a medi!a% !onsu%tation .- a do!to"
2@ t0e su))%- .- S-dne- Wate" o& wate" to a )"i(ate "esiden!e
3@ t0e sa%e o& .is!uits .- a su)e"ma"et
4@ t0e sa%e o& a wa"e0ouse t0at is no %on+e" used .- a .usiness to a &ami%- w0o intend to
!on(e"t it into a "esiden!e
5@ a %oan .- a .an to a .usiness !ustome"@
6@ t0e +i&t o& a te%e(ision .- an e%e!t"oni!s "etai%e" to a "e%ati(e &o" no !onside"ation@ T0e "e%ati(e
wi%% use t0e te%e(ision &o" )"i(ate use@
20
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
4uesti&) 8-2
E*/+ai) w0et0e" in)ut tax !"edits wou%d .e a(ai%a.%e &o" t0e &o%%owin+ a!Iuisitions@ Lou !an
assume t0at t0e a!Iui"e" is "e+iste"ed and' w0e"e a))"o)"iate' GST 0as .een !0a"+ed on t0e su))%-@
1@ t0e )u"!0ase o& )i)es .- a )%um.e" &o" use in "e)ai"in+ t0e wate" s-stem at a !%ient?s 0ouse
2@ t0e )u"!0ase .- an in(esto" o& s0a"es in a !om)an- %isted on t0e sto! ex!0an+e
3@ t0e )u"!0ase o& a !a" .- an em)%o-e" to )"o(ide as a &"in+e .ene&it to an em)%o-ee
4@ t0e )u"!0ase o& &u"nitu"e .- a s!0oo%
5@ t0e )u"!0ase o& &"uit and (e+eta.%es .- a "estau"ant@
4uesti&) 8-3
E*/+ai) w0et0e" t0e &o%%owin+ )eo)%e a"e "eIui"ed to "e+iste" &o" GSTH
1@ a "etai%e" w0ose GST tu"no(e" is ex)e!ted to .e D160'000
2@ a taxi !a. o)e"ato" w0ose GST tu"no(e" is ex)e!ted to .e D45'000
3@ a 0ai"d"esse" w0ose <!u""ent GST tu"no(e"= is D90'000 and w0ose <)"oNe!ted GST tu"no(e"= is
D60'000
4@ t0e owne" o& a &"uit and (e+eta.%e s0o) w0i!0 ex)e!ts to mae D120'000 o& GSTB&"ee su))%ies
and no ot0e" su))%ies in t0e next 12 mont0s
5@ a !0a"it- t0at +ene"a%%- 0as sa%es wo"t0 a.out D110'000 ea!0 -ea" in its s0o)s@
4uesti&) 8-4
Jim and 4%i(ia 2"own own a ti%e .usiness %o!ated in *o"t0 S-dne- t0at su))%ies %o!a% and
im)o"ted ti%es and !a""ies on .usiness as a )a"tne"s0i) unde" t0e name KSim)%- Ti%es?@ Sim)%- ti%es
is "e+iste"ed &o" GST@
Jim and 4%i(ia a"e unsu"e o& t0e GST im)%i!ations o& t0e &o%%owin+ t"ansa!tionsH
1@ Sim)%- Ti%es im)o"ted ti%es &"om $ta%- w0i!0 !ost D330'000@ $n addition to t0e !ost o& t0e ti%es
D25'000 was )aid &o" &"ei+0t and insu"an!e and D 12'000 &o" !ustoms dut-@ T0e ti%es we"e
)i!ed u) &"om t0e )o"t and de%i(e"ed to t0e s0ow "oom on t0e 25 Au+ust 2014@
2@ An annua% &ee o& D4'400 ;GST in!%usi(e> was )aid on 5 Au+ust 2014 &o" )%a!in+ an
ad(e"tisement &o" t0e .usiness in t0e Le%%ow #a+es@
3@ Jim and 4%i(ia insta%%ed a 0ot wate" s-stem in t0ei" "esidentia% "enta% in(estment )"o)e"t- at a
!ost o& D1'100 ;GST in!%usi(e> on t0e 2 Se)tem.e" 2014@
4@ Jim and 4%i(ia )u"!0ased a )"e)aid )0one &o" D99 ;GST in!%usi(e> on 22 Ju%- 2014 &o" t0ei"
dau+0te" to a%%ow 0e" to !onta!t t0em w0i%e s0e is on a s!0oo% ex!u"sion in #e"t0@
E*/+ai) t& Bim a)d "+i'ia t7e3
a? !7e am&u)t a)d timi)1 &- a)6 5S! /a6a(+e8
(? A)6 e)tit+eme)t t& a 5S! i)/ut ta* credit8 #+ease detai+ ,76 a) am&u)t d&es &r d&es
)&t 1i'e rise t& a 5S! i)/ut ta* credit8
4uesti&) 8-5
Jim and 4%i(ia 0a(e o)e"ated KSim)%- Ti%es? su!!ess&u%%- o(e" a num.e" o& -ea"s and as a "esu%t
t0e- 0a(e .een a))"oa!0ed wit0 a +ene"ous o&&e" .- a maNo" !om)etito" to .u- t0e .usiness@ Jim
and 4%i(ia own t0e .usiness as )a"tne"s as we%% as t0e !omme"!ia% )"emises w0e"e t0e s0ow "oom
21
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
is %o!ated@ T0e )otentia% )u"!0ase" is on%- wi%%in+ to .u- t0e .usiness not in!%udin+ t0e s0ow"oom'
.ut wou%d %ie to ee) "unnin+ it &"om t0e same s0ow "oom and 0as su++ested a %ease o& t0e
)"emises &"om Jim and 4%i(ia@
Jim and 4%i(ia a"e Iuite ex!ited a.out t0e idea as t0is wi%% a%%ow t0em to 0a(e a .it o& a ."ea a&te"
wo"in+ %on+ 0ou"s "unnin+ t0e .usiness@ T0e- a"e !on!e"ned and unsu"e w0et0e" t0e"e wi%% .e
an- GST im)%i!ations o" %ia.i%it- as a "esu%t o& se%%in+ t0e .usiness@
E*/+ai) t& Bim a)d "+i'ia t7e 5S! im/+icati&)s >i- a)6? s7&u+d t7e6 decide t& se++ t7e
(usi)ess8
Lecture i)e
!a*ati&) &- trust i)c&me
!a*ati&) &- Mi)&rs
7eadin+s &"om Australian Taxation Law 2014 CC: &o" t0is wee?s %e!tu"e@
!a*ati&) &- trust i)c&me
4(e"(iew BB W 13B000
As)e!ts o& t0e %aw o& t"usts BB W 13B005 to 13B020C W 13B040 ;&ixed t"ust' unit t"ust and
dis!"etiona"- t"ust on%-> to 13B050
4ut%ine o& t0e taxation o& t"ust in!ome BB W 13B060 to 13B140
!a*ati&) &- mi)&rs
21B010 to 21B050
#rese)tati&) 0uesti&)s re+ati)1 t& Lecture i)e materia+ t& (e /rese)ted i) )e*t ,eek2s c+ass3
4uesti&) 9-1
T0e 9i%ton T"ust was esta.%is0ed in 2005 on t0e deat0 o& 9a% 9i%ton and t0e )u")ose o& t0e t"ust
was to )"o(ide &o" t0e edu!ation and maintenan!e o& 9a% 9i%ton?s +"and!0i%d"en@ T0e t"ustee o&
t0e t"ust is a so%i!ito" w0o is +i(en a.so%ute dis!"etion to mae su!0 dist"i.utions o& t"ust in!ome
to t0e .ene&i!ia"ies as s0e !onside"s a))"o)"iate@
Fu"in+ t0e -ea" ended 30 June 2014' t0e net in!ome o& t0e 9i%ton T"ust is D/0'000' a%% o& it
de"i(ed &"om Aust"a%ian sou"!es@
T0e so%i!ito" exe"!ised 0e" dis!"etion to dist"i.ute D20'000 o& t0e t"ust in!ome to Ted w0o is a+ed
20 and &inis0in+ 0is uni(e"sit- studies in S-dne-@ T0e .a%an!e o& t0e net in!ome is "etained in t0e
t"ust &o" %ate" -ea"s@
E*/+ai) 7&, t7e )et i)c&me &- t7e trust -&r 2013<14 ,&u+d (e ta*ed8
9&, ,&u+d 6&ur e*/+a)ati&) di--er i- i)stead Mit&) trust ,as )&t created &) Ma+ Mi+&)2s
deat7 (ut i) -act 7e is sti++ a+i'e a)d acts as t7e trustee &- t7e trust8
4uesti&) 9-2
22
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
T0e 6t0i!a% T"ust is a unit t"ust w0i!0 0as net in!ome o& D120'000 in 2013E14@ T0i"t- )e" !ent o&
t0e t"ust in!ome is ea"ned &"om &o"ei+n sou"!es' and se(ent- )e" !ent &"om Aust"a%ian sou"!es@
*i8a% 0as )u"!0ased units in t0e unit t"ust' and t0ese units entit%e 0im to D25'000 o& t"ust in!ome
&o" 2013E14@ *i8a% 0as .een wo"in+ o(e"seas on a de(e%o)ment )"oNe!t in Pen-a sin!e 2011 and
)%ans to mo(e to a de(e%o)ment )"oNe!t in #e"u at t0e end o& 2014@
E*/+ai) 7&, t7e :25.000 ,&u+d (e ta*ed8
4uesti&) 9-3
Gana is a 13 -ea" o%d &u%%Btime s!0oo% student w0o is t0e .ene&i!ia"- o& a dis!"etiona"- t"ust
esta.%is0ed .- 0e" )a"ents w0o want 0e" to 0a(e enou+0 mone- to )a- &o" 0e" own ex)enses@
Fu"in+ 2013E14' t0e t"ustee o& t0e t"ust de!ides t0at Gana s0ou%d .e )aid D4/'000 w0i!0 wi%% )a-
&o" 0e" +ene"a% %i(in+ and a%so &o" a t"i) to 6u"o)e a&te" 0e" exams@
E*/+ai) 7&, t7e :48.000 t7at t7e trustee decides t& /a6 t& ;a)a -&r 2013<14 ,&u+d (e ta*ed8
4uesti&) 9-4
1"an is 13 -ea"s o& a+e and wo"s at a "etai% out%et on Satu"da- and T0u"sda- e(enin+s ea"nin+ a
tota% o& D5'000 in 2013E2014@ 1"an 0as sa(ed 0is ea"nin+s &"om 0is )a"t time em)%o-ment and
ea"ns inte"est on sa(in+s o& D150 in t0e 2013E2014@ Fu"in+ t0e 2013E2014 -ea" 1"an a%so "e!ei(ed
&u%%- &"aned di(idends o& D140 on s0a"es 1"an?s )a"ents t"ans&e""ed to 0im as a +i&t@
E*/+ai) t& =ra)k t7e ta* rates t7at ,&u+d a//+6 t& t7e i)c&me recei'ed duri)1 2013<20148
Lecture !e)
!a*ati&) &- /art)ers7i/ i)c&me
Su/era))uati&)
7eadin+s &"om Australian Taxation Law 2014 CC: &o" t0is wee?s %e!tu"e@
!a*ati&) &- /art)ers7i/ i)c&me
Gene"a% )"in!i)%es BB W 16B000 to 16B0/0
Taxation issues &"om t0e !"eation o& a )a"tne"s0i) – W16B090
Taxation o& )a"tne"s0i) in!ome BB W 16B200 to 16B320
C0an+e in !om)osition o& a )a"tne"s0i) – W16B400 to 16B440
Lia.i%it- to %od+e )a"tne"s0i) "etu"ns BB W 16B/00
Su/era))uati&)
$nt"odu!tion BBW 23B000 to 23B045
Taxation o& su"eannuation &unds BB W 23B035 to 23B095
Tax !on!essions &o" su)e" !ont"i.utions W BB 23B100 to 23B125
Su)e"annuation 2ene&its W BB 23B400
#rese)tati&) 0uesti&)s re+ati)1 t& Lecture !e) materia+ t& (e /rese)ted i) )e*t ,eek2s c+ass3
23
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
4uesti&) 10-1
1"ed and Wi%ma a"e eIua% )a"tne"s in a !om)ute" .usiness@ 1"ed and Wi%ma a"e Noined .- a t0i"d
)a"tne" ;6%aine> in t0e !om)ute" .usiness on 1 June 2014 and unde" t0e te"ms o& t0e new
)a"tne"s0i) ea!0 )a"tne" is entit%ed to oneBt0i"d o& t0e net )a"tne"s0i) in!ome o" %oss@
As at 31 9a- 2014 t0e net in!ome o& t0e )a"tne"s0i) is D1/5'000 and &o" t0e mont0 o& June net
in!ome o& t0e )a"tne"s0i) is D30'000@
E*/+ai) t7e s7are &- )et i)c&me deri'ed (6 t7e /art)ers -r&m t7e c&m/uter (usi)ess -&r t7e
6ear e)ded 30 Bu)e 20148
4uesti&) 10-2
*i!o and Sau% Noint%- own an in(estment )"o)e"t- and 0a(e an a+"eement to s0a"e t0e in!ome@
T0ei" )a"tne"s0i) 0as a net )a"tne"s0i) %oss o& D25'000 in 2013E14@ *i!o wo"s as a tea!0e" and
0as em)%o-ment in!ome in 2013E14 o& D90'000@ Sau% 0as no ot0e" in!ome as 0e is stud-in+ &u%%B
time@ *i!o and Sau% de!ide t0at *i!o !an mae .ette" use o& t0e )a"tne"s0i) %oss .e!ause 0e mi+0t
.e a.%e to o&&set it a+ainst 0is tea!0in+ in!ome and so "edu!e 0is tax %ia.i%it-@ So t0e- a+"ee t0at'
&o" 2013E14' *i!o 0as t0e "i+0t to 100O o& t0e net )a"tne"s0i) %oss@
E*/+ai) t7e ta* c&)se0ue)ces &- t7ese -acts8
4uesti&) 10-3
T0e 2oome" )a"tne"s0i) 0as t0"ee eIua% )a"tne"s@ 1o" 2012E13' t0e"e was a net )a"tne"s0i) %oss o&
D20'000' .ut .usiness im)"o(ed in 2013E14 and t0e )a"tne"s0i) net in!ome was D315'000@
2e!ause o& t0e ext"a wo" )e"&o"med .- #a"tne" A du"in+ t0e 2013E14 -ea"' t0e t0"ee )a"tne"s
a+"eed at t0ei" )a"tne"s? meetin+ on 20 June 2014 t0at #a"tne" A wou%d .e )aid a <sa%a"-= o&
D45'000 .e&o"e t0e net in!ome o& t0e )a"tne"s0i) is dist"i.uted to t0e )a"tne"s@
E*/+ai) 7&, t7e )et i)c&me &- t7e /art)ers7i/ -&r 2013<14 ,&u+d (e ta*ed8
E*/+ai) t7e ta* im/act &- c&)tri(uti&)s t& a c&m/+6i)1 su/era))uati&) -u)d &- :26.000 i)
res/ect &- eac7 /art)er a)d :85.000 i) res/ect &- em/+&6ees &- t7e B&&mer /art)ers7i/ &)
t7e )et i)c&me -&r t7e 6ear e)ded 30 Bu)e 20148
4uesti&) 10-4
:anna0 and 7o- a"e wi&e and 0us.and@ :anna0 0as "un a (e"- su!!ess&u% 0ai"d"essin+ .usiness
&o" man- -ea"s and s0e de!ides to "est"u!tu"e it so t0at it o)e"ates as a )a"tne"s0i) wit0 0e" and
7o-' t0e two )a"tne"s@ A!!o"din+ to t0e )a"tne"s0i) a+"eement' 7o- and :anna0 0a(e an eIua%
inte"est in t0e net in!ome o" %oss o& t0e )a"tne"s0i) &"om -ea" to -ea"' and 7o- is "es)onsi.%e &o"
t0e administ"ati(e tass asso!iated wit0 t0e .usiness@ $n &a!t' t0e "unnin+ o& t0e .usiness does not
!0an+e w0en it is "est"u!tu"ed' and :anna0 !ontines to .e 100O "es)onsi.%e@ 7o- !ontinues to
)%a- +o%& as .e&o"e and' a)a"t &"om si+nin+ do!uments w0en :anna0 ass' 0e )%a-s no )a"t in t0e
.usiness@
1o" 2013E14' t0e net in!ome o& t0e )a"tne"s0i) is D210'000' and' a!!o"din+ to t0e )a"tne"s0i)
a+"eement' .ot0 :anna0 and 7o- 0a(e a net inte"est o& D105'000@
24
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
E*/+ai) 7&, t7e )et i)c&me &- t7e /art)ers7i/ -&r 2013<14 ,&u+d (e ta*ed8
4uesti&) 10-5
T0e 7ead #a"tne"s0i) 0as 4 )a"tne"s and o)e"ates a .oo s0o)s in S-dne- and Au!%end ;*Q>@
W0i%st t0"ee o& t0e )a"tne"s a"e "esidents o& Aust"a%ia one is "esident in *ew Lo" ;MS> and maes
.usiness de!isions wit0 t0e )a"tne"s "emote%-@
Fu"in+ t0e -ea" 2013E2014 t0e 7ead #a"tne"s0i) de"i(ed net in!ome o& D350'000 o& w0i!0 /0O
"e%ates to Aust"a%ian .oo sa%es and 20O sa%es to *ew Qea%and .oo sa%es@ 6a!0 )a"tne" is entit%ed
to 25O o& t0e net in!ome o& t0e 7ead )a"tne"s0i)@
Ad'ise eac7 /art)er &) t7e ta* treatme)t &- t7eir s7are &- /art)ers7i/ )et i)c&me8
C7at ,&u+d (e t7e ca/ita+ 1ai)s ta* im/+icati&)s t& t7e $ead #art)ers7i/ i- t7e S6d)e6 (&&k
s7&/ (usi)ess assets ,ere s&+d duri)1 t7e 2013<2014 6earD
4uesti&) 10-6
T0e Q Co 6m)%o-ees Su)e"annuation 1und ;Rt0e Su)e"annuation 1undR> is a !om)%-in+
su)e"annuation &und set u) .- Q Co #t- Ltd to )"o(ide "eti"ement .ene&its &o" its em)%o-ees@
7e(enue and ex)enditu"e &o" t0e -ea" ended 30 June 2014 is as &o%%owsH

$e'e)ue
Cont"i.utions "e!ei(ed &"om Q Co in "es)e!t o& its em)%o-ees D105'000
Go%unta"- a&te" tax !ont"i.utions &"om Q Co em)%o-ees D35'000
$nte"est
B &"om Aust"a%ian sou"!es D250'000
B &"om *ew Qea%and sou"!es ;net o& wit00o%din+ tax D1'000> D9'000
#"o!eeds on sa%e o& s0a"es D65'000
;T0e s0a"es so%d we"e )a"t o& t0e &unds )o"t&o%io and we"e a!Iui"ed in Ju%- 19/3 &o" D12'000@
T0ei" ma"et (a%ue as at 30 June 19// was D1/'000>
E*/e)diture >e*c+udi)1 i)'estme)ts?
7eti"ement .ene&its )aid D99'000
T"usteeSs administ"ation &ee D3'000
A!!ountin+ and audit &ees D2'000
$nsu"an!e )"emiums B deat0 and disa.i%it- D12'000
Aa+cu+ate t7e ta*a(+e i)c&me a)d ta* /a6a(+e &- t7e Su/era))uati&) =u)d -&r t7e 6ear
e)ded 30 Bu)e 2014. maki)1 re-ere)ces t& t7e re+e'a)t statut&r6 /r&'isi&)s8
25
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
Lecture E+e'e)
A&m/a)ies
7eadin+s &"om Australian Taxation Law 2014 CC: &o" t0is wee?s %e!tu"e@
A&m/a)ies
4(e"(iew BB W 1/B000
Com)anies BB W1/B010
Co")o"ate tax %osses' net !a)ita% %osses and .ad de.ts W19B000 to 19B040C W19B030C W19B090 to
19B095C W19B140 to 19B230
Com)an- dist"i.utions – W1/B200 to 1/210
$m)utation s-stem BB W 1/B100 to 1/B130C W1/B3/9 to 1/B394
1"anin+ issues &o" !om)anies BB W1/B330 to 1/B350
1"anin+ a!!ounts – W1/B330 to 1/B3/9
#rese)tati&) 0uesti&)s re+ati)1 t& Lecture E+e'e) t& (e /rese)ted i) )e*t ,eek2s c+ass3
4uesti&) 11-1
Anna is a tax "esident w0o )"o(ides t0e &o%%owin+ detai%s o& 0e" in!ome and ex)enses du"in+ t0e
-ea" ended 30 June 2014H
Sa%a"- BB D35'000 ;D16'000 tax wit00e%d .- 0e" em)%o-e" du"in+ t0e -ea">
Fi(idend ;&u%%- &"aned> "e!ei(ed &"om s0a"es in 2:# BB D4'200
Fi(idend ;50O &"aned> "e!ei(ed &"om s0a"es in Stowe BB D2'300
Fedu!ti.%e ex)enses BB D1'/00
Anna is not ma""ied and 0as no !0i%d"en@ S0e does not 0a(e )"i(ate 0ea%t0 insu"an!e@
Aa+cu+ate t7e ta* /a6a(+e (6 A))a -&r t7e 6ear e)ded 30 Bu)e 20148
4uesti&) 11-2
A2C #t- Ltd ;A2C> is an Aust"a%ian "esident )"i(ate !om)an- and on 1 Ju%- 2013 t0e &"anin+
a!!ount .a%an!e was D45'000@
A2C )aid !om)an- in!ome tax du"in+ t0e -ea" ended 30 June 2014 as &o%%owsH
21 Ju%- 2013 D35'000
21 4!to.e" 2013 D35'000
21 Janua"- 2014 D35'000
21 A)"i% 2014 D6'000
A2C a%so )aid GST o& D60'000 on 2/ 4!to.e" 2013@
A2C "e!ei(ed a &u%%- &"aned di(idend o& D23'000 on 1 *o(em.e" 2013 and a%so "e!ei(ed an
un&"aned di(idend o& D30'000 on 12 Fe!em.e" 2013@
A2C )aid a 50O &"aned di(idend o& D120'000 on 1 1e."ua"- 2014 and a 100O &"aned di(idend
o& D60'000 on 1 June 2014@
26
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
#re/are a -ra)ki)1 acc&u)t -&r ABA -&r t7e 6ear e)ded 30 Bu)e 20148
4uesti&) 11-3
#"ado' a )"i(ate !om)an-' )a-s a di(idend o& D1'400 on 1 Ju%- 2013 wit0 D540 &"anin+ !"edits
atta!0ed@ T0e on%- ot0e" time #"ado )a-s a di(idend du"in+ t0e &"anin+ )e"iod is on 1 1e."ua"-
2014' w0en it )a-s a di(idend o& D2'/00 wit0 &"anin+ !"edits o& D1'200 atta!0ed@
E*/+ai) t7e ta* c&)se0ue)ces -&r #rad& a)d -&r t7e s7are7&+der ,7& is /aid t7e di'ide)d &)
1 =e(ruar6 20148
4uesti&) 11-4
#e"&e!t #t- Ltd 0as a de&i!it &"anin+ a!!ount .a%an!e o& D1/'000 at 30 June 2014 and tota%
&"anin+ !"edits o& D220'000 &o" t0e -ea" ended 30 June 2014@
E*/+ai)3
>i? t7e ta* c&)se0ue)ces -&r #er-ect #t6 Ltd -r&m 7a'i)1 t7is de-icit i) t7e -ra)ki)1
acc&u)t at 30 Bu)e 2014. a)d
>ii? 7&, t7e ta* c&)se0ue)ces ,&u+d (e di--ere)t i- t7e de-icit (a+a)ce at 30 Bu)e 2014 ,as
:35.0008
4uesti&) 11-5
Ja!o. is a &o"ei+n "esident o& Aust"a%ia &o" 2013E2014 and 0is on%- Aust"a%ian sou"!ed in!ome
du"in+ t0e -ea" a"e D2'100 &u%%- &"aned di(idends &"om s0a"es 0e 0o%ds in an Aust"a%ian !om)an-'
A%% 9eta%s #t- Ltd@
E*/+ai) t& Bac&( ,7at i)c&me ta* +ia(i+it6 7e ,i++ i)cur i) Austra+ia &) t7e di'ide)ds -r&m
A++ Meta+s #t6 Ltd8 C7at ,&u+d (e t7at ta* +ia(i+it6 i- t7e di'ide)ds ,ere &)+6 40E -ra)kedD
4uesti&) 11-6
S0i)w"e!e"s #t- Ltd ;KS0i)w"e!e"s=> "uns a .usiness )u"!0asin+ o%d .oats and se%%in+ t0e s)a"e
)a"ts to a se%e!t num.e" o& !ustome"s in Aust"a%ia and *ew Qea%and@ T0e main o&&i!e is in S-dne-@
4& t0e 90 issues s0a"es in S0i)w"e!e"s' 30 s0a"es a"e 0e%d ea!0 .- S0ane' C%ai"e and #at as at 30
June 2013@
S0i)w"e!e"s 0as !a""-&o"wa"d in!ome tax %osses t0at "e%ate to t0e -ea" ended 30 June 2013 .ut
&o"!asts a"e &o" an in!"ease in sa%es o(e" t0e next two -ea"s@ Fes)ite t0e )ositi(e &o"e!asts S0ane
and C%ai"e de!ide to se%% a%% o& t0ei" s0a"es to an un"e%ated !om)an- S0i) to S0o"e #t- Ltd on 20
Fe!em.e" 2013@ A&te" S0i) to S0o"e #t- Ltd )u"!0ased t0e s0a"es &"om S0ane and C%ai"e t0e-
mo(ed t0e main o&&i!e to 2"is.ane and a%so &o!ued on sa%es o&&s0o"e@
Ad'ise S7i/,reckers i- t7e6 ca) a//+6 t7e ta* +&sses deri'ed duri)1 t7e 6ear e)ded 30 Bu)e
2013 a1ai)st assessa(+e i)c&me deri'ed a-ter t7e sa+e &- s7ares (6 S7a)e a)d A+aire8 #+ease
re-er t& re+e'a)t secti&)s a)d case +a,8
23
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
Lecture !,e+'e
=ri)1e Be)e-its !a* >=B!?
7eadin+s &"om Australian Taxation Law 2014 CC: &o" t0is wee?s %e!tu"e@
=ri)1e Be)e-its !a*
1"in+e .ene&its tax – e- desi+n &eatu"es BB W 26B000 to 26B040
Ste)s in taxin+ &"in+e .ene&its BB W 26B100 to 26B300
$n!ome tax' 12T and GST – W26B330 and 26B340
7e)o"ta.%e &"in+e .ene&its BB W26B350
Sa%a"- sa!"i&i!e a""an+ements BB W26B360
S)e!i&i! &"in+e .ene&itsH BB
Ca" &"in+e .ene&it BB W26B400 to 26B405
Loan &"in+e .ene&it BB W26B450 to 26B455
6x)ense )a-ment &"in+e .ene&it – W26B500 to 26B505
#"o)e"t- &"in+e .ene&it BB W26B550 to 26B555
7esidua% &"in+e .ene&it – W26B650 to 26B660
#rese)tati&) 0uesti&)s re+ati)1 t& Lecture !,e+'e t& (e /rese)ted i) )e*t ,eek2s c+ass3
4uesti&) 12-1
6""o% !ommen!es em)%o-ment at A!to Se!u"ities on 30 Se)tem.e" 2013 and is )"o(ided wit0 t0e
use o& a !a" t0at A!to "e!ent%- )u"!0ased &o" D60'000@ :e is a%%owed to +a"a+e t0e !a" at 0is 0ome
at a%% times@ Fu"in+ t0e 2013E14 12T -ea"' 6""o% d"o(e t0e !a" &o" 23'000 m and did not maintain
a %o+.oo@ 6""o% )a-s D2000 a -ea" towa"ds t0e !ost o& t0e !a" in!u""ed .- A!to@
E*/+ai)3 >i? t7e t6/e &- -ri)1e (e)e-it /r&'ided (6 Act&. a)d >ii? t7e ta*a(+e 'a+ue &- t7e
-ri)1e (e)e-it8
4uesti&) 12-2
A%i is )"o(ided wit0 a !a" .- 0is em)%o-e" on 1 A)"i% 2013 ;Cost D55'000 GST in!%usi(e>' and 0e
+a"a+es t0e !a" at 0is 0ome ea!0 ni+0t du"in+ t0e 2013E14 12T -ea"@ A%i t"a(e%%ed 40'000
i%omet"es in t0e !a" du"in+ t0e -ea"' and t0e odomete" and %o+.oo "e!o"ds s0ow t0at 15'000
i%omet"es we"e &o" .usiness )u")oses and 25'000 i%omet"es we"e &o" )"i(ate )u")oses@ T0e
o)e"atin+ !osts o& t0e !a" ;not in!%udin+ deemed de)"e!iation and deemed inte"est> we"e D3'300
;GST in!%usi(e>@ A%i did not mae an- !ont"i.ution' .ut )"o(ided a%% t0e ne!essa"- do!uments &o"
0is em)%o-e" to !a%!u%ate 0is 12T %ia.i%it-@
Assumi)1 t7e em/+&6er e+ects t& use t7e &/erati)1 c&st (asis. e*/+ai) a)d ca+cu+ate t7e
ta*a(+e 'a+ue &- t7e car -ri)1e (e)e-it8
2/
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
4uesti&) 12-3
Connie is em)%o-ed as ma"etin+ mana+e" &o" a !%ot0in+ "etai%e" and du"in+ t0e 2013E14 12T -ea"
s0e "e!ei(es t0e &o%%owin+H
;1> a mo.i%e )0one a%%owan!e o& D100 )e" mont0 to !o(e" t0e estimated !ost t0at s0e in!u"s
usin+ 0e" mo.i%e )0one to mae .usiness !a%%s@
;2> "eim.u"sement o& t0e !osts o& D1'500 s0e in!u""ed in attendin+ a t"ainin+ !ou"se in
9e%.ou"ne@ T0e t"ainin+ !ou"se was a%% da- and assisted 0e" in de(e%o)in+ t0e si%%s
"eIui"ed &o" 0e" "o%e as t0e ma"etin+ mana+e"' and
;3> Connie is a%%owed to tae &o" 0e" )e"sona% use !%ot0in+ t0at 0as a ma"et (a%ue o& D5'000@
E*/+ai) t7e i)c&me ta* c&)se0ue)ces -&r A&))ie -r&m t7ese tra)sacti&)s a)d t7e =B!
c&)se0ue)ces -&r 7er em/+&6er8
4uesti&) 12-4
Sau% ass 0is em)%o-e" &o" a %ow inte"est %oan o& D100'000 so t0at 0e !an use D60'000 to )u"!0ase
eIui)ment &o" a sma%% .usiness 0e o)e"ates on t0e weeend and D40'000 to tae t0e &ami%- on an
o(e"seas 0o%ida-@ T0e em)%o-e" a+"ees to a %oan o& D100'000 at 5O inte"est' and t0e %oan
!ommen!es on 1 Au+ust 2013 and !ontinues unti% 31 9a"!0 2014@
Fu"in+ t0e 2013E14 12T -ea"' Sau% a%so "e!ei(es &"om 0is em)%o-e" a %a)to) !om)ute" and a
mo.i%e )0one t0at 0e is ex)e!ted to use in 0is wo"@
E*/+ai) t7e =B! c&)se0ue)ces -&r Sau+2s em/+&6er a)d t7e i)c&me ta* c&)se0ue)ces -&r
Sau+8 C7at is t7e re/&rta(+e -ri)1e (e)e-it am&u)t -&r 2013<2014D
4uesti&) 12-5
Go%!on Ltd em)%o-s 20 em)%o-ees in its !a" "e)ai" .usiness@ 2e!ause t0e wo" site is not !%ose to
)u.%i! t"ans)o"t' most o& t0e em)%o-ees need to d"i(e to wo"@ To 0e%) t0em wit0 t0ei" ex)enses'
Go%!on "ea!0es an a+"eement wit0 a se"(i!e station nea".- &o" t0e em)%o-ees to .e a.%e to
)u"!0ase )et"o% at a )"i!e t0at is .e%ow t0e )"i!e t0at is o&&e"ed to t0e )u.%i! +ene"a%%-@ T0e
em)%o-ees s0ow t0ei" sta&& !a"d to )"o(e t0ei" entit%ement to t0e !0ea) )et"o%@
4ne em)%o-ee wa%s to wo"' .ut 0e" 0us.and uses t0e em)%o-ee?s sta&& !a"d to )u"!0ase )et"o% at
t0e !0ea) )"i!e@
E*/+ai) t7e =B! c&)se0ue)ces &- t7ese arra)1eme)ts -&r ;&+c&) a)d t7e i)c&me ta*
c&)se0ue)ces -&r t7e em/+&6ees8
Ceek !7irtee)
$e'isi&)
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
29
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
E*am/+es &- ,ritte) e*/+a)ati&) &- /rese)tati&) 0uesti&)
4uesti&) ")e >-r&m a /re'i&us semester?
Te!t"oni! 2ui%din+s #t- Ltd owns t0"ee .ui%din+s in t0e 2"is.ane !ent"a% .usiness dist"i!t@ 4ne o&
t0e .ui%din+s 0as Nust .een !om)%eted and a num.e" o& )"o)osed tenants a"e !om)etin+ to o.tain
t0e %ease o& t0e to) &%oo" o&&i!es@
$n %i+0t o& t0e !om)etition to %ease t0e to) &%oo" o&&i!es' Te!t"oni! is a.%e to demand not on%- a
mont0%- %ease )a-ment o& D/0'000 .ut a%so an u)&"ont )a-ment on !ommen!ement o& t0e %ease o&
D50'000@
E*/+ai) t7e i)c&me ta* treatme)t &- t7e /a6me)ts i) res/ect &- t7e t&/ -+&&r &--ices8
!7e issues8 T0e"e a"e two taxation issues 0e"eH t0e taxation o& t0e mont0%- %ease )a-ments and
t0e taxation o& t0e D50'000 u)&"ont )a-ment ;a %ease )"emium>@
!7e +a,8 Lease )a-ments ;"ent> a"e t0e )"i!e )aid .- a tenant &o" t0e "i+0t to use an owne"?s
)"o)e"t- ;t0e o&&i!es 0e"e>@ Taxation %aw t"eats "ent as o"dina"- in!ome .e!ause it ex0i.its t0e
!0a"a!te"isti!s o& <)e"iodi!it-' "e!u""en!e and "e+u%a"it-= ;Dixon 1952>@
A )"emium is a oneBo&& %um) sum )a-ment .- a )otentia% tenant to indu!e t0e %and%o"d to a%%ow t0e
tenant to ente" t0e %ease ;Australian Mercantile Land and Finance 1929>@ $t is +ene"a%%- !a)ita% in
!0a"a!te" .e!ause it is )aid &o" t0e "i+0t o& a!!ess "at0e" t0an &o" t0e !ontinuin+ use@ T0is means a
)"emium was +ene"a%%- taxB&"ee u) to 19/5 .ut is su.Ne!t to !a)ita% +ains tax toda-@
As an ex!e)tion' a )"emium !an .e o"dina"- in!ome i&' %ie in Kosciusko Thredbo 19/4' t0e
"e!ei)t o& )"emiums is an o"dina"- )a"t o& a tax)a-e"?s .usiness o" i&' %ie in Australian Mercantile
Land and Finance 1929' it is "ea%%- "ent "at0e" t0an a )"emium@
$eac7i)1 a s&+uti&)8 $n t0is !ase' ;1> t0e "ent is !%ea"%- o"dina"- in!ome' .ut ;2> it is un!%ea"
0ow t0e )"emium wou%d .e taxed@ W0et0e" t0e )"emium is !a)ita% o" o"dina"- in!ome de)ends on
in&o"mation a.out Te!t"oni!?s .usiness w0i!0 0asn?t .een +i(en@ 1o" exam)%e' we a"e not to%d
w0et0e" t0is is an iso%ated e(ent o" one o& a num.e" o& o!!asions on w0i!0 a )"emium is "e!ei(ed
.- Te!t"oni!@
C&rd c&u)t3 230 ,&rds8
4uesti&) !,& >-r&m a /re'i&us semester?
$n Janua"- 2001 $n+"id )u"!0ased a 0ouse in St"at0&ie%d &o" D1/4'500@ $n+"id %i(ed in t0e
St"at0&ie%d 0ouse unti% Ju%- 2005 w0en s0e a!!e)ted a No. and mo(ed to Cai"ns@ $n+"id "ented t0e
0ouse &"om Ju%- 2005 to Au+ust 2010 and at no sta+e did s0e own anot0e" 0ouse as s0e 0e"se%&
"ented in Cai"ns@ 4n 1 Au+ust 2010' s0e "etu"ned to S-dne- and mo(ed .a! into t0e 0ouse on t0at
date and made it "ead- &o" sa%e@ S0e %i(ed in t0e 0ouse unti% 1 *o(em.e" 2010 w0en it was so%d
&o" D/35'000 unde" a !ont"a!t dated 1 4!to.e" 2010@
Ad'ise I)1rid &) t7e ca/ita+ 1ai)s ta* issues t7at arise ,it7 res/ect t& t7e sa+e &- t7e 7&use i)
Strat7-ie+d8
!7e issue8 T0e issue 0e"e is t0e CGT t"eatment o& t0e !a)ita% +ain t0at a"ises on t0e sa%e o& t0e
0ouse@
30
2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide
!7e +a,8 A !a)ita% +ain a"isin+ &"om t0e dis)osa% o& a dwe%%in+ ma- .e i+no"ed &o" CGT )u")oses
;s 11/B110 $TAA93>@ Gene"a%%-' &o" t0e exem)tion to a))%-' t0e tax)a-e" must .e an indi(idua% and
t0e dwe%%in+ must .e t0ei" main "esiden!e t0"ou+0out t0e )e"iod o& t0ei" owne"s0i)@ 1o" CGT
)u")oses' a tax)a-e" !an on%- 0a(e one main "esiden!e at a )a"ti!u%a" time ;s 11/B130 $TA93>@
A tax)a-e" ma- !ontinue to t"eat a dwe%%in+ as t0ei" main "esiden!e in !e"tain !ases e(en i& t0e-
a"e not a!tua%%- %i(in+ in it at t0e time' &o" exam)%e' w0en t0e- a"e a.sent &o" a )e"iod o& time@
Mnde" t0e a.sen!e "u%es in s 11/B145 $TAA93' a tax)a-e" w0o is a.sent &"om t0ei" dwe%%in+ ma-
!ontinue to t"eat it as t0ei" main "esiden!eH ;1> inde&inite%- i& it is not used to )"odu!e assessa.%e
in!ome' o" ;2> &o" six -ea"s in ot0e" !ases@
$eac7i)1 a s&+uti&)8 T0e tax)a-e" a!Iui"ed t0e 0ouse in Janua"- 2001 and used it as 0e" main
"esiden!e unti% Ju%- 2005 w0en s0e was a.sent &"om t0e 0ouse &o" &i(e -ea"s and one mont0@
Fu"in+ 0e" a.sen!e' s0e used t0e 0ouse to )"odu!e assessa.%e in!ome .- "entin+ it out@ 2e!ause
0e" )e"iod o& a.sen!e was %ess t0an six -ea"s and .e!ause s0e 0as not !%aimed anot0e" 0ouse as 0e"
main "esiden!e' t0e 0ouse !ontinues to .e 0e" main "esiden!e du"in+ t0e w0o%e )e"iod o& 0e"
owne"s0i) &"om Janua"- 2001 to 2010@ An- !a)ita% +ain s0e maes &"om t0e dis)osa% o& t0e 0ouse
is dis"e+a"ded@
C&rd c&u)t3 270 ,&rds8
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2014 Session 2 [ACCG924 – Taxation Law] Assessment Guide