HI6028 Taxation Theory, Practice and Law
Task:
Learning Outcomes:
1. Demonstrate an understanding of the Australian income tax system, the concepts of income and deductions, taxation of company, GST, general anti-voidance provisions and income tax administration, partnership.
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.
The 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 question for weeks 1 to 12 inclusive and submit these answers in a single document.
The assignment will be submitted via Blackboard. Each student will be permitted only one submission to Blackboard.
You need to ensure that the document submitted is the correct one.
Question:
Q1. Pablo is a Portuguese resident employed by a Portuguese company. He is sent to Australia to work on a shortterm project to assist with the establishment of a branch office of the company in Australia.
Pablo works in Australia for one month. Throughout this period, his salary was paid into his Portuguese bank account. During the year, he earned the equivalent of A$120,000 from his employment. Does Pablo have to pay Australian tax on any of his salary? (7 marks)
Q2. Explain the respective outcomes reached by the courts in the following cases involving sales of land: Californian Copper Syndicate Ltd v Harris (7 marks)
Q3. Surfs Up P/L is a national retailer that sells a range of surfing and water sports equipment (surfboards, clothing, etc.) with an annual turnover of $60 million.
Surfs Up purchases “Billapro” surfboards for $440 each from Billapong P/L, a large manufacturer of surfboards located at Gold Coast with an annual turnover of around $45 million, this was their only sale for the month.
Surfs Up plans to sell the Surfboards at a 200% mark-up to its customers. In October last year it purchased 370 surfboards but a couple of months later (December) they discovered that 14 of the surfboards were faulty and subsequently returned these faulty surfboards to the manufacturer, obtaining a full refund. Assume both apply the accrual method of accounting. (7 marks)
Q4. Melbourne Awesome Ltd supplies a wide range of folding bicycles. Melbourne Awesome Ltd derives Australian sourced income for the current tax year comprising net income from trading of $80,000, franked distribution from public companies amounting to $28,000, (carrying an imputation credit of $12,000), unranked distributions from resident private companies amounting to $25,000 and rental income of $5,500. Melbourne Awesome Ltd also have total deductions (Business Expenses) totaling $55,000.(11 marks)
