Learn smart - Learn online. Upto 80% off on courses for a limited time. View Courses

Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!

LAWS19033 Taxation Law And Practice

tag 0 Download 7 Pages / 1,710 Words tag 07-10-2021


Part A

You have just started a new job as a graduate accountant. Your managing partner has to do a media interview and he asks you to provide answers to some questions that will be asked. He has given you a list of questions that he has to address in his interview and he needs you to provide him with short answers to these questions and provide references so that he can check the answer if required.

1. Who is the Inspector-General of Taxation?
2. What legislation governs the powers of the Inspector-General of Taxation?
3. What topic does Taxation Ruling TR 2016/3 discuss?
4. Which Division of the Income Tax Assessment Act 1936 contains the definitions related to the Act?
5. Which Division of the Income Tax Assessment Act 1997 discusses the deductibility of gifts?
6. Which section of the Income Tax Assessment Act 1997 allows a taxpayer to deduct a loss caused through theft by an employee?
7. Is a deduction allowable for membership of an association? If so, are there any limits to such a deduction?
8. How are compensation amounts for loss of trading stock treated?
9. What is the applicable tax rate for a taxpayer who has $30,000 taxable income in 2016/17?
10. For tax purposes, what is considered to be the ‘income year’ for most taxpayers?

Part B Case Study

In 2016, Julia Jenkins, a citizen of England, arrives in Australia for a long-awaited holiday. She arrives on 1 September 2016 and departs on 30 October 2016. During this time Julia travels extensively throughout Australia, as she wishes to see as many different elements of the country as she can. She also works for one week of her stay picking fruit in Bowen, for which she earns $1,000. Upon return to England, Julia misses the sunny weather in Australia and decides to return there on a permanent basis. She gives up her job, sells her family home, settles her affairs and moves to Australia permanently on the 7 January 2017.

Julia has approached you for preparation of her 2016/2017 tax return, and determination of her tax liability. Julia has been meticulous in keeping records, and provides you with the following information. It should be noted that the information provided represents her understanding of what may be relevant for income tax purposes, and you will need to form your own judgement on various matters based on your knowledge of Australian income tax law. If any doubt arises on a particular point, or further information would normally be required, you may assume such further details as are necessary to complete the return.

All such assumptions, and the basis of any decisions you make in various matters, must be made clear by full discussion where appropriate.

While the assignment is largely calculation based, there are some matters which you will need to consider and decide upon before you can proceed with the calculations. You should include your discussion of these matters, and any conclusion you reach, as part of your assignment.


On arriving back in Australia, Julia used the money from the sale of her house to purchase a corner store in Mackay, North Queensland. Julia owns the store as a sole trader but she has a store manager who looks after the day-to-day running of the store. The store has a residence attached where the manager lives, which was originally built in July 2001. Settlement took place on 12 February 2017.

The purchase price of $500,000 included:



Plant and equipment




Trading stock (at cost)






The equipment consists of:

Opening Adjustable Value

Effective life/Years

Office furniture


13 1/3

Office equipment



Computer system (network)



Shop fittings



Floor coverings



Programmable cash register



Refrigeration unit



Simulated indoor plants


13 1/3

Sundry plant and equipment


13 1/3




Furniture and fittings


13 1/3






13 1/3

Hot Water System



Diminishing value method was used to calculate depreciation.
Trading figures for the business from 12 February 2017 to 30 June 2017 include: Gross Sales of $450,000

Consisting of: Cash sales $300,000

Credit sales $150,000 (of which $18,000 is still outstanding)


Manager’s salary

(10% of store turnover)



Staff wages


Interest on bank loan

(used to purchase trading stock)



Borrowing expenses


General operating expenses

(electricity etc.)


Vehicle expenses

(manager’s vehicle)


Trading stock purchased


Conference fee






As at 30 June 2017, trading stock on hand (at cost) is valued at $28,000. However, $8,000 of this amount represents the cost of items which are past the expiry date and so cannot be sold in the course of the business. Julia plans to send these items to developing countries where they can be used. Julia seeks your advice on valuing closing stock for the best tax advantage. The manager of the store was also selling illicit drugs through his contacts in the industry.

Monies from this practice amounted to $100,000 and were not included in the store accounts.

In March 2017 Julia and the store manager attended a buyer’s conference in Melbourne, which ran for one week. Following the conference they stayed on in Melbourne for 2 weeks to enjoy a short holiday. The manager’s wife accompanied them on this trip. One third of the cost of accommodation and airfares cited above relate to the manager’s wife.

Julia also owns a motor vehicle for which she has maintained a log book. This log book shows she has travelled 8,000km to 30 June 2017 of which 4,000km were in connection with her business.

Of the $15,000 of debt outstanding at 12 February 2017, $8,000 was written off as bad debts, the remainder having been collected.


a. Set down in statement form full details of Julia’s assessable income and allow able deductions for the 2016/2017 year of income and determine her taxable income for that  In doing this you also need to discuss and justify the inclusion/non-inclusion of all items of income and expenditure.
b. Determinethe net amount of income tax payable by Julia for 2016/2017.

In completing this assignment assume that there are no further items of income or expenses that are relevant other than those mentioned here. You can also assume that Julia has no dependants and that she has private health cover for the year that cost her $2,300.

Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

Unique Document

Under Evaluation

Get Money
into Your Wallet

Total 7 pages

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2021). LAWS19033 Taxation Law And Practice. Retrieved from

My Assignment Help (2021) LAWS19033 Taxation Law And Practice [Online]. Available from:
[Accessed 06 July 2022].

My Assignment Help. 'LAWS19033 Taxation Law And Practice' (My Assignment Help, 2021) <> accessed 06 July 2022.

My Assignment Help. LAWS19033 Taxation Law And Practice [Internet]. My Assignment Help. 2021 [cited 06 July 2022]. Available from:

Citation becomes a hassle, especially when you have more than one sources to refer to for creating your research paper. We provide you information on how to write a lookup paper, supply you with ans ideal research paper outline, excellent research paper topics. We also assist you with writing a research proposal and various research undertaking ideas. We strictly adhere to the instructions and conventions. Owing to our stringent focus on paper quality and deadline, we are one of the best paper writing services in the industry.

Latest Tax Samples

HI6028 Taxation Theory, Practice And Law

Download : 0 | Pages : 5
  • Course Code: HI6028
  • University: Holmes Institute
    icon is not sponsored or endorsed by this college or university

  • Country: Australia

Answer: Issue: The depicted issue is interrelated to net capital loss for the income year derived from the personal use of asset is disregarded. Laws: “Section 108-20 of the ITAA 1997” “Section 108-10 of the ITAA 1997” Applications At the time of working out the net capital loss for the income year capital loss made from the personal use of the asset is not regarded. In the current situation there is only a ca...

Read More arrow

HA3042 Taxation Law

Download : 0 | Pages : 7
  • Course Code: HA3042
  • University: Holmes Institute
    icon is not sponsored or endorsed by this college or university

  • Country: Australia

Answers 1. For an individual taxpayer having a copyright, it is crucial to determine the nature of the copyright in the form of either capital asset or ordinary income for taxation purpose. In case, the copyright holder is a professional artist or writer, the copyright would be considered as ordinary income. On the other hand, the absence of professional certification of the holder; however, possessing the required expertise could be considere...

Read More arrow Tags: Australia Lane Cove Law HA3042 Taxation Law University of Queensland 

LAW361 Taxation Law

Download : 0 | Pages : 7
  • Course Code: LAW361
  • University: University Of Tasmania
    icon is not sponsored or endorsed by this college or university

  • Country: Australia

Answer: Answer of Question 1 Part 1:  Issue Arised: Issue that arises here in this case is uncertainty with cost that can be incorporated in moving machinery to a new site will be treated as acceptable deduction in regard to under law section section 8-1 of the ITAA 1997. Law used: Section 8-1 of the Income Tax Assessment Act 1997 British Insulated & Helsby Cables Application of the above law used:  Cost incurred whil...

Read More arrow

LAW361 Taxation Law

Download : 0 | Pages : 10
  • Course Code: LAW361
  • University: University Of Tasmania
    icon is not sponsored or endorsed by this college or university

  • Country: Australia

Answer: Answer to Question 1. Laws: Income tax assessment Act 1997 is one of the main statues for calculating income tax and an act of Australian parliament. Under the provision of section 8-1 of the income tax assessment act, 1997, some of the general deductions are provided that are listed below: Any loss or outgoing can be deducted from assessable income to the extent that Loss is incurred in conducting business for the purpose of pr...

Read More arrow

BLO2206 Taxation Law And Practice

Download : 0 | Pages : 7
  • Course Code: BLO2206
  • University: Victoria University
    icon is not sponsored or endorsed by this college or university

  • Country: Australia

Answer:  Assumptions & Applicable Regulations: Every Australian resident is liable to pay income tax on the income earned from both within Australia and outside Australia under section 4-1, ITAA. In this case, the residential status of Jane Brown is not clearly stated. Hence, it is assumed that Jane has fulfilled all the criterions of an Australian resident for taxation purpose and therefore, has to pay income tax on her incomes (Woe...

Read More arrow

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on then please raise the content removal request.

5% Cashback

On APP - grab it while it lasts!

Download app now (or) Scan the QR code

*Offer eligible for first 3 orders ordered through app!

callback request mobile
Have any Query?