LAW 6001 Taxation Law
a) Identify and analyse the tax treatment of various types of income and deductions.
b) Effectively apply taxation law in determining tax outcomes in various scenarios such as partnership, trust and company structures
c) Small business entity (SBE) concessions
d) Identify and calculation of capital gains tax (CGT), including CGT event A1 happening on disposal of an asset, the CGT discounts, the CGT consequences of death (estate planning) and the main residence exemption (and its application to investment properties), the availability of CGT concessions for small business, roll-overs, deemed disposals and gifts.
This assessment allows students to solve practical problems that arise from a fact scenario and to give appropriate advice to clients.
• This case study must be presented as a group effort. The case study requires collaboration of effective team work. It is expected students will take parts and survey the relevant literature, including decided cases, and select appropriate additional resources.
• Your case study is not just a list of answers. Your reasons for your conclusions and recommendations must be based on your research into the relevant cases and legislation.
• With respect to each case study:
• Advise the best investment option for clients from the facts of the case study
• Identify the appropriate legal principles that requires discussion in the case study
• Apply the law to the facts of the case study
Assuming the share price is stable in June at a market value of $120,000 and with an increase to $121,000 in July, which of the following options would you recommend for them to minimise their tax obligations? Justify your answers.
a) Not to sell shares at all
b) Sell the shares on the 30th of June 2020 and re-acquire them on the 30
th of June 2020
c) Sell the shares on the 1st of July 2020 and re-acquire them on the 1
st of July 2020.
Determine which one of the above options would minimise total net tax payable for both options above for the tax year ended the 30th of June 2020 and 2021 (after medicare levy/surcharge and eligible tax offsets)? Calculate how much tax would be saved. They are not covered by private health insurance.