MLC 703- PRINCIPLES OF INCOME TAX LAW 所得税法 代写
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MLC 703- PRINCIPLES OF INCOME TAX LAW 所得税法 代写
MLC 703- PRINCIPLES OF
INCOME TAX LAW
INSTRUCTIONS
Please note that the following will not form part of the word count:
References, including statute and cases;
Diagrams;
Tables;
Calculations.
You must complete both parts of the assignment. Please complete both parts of
the assignment separately. You should allocate approximately 1500 words o
both Part A and approximately 1500 words on the policy-based essay question in
Part B. There is a strict word limit of 3000 words for this assignment.
For both parts of the assignment you will be required to go beyond the study
materials for this unit and you will be expected to conduct your own research of
cases and other academic material upon which you should base your answer.
Yare encouraged to use headings for purposes of clarity and presentation of
your assignment. It is however essential that your assignment is written in full
sentences and not dot point form. If you use any equations in solving
problem question please make sure that you cite the correct sections of the
relevant legislation and that you outline your entire working.
Ymust begin each question separately. It is however essential that you place
your name and student number and the question number on each question
which you complete.
MLC 703- PRINCIPLES OF INCOME TAX LAW 所得税法 代写
Regarding referencing, you will find the Australian Guide to Legal Citation
(AGLC) style of referencing in the following web site:
http://law.unimelb.edu.au/__data/assets/pdf_file/0007/1586203/FinalOnlineP
DF-2012Reprint.pdf
Please note that this AGLC style is intended for Law students and although it
would be great if you followed it, marks will not be deducted for not citing cases
etc exactly as described. In other words, whilst you must reference, you can
choose to use other referencing styles (ie not necessarily the AGLC style) if you
wish.
The assignments must be completed individually.
DUE DATE: 11:59pm Monday 11 September 2017.
PART 1- PROBLEM
QUESTIONS
PROBLEM QUESTION A- WORTH 5% OF YOUR
OVERALL MARK FOR THIS UNIT SO YOU SHOULD
ALLOCATE APPROXIMATELY 400 WORDS ON
DISCUSSING THIS.
PROBLEM QUESTION B- WORTH 15% OF YOUR
OVERALL MARK FOR THIS UNIT SO YOU SHOULD
ALLOCATE APPROXIMATELY 1100 WORDS ON
DISCUSSING THIS.
PROBLEM QUESTION 1A- THIS IS WORTH 5% OF YOUR
OVERALL MARK FOR THE UNIT (APPROX 400 WORDS)
Melissa is a tax accouant at the head office of a major retail store called
RetailCo. Melissa’s contract entitles her to an annual bonus of up to $15,000
depending on her performance rating. She has worked for RetailCo for 6 years
and each year has received annual bonuses of $10,000-$15,000.
RetailCo offers Melissa and some other similar employees $50,000 in exchange
for her agreeing to modify her contract, so that she no longer has the right to a
bonus.
In recent months RetailCo has had negative media coverage regarding the fact
that it had underpaid some of its employees’ wages and superannuation (Melissa
had not been underpaid). RetailCo offers to give all of its professional head office
employees (including Melissa) $4,000 in exchange for them not saying anything
negative to the media about their employer.
Required: Ignoring capital gains tax, discuss whether:
• the $50,000 received by Melissa constitutes ordinary and/or
statutory income; and
• the $4000 constitutes ordinary income.
Where appropriate, support your answer with legislative and case
authority.
PROBLEM QUESTION 1B- THIS IS WORTH 15% OF YOUR
OVERALL MARK FOR THE UNIT (APPROX 1100 WORDS)
During May 2010 Julie purchased a business that manufactured high quality
business suits. Specifically, the purchase consisted of Julie paying $900 000 for
the factory premises that manufactured the suits. She also paid $200 000 for the
goodwill of this business. She ran this business as a sole trader.
In September 2013, the factory premises owned by Julie had some windows
broken due to a storm. Julie paid $5000 to have these repaired. She also
renovated the staff kitchen on the factory premises. This cost her $30 000 in
materials and paying for tradespeople. She also put in 50 hours of her own work
to this renovation by doing the tiling herself, which saved her $4000 that she
would have otherwise have had to pay the tiler.
In May 2016 it became increasingly uneconomical to run the factory due to high
labour costs. As a result, Julie, who was 52 at the time, decided to no longer
continue running her business. Approximately a year later, she entered into the
following contracts on 15 May 2017:
• would purchase the goodwill of her business for $500 000. However,
Bill did not purchase the factory premises as he intended to have the suits
sold by the business manufactured in a lower cost country.
• factory premises were to be sold to a property developer for $1.5m.
The property developer intended to demolish the factory premises and
build high rise residential apartments in its place.
• Bill was to pay Julie $15 000 a year for the next 3 years in return for Julie
agreeing to not operate a competing business for that time.
For the full period that Julie had owned her business annual revenue was over
$3m.
In June 2017 Julie wanted a new challenge so purchased all the shares in a
company called CLR Pty Ltd for $1m. CLR’s assets consisted of:
rural residential rental property valued at $250,000; and
• A small shoe manufacturing factory worth $750,000.
At the time of entering the various contracts on May 2017 Julie’s assets also
included:
Her main residence in Altona worth $1m, which had no mortgage on it.
• An investment property in Footscray worth $700 000 with a $600 000
mortgage.
$200 000 in her superannuation account.
• A holiday unit on the Gold Coast worth $250 000 (unmortgaged). Julie
stayed there every year for a few months. Over the Christmas period she
would also rent it out for 3 weeks to friends at $500 per week, which was
lower than the typical market value rent of $800 per week.
• A holiday house in Ballarat worth $300 000 (unmortgaged). Julie used
this solely as a weekend getaway for herself.
• A 42% interest in a company called SHR Pty Ltd. The total net worth of
SHR Pty Ltd is $1m, and its only assets are listed shares on the Australian
Stock Exchange.
Required: Advise Julie on the Capital Gains Tax implications regarding the
above transactions– please ensure that your discussion includes advice on
whether she can take advantage of the CGT Small Business Concessions to
reduce the amount of tax payable on her Capital Gains. Please assume that
none of the payments received by Julie regarding the May 2017 agreements
constitute ordinary income.
PART 2- POLICY
BASED ESSAY
QUESTION
POLICY BASED ESSAY QUESTION THIS IS WORTH 20% OF
YOUR OVERALL MARK FOR THE UNIT (APPROX 1,500
WORDS)
Some have argued that Australia should raise the rate of GST so as to lower
personal income tax rates.
Discuss the arguments for and against such a proposal. In your discussion, please
consider this in the context of fairness, efficiency, protection of government
revenue and any other relevant considerations.
MLC 703- PRINCIPLES OF INCOME TAX LAW 所得税法 代写
