ACC304-Taxation Law

Task

PART A: Written letter of advice.

Alex while talking to a friend (Oliver) at a networking event is informed about a topic called “The

evolving tax treatment of cryptocurrencies”. Tax ramifications were discussed so Alex is seeking

your advice. In your own words, explain the tax treatment of “cryptocurrencies” to Alex and the

potential impact if he has a small portfolio of cryptocurrencies.

PART B: Calculation of the net income of a partnership and preparation of the distribution statement for each of the partners

Pitt partners opened a consulting business on 1 July 2018. The accounting profits and losses are to be shared equally. The following transactions were recorded in the partnership’s cashbook in the year ended 30 June 2019. 

You are required to prepare and calculate the following:

• Income statement under accounting standards and the accounting profit for the year ended 30 June 2019

• Income statement under tax law and the net income of the partnership for the year ended 30 June 2019

• Distribution statement for each of the partners for the year ended 30 June 2019 You have to show all workings. 

PART C: Video presentation

You are required to prepare a 2-minute video presentation that explains briefly the tax treatment of cryptocurrencies and the calculation of the net income of the partnership.