MA613-Taxation Law

Assessment Description

The Assessment Task is to be completed by groups of four students. The submission of written documents (see below) into the campus specific Moodle drop box (Melbourne Campus or Sydney Campus) is to made by ONLY one group member – i.e., the designated Group Team Leader.

Learning Outcomes

a. Appreciate and understand the factors influencing the creation and interpretation of income tax legislation and their relationship to accounting concepts and practice.

b. Explain and discuss income tax law in Australia and more particularly the taxation of capital gains, fringe benefits tax, goods and services tax and small business tax concessions.

c. Explain and demonstrate how to calculate the taxable income for different types of taxable entities

d. Apply technical knowledge and analytical skills to evaluate and solve tax problems.

e. Communicate knowledge of the importance of income tax law within the practice of accounting to specialist and non-specialist audiences.

Questions:

1.Critically analyse the indicators that courts would consider to determine whether an activity is a ‘business’ for the purpose of taxation. Refer to relevant case laws, if any.

2.When can a ‘hobby’ be considered as a ‘business’ for the purpose of taxation? Explain fully whether the decision in Stone v FCT has blurred the distinction between the two.

3.Examine in detail the circumstances when an isolated transaction may be considered as a business for the purpose of taxation. Do you suggest any variation or reform? Use at least one case law in support of your answer.