LAW 5230- Taxation Law

Task:

Part A – Problem Solving

Identification of legal issues, legislation and case law

Overall the student has identified the relevant assessable income issues, legislation and where appropriate case law and rulings.

Demonstrated level of understanding of the specific residency & source issues in relation to Kate through the application of the identified law.

Demonstrated level of understanding of the specific business ordinary income issues in relation to Bernie through the application of the identified law.

Demonstrated level of understanding of the specific business and ordinary income issues in relation to Melanie through the application of the identified law.

Part B – 

You are required to prepare a written research assignment that addresses one of the provided topics below. The purpose of the task is for you to demonstrate high level critical reflection and analytical reasoning skills in the context of the application of Australian taxation law and taxation law policy. You must undertake academic research which demonstrates the following:

An in-depth your understanding of how the specific tax law applies,

The policy context of the law and if relevant how other jurisdictions deal with similar issues,

Critical reflection as to whether the law achieves its stated purpose, aligns with principles of good tax policy or could be improved/amended. These critical reflections should be supported by the research you have undertaken as well as your own independent thought.

Topic Choices

1. Deductions – discuss and critically evaluate the extent to which Australia’s deduction regime satisfies the principles of a good tax system (specifically simplicity and fairness). Provide an international comparative analysis (choosing 1 other jurisdiction) of our deduction regime (New Zealand might be a good choice).

2. CGT Small Business Concessions – discuss and critically evaluate the Small Business CGT Concession regime in Australia. You should include a discussion of the overall policy objectives and your evaluation of whether regime currently meets these objectives or whether further amendments are necessary.

3. Division 7A (treatment of private company loans) - discuss and critically evaluate Division 7A as a specific anti-avoidance provision. You should include a discussion of the overall policy objectives and your evaluation of whether the Division currently meets these objectives or whether further amendments are necessary.

4. International Tax Avoidance – The avoidance and/or minimisation of tax by large multi-national corporations is of great concern to Governments and tax administrators. Identify and discuss at least one common method multi-national corporations might use to avoid tax in Australia. Then identify and critically evaluate at least one current strategy implemented by the Government and/or the ATO that is used to prevent this.

5. The current Liberal Government has a policy of reducing small business taxation through the reduction in corporate tax rates for those with turnovers under a certain threshold. Provide an international comparative analysis (choosing 1 other jurisdiction) of whether the taxation rate for small businesses should be reduced and why.