Taxation Law: Legislation and Case Law

Taxation Law: Legislation and Case Law

 

  • This assignment must be presented as an individual effort.
  • The assignment requires individual research using a range of tax resources. It is expected you will survey the relevant literature, including decided cases, and select appropriate additional resources.
  • You are expected to identify the facts and issues presented by each question, identify and apply the relevant legislation and/or case law, and reach a conclusion.
  • This assessment assesses your research skills, your ability to synthesise an original piece of work to specific content requirements. It also assesses your written communication skills.
  • Your reasons for your conclusions and recommendations must be based on your research into the relevant cases and legislation. Please check the marking sheet (included below) for Part A to ensure that you have followed all the guidelines

 

 

PART A: Written letter of advice. (10 marks)

PART B: Advise net capital gains (losses) to be included in Madison Turner’s tax return for the years ending 2019 and 2020. Include ALL available methods for calculating a capital gain for both years. (10 marks)

 

Assessment Description

PART A: Written letter of advice.

Due to COVID-19, Madison was informed by her two current employers that she would be nominated as an eligible recipient for JobKeeper payments from the government. Madison is confused about the tax ramifications of receiving JobKeeper payments and she is seeking your advice. In your own words, explain the tax treatment of JobKeeper payments to Madison and the potential impact of having two employers nominating her. She also has some sole trader income on the side and is wondering whether this will impact her nomination. (500 word limit)

PART B: Calculate net capital gains (losses) to be included in Madison Turner’s tax return for the years ending 2019 and 2020.

Madison Turner, an Australian resident, seeks advice on the CGT consequences of the following events. She exchanged contracts for the acquisition of an investment property, at market value, on 30 January 1999, paying a 10% deposit of 60,000. Property settlement was deferred until 10 December 2001, when the balance of $540,000 was paid, title transferred, and her name was recorded as the registered proprietor. At the time of the settlement, the market value of the property was $800,000. She sold the property on 15 June 2019 for $1 million.

She also bought 20,000 shares in BHP Billion in October 1985, paying $18.50 per share. She decided to sell her entire holding, for $40 per share, and signed a share transfer document and handed the transfer and share script to the Stock Exchange on 21 June 2019. The transfer was not registered with BHP Billiton until 10 July 2019.

She also incurred a capital loss of $50,000 from another CGT event in 2019/2020.

You have to include ALL available methods for calculating the net capital gains for the years ending 2019 and 2020.

You have to show all workings.