Assignment Detail:- HI6028 Taxation Theory, Practice & Law
Assessment - Case Studies of Specific Deductions and Tax Liability
Learning outcome 1: Demonstrate an understanding of the Australian income tax system, the concept of FBT, Ordinary Income, general anti-avoidance provisions and income tax administration-
Learning outcome 2: Identify and critically analyse taxation issues-
Learning outcome 3: Interpret the relevant taxation legislations and case law-
Learning outcome 4: Apply taxation principles to real life problems-
Question 1
A- John recently purchased a Theatre Hall which was in poor condition- Before starting the hall, it needed to repair a portion of the ceiling, but he decided to replace the whole of the ceiling with different but better materials- The new ceiling, in addition to enhancing the appearance of the hall, improved the acoustics- The total cost of the material and of erecting the new ceiling was $210,000- It was estimated that the cost of repairing the ceiling would have been $150,000-
With reference to Income Tax Assessment Act 1997 and relevant case law, discuss the amount, if any, allowable as a deduction for income tax purposes- -Maximum 800 words-
Kindly use the following instructions:
1- Facts of the scenario2- Relevant laws and cases3- Application of laws and cases4- Conclusion
B- Sanjeev is employed as a marketing manager of the Theatre Hall- He requires to travel extensively during the year for work-related purposes using his car- Discuss the ways Sanjeev might be able to claim deductions for his car expenses- -Maximum 400 words-
QUESTION 2
After completion of your course, you start working at an accounting and tax office- Julia is your first client- She requires to lodge his income tax for 2021/22- She gave her annual income and deduction below- Calculate her Total Assessable Income, Taxable Income, Tax Liability, Medicare Levy and Medicare Levy Surcharge, if applicable, for the taxpayer -Julia- with the information below:
• Julia is a resident single mom with two dependent children -7 and 4 years old- taxpayer of Australia for the tax year 2021-2022• Her Taxable Salary earned is $109,000 -Including tax withheld-, having no private health insurance-• She had a $11,000 deduction-• Julia has a student loan outstanding for his previous studies at Sydney University of $35,000-• Julia's employer pays superannuation guarantee charge of 10% on top of her salary to her nominated fund-• Julia earned a passive income of $7,000 from the investments in shares in the same tax year-
Hint: The following website can be used to cross-check your answers, but you need to provide detailed calculations, rates and explanations with screenshots of rates from the ATO website-
Attachment:- Taxation Theory-rar
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