BULAW5916 Taxation Law & Practice
Assignment Topic – Semester 2, 2017
To extend familiarity with locating legal decisions and undertaking research into an aspect of currently debated taxation law and practice.
It is important for you to have time to think through how to structure and present your responses, and to review and discuss what the law is in a particular area. Whilst discussion with others is encouraged, the final piece of work must be your own.
Estimated 2,500 words in total. Please be aware that assignments less than this word length will risk not covering tasks A, B and C adequately.
Note: All Federation University Australia rules relating to referencing, citation and acknowledgement must be complied with.
By 11.00 p.m. Friday in Week 9 – submission through Moodle.
Note: Please refer to the Course Description for further details of the assignment (Assessment Task 2), and for acceptable referencing styles.
For this topic you are expected to refer to at least the Black Economy Taskforce Interim Report and one academic journal article.
It is recommended that you process your assignment through TURNITIN before submission.
Complete tasks A (20 marks) B (60 marks) and C (20 marks).
Your overall mark out of 100 for this assignment will then be converted to a result out of 30, as this assignment is worth 30% of your total marks for this course.
Tax reform remains an ongoing topic of debate in Australia. On 9 May 2017 the Honorable Kelly O’Dwyer MP, Minister for Revenue and Financial Services, released the interim report of the Black Economy Taskforce. The report, and related links, can be accessed through the Treasury (treasury.gov.au) website.
It is stated on page 1 of the Executive Summary of the Black Economy Taskforce Interim Report
“The black economy is a significant, complex and growing economic and social problem.
Black economy activities: undermine the community’s trust in the tax system; create an unfair commercial environment which penalises businesses and individuals doing the right thing; enable and entrench the exploitation of vulnerable workers; undermine tax revenue; and enable abuse of the welfare system.”
Also included in the Executive Summary is a recognition that, amongst other things, increasing use of new business models such as the sharing economy are contributing to the problem of the black economy.
A. Explain what is meant by the terms ‘the black economy’; and ‘the sharing economy’ (10+10 marks)
B. Identify a business operating in Australia under a ‘sharing economy’ business model – and one operating under a more traditional business model. Both businesses must operate in the same industry (e.g. accommodation services) and must operate in Australia (although they may also operate in other countries).
Research and describe the two businesses you have chosen; describing their business structures and how they operate. Identify key differences between them that may affect taxation outcomes. Explain the tax consequences of these differences under existing Australian tax law. (60 marks)
C. Read the Black Economy Taskforce Interim Report – published by the Australian Treasury. Which of the identified proposals or initiatives do you think would be successful in reducing the contribution of the sharing economy to the problem of the black economy? Give reasons for your response. (20 marks)
Hint – focus on pages 32-34, 37, 46-47
BULAW5916 Taxation Law & Practice