ACC3TAX S2 2018 Group Assignment

ACC3TAX S2 2018 Group Assignment
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Group Assignment Instructions
Carefully read the instructions below before submitting your assignment
Due date: 5pm on Monday 01 October 2018 (Monday of week 9).
Weight: 15% of the total ACC3TAX assessment (marked out of 30 marks).
Groups: Groups of minimum 2 maximum 3 students (any 3 ACC3TAX students within any workshop, as long as they are all enrolled in the same campus). It is strongly recommended you obtain your group members’ contact details and organise at least one meeting to discuss the assignment case. Assignments submitted individually will NOT be accepted (unless students is under a Learning Access Plan).
Submission: Only one assignment per group must be submitted electronically via LMS link. Submit your group assignment in one single Word or PDF file. No hard copy required. Professional presentation, legibility and logical/legal reasoning, with correct application of legislation and cases are part of the assessment. Similarity reports are generated when assignments are submitted. If you receive a high similarity report, you may re-submit your assignment as many times as necessary until the deadline (note: when you re-submit an assessment it may take 24 hours for a new similarity report to be issued). Re-submissions after the deadline will count as late submissions and will be penalised in accordance with the Late Submissions Policy (see below).
Academic Integrity: All assignments are electronically checked for plagiarism and collusion. Assignments are also checked for contract cheating (where a student submits an assignment which is not of their own authorship, e.g.: purchase of assignments through specialised websites). Suspected cases of academic misconduct will be reported to the Academic Integrity Adviser for the appropriate measures. Please refer to the Academic Integrity policy (https://policies.latrobe.edu.au/document/view.php?id=221) for details.
Late submission policy: Late submissions will be penalised in accordance with the Late Submissions Policy (https://policies.latrobe.edu.au/document/view.php?id=148).
Special Consideration and Extensions: Extensions to the deadline will be granted only on exceptional and unforeseen circumstances in accordance with the Special Considerations policy and procedures (https://policies.latrobe.edu.au/document/view.php?id=205).
Referencing and assignment format: Acknowledge the source of any materials used in the assignment via footnote references. For tips on acknowledgement, referencing and plagiarism please refer to: https://www.latrobe.edu.au/library/assignment-thesis-support/referencing. Always use academic formal language, ensuring your paragraphs are written in a clear and logical way. Legibility and logical sequence are part of the assessment.
Assessment criteria: Assignments will be assessed against the SILOs for the assessment. In particular, assignments will be assessed based on objective demonstration of the following:
1) Acting as a team, engagement of critical thinking and interpretation skills to correctly identify the issues to be analysed in the case study.
2) Application of critical thinking, interpretation and analytical skills to develop a meaningful analysis of the issue(s) previously identified, with detailed and analytical application of tax concepts, tax principles, legislation and case law. Mere citation, transcription or repetition of theory, concepts, legislation and case law without proper application will not attract any marks.
3) Correct application of tax concepts and case law principles to calculate tax liability (if required). Calculations must be fully stated and supported by applicable legislation and case law (where case law is required).
4) Elaboration of a solution to the issues presented in the case study, referring to the elements analysed and concluding the case.
Feedback: Specific written feedback will be provided via LMS. General verbal feedback will be provided in workshops.
Graduate capabilities: The following Graduate Capabilities are assessed in this assignment:
• Writing – Writing skills are assessed based on the quality of the arguments presented, marks are attributed where student presents a well organised essay written in academic English, with logically sequenced and coherent paragraphs and proper application of legislation and case law. A good essay must be clear, objective, and easily understandable, and must provide a conclusion that is logically derived from the arguments presented. Essays whose paragraphs are not logically organised, with tautological arguments and poor syntax will receive less marks depending on the quality of the work presented.
ACC3TAX S2 2018 Group Assignment
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• Quantitative Literacy – Quantitative literacy is assessed based on the demonstrated capacity to correctly interpret the information provided in the question as well as any informed values based on Business/Accounting concepts and general knowledge expected from final year Business/Accounting students.
• Critical Thinking / Creative Problem-Solving – Critical thinking/Creative Problem-Solving skills are assessed based on the student’s demonstrated capacity to make reasonable, justifiable and original assumptions leading to a correct and coherent conclusion grounded on legal provisions and case law precedents.
Band / Marks Quality indicators
A
(80%+)
A top-level group assignment is expected to be clearly structured, with clearly explained arguments, written in formal academic English with few or no grammar/spelling mistakes. All assignment parts are coherent, cohesive and logically sequenced forming an assignment which represents the collective effort of the group rather than a patchwork of individually produced pieces. It contains objective demonstration that the group members discussed the issues to be analysed and correctly and thoroughly applied critical thinking, analytical and problem-solving skills to address the question(s). This includes (but is not limited to) identifying the main issue and examining any underlying matters with comprehensive application of tax concepts, legislation and case law to provide a meaningful solution to the issue(s) in question. Calculations are correct or almost correct and all steps are clearly stated and in a logical sequence, with no substantial/fundamental errors, and are adequately supported by appropriate legislative references. Overall the group clearly demonstrates full or nearly full understanding of the topics and issues being assessed and produces an excellent quality solution to the problem presented in the case/question.
B/C
(60%-79%)
A credit-level group assignment may present the correct concepts, legislation and case law and may explain/apply some but not all of them. Group members may generally be able to identify the issues and case facts may be outlined, however with insufficient/incorrect analysis at times, demonstrating some degree of difficulty in engaging critical thinking and problem-solving skills to apply tax concepts, legislation and case law principles. Assignment may have a “patchwork” feel, where the answers may be independently correct but when considered together they may not indicate group work. Essay may contain some grammar/spelling/syntax errors which do not substantially impact the overall readability of the text. Calculation reasoning may be correct however final result is impacted by typos and/or unsubstantial errors. There may be some incorrect/missing legislative references. Overall some effort is required to understand the group’s ideas and group demonstrates average understanding of tax concepts with limited application of legislation and case law.
D
(50%-59%)
A borderline-level group assignment would not reflect a collective work and would be a patchwork of individually produced answers, with substantial transcription of theory/legislation/case law and little critical analysis/application. The text readability is compromised by poor writing skills and by the presence of several grammar/syntax/spelling errors and examiner is able to clearly identify parts transcribed from class materials and parts written by the student. Calculations are incorrect due to fundamental errors and/or typos, and calculations are generally not supported by appropriate legislation. Overall the student demonstrates reduced understanding of the tax concepts and legislation, as well as limited analytical skills.
N
(0%-49%)
A failed group assignment would contain mostly a repetition of case facts and repetition of theory, with little to no application of legislation and case law. One or more parts of the assignment may be missing or may not have been addressed in the solution. The issues in the question(s) may also have been misidentified, or the group may have not addressed the question at all (i.e. the group’s answer does not match what was asked in the question(s)). The student’s text is typically difficult to read, with several grammar/syntax/spelling errors severely affecting the essay’s coherence and/or logical sequence. There is either no conclusion or the conclusion is not a logical derivation of the arguments presented. Student demonstrates little/no understanding of tax concepts, legislation or case law principles and/or is not capable of applying such concepts/legal provisions to produce a satisfactory answer to the problem being assessed.
ACC3TAX S2 2018 Group Assignment
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Group Assignment Case Study and Questions
Case study: Brent Wilson
Brent Wilson is one of your tax-accounting clients. He is a 45 year-old psychiatrist employed by Mindful Pty Ltd (a chain of mental health clinics in Melbourne) 3 days per week, and he also sees private patients in his own consulting room on his remaining time.
Brent sends you the email below following up on a meeting where you discussed the potential tax consequences of the sale of his house, the tax treatment of legal fees incurred in relation to a lawsuit settled in May 2019 and the preparation of his 2018/19 tax return.
From: Brent Wilson <b.wilson@mindful.com.au> Sent: Tuesday, 7 August 2019, 9:00:43 AM To: La Trobe Tax Accounting Subject: Further info – tax issues 2018/19 Attachments: Brent Wilson – Payment Summary 2018/19
Dear Tax Accounting Team,
Thanks for your time in looking into the matters discussed in our recent meeting. Following up, please find below information that may be of assistance in the preparation of my 2018/19 tax return (my 2018/19 payment summary is attached), as well as to address the tax consequences of the sale of my house and also in relation to the legal fees that I paid to my lawyers in May 2019.
My income from Mindful is disclosed in my payment summary. I have also invoiced a total of $15,600 in private patient fees, however on 1 July 2019 my records indicated that $3,600 were not yet received. In relation to my private consultations, my only running expenses are my subscription to “E-Admin” (an electronic booking and payments system) which costs me $1,500 per year, and cleaning which costs me a total of $400 per year. As all my consultation room furniture as well as my computer have already been fully depreciated in previous years, I know I am not able to claim any further depreciation in relation to them.
Here are the details in relation to the sale of my house: I bought it for $400,000 on 1 March 2000 and I’ve lived in it ever since. At that time, I also paid $8,000 in conveyance fees and $20,000 stamp duty in relation to the purchase. Not sure if this would be relevant, however since 1 July 2015 I’ve been running my private consultations at home (I converted one bedroom into a consultation room). The house has a total area of 200 square-meters, and the size of my consultation room is 10 square-meters. I signed the contract of sale on 15 June 2019, and the sale price was $1,000,000. I have sold my previous residences before and I was never taxed on the profits of the sale, however I am unsure if this would be the case here… Anyway, I googled it and I found some info on this link: https://www.ato.gov.au/general/capital-gains-tax/your-home-and-other-real-estate/your-main-residence/using-your-home-to-produce-income/ – would this be applicable to my case?
Finally, I would like your advice on whether I could claim a deduction for the cost of $25,000 that I paid in legal fees defending myself in a medical negligence lawsuit. The lawsuit was settled on 10 May 2019, and I have paid the fees above on that date.
On a side note – my private health insurance number is 123456789, I’ve held this insurance during the entire year.
I look forward to hearing back from you.
Kind regards,
Brent Wilson
ACC3TAX S2 2018 Group Assignment
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Required
1) Applying the relevant legislation, identify and discuss the tax implications related to the sale of Brent Wilson’s house, and calculate any net capital gain which may arise thereof. (10 marks)
2) Applying legislation and case law, advise Brent Wilson on whether he could claim a deduction in relation to the legal fees incurred in May 2019. (10 marks)
3) Considering the information provided by Brent Wilson as well as your answer to items 1 and 2 above, prepare Brent Wilson’s statement of taxable income and calculate his final tax liability including Medicare Levy for the year ending 30 June 2019, stating the applicable legislation and case law (note: calculation of private health insurance rebate not required). (10 marks)