Question 1 (15 MARKS)
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 scenario
2. Relevant laws and cases
3. Application of laws and cases
4. 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) (10 MARKS)
HI6028 Taxation Theory, Practice and Law Individual Assignment T1.2022
QUESTION 2 – (15 MARKS)
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.
https://www.paycalculator.com.au/
Submission guide: Strictly NO excel sheet(s) or screenshots of excel calculations and/or tables are allowed. Kindly use word document tables for your answers, and please avoid writing the calculations in narration format.
QUESTION 2: Income Tax Calculation and explanation Weighting
Total Assessable Income 1 mark
Deduction 1 mark
Total Taxable Income 1 mark
Tax Rates (formula) 1.5 Marks
HELP repayment amount 1.5 marks
Medicare Levy 1.5 marks
Medicare Levy Surcharge 1.5 mark
Total Tax Liability 3 marks
Net Tax Liability (Total Tax Liability less any applicable tax offset if any) 3 marks
Total marks 15 Marks
Academic Integrity
Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard.
Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.
Table 1: Six categories of Academic Integrity breaches
Plagiarism Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism.
Collusion Working with one or more other individuals to complete an assignment, in a way that is not authorised.
Copying Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.
Impersonation Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.
Contract cheating Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.
Data fabrication falsification and Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images.
Source: INQAAHE, 2020
If any words or ideas used the assignment submission do not represent your original words or ideas, you must cite all relevant sources and make clear the extent to which such sources were used.
In addition, written assignments that are similar or identical to those of another student is also a violation of the Holmes Institute’s Academic Conduct and Integrity policy.
HI6028 Taxation Theory, Practice and Law Individual Assignment T1.2022
The consequences for a violation of this policy include a range of penalties varying from a 50% penalty through suspension of enrolment. The penalty would be dependent on the extent of academic misconduct and your history of academic misconduct issues.
All assessments will be automatically submitted to SafeAssign to assess their originality.
For further information and additional learning resources please refer to your Discussion Board for the unit.
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