Your Task

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

Required

The assignment consists of three parts:

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

PART B: Calculation of the net income of a partnership and preparation of the distribution statement for each of the partners. (6 marks)

PART C: Video presentation. (4 marks)

Assessment Description

PART A: Written letter of advice.

Alex while talking to a friend (Oliver) at a networking event is informed about a topic called “The evolving tax treatment of cryptocurrencies”. Tax ramifications were discussed so Alex is seeking your advice. In your own words, explain the tax treatment of “cryptocurrencies” to Alex and the potential impact if he has a small portfolio of cryptocurrencies. (500 words limit)

PART B: Calculation of the net income of a partnership and preparation of the distribution statement for each of the partners

Pitt partners opened a consulting business on 1 July 2018. The accounting profits and losses are to be shared equally. The following transactions were recorded in the partnership’s cashbook in the year ended 30 June 2019.

Receipts	$
Fees received	250,000
Bank loan	75,000
Loan from Angelina	50,000
Interest on drawings – Brad	400
Interest on drawings – Angelina	800

Payments
Rent of the premises and other expenses (all deductible)	40,000
Salaries of employees	100,000
Salary of Brad	35,000
Salary of Angelina	25,000
Superannuation contributions for employees	9,500
Bank loan repayments – principal	15,000
Bank loan repayments – interest	750
Interest on capital – Brad	1,250
Interest on capital – Angelina	1,250
Interest on loan – Angelina	2,500
Drawings – Brad	2,000
Drawings – Angelina	4,000
Penalties and fines	500
Entertainment expenses	2,500

You are required to prepare and calculate the following:

Income statement under accounting standards and the accounting profit for the year ended 30 June 2019

Income statement under tax law and the net income of the partnership for the year ended 30 June 2019

Distribution statement for each of the partners for the year ended 30 June 2019

You have to show all workings.

PART C: Video presentation

You are required to prepare a 2-minute video presentation that explains briefly the tax treatment of cryptocurrencies and the calculation of the net income of the partnership.

Part A Assignment Rubric: 10% Written Letter of Advice

Components

High

Distinction

85 – 100%

(Marks 8.5 to

10.0)

Distinction

75 – 84%

(Marks 7.5 to

8.49)

Credit

65 – 74%

(Marks 6.5 to

7.49)

Pass

50 – 64%

(Marks 5 to

6.4)

Fail

0 – 49%

(Marks 0 to

4.9)

Mark

Awarded (Out of

10)

Written

Letter

10%

The letter clearly identifies and addresses all the technical issues raised & provides clear, correct & decisive answers displaying an outstanding understanding of each of the technical issues.

* It is easy for the client (nonaccountants) to understand.

The Letter clearly identifies and addresses most of the technical issues raised by the client and provides clear, correct and decisive advice

displaying a good understanding of most of the technical

issues. * It is easy for the client (nonaccountants) to understand.

The Letter clearly identifies & addresses some of the technical issues raised by the client and provides reasonably clear, correct and decisive advice displaying a reasonably good understanding of some of the technical issues.

* It is relatively easy for the client to understand.

The Letter identifies and addresses some of the technical issues raised by the client and provides fairly clear, but not always correct and/or decisive advice. It displays a reasonable understanding of some of the technical issues raised.

* It is relatively easy for the client to understand.

The Letter does not identify or address the technical issues raised by the client

It displays a lack of understanding of some or most of the technical issues raised.

*It is difficult for the client to understand. * It does not give correct clear and/or decisive advice on most of the issues raised

Important Study Information