Taxation Law

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LAW6001 Assessment 3 Case Study
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ASSESSMENT BRIEF
Subject Code and Title LAW 6001 Taxation Law
Assessment Assessment 3: Case Study
Individual/Group Individual
Length 2000 words +/- 10%
Learning Outcomes This case study must be presented as an individual effort. The
case study requires individual research. The course manual
and set texts are intended to be the starting point of the
research. It is expected the student will survey the relevant
literature, including decided cases, and select appropriate
additional resources.
The case study is designed to incorporate uncertainty. The
student is expected to develop a piece of work which is
written advice for their client. It must therefore identify the
facts and issues presented by each aspect of the case study,
identify and apply the relevant legislation and/or case law,
come to a conclusion and make a recommendation to the
client.
Specific learning outcomes
b) Explain ethical and professional responsibilities of tax
agents under the including obligations under the Tax Agent
Services Act 2009 (TASA) and Tax Agent Services Regulations
2009 (TASR).
c) Interpret and apply selected sections of the Income Tax
Assessment Act ITAA36 and ITAA 97.
d) Identify and analyse the tax treatment of various types of
income and deductions.
e) Effectively apply taxation law in determining tax outcomes
in various scenarios and structures.
Submission By 11:55pm AEST/AEDT Sunday of Week 10
Weighting 20%
Total Marks 50 marks

LAW6001 Assessment 3 Case Study
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Context
This assessment assesses your research skills, your ability to synthesise an original piece of
work to specific content requirements and your ability to produce a comprehensible piece
of advice which addressing the client’s needs.
It also assesses your written communication skills. The ability to deliver to a brief is an
essential skill in the workplace. Clients may well approach advisors seeking a combination of
specific information needs and advice on the tax implications of a particular arrangement in
the Australian tax jurisdiction. It is therefore important to be able to identify all the issues
presented by an arrangement and to think about the potential consequences of different
approaches to addressing the client’s needs.
Instructions:
Your case study needs to identify and discuss the tax implications of the various issues
raised. In order to produce your case study, you will need to review relevant case law and
legislation. The subject manual and set texts are starting points only, you will be expected
to use these initial materials to identify potential useful resources. You will then need to
review your selected resources to see if they value add to your analysis.
Your case study is not just a list of answers. Your reasons for your conclusions and
recommendations must be based on your research into the relevant cases and legislation.
LAW6001 Case Study T2 2018
Question 1 (10 marks)
With reference to the UK Australia Double Tax Agreement explain:
a) the meaning of the term Permanent Establishment.
b) how the business profits of an enterprise incorporated in the UK are taxed in Australia.
c) whether contracts made through an independent agent would result in a Permanent
Establishment
Question 2 (10 marks)
Andrew McSwington is a highly regarded MLB prospect born in Adelaide. During the
Australian off season he first travelled to Mexico to play in the Fall League for 2 months and
then went to America to play in the minor leagues for 15 months. He signs the contract
stipulating he is to be paid $145 000 for the 15 months in Adelaide and joins the minor league
team shortly after. The contract states he is to be paid monthly into a bank account in the
Turks and Caicos Islands
Andrew decides to purchase a home in America to use it as a base during the home and away
series and rent it out for the remainder of the income year when he returns to Australia.
LAW6001 Assessment 3 Case Study
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Discuss with reference to relevant case law:
1. Whether Andrew a resident of Australia for tax purposes
2. The source of the $145 000 paid for his baseball skills
3. Whether he is liable for taxation in Australia on the $145000 for his baseball skills
4. Whether Andrew is liable for tax on the rental income received from America during
the balance of the year
Question 3 (15 marks)
What is the “first strand” of the decision in FC of T v The Myer Emporium Ltd 87 ATC 4363? Did
the courts apply the first strand in Westfield Ltd v FC of T 91 ATC 4234 ? Compare and contrast
the decisions in FCT v Myer and FCT v Westfield and suggest an explanation for the difference
in the Court’s decisions.
Comment on whether the decision support the distinctions made between income and capital
in the Australian taxation system.
Question 4 (15 marks)
a) With reference to Softwood Pulp and Paper v FCT 1976 explain whether a deduction
is available for interest paid on a loan during the preparatory stages of a business.
b) With reference to Ronpibon Tin NL v. Federal Commissioner of Taxation (1949) 78
CLR 47 explain the importance of the ‘incidental and relevant test” in determining
whether interest paid on loans in deductible.
c) With reference to FC of T v. Brown 99 ATC 4600; (1999) 43 ATR 1 explain whether
interest paid on loans can be deductible after business activities have stopped
d) Comment, with reference to the Tax Agent Code of Conduct, on the role the tax
advisor has in ensuring their client’s compliance with all relevant taxation laws,
particularly in terms of interest deductions after business activities has ceased.
LAW6001 Assessment 3 Case study
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Learning Rubrics

Assessment
Attributes 		Fail (Unacceptable) (FunPctional) ass (PrCredit oficient) (Advanced) Distinction High (Exception Distinction al)
Grade Description
(Grading Scheme)		 Evidence of unsatisfactory
achievement of one or more of the
learning objectives of the course,
insufficient understanding of the
course content and/or unsatisfactory
level of skill development.		 Evidence of
satisfactory
achievement of
course learning
objectives, the
development of
relevant skills to a
competent level, and
adequate
interpretation and
critical analysis skills.		 Evidence of a good
level of
understanding,
knowledge and skill
development in
relation to the
content of the course
or work of a superior
quality on the
majority of the
learning objectives of
the course.
Demonstration of a
high level of
interpretation and
critical analysis skills.		 Evidence of a
high level of
achievement of
the learning
objectives of the
course
demonstrated in
such areas as
interpretation and
critical analysis,
logical argument,
use of
methodology and
communication
skills.		 Evidence of an
exceptional level of
achievement of
learning objectives
across the entire
content of the
course
demonstrated in
such areas as
interpretation and
critical analysis,
logical argument,
creativity, originality,
use of methodology
and communication
skills.
Knowledge and
understanding		 Limited understanding of required
concepts and knowledge
Key components of the assignment are
not addressed.		 Knowledge or
understanding of the
field or discipline.
Resembles a recall or
summary of key ideas.
Often
conflates/confuses
assertion of personal
opinion with information
substantiated by
evidence from the		 Thorough knowledge
or understanding of the
field or discipline/s.
Supports personal
opinion and information
substantiated by
evidence from the
research/course
materials.
Demonstrates a
capacity to explain and
apply relevant
concepts.		 Highly developed
understanding of
the field or
discipline/s.
Discriminates
between assertion
of personal opinion
and information
substantiated by
robust evidence
from the
research/course		 A sophisticated
understanding of the
field or discipline/s.
Systematically and
critically discriminates
between assertion of
personal opinion and
information
substantiated by
robust evidence from
the research/course
materials and
extended reading.

LAW6001 Assessment 3 Case study
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30% 0 – 14.9 research/course
materials.
15-19.4 		19.5- 22.4 materials and
extended reading.
Well demonstrated
capacity to explain
and apply relevant
concepts.
22.5 – 25.4		 Mastery of concepts
and application to
new situations/further
learning.
25.5- 30
Critical reasoning,
presentation and
defence of an
argument and/or
position
30%		 Specific position (perspective or
argument) fails to take into account
the complexities of the issue(s) or
scope of the assignment.
Makes assertions that are not
justified.
0- 14.9		 Specific position
(perspective or
argument) begins to
take into account the
issue(s) or scope of
the assignment.
Justifies any
conclusions reached
with arguments not
merely assertion.
15-19.4		 Specific position
(perspective or
argument) takes into
account the
complexities of the
issue(s) or scope of
the assignment.
Others’ points of
view are
acknowledged.
Justifies any
conclusions reached
with well-formed
arguments not
merely assertion.
19.5- 22.4		 Specific position
(perspective or
argument) is
expertly
presented and
accurately takes
into account the
complexities of
the issue(s) and
scope of the
assignment.
Justifies any
conclusions
reached with
well
developed
arguments.
22.5 – 25.4		 Specific position
(perspective or
argument) is
presented expertly,
authoritatively and
imaginatively,
accurately taking
into account the
complexities of the
issue(s) and scope
of the assignment.
Limits of position
are acknowledged.
Justifies any
conclusions
reached with
sophisticated
arguments.
25.5- 30

LAW6001 Assessment 3 Case study
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Formation of
recommendations
based on the
identification of the
issues and the
application of case
law principles and
relevant legislation
identified in the
research process.
20%		 Difficulty in formulating own opinion and
a lack of recognition of the various
issues. A lack of application of the
relevant case law and/or relevant
legislation
0 – 10.4		 Difficulty in justifying
own opinion. Some
recognition and
discussion of the
various issues. Some
application of the
relevant case law
and/or relevant
legislation
10.5-11.9		 Own opinion is partly
justified with reference
to case law and/or
relevant legislation.
Recognition and
discussion of the
various issues
identified in the
question Application
of the relevant case
law and/or relevant
legislation to these
issues
13-14.9		 Own opinion is
justified with
reference to case
law and/or relevant
legislation.
Recognition and
discussion of the
various issues
identified in the
question plus
others identified by
the student
Application of the
relevant case law
and/or relevant
legislation to these
issues
15- 17.4		 Sophisticated
arguments supporting
own opinion is
justified with
reference to case law
and/or relevant
legislation.
Recognition and
discussion of the
various issues
identified in the
question plus others
identified by the
student and problems
identified Application
of the relevant case
law and/or relevant
legislation to these
issues
17.5 – 20
Use of academic
and discipline
conventions and
sources of evidence		 Poorly written with errors in spelling,
grammar.
Demonstrates inconsistent use of good
quality, credible and relevant research
sources to support and develop ideas.
There are mistakes in using the APA
style.		 Is written according to
academic genre (e.g.
with introduction,
conclusion or
summary) and has
accurate spelling,
grammar, sentence
and paragraph
construction.
Demonstrates
consistent use of
credible and relevant
research sources to
support and develop
ideas, but these are not		 Is well-written and
adheres to the
academic genre (e.g.
with introduction,
conclusion or
summary).
Demonstrates
consistent use of high
quality, credible and
relevant research
sources to support and
develop ideas.
There are no mistakes
in using the APA style.		 Is very well-written
and adheres to the
academic genre.
Consistently
demonstrates
expert use of good
quality, credible
and relevant
research sources
to support and
develop
appropriate
arguments and
statements. Shows
evidence of		 Expertly written and
adheres to the
academic genre.
Demonstrates expert
use of high-quality,
credible and relevant
research sources to
support and develop
arguments and
position statements.
Shows extensive
evidence of reading
beyond the key
reading

LAW6001 Assessment 3 Case study
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10% 0 – 5 always explicit or well
developed.
There are no mistakes
in using the APA style.
5-6.4 		6.5-7.4 reading beyond the
key reading
There are no
mistakes in using
the APA style.
7.
5 – 8.5		 There are no
mistakes in using the
APA Style.
8.6-10
Effective
communication
10%		 The reader has difficulty following the
points being made, lack of logical/clear
Structure, poor flow of ideas, argument
lacks supporting evidence
0-5		 The arguments and
supporting evidence
are not always
presented in clear and
logical manner.
Spelling errors and
sentence structure
makes meaning
unclear
5-6.4		 Information, arguments
and evidence are well
presented, relevant and
show a clear flow of
ideas with logical
development
5-6.4		 The information,
arguments and
evidence are very
well presented,
with clear logical
development of
ideas which answer
the issue as set,
with some
consideration of
related or flow
issues
7.5-8.5		 Excellent presentation
with clear and logical
arguments supported
by relevant and varied
evidence. The student
answers the issue and
considers in detail
some related or flow
issues with possible
ramifications.
8.6-10