MLC 703- PRINCIPLES
OF INCOME TAX LAW
Gladden music that the subjoined conquer referable attributable attributable attributable construct portio of the order count:
? Intimations, including act and cases;
? Diagrams; ? Tables; ? Calculations.
You must unimpaired twain portios of the ordinance. Gladden unimpaired twain portios of the ordinance partially. You should assign almost 1500 orders on twain Portio A and almost 1500 orders on the policy-based dissertation scrutiny in Portio B. There is a rigorous order expression of 3000 orders restraint this ordinance.
Restraint twain portios of the ordinance you conquer be required to go further the examine esthetics restraint this ace and you conquer be expected to precede your acknowledge elimination of cases and other academic esthetic upon which you should meritiest your defense.
You are encouraged to conservation headings restraint purposes of clarity and donation of your ordinance. It is however necessary that your ordinance is written in bountiful sentences and referable attributable attributable attributable molehill aim construct. If you conservation any equations in solving the collection scrutiny gladden invent strong that you select the amend sections of the apt synod and that you plan your unimpaired instituted.
You must prepare each scrutiny partially. It is however necessary that you assign your spectry and learner estimate and the scrutiny estimate on each scrutiny which you unimpaired.
Concerning referencing, you conquer invent the Australian Guide to Legal Citation (AGLC) fashion of referencing in the subjoined structure site:
Gladden music that this AGLC fashion is purposed restraint Law learners and although it would be big if you followed it, marks conquer referable attributable attributable attributable be deducted restraint referable attributable attributable attributable citing cases awe precisely as pictorial. In other orders, whilst you must intimation, you can cull to conservation other referencing fashions (ie referable attributable attributable attributable necessarily the AGLC fashion) if you longing.
The ordinances must be unimpairedd partially.
DUE DATE: 8:00pm Monday 14 September 2020.
PART 1- PROBLEM QUESTIONS
PROBLEM QUESTION A- WORTH 5% OF YOUR OVERALL MARK FOR THIS UNIT SO YOU SHOULD ALLOCATE APPROXIMATELY 400 WORDS ON
PROBLEM QUESTION B- WORTH 15% OF YOUR OVERALL MARK FOR THIS UNIT SO YOU SHOULD ALLOCATE APPROXIMATELY 1100 WORDS ON
PROBLEM QUESTION 1A- THIS IS WORTH 5% OF YOUR OVERALL MARK FOR THE UNIT (APPROX 400 WORDS)
Nikki acknowledges and carries on a compact of drapery accumulations. So remote she has 7 of such accumulations. When she culls a ground to unconcealed a newlightlight accumulation on, the most ocean measure is where she can maximise the sales of habiliments. However, she is so influenced by the virtual restraint the place on which each of the garner ground is located on to become in consummate treasure.
In novel 2019, Nikki decides to amplify individual of the garner ground, becaconservation genuine rank in the area which it is located on had appreciated markedly in novel years. This compromised Nikki obtaining a fabric approval from the persomal assembly, demolishing the garner, and fabric a 6 accumulationy hall fabric on the place. As Nikki did referable attributable attributable attributable perceive abundant environing fabric, this consisted of narrowing a important constructor to be in raise of the manner of fabric the hall. These halls are sold partially to the open through a immanent genuine rank delegate.
Ignoring Consummate Gains Rate, argue whether the sales allowance from the halls produce humdrum allowance.
PROBLEM QUESTION 1B- THIS IS WORTH 15% OF YOUR OVERALL
MARK FOR THE UNIT (APPROX 1100 WORDS)
Ken entered into a narrow to controlfeiture couple vend accumulation ground in June 2003. The absorb of each was $300,000, with type trust of $20,000 each. Fixedtlement was during August 2003. He conservationd these vend ground (which had been previously liberal) to undertake a vocation that sold wares to the open.
During the era that Ken acknowledgeed the accumulation, they each had an annual aggregated turnbalance of almost $3 pet.
During November 2019, Ken, who was 53 at the era, wanted to handle further frugal era and referable attributable attributable attributable raise on a vocation anymore. He had plant that although his turnbalance was proud, controlthcoming absorbs his produce were very ceremonious. As a end, he entered into the subjoined narrow with Jane:
• The primary of the couple wares ground was to be sold to Jane restraint $1,200,000, and the goodconquer determined to it sold to Jane restraint $400,000.
• The avoid accumulation was to be rented to Jane restraint a couple year lease (with an discretion to recreatelight restraint another couple year limit). Rent was fixed at $2,000 a month, with an upfront lease recompense of $25,000 fixedable.
• Jane was to fixed Ken $200,000 to referable attributable attributable attributable cope with her restraint the subjoined 3 years.
At the era of the November 2019 narrow, Ken acknowledgeed the subjoined assets:
• Bountiful acknowledgeership of a ocean location in Hawthorn, merit $3 pet.
• 42% acknowledgeership of a sodality designated PI Pty Ltd, which invests in grassy properties. The entirety chaffer treasure of PI Pty Ltd was $300,000.
• 80% divide on an investment possessions (Ken’s cousin acknowledges the other 20%). The entirety treasure of the possessions was $500,000. It had a $300,000 advance balance it.
• Superannuation merit $1.5 pet.
• Divides in BHP merit $200,000.
• An hall in Kew (perceive underneath)
On 1 December 2015 Ken had bought an hall in Kew to subsist in. This absorb him $400,000. Controlthcoming food in it restraint 2 years, on 1 December 2017, Ken bought and moved into his Hawthorn hoconservation (mentioned aloft), which he from that aim on claimed as his ocean location. At the era, his hall in Kew was merit $500,000, which he controlthwith rented quenched. The Kew hall was sold restraint $510,000 in December 2019.
Advise Ken as to the CGT consequences concerning the 2019-20 rate year. In doing so gladden argue Ken’s power to utilise the CGT Small Vocation Concessions.
Gladden so enclose a argueion of the Net Consummate Gain made by Ken restraint the 2019-20 rate year.
PART 2- POLICY
BASED ESSAY QUESTION
POLICY BASED ESSAY QUESTION THIS IS WORTH 20% OF
YOUR OVERALL MARK FOR THE UNIT (APPROX 1500 WORDS)
Should the Australian Consummate Gains Rate plan handle a 50% discount profitable to ratepayers?
Argue this with intimation to the criteria restraint evaluating rate policy:
• Economic efficiency
You should handle playing to argue any other apt matters.