UNSW
THE UNIVERSITY OF NEW SOUTH WALES

UNSW BUSINESS SCHOOL

SCHOOL OF ACCOUNTING, AUDITING AND TAXATION

TABL 2751 - BUSINESS TAXATION

TERM 3, 2022

GROUP ASSIGNMENT

DUE DATE AND TIME 1. Joint Submission: Week 8 (Wednesday, 2
November,2022 by 6.00 pm): (25%)
2. Individual reflection Submission: Week 9
(Wednesday 9 November by 6:00 pm): 5%
LATE LODGMENT As stipulated in the Course Outline
PLACE OF LODGMENT Electronic lodgment at link on course Moodle site
under Short Assignment link
VALUE OF GROUP ASSIGNMENT 30%
MAXIMUM WORD LENGTH 1. Joint Submission: (25%) (2,000 words + 10%)
2. Individual reflection Submission: 5% (750
words + 10% words)



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GROUP ASSIGNMENT: MULTI – TASK
As stated in the course outline, there are two components to this assessment item, namely, jointly
written answer to the assignment (25%), and individual reflection (5%).
Joint Submission: Written Answer to Allocated Problems (25%)
This is a joint written submission to the assignment. Every student will be grouped with other
students for this purpose. The idea is to write a sound answer to the assignment. The written
submission to be submitted on Moodle via the Turnitin Link. The word limit for this assessment
task is 2,000 words.
Individual Reflection (5%)
The aim of this is for you is to submit a written reflection on your involvement in the joint
written submission (25%). The word limit for this is 750 words. The key focus of your
comments and thinking should be on how you went about the task of researching and writing
up your joint answer.
When answering this question you may want to consider the following questions:
1. Did your group have a plan?
2. Did you plan to “divide” up some of the work?
3. How was the division of work arrived at?
4. What was your method (approach) of researching the problem(s)?
5. What was the process of writing up the answer?
6. How was “quality control” injected into the process or the final written product (e.g.
confidence the research of a team member was sound)?
7. The “why” question could also be asked in respect to the above items.
8. Do you think this group task better developed your higher-level thinking skills, critical
thinking skills, deeper engagement with topics, motivation, etc?
9. Did you form any views about how you collaborate with others and collaboration more
generally
Please note: The assignment question is followed by detailed instructions and also a reference
guide. You should read all instructions prior to completing and submitting your assignment.







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Part A
Supriya practises as an accountant in a sole practice in Melbourne, Australia. She has also built
up quite a portfolio of shares for investment purposes over the years. Supriya also owns an
investment property at the Gold Coast.
Supriya is registered for the Goods and Services Tax (GST). You are not required and should not
discuss GST in this assignment. Ignore GST as part of the assignment.
During the financial year ended 30 June 2022 Supriya was paid $660,000 in fees for her accounting
services. She has one full-time employee, Sanjay who acts as her office assistant and occasionally
assists with bookkeeping and other duties as he has the appropriate TAFE certificate. Supriya pays
Sanjay a salary of $75,000 per year.
Supriya’s 20-year-old step- daughter, Asha is finishing off her commerce degree at UNSW. Asha
occasionally comes to work in Supriya’s business during university holidays to help with the
administration work. Asha gets paid a wage of $550 per week. The normal wage for this position
is $450 per week.
Supriya pays an annual rent on her office premises of $44,000. Supriya decided she needed new
computer assisted software programme for her business to assist with the preparation of the
financial records for clients. She considered that the old software was out of date. The new
software was installed on 29 July 2021 and the software cost Supriya $6,600 which she paid on 1
August 2021.
Supriya has a two and half year’s old son who attends childcare when Supriya is working. The
cost of the childcare is $5,500 per annum.
Supriya sometimes works from a room in her rented house. The practice room in her house was
originally one of three bedrooms in the house. The practice room contains a desk with a computer
on it, two filing cabinets and two bookshelves. Supriya uses the practice room solely for her
accounting work. Indeed, there are times when Supriya works on the dining room table because
the practice room is so crowded with client files. The practice room covers 20% of the floor area
of the house. The rent per week for the whole house is $600 (i.e. $31,200 for the year).
Supriya decided that she needed a holiday over the January 2022 period as business was slow and
she had been extremely busy prior to this. She found a conference that was organised by the
Australian Society of Accountants. This is the professional society that she belongs to. The
conference was in Bali and the brochure stated that there would be 3 days of lectures/seminars on
current issues in accounting and then there would be free time for the delegates.
Supriya incurred the following costs in relation to the conference:
1. Registration fee: $500.00.
2. Airfare return trip from Melbourne to Bali. Supriya flew business class, which cost her
$6,000. The economy fare was $3,000. There were seats available on the economy class
but Supriya decided to fly Business.
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3. Accommodation at the hotel where the conference was held was $150 per night. Supriya
stayed there for 7 nights.
Supriya and her friend have been entering lotto for around 3- years. To Supriya’s surprise, her
syndicate won a third division prize in Aussie Lotto that was drawn on 23 March 2022. Each
member of the syndicate takes a turn in ensuring the relevant lotto ticket is purchased by the due
date. The syndicate meets around once per month to review the chosen numbers, which are often
based on birthdates of family members, significant family events or world events, etc. They also
review the history of the numbers that have been drawn and take this into account when choosing
(or changing) their numbers. The prize was $72,000 and Supriya’s share was $18,000.

Required:

• Advise Supriya of the income tax implications of the above transactions for the year ended 30
June 2022. Your advice must be supported by reference to relevant income tax legislation, tax
cases and/or authorities.
(16 Marks)


















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Part B
During the year ended 30 June 2021, Supriya entered into the following transactions:
1. A parcel of Alpha shares was purchased for $12,000 on 1 December 2020.

2. She incurred a capital loss of $ 2,500 on the sale of Beta shares.

3. She incurred a capital loss of $250 on collectables.
During the year ended 30 June 2022, Supriya entered into the following transactions:
1. Sold Alpha shares for $13,000 on 15 November 2021.

2. Sold Gamma shares which were purchased on 1 January 2005 at a cost of $6,000. During
her years of ownership, she received dividends from the shares totalling $3,000. She
borrowed money to buy the shares and the total interest paid during her period of
ownership was $1,500. She sold the shares on 1 July 2021 for $10,000.
3. Supriya owns a house as an investment property at the Gold Coast which she rents out.
The house was purchased on 1 February 2017 for $750,000. At the time of signing the
contract for the purchase she paid a deposit of $150,000. She obtained a mortgage from
Orange bank (an Australian bank) for $600,000. Settlement (i.e transfer of ownership)
occurred on 1 May 2017. The mortgage was for 25-years and had an interest rate of 4%
per annum. Interest is payable on the first day of each month. (Note: For ease of any
required calculations, you can assume this is an interest only loan – this means only the
interest is paid each month. The principal remains fixed. You can also assume, for ease of
calculation that the interest is not compounded).
In addition to the cost of the property, Supriya incurred the following costs at the time of
purchase:
• Stamp duty (on house): $30,000
• Legal (conveyancing) fees: $1,300
• Mortgage broker commission: $1,500
• Application fee for mortgage: $500

As noted above, Supriya purchased the house as an investment property. At the time
settlement of the property occurred, there were existing tenants living in the property.
These tenants continued to live in the property once Supriya purchased it, paying rent
of $700 per week. They moved out of the property on 1 July 2017.
Before re-advertising the property for rental, Supriya decided to install an in-ground
swimming pool. The construction of the pool started on 15 July 2017 and is completed
on 1 August 2017. The total cost of construction is $20,000. Once construction was
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completed, she advertised the property for rental again. She incurs a total of $800 in
advertising expenses. A tenancy/rental agreement is signed with new tenants on 14
August 2017, and they move into the property on 20 August 2017, paying $750 per
week in rent. The tenants move out of the property on 1 July 2021 when she decides
to sell the investment property.
Her real estate agent says she should repaint the house before selling it as this will
increase the sale price. Painters commence painting the property on 10 July 2021 and
finish their work on 25 July 2021. The cost of repainting the property was $16,000.
Supriya advertised the property for sale (via her real estate agent) on 1 August 2021 for
$1,350,000. On 15 August 2021, a buyer offers Supriya $1,300,000 for the property.
Supriya accepts the offer. On the same day, a deposit of $300,000 is paid. Settlement (i.e.,
transfer of ownership) occurs on 30 September 2021 at which time the remaining
$1,000,000 for the house is paid.
Costs associated with sale include:
• Advertising: $3,200
• Real estate commission: $25,000
• Legal fees: $1,400
Supriya repays her mortgage to Orange Bank on 30 September 2021. (You can also assume,
for ease of calculation that the interest is not compounded).

Required:
• Discuss the income tax implications of the above transactions and calculate the net capital
gain/loss for Supriya for the year ended 30 June 2022. Show all relevant calculations and
indicate the likely way in which the capital losses will be applied in calculating the net capital
gain, if any, for the year. Your answer must be supported by reference to relevant income tax
legislation, tax cases and/or other authorities. The calculations should be included in the
assignment and not an appendix. You are to ignore GST for the purposes of this question.

• Apart from the transactions listed in this question, you can assume Supriya has no other
transactions that will impact on any net capital gain (or net capital loss) calculation.

• You should assume that Supriya wants to make use of any available elections/exemptions to
minimise her net capital gain for each year.

(9 Marks)




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Further information / tips:
• You are not required to calculate Supriya’s taxable income for the year as you do not have
all the information to do so. Rather, for each transaction described above, you are to advise
what amount (if any) will be assessable income or an allowable deduction.
• You are to ignore GST for this question.
• Appropriate explanations (with reference to relevant legislation, case law, and other
sources as appropriate) must be provided.

• You can assume that the various taxation laws that apply for the year ended 30 June 2022
also applied for earlier years. (That is, when considering transactions that occurred in
earlier years, you can assume there have been no differences from current law).

• You can (and are encouraged to) use headings / sub-headings in your answer.

• You can (and are encouraged to) use tables to display calculations / figures. (As noted in
the instructions, calculations do not form part of your word count).
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ASSIGNMENT INSTRUCTIONS
Read all instructions before completing and submitting the assignment.
1. Your assignment must be submitted electronically via the link that will be made available on
Moodle.

2. You should follow the ‘quick presentation and referencing guide’ which immediately follows the
marking criteria at the end of this list of instructions. Failure to do so will be reflected in your
mark for the assignment.

3. The word limit will be strictly enforced.

4. Late Submission Penalties: Late submission will incur a penalty of 5% per day or part thereof
(including weekends) from the due date and time. An assessment will not be accepted after 5 days
(120 hours) of the original deadline unless special consideration has been approved. An
assignment is considered late if the requested format, such as hard copy or electronic copy, has
not been submitted on time or where the ‘wrong’ assignment has been submitted.

5. In preparing an answer, you will inevitably discuss issues raised by the assignment with other
students. There is nothing in the UNSW rules prohibiting such discussions. However, in the end,
you must be able to state that the work that you have submitted is your work. Importantly, you
should ensure that you have not committed (either deliberately, or without intent) an act of
plagiarism (e.g. presenting another’s work or ideas as your own, failing to acknowledge the source
of a quotation, submitting the same or similar version of work to that of another student).

6. Given that this assignment is a problem type question that may require you to undertake research,
no staff member working on this course will provide assistance to you in writing and researching
your answer. If you require clarity in relation to any facts contained in the assignment question,
these should be directed to the lecturer-in-charge.

7. Although the broad topics raised in the assignment will be topics covered in the course, the
assignment will raise issues that will not necessarily have been discussed in lectures or tutorials.
This means that that you may have to go beyond the prescribed materials for the course in relation
to some issues. Whilst you will not be given a separate mark for research, reading beyond the
textbook / required readings may assist you in writing your answer.

8. You are welcome to source information from the ATO (particularly from Taxation Rulings or
similar), but extensive reliance on ATO documents (and the ATO website) instead of legislation
and case law will be reflected in your mark. You should use the ATO publications to support your
understanding of the legislation, (and should reference any ATO materials appropriately), but you
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should not use it as a replacement for referring to legislation and cases.
9. If you are dissatisfied with your grade, you should review your assignment and the feedback given.
Discussions regarding grades will not be entered into until you have reviewed your marked
assignment. You should then discuss your grade with the lecturer-in-charge. If you are still
dissatisfied with your grade, you are allowed to request a formal re-mark. Please note that such a
re-mark can result in your grade either (i) staying the same; (ii) being increased; (iii) being reduced.
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MARKING CRITERIA
Markers will be evaluating your assignments based on the following criteria:
Knowledge/Critical thinking and problem solving
For each transaction, have you:
• correctly identified the issue;
• correctly identified appropriate law (legislation and/or cases as appropriate);
• correctly applied the law to the facts;
• clearly argued points that may be in doubt;
• reached a conclusion as to the taxation treatment.
Written communication/presentation:
• Does your assignment have a clear structure?
• Is it free of errors (such as spelling, grammatical or typographical errors)?
• Does your assignment follow the “presentation and quick reference guide” included in
this document?
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PRESENTATION AND QUICK REFERENCE GUIDE

Presentation
1. You must use one and a half (1.5) spacing and a font size of 12. You must leave at least
a 2.54 cm margin from both sides of the A4 page (note that this is the ‘normal’ margin setting
in Microsoft Word).
2. Your assignment is required to be referenced. You should use footnotes and your
assignment should also include a reference list. Taxation law courses generally follow the
Australian Guide to Legal Citation (“AGLC”). Some examples of this referencing style are
provided below.
3. Footnotes are not generally counted in the word count. However, you must not place
substantial parts or central parts of your answer or argument in footnotes.
4. Calculations are not included in the word count. We encourage you to use tables to present
calculations. These can be included in the body of your assignment.
5. Quotations are included in your word count. The reason for this is that we do not want you
quoting large portions of the legislation in your assignment. The markers know what the
legislation says. (Similarly, although you will at times need to refer back to specific facts
given in the question, we do not want you to restate all the facts in your assignment. This is
a waste of words).
6. You are encouraged to use headings in your assignment.
7. You should carefully proof-read your answer (a number of times) before submission.

Referencing
1. Your assignment must be fully and properly referenced. Failure to reference your
sources is plagiarism and amounts to academic misconduct.
2. In your assignment, you will need to refer to, at a minimum, legislation and cases.
You may also want to refer to a range of other material including government
documents, books and websites. Provided in the below tables are some examples of
how to cite these sources. Note that these are examples only – some of these will not
be relevant for your assignment, and you will be expected to refer to sources that are
not included in the table.
3. Table 1 (“Reference examples”) contains examples of how you should reference
sources in your reference list. Table 2 (“Pinpoint reference examples”) contains
examples of pinpoint referencing. This is when you refer to a specific page,
paragraph or section. Your assignment should utilise pinpoint references as much as
possible. Table 3 (“Subsequent reference examples”) contains examples of how you
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are allowed to reference the sources provided in Table 2 if you have already given
the full reference in an earlier footnote.
4. Please note that for this assignment, we are allowing certain abbreviations and
modifications that do not strictly follow the AGLC style guide. This is to simplify the
referencing process for you. If you are studying further Taxation Law courses, you
should follow the AGLC (or the referencing guide given in that course).

Table 1: Reference examples
Legislation Income Tax Assessment Act 1997 (Cth).
Cases Sun Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR
337.
AusNet Transmission Group Pty Ltd v Federal Commissioner of Taxation
[2015] HCA 25.
Taxation rulings Australian Taxation Office, Income Tax: Carrying on a Business as a
Professional Artist, TR 2005/1.
Books Frank Gilders et al, Understanding Taxation Law 2017 (LexisNexis, 2017).

(Note: “et al” is used following the first author as there are more than three
authors. Where there are two or three authors, the names of authors should be
included).
Journal articles Diane Kraal, ‘University teaching: A reflection of tax teaching and cultural
diversity’ (2014) 9 Journal of the Australasian Tax Teachers Association
215.
Websites Australian Taxation Office, Income you must declare (20 May 2016)
Australian Taxation Office and-deductions/Income-you-must-declare/>

(Note: the first reference to “Australian Taxation Office” is as the author of
the webpage. The second reference to “Australian Taxation Office” is the
title of the general website on which the document is located. The date is the
last date the webpage was updated. Where there is not a full date available,
as much of the date that is available should be included).
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Table 2: Pinpoint reference examples
Legislation Income Tax Assessment Act 1997 (Cth), s 8-1(2)(a).
Cases Sun Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR 337,
363.
AusNet Transmission Group Pty Ltd v Federal Commissioner of Taxation
[2015] HCA 25, [72].
Taxation rulings Australian Taxation Office, Income Tax: Carrying on a Business as a
Professional Artist, TR 2005/1, para 34.
Books Frank Gilders et al, Understanding Taxation Law 2016 (LexisNexis, 2016)
412.
Journal articles Diane Kraal, ‘University teaching: A reflection of tax teaching and cultural
diversity’ (2014) 9 Journal of the Australasian Tax Teachers Association
215, 218.
Websites Australian Taxation Office, Income you must declare (20 May 2016)
Australian Taxation Office and-deductions/Income-you-must-declare/>

(Note: there is generally no requirement to use a pinpoint reference for a
webpage. If pinpoints (such as paragraph numbers) are available, these should
be included).

Table 3: Subsequent reference examples
Legislation ITAA97, s 8-1(2)(a).
Cases Sun Newspapers Ltd v Federal Commissioner of Taxation (1938) 61 CLR
337, 363.
AusNet Transmission Group Pty Ltd v Federal Commissioner of Taxation
[2015] HCA 25, [72].
Taxation rulings TR 2005/1, para 34.
Books Frank Gilders et al, above n X, 412.
“X” is the footnote number where you have first referred to this source. For
example, if you had first referred to this source at footnote 10, the reference
would be: Gilders et al, above n 10, 412.
Journal articles Kraal, above n X, 218.
Websites ATO, Income you must declare, above n “X”.



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