HI6028 Taxation Theory, Practice and Law Assignment Individual Assignment

HI6028 Taxation Theory, Practice and Law Assignment

Individual Assignment

Assessment Details and Submission Guidelines
Trimester	T1 2025
Unit Code	HI6028
Unit Title	Taxation Theory, Practice and Law
Assessment Type	Individual Assignment
Due Date + time:	05/06/2025 11.59pm
Weight	40%
Submission Guidelines	All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page. The assignment must be in MSWord format unless otherwise specified.
Academic Integrity Information	Holmes Institute is committed to ensuring and upholding academic integrity. All assessments must comply with academic integrity guidelines. Please learn about academic integrity and consult your teachers with any questions. Violating academic integrity is serious and punishable by penalties that range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.
Penalties	All work must be submitted on Blackboard by the due date and time, along with a completed Assessment Cover Page. Late penalties apply. Your answers must be based on Holmes Institute syllabus of this unit. Outside sources may not amount to more than 10% of any answer and must be correctly referenced in full. Over-reliance on outside sources will be penalised Reference sources must be cited in the text of the report and listed appropriately at the end in a reference list using Holmes Institute Adapted Harvard Referencing.Penalties are associated with incorrect citation and referencing.

Individual Assignment Guidelines and Specifications

QuestionNo1 (30Marks)

After completion of your Master of Professional Accounting, you have joined with an accounting firm called Access Accounting and Tax Services Pty Ltd Brisbane, QLD. Your client, Sunaina owns a restaurant in Brisbane from 4th July 2023. The business is known as the ‘Homely Restaurant’ and Sunaina has an ABN, a registered business name and is also registered for GST. Sunaina has other investment income which she owns herself, and she works as a part time and earned salary as well. The following figures are as at the end of the financial year, 30 June 2024 and do not include GST. (Do not make any adjustments for GST)

Receipts

6,500 Interest on Bank deposits

223,700 Income from foods’ sale

62,500 Rent from her investment property

6,240 Refund from the ATO for the last year’s tax return

21,700 Lottery win

Payments

96,000 Rent for her restaurant‘ Homely Restaurant’

3,400 Body Corporate fees on income producing property.

152,000 Employees’ salaries

20,600 Super annuation contribution for employees

3,500 Fees paid to are glistered Tax Agent

2,000 Travel to and from work to home

Please advise Sunaina on above stated transaction with statutory and common law provisions and calculate correctly. (14 Marks)

Additionally,

Her Taxable Salary earned is $111,000(Including tax with held).
She does not have private health insurance.
She is a resident taxpayer.
Sunaina has an outstanding student loan of $46,000 from her studies at Melbourne University.
She has $2100 expenses which she paid for advance chef training.
Sunaina’s employer paid a super annuation guarantee charge of 12.5% on top of her salary to her nominated fund.

Required:

Calculate Sunaina’s personal tax liability for the year ended 30 June 2024. You should explain your treatment of each item in this question.

Your answer should be in the correct format of Assessable Income less Allowable Deductions along the lines of the income tax formula. This gives you Taxable Income and you multiply this by the different marginal tax rates plus Medicare levy, Medicare levy surcharge (if apply) and education loan. This gives you tax payable less any tax offsets. The terms ‘Payments’ and ‘Receipts’ are not part of the Tax Formula and are not appropriate for taxation accounting. (16 Marks)

QUESTION 2: Income Tax Calculation and explanation	Weighting

Total Taxable Income	3 marks
Tax Rates(formula)	2 marks
Medicare Levy	2 marks
Student Loan	2 marks
Medicare Levy Surcharge	2 marks
Total Tax Liability	3 marks
Net Tax Liability (Total Tax Liability less any applicable tax offset if any)	2 marks
Total marks	16 Marks

Question No-2 10 Marks

Sunaina’s Restaurant Business has installed many machines during the current income year. The following transactions took place: her business undertook the following transactions:

On 1 December, she purchased a new dish washer machine for $15,000. The Commissioner has determined the effective life of dishwashers to be 8 years.
- On 27 April, she installed a new kitchen exhaust fan. The cost of the fan was $1,100, with an additional installation cost of $500. The effective life of kitchen exhaust fans is assessed as 5 years.
- On 1 February , a new ducted vacuum cleaner was installed in the business premises at a cost of $5,000. The Commissioner has assessed the effective life of residential ducted vacuum cleaners as 10 years.

Assume that no immediate deduction is available for any of the assets.

Required:

Advise Sunaina of the tax consequences arising from the above transactions for the current income year under both the diminishing value method and the prime cost method, as applicable. Show relevant calculations where necessary.

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.Table1 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.

Table1: 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 authorized.
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 and falsification	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.

The consequences for a violation of this policy include arrange 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 Safe Assign to assess their originality.