MPA511 Taxation Law
Task:
Instructions:
(1) This group assignment is to be conducted in a group of two or three students.
It is the responsibility of students to form their groups. Because the classes are delivered via Zoom, some students may face difficulties in forming a group for this trimester. As such, any student can choose to do this assignment on an individual basis instead.
(2) All three parts are compulsory.
(3) This group assignment is worth 15% of the total assessment.
Part A:
Discuss and critically evaluate the current tax issues in relation to the sharing economy (such as Uber and Airbnb) in Australia.
Part B & Part C
Patrick Jones is a solicitor with his legal practice in the form of sole proprietor. His receipts and payments (excluding GST) for the year ended 30 June 2021 were as follows:
Receipts
a Professional fees: $300,000
b Income from part-time teaching at a university: $40,000
c Interest on bank deposits: $10,000
d Rental income from an investment property: $52,000
e Fully franked dividends received from an Australian resident company: $7,000
Payments
a Office rent: $52,000
b Salary paid to a secretary: $55,000
c Electricity: $3,000
d Office sundry expenses: $15,000
e Train fares from home to work: $500
f Entertainment: $10,000
g Interest paid on loan to acquire the investment property: $50,000
h Council rate and water for the investment property: $2,200
i Cost of repairing roof tiles of the investment property: $4,000
j Cost of extending a bathroom in the investment property: $20,000
k Patrick Jones has a carry forward past year tax loss of $15,000. He is single and has a private hospital insurance.
Required
Part B:
Assuming Patrick Jones is a resident of Australia for tax purposes, calculate his assessable income, allowable deductions, taxable income and tax iability for the year ended 30 June 2021.
Part C:
With reference to case law and statutory law, explain whether the aforesaid receipts are assessable income and payments are allowable
deductions under the Australian tax law in the Part B calculations.
