Students

ACCG3020 – Taxation Law and Practice

2022 – Session 1, In person/Online-scheduled-weekday, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff
Yega Muthu
Credit points Credit points
10
Prerequisites Prerequisites
(20cp at 2000 level or above including (BUSL250 or BUSL251 or ACCG2051)) or 40cp in LAW units at 2000 level
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit introduces students to the tax framework operating in Australia. It looks at the regulatory environment and the impact of the conceptual framework on key areas of taxation including income tax; goods and services tax; and fringe benefits tax. After completing this unit, students will be able to recognise, describe and analyse taxation issues and apply tax concepts to problems encountered in a contemporary setting.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • ULO1: Identify tax issues and apply the provisions of relevant tax legislation to real-life situations
  • ULO2: Develop a suitable set of tax management strategies for a variety of taxpayers including international tax transactions
  • ULO3: Present, evaluate and use numerical and statistical information related to taxation including the use of accounting software
  • ULO4: Apply research skills to source and interrogate tax law materials and interpret complex legal information
  • ULO5: Produce professionally written tax advice which presents a clear and well supported justification of guidance given

Assessment Tasks

Name Weighting Hurdle Due
Online Final Exam 60% No University Examination Period
Case study 20% No Week 9-16.05.2022 (before 5pm)
Assessed Coursework 10% No Weekly-27.05.2022
Online Quiz 10% No Week 5-25.03.2022 (before12 noon)

Online Final Exam

Assessment Type 1: Examination
Indicative Time on Task 2: 30 hours
Due: University Examination Period
Weighting: 60%

 

A two-hour online examination (open book) will be held during the University Examination period.

 


On successful completion you will be able to:
  • Identify tax issues and apply the provisions of relevant tax legislation to real-life situations
  • Develop a suitable set of tax management strategies for a variety of taxpayers including international tax transactions
  • Present, evaluate and use numerical and statistical information related to taxation including the use of accounting software
  • Apply research skills to source and interrogate tax law materials and interpret complex legal information

Case study

Assessment Type 1: Case study/analysis
Indicative Time on Task 2: 30 hours
Due: Week 9-16.05.2022 (before 5pm)
Weighting: 20%

 

Students will be presented with a set of facts which will require them to identify the main tax issue(s), provide a detailed analysis of the tax issues, and apply relevant taxation laws to arrive at a conclusion in the form of a piece of advice. Students are required to communicate their professional tax advice via a 1500-word report.

 


On successful completion you will be able to:
  • Identify tax issues and apply the provisions of relevant tax legislation to real-life situations
  • Develop a suitable set of tax management strategies for a variety of taxpayers including international tax transactions
  • Present, evaluate and use numerical and statistical information related to taxation including the use of accounting software
  • Apply research skills to source and interrogate tax law materials and interpret complex legal information
  • Produce professionally written tax advice which presents a clear and well supported justification of guidance given

Assessed Coursework

Assessment Type 1: Participatory task
Indicative Time on Task 2: 15 hours
Due: Weekly-27.05.2022
Weighting: 10%

 

The Assessed Coursework Task (10%) is comprised of two tasks: 5% for individual presentations to assigned Tutorial questions during Zoom Tutorial sessions. The other 5% is awarded for a Reflection Report (500-600 words) due in week 11 online via Turn-it-in.

 


On successful completion you will be able to:
  • Identify tax issues and apply the provisions of relevant tax legislation to real-life situations
  • Develop a suitable set of tax management strategies for a variety of taxpayers including international tax transactions
  • Present, evaluate and use numerical and statistical information related to taxation including the use of accounting software
  • Apply research skills to source and interrogate tax law materials and interpret complex legal information

Online Quiz

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 10 hours
Due: Week 5-25.03.2022 (before12 noon)
Weighting: 10%

 

The Online Quiz will consolidate students’ knowledge, skills, and capabilities in relation to the foundation principles of tax law and practice.

 


On successful completion you will be able to:
  • Identify tax issues and apply the provisions of relevant tax legislation to real-life situations
  • Present, evaluate and use numerical and statistical information related to taxation including the use of accounting software

1 If you need help with your assignment, please contact:

  • the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
  • the Writing Centre for academic skills support.

2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation

Delivery and Resources

Delivery and Resources

 

Required Text:         There are a number of general texts covering the content of this unit. Students are advised to acquire each of the texts

appearing under the heading "PRESCRIBED TEXTS".

 

PRESCRIBED TEXTS (Students must have access to these books AT ALL TIMES).

  1. Textbook: Sadiq (Gen. Ed.), Coleman, Hanegbi, Hart, Jogarajan, Krever, McLaren, Obst, Ting, Principles of Taxation Law, 15th ed (Thomson Reuters, 2022). - cited throughout this Unit Guide as Sadiq'
  2. Workbook: LJ Nethercott, L. Gonzaga and K Devos, Australian Taxation Study Manual, Questions and Suggested Solutions (30th edn, Oxford University Press, 2020)
  3. Legislation: Barkoczy, Pinto and Sadiq, 2022 Fundamental Tax Legislation, Thomson Reuters

Unit Web Page:        The ACCG3020 homepage is at: ilearn.mq.edu.au.

You can directly access the Unit Guide, and the Assessment Guide, the current lecture outlines, Echo 360 recordings,

announcements related to the unit, library and other useful websites via the ACCG3020’s i-Learn site.

 
   

 

 

 

Delivery Format and Other Details:

Lectures and Tutorials

The main means of presentation is by way of 13 two-hour lectures and 12 weekly tutorials of one hour duration. Lectures cover the basic material as outlined in the listed topics, as well as noting where each topic fits into the overall framework of the tax regime. The Lectures will be recorded on Echo 360 on a weekly basis.

Each week’s lecture outlines (PowerPoint slides) will also be posted on i-Learn prior to the formal lecture. They are not intended to be a substitute for lecture attendance. These outlines are only core notes and they are NOT intended to be treated as stand alone resources nor in place of lecture attendance. They are provided for your convenience. You cannot rely on these outlines to the exclusion of the allocated reading tasks for each week. You are expected to prepare your own notes from the prescribed reading set out in this unit's Assessment Guide to supplement the material set out in the lecture outlines.

The Tutorial sessions will be run online via Zoom as well as in face-to-face modes. The Tutorial questions for each week's class are also to be found in the unit's Assessment Guide. The tutorial questions have been designed to provide a practical application of the principles discussed in lectures. Tutorials will involve an analysis and discussion of preset questions based on the previous week’s lecture. They therefore complement and consolidate the topics covered in lectures. It is essential that adequate preparation be undertaken BEFORE each tutorial in order for the full benefit to be gained.

Attendance and participation in Tutorials are compulsory. Students - (including those enrolled in the i-Lecture stream) - will therefore be expected to attend and to participate in tutorials through, contributions to class discussions, formal presentations during tutorials, and showing an interest in other learning activities conducted by the Tutor.

Classes

    • The timetable for classes can be found on the University web site at: http://www.timetables.mq.edu.au/
    • Students can only change their allocated lecture or tutorial class in the first three (3) weeks through the e- Student system and only when there is a vacancy in that class.
    • If a student changes classes in the first three weeks, it is their responsibility to inform both their old tutor and their new Tutor. Failure to inform Tutors about the change in class allocation may result in a student not obtaining all the class marks for which all students are eligible.
    • You must attend your official tutorial class. Tutors will keep attendance records and you can only attend class or sit for the class presentation in your registered tutorial. Please ensure that you know your Tutor’s name and your tutorial class number .
    • Students enrolled in the i-Lecture stream are expected to attend the weekly tutorials and to participate in completing the "Assessed Coursework" components of this unit.
    • In cases where classes have been missed because of of illness or misadventure, it is up to the student to provide relevant documentation - (such as medical certificates or other reports) - explaining the reasons for their absence. The documentation must be lodged with BESS in accordance with the special consideration application procedure.
    • Students are expected to arrive on time and not to leave until the class ends.
    • If you have a recurring problem that makes you late, or compels you to leave early, have the courtesy to discuss this with your lecturer/tutor.
    • Students who disturb or disrupt in lectures and tutorial class will be asked to leave.

Prizes

 

 

 

 

 

 

Recommended Readings:

RECOMMENDED TEXTBOOKS

 

The acquisitions of the following are OPTIONAL. Students should consult the lecturer before making a purchase from books in this category.

Any of the following books may also be of use:

      • Woellner, Barkoczy, Murphy, Evans and Pinto, Australian Taxation Law (31st edn, Oxford University Press 2021)
      • Sadiq, Australian Taxation Law Cases (Thomson Reuters, 2022)
      • S Barkoczy, Australian Tax Casebook (15th edn, Oxford University Press, 2020).
      • Hodgson, Mortimer, and Butler, Tax Questions & Answers 2020 (Thomson Reuters, 2020).

Note: It is pointless having an out of date edition of the textbook. REFERENCE MATERIALS

 

While references to the prescribed weekly readings for this Unit are set from standard textbooks on taxation, references will also be made during the lectures to reported cases, rulings and other pronouncements issued by the Australian Taxation Office.

 

1. Commentaries: Both CCH and Thomson Reuters provide an on-line service covering a commentary on the relevant legislation, rulings and reports and other pronouncements of the Australian Taxation Office. These on-line tax

services are also available in multi-volume loose-leaf formats.

The on-line service of CCH can be accessed from the University Library’s database.

1. Useful Internet sites: Internet resources are a very valuable source of information relating to current developments on taxation issues. Some useful sites include:

1. ATO website: The Australian Taxation Office Internet site www.ato.gov.au . This site offers access to:

  • all ATO rulings and other pronouncements
  • current ATO publications
  • legislation
  • Australian and selected overseas tax case law
  • all ATO forms

1. Access to other internet sites which are relevant to tax issues can be located at:

 

  • 2022 Australian Master Tax Guide (CCH), 70th ed

1. Professional Reference Texts

contains relevant information including policy submissions canvassing tax reform.

 

 

 

 

For a weekly update on tax developments, students are advised to consult either CCH Tax Week or the Thomson Reuters Weekly Tax

Bulletin; the former can be accessed from the University Library’s database

  • Australian Tax Review
  • Australian Tax Forum, a journal of taxation policy, law and reform
  • Taxation in Australia
  • The Tax Specialist
  • The Australian Accountant
  • The Journal of Australian Taxation
  • The Chartered Accountant in Australia
  • The Australian Law Journal, it contains a section called "Revenue Notes" which features articles on important decisions.

 

1. Update on Tax Developments

Articles in legal and accounting journals are invaluable aids in keeping up to date with developments in tax law and practice.These

include:

1.   Journals

  • 2022 Australian Tax Handbook (Thomson Reuters)
  • 2022 Australian Master GST Guide (CCH)
  • 2022 Australian GST Handbook (Thomson Reuters)
 
   

 

 

Unit Schedule

LECTURE TOPICS AND DATES IN THIS UNIT

 

 

Week

Commencing

Lecture

Topic

 

21 February 2022

 

1

Study Skills for Tax Law

Operating Framework of the Australian Tax System:

  • Constitutional basis of taxation - relationship between the Commonwealth and the States;
  • Sources of income tax law;
  • Structure of the income tax legislation and how the parts fit together

 

Tax Administration: In brief

  • operation and enforcement of the Act and ancillary legislation;
  • the assessment process; appeal procedures;
  • rights and remedies of the Commissioner and taxpayer;
  • tax agents.

 

28 February 2022

 

2

The concept of income:

  • distinction between "income" and “capital";
  • exempt income;
  • residence and source; derivation of income

Calculation of Tax Payable:

  • Formulas, Rates & Offsets

 

Tax collection mechanisms

 

7 March 2022

 

3

The Income Concept: Incidental Issues

  • Income from Personal Services and Employment
  • Income and Business
  • Fruit and tree analysis
  • Income from Property Interest

 

14 March 2022

 

4

Assessable Deductions:

  • The general provision
  • Substantiation of expenses

 

21 March 2022

 

5

Assessable Deductions II:

  • Specific Provisions related to deductions
  • ON LINE QUIZ-DUE MID WEEK 5

 

 

Important Notice: The Online Quiz is due on Friday 25 March 2021 on or before 12 noon.

The online quiz opens at 12:00 noon on Thursday, 24 March 2022 and

closes at 12:00 noon on Friday, 25 March 2021.

 

 

 

 

Week Commencing

 

Lecture

 

Topic

 

28 March 2022

 

6

Statutory Income:

  • Taxation of capital gains and losses;
  • calculation of capital gains and losses;
  • inter-relationship    with    the    income    taxing provisions

 

Revision:

How Topics 1-6 fit together

 

4 April 2022

 

7

Other key Taxes such as Fringe Benefits Tax and Goods and Services Tax

  • what is exempt and non-exempt
  • GST- goods and services which are subject to a 10% levy

 

 

Mid-Session Break 11 April 2022 to 25 April 2022

Anzac Day 25 April 2022

 

2 May 2022

 

8

Principles of Compensation

  • Compensation for losses incurred by individuals
  • Compensation for business losses
  • Composite claims
  • Reimbursement of previously deducted expenses

 

Important Notice:

 

The Take-home Assignment (Case Study)  will be posted on iLearn at 17:00 pm Wednesday, 11 May 2022. The written responses must be submitted at 17:00 on Monday, 16 May 2022 via Turn-it-in on this unit’s iLearn facility.

 

 

9 May 2022

 

9

 

Timing Issues:

Tax accounting-derivation, cash v accruals, dividends, prepaid

 

Trading Stock:

Accounting method, ‘on hand’, work in progress, lost or destroyed stock, value of closing stock, spare parts and consumables, ‘arm’s length’, small business entities (SBE)

 

16 May 2022

 

10

BUSINESS ENTITIES I:

Sole Traders and Taxation of Partnerships

 

Superannuation

  • Concessional Contribution
  • Non-concessional Contribution
  • Low-income superannuation tax offsets
  • Taxation of superannuation benefits paid to members, lump sum
  • Taxation of benefits paid as income stream
  • Entitlements to receive death benefit and taxation of a death benefit

 

 

Week Commencing

 

Lecture

 

Topic

 

 

23 May 2022

 

 

11

 

ENTITIES II:

Taxation of Companies and Shareholders:

  • Issues related to corporate taxation
  • Dividends and shares, imputation system

 

 

30 May 2022

 

 

12

 

Trust Estates and Beneficiaries; minors

  • The tax and its applications in practice

 

International Taxation

  • Taxation of foreign source income of residents
  • Taxation of foreign residents-withholding tax, CGT
  • Investment overseas-companies and trusts
  • Foreign Tax Offsets and Losses
  • Transfer pricing, treaties, exchange agreements

 

 

 

 

6 June 2022

 

 

13

 

Tax Administration

Tax Lodgments, Assessments, Collection of Tax, Penalties, objections, reviews and appeals.

 

Anti-Avoidance   Legislation   and   the   Ethics   of   Tax Practice

  • Alienation of Personal Services Income;
  • Basic techniques of tax planning;
  • Ethical issues in tax practice

 

 

 

Revision:

How the entire course fits together

 

FINAL EXAMINATION PERIOD

6-24 June 2022

TBA

SUPPLEMENTARY EXAM PERIOD

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Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/student-conduct

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Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

The Writing Centre

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The Library provides online and face to face support to help you find and use relevant information resources. 

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Changes since First Published

Date Description
11/02/2022 information on delivery and resources were not previously included

Unit information based on version 2022.03 of the Handbook