Assessable income (Including Ordinary Income, Statutory Income and Capital Gains Tax)… 1 answer below »

THE UNIVERSITY OF ADELAIDE

ASSIGNMENT – 2016 SEMESTER 2

Each student must submit an assignment as part of the assessment for this course. The assignment can be submitted individually or in a group of up to five (5) team members.

The assignment forms
25% of the total assessment in the course.

The assignment must be no more than 2,000 words in content. A penalty, of a reduction in mark, may be imposed if this word limit is exceeded.

The assignment must be type written, a font size of not less than 12 must be used, and a word count must be shown at the end of the assignment. An assignment that does not have a word count shown may not be marked.

The assignment must be lodged no later than
4.00 pm on
Friday, 9 September2016. Students should ensure that a copy of the assignment is kept.

Please refer to the MyUni Group Sign-Up & Assignment Submission Instructions for detailed instructions as to how to sign-up to a group and for assignment submission.

Late submission of assignments is dealt with in the Course Profile.

A request for a re-mark of an assignment must be made within 10 business days of assignments being made available for collection. Requests made outside this time limit will not be considered.

Assessment criteria

1. The extent to which the assignment identifies relevant income tax issues and sets out sound reasoning in support of the discussion.

2. The extent to which the assignment demonstrates an understanding of relevant topics of the income tax law, including having references to relevant sections of the tax legislation, applicable case law and ATO administrative guidance.

3. Whether the assignment is easy to read and understand.

Assignment Question

You are to devise5multiple choice and/ormultiple selection
questions and solutions on the following topics that have been covered in first six weeks of the course:

1. Introduction and Income Tax Basics
2. International tax
3. Assessable income (Including Ordinary Income, Statutory Income and Capital Gains Tax)
4. Non-assessable income

Multiple choice questions consist of a stem and a set of options. The
stem is the beginning part of the item that presents the item as a problem to be solved, a question asked of the respondent, or an incomplete statement to be completed, as well as any other relevant information. The options are the possible answers that the can be chosen from, with the correct answer called the
key and the incorrect answers called
distractors. Only one answer can be correct. This contrasts with multiple selection items in which more than one answer may be correct.

You must briefly explain why you chose each question. Each question should take no longer than 5 minutes to complete.

Example Multiple Choice Questions

1. During the income year ended 30 June 2016, Karen received salary and wages of $20,000, rental income of $23,000, a net capital gain of $5,000 and a fringe benefit valued at $3,000. What is Karen’s ordinary income that is assessable for the year ended 30 June 2016?

1. $43,000

1. $48,000

1. $51,000

1. $28,000

1. $25,000

1. Which of the following statements is true?

1. Assessable income consists of ordinary income, statutory income and some non-assessable non-exempt income.

1. Non-assessable non-exempt income is not subject to tax but it does reduce tax losses.

1. Assessable income consists of ordinary income and statutory income only.

1. Statutory income includes all income according to ordinary concepts.

1. None of the above statements are true.

Example Multiple Selection Question

1. Which of the following are taxpayer entities?

1. Individuals

1. A trustee, but only in respect of some kinds of income of the trust

1. Partnership

1. Trust

1. Companies that are body corporate