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Tax Return Assignment
Task description: You are required to prepare a written report for the client described
in the scenario below, discussing the various issues that relate to the preparation of
their tax return. You are also required to prepare a calculation of the tax
payable/refundable. This assignment is to be completed individually.
Word limit: A concise and well organised report is expected.
Due date: Tuesday 11th May
Weighting: The assignment is weighted at 25% of your total mark for the unit.
Assessment criteria: As per the rubric on the last page of this document.
CLIENT INFORMATION:
General Facts:
Marie Monahan is employed as a teacher at Hobart Primary School; she is an
Australian tax resident. Marie has been working for the school since she graduated
from university. Marie is currently single and has no dependants.
Last year, Marie used the services of a registered tax agent ‘Tax Solutions’ in Sandy
Bay to complete her 2019/20 income tax return. After the tax return was finalised and
she received her notice of assessment determined that the consultant did not claim all
the deductions she was entitled to, and she has now approached you for assistance
with preparing her 2020/21 income tax return.
Marie has supplied you with the information set out below relating to her personal
income tax return for the year ended 30th June 2021. Because she is uncertain as to
which items are assessable or deductible, she has asked you to consider each item
to determine whether it is assessable or deductible. Marie wishes to minimise her
2020/21 taxable income wherever legally possible.
- Personal information
Full Name: Marie Monahan
Date of Birth: 5
th May 1985
Main occupation: Teacher
BFA391 Tax Return Assignment, Semester 1, 2021
2 - 2019/20 income tax return
On 20th October 2020, Marie received an invoice (dated 15 October 2020) for $440
from ‘Tax Solutions’ for their work in completing her 2019/20 income tax return. Marie
paid the invoice on 22 October 2020.
Marie’s 2019/20 notice of assessment indicates she had additional income tax payable
of $910. As Marie paid this amount late (on 4 June 2021), the Australian Taxation
Office imposed $158 in general interest charges (GIC), which Marie also paid on 4th
June 2020. - Salary and Wages
For the entire 2020/21 income year, Marie worked as an employee teacher for Hobart
Primary School.
Marie was provided with a PAYG Payment Summary from the school for the period
1st July 2020 to 30th June 2021, which included the following information:
Name of Payer: Hobart Primary School
Gross payments: $110,000
Allowances: – refer to note (a) $4,000
PAYG tax withheld: $31,700
Note:
(a) The allowance (of $4,000) is made of up of the following:
• a car travel allowance of $1,500,
• a professional development allowance of $2,500 (to attend conferences,
seminars etc).
BFA391 Tax Return Assignment, Semester 1, 2021
3 - Interest
Marie maintains several bank accounts. She provided you with the following
information in relation to interest earned during the 2020/21 income year:
• ANZ transaction account (gross interest) – refer to note (a) $5
• CBA savings account (net interest) – refer to note (b) $265
• Westpac term deposit (gross interest) – refer to note (c) $830
Notes:
(a) The ANZ bank account is Marie’s ordinary transaction account and is where her
monthly pay from the school is deposited.
(b) When Marie opened her CBA savings account on 1st July 2020, she forgot to
provide the bank with her tax file number (TFN). The bank, therefore, deducted
47% TFN withholding tax ($235) in respect of the interest earned. The net
amount of $265 was credited to her account during the 2020/21 income year.
(c) On 30th July 2020, Marie deposited $30,000 in a six-month term deposit with
Westpac, which had an interest rate of 3% p.a. On the maturity of the term deposit
on 30th January 2021, Marie chose to rollover the interest of $450 together with
the principal of $30,000 for a further six months, with a new maturity date of 30th
July 2021. Marie estimates that approximately $380 in interest would be accruing
on this new term deposit from 30th January 2020 to 30th June 2021.
BFA391 Tax Return Assignment, Semester 1, 2021
4 - Share Investments – Australian
Marie owns shares in several Australian listed public companies. During the 2020/21
income year, she received the following dividend income:
Company Name Date paid Cash received (franking percentage)
Cochlear 2nd October 2020 $960 (fully franked)
BHP 13th October 2020 $1,400 (60% franked)
Qantas 2nd April 2021 $1,080 (unfranked)
In the case of all dividends received, the company tax rate was 30%.
In respect of the Cochlear dividend, Marie elected to take part in the company’s
dividend reinvestment scheme. This meant that instead of receiving the cash dividend
of $960, on 2nd October 2020, she was issued with 8 additional Cochlear shares
valued at $120 each.
- Other receipts
During the 2020/21 income year, Marie also received the following:
(a) A $2,500 voluntary payment for her work as the treasurer of a not for profit
organisation, received on 2 June 2021.
(b) Marie travels interstate occasionally as her principal nominated her to serve on a
national working group which compares school curricula and implements an
agenda for change and improvements.
Although her employer pays for the flights, Marie is a member of the Velocity
Frequent Flyer program. As a result of her membership, she accrues Velocity
points whenever she travels with the relevant airline. For the 2020/21 year, Marie
has accumulated 80,000 Velocity points, which could be used for $1,500 worth
of flights.
(c) As a result of an error made by the school payroll officer, on 20th June 2021,
Marie received a $300 allowance that she is not entitled to. Her employer sent
her a letter on 29th June requiring repayment of the allowance, and Marie has
authorised her employer to deduct the funds from her first pay of the 2021/22 tax
year.
BFA391 Tax Return Assignment, Semester 1, 2021
5 - Expenses
During the 2020/21 income year Marie incurred the expenses listed below, and
she believes that some are related to her employment as a teacher. Marie has
advised you that she has receipts for all the expenses listed.
Education Conference (for professional development
purposes)
During the 2020/21 income year, Marie paid for and
attended an education conference. She considers this to
be an important aspect of her ongoing development as an
effective teacher. The conference cost $1,000 to attend.
$1,000
Travel expenses
The conference was held on a day when Marie would
normally be teaching. She drove to school on the morning
of the conference to complete some teaching
administration work and then she drove 10 kilometres to
the conference venue. At the end of the conference, she
did not return to her workplace and instead drove directly
home (15 kilometres).
Marie did not keep a logbook for any of her car travel in
2020/21.
$?
Public transport
During 2020/21, Marie discovered that her car required an
engine rebuild and, consequently, she did not have access
to her car for four weeks. During this time, she travelled to
and from work by bus. She kept a record of her bus fares
for the 2020/21 and they were $74 in total.
$74
DVD
Marie teaches history and she purchased The Civil War on
DVD to use in her classes.
$405
Union membership fees
$1,100
BFA391 Tax Return Assignment, Semester 1, 2021
6
Marie is a member of the Australian Education Union and
she pays her membership fees each month by direct debit.
Shoes
Marie purchased a pair of brown leather shoes on 1 July
2020 that she wears exclusively to work. She is keen to
claim a deduction for this expense as she considers that it
is the type of footwear that is appropriate for the workplace
and that there is no private use benefit.
$250
BFA391 Tax Return Assignment, Semester 1, 2021
7
Assessment Rubric for Assignment 1
(25% of final grade)
Criteria HD (High Distinction) DN (Distinction)
70% – 79%
CR (Credit)
60% – 69%
PP (Pass)
50% – 59%
NN (Fail)
90% – 100% 80% – 89% 0% – 49%
Locate and identify
relevant legislation,
cases, rulings, and
principles of taxation law.
AND
Analyse, interpret, and
explain relevant
legislation, cases, rulings
and principles
underpinning taxation law.
(weight = 30%)
Locates, identifies, and explains
numerous relevant sources and
principles of taxation law applicable
to the scenario described.
Locates, identifies, and explains many relevant
sources and principles of taxation law applicable to
the scenario described.
Locates, identifies,
and explains some
relevant sources and
principles of taxation
law applicable to the
scenario described.
Locates, identifies, and
explains limited relevant
sources and principles of
taxation law applicable
to the scenario
described.
Analyse real life
scenarios, identify the
issues involved and
critically apply taxation
law to reach a conclusion.
(weight = 20%)
Identifies all issues in scenario.
Presents a logical, informed, and
reasoned argument that critically
and correctly applies taxation law
to all identified issues and reaches
conclusions.
Identifies most issues in
scenario. Presents a
logical, informed, and
reasoned argument that
critically and correctly
applies taxation law to
identified issues and
reaches conclusions.
Identifies many
issues in scenario.
Presents a logical
argument that
correctly applies
taxation law to
identified issues and
reaches conclusions.
Identifies more than
half of the issues in
scenario. Presents
an argument that
correctly applies
taxation law to
identified issues.
Limited issues in
scenario are identified.
Attempts an argument
using limited references
to taxation law.
Calculate components of
taxable income and tax
liability/refund.
(weight = 30%)
90% – 100% of
calculations
correct.
80% – 89% of
calculations
correct.
70% – 79% of calculations
correct.
60% – 69% of
calculations correct.
50% – 59% of
calculations correct.
0% – 49% of calculations
correct.
Communicate
independently with a
client or superior in clear
and coherent English in
the form of a written
report.
(weight = 10%)
Logical, concise, well developed report following structure
suggested by assignment instructions and using legal writing
conventions.
Reasonably well developed report following
structure listed in assignment instructions and
using legal writing conventions.
Report partially follows
structure specified in
assignment instructions.
Adheres to English conventions making report easy to read. Mostly adheres to English conventions making
report reasonably easy to read.
Occasionally adheres to
English conventions –
report difficult to read.
BFA391 Tax Return Assignment, Semester 1, 2021
8
Justify calculations and
support arguments by
including legislation, case
law and rulings.
AND
Apply legal referencing
conventions.
(weight = 10%)
Acknowledges all sources and
referencing is accurate and
consistent.
Acknowledges all sources
and referencing is mostly
accurate and consistent.
Acknowledges most
sources and
referencing is mostly
accurate and
consistent.
Sample Solution
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