Taxation Subject Outline PDF

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subject outline of the Spring 2020 ...

Description

SUBJECT OUTLINE 77938 Introduction to Taxation Law Course area

UTS: Law

Delivery

Spring 2020; standard mode; City

Credit points 6cp Requisite(s)

((22 Credit Points in spk(s): C07122 Graduate Diploma in Legal Studies OR 22 Credit Points in spk(s): C04264 Master of Legal Studies)) OR 78101c Postgraduate Legal Research OR ((94 Credit Points in spk(s): C04236 Juris Doctor OR 142 Credit Points in spk(s): C04250 Juris Doctor Master of Business Administration OR 94 Credit Points in spk(s): C04363 Juris Doctor Master of Intellectual Property OR 94 Credit Points in spk(s): C04364 Juris Doctor Graduate Certificate in Trade Mark Law and Practice) AND 70106c Principles of Public International Law AND 70107c Principles of Company Law) OR (94 Credit Points in spk(s): C04320 Juris Doctor Graduate Certificate in Professional Legal Practice AND 70107 Principles of Company Law) These requisites may not apply to students in certain courses. See access conditions.

Result type

Grade and marks

Subject coordinator Dilu Ulluwishewa Email: [email protected]

Teaching staff Dilu Ulluwishewa Email: [email protected]

Subject description This subject acquaints students with Australian taxation law in a practical business environment. The focus of the syllabus is on the application of tax law concepts in a professional accounting setting. It aims to develop students' conceptual and analytical skills and an appreciation of the Australian tax system. It provides a general analysis of the current tax system and consideration of the many changes it is presently undergoing with an emphasis on the implications for the commercial world. The subject looks at the Income Tax Assessment Act, the Tax Law Reform Project and the New Tax System. Particular concepts to be considered include: taxable income, income, deductions, capital gains tax, trusts, partnerships, companies and shareholders, tax accounting, tax planning and anti-avoidance provisions, fringe benefits tax and goods and services tax.

Subject learning objectives (SLOs) Upon successful completion of this subject students should be able to: 1. Understand the concept of taxable income (including assessable income, deductions, tax offsets and tax payable), the taxation of companies, trusts and partnerships and the administration of the Australian taxation system; 2. Demonstrate a knowledge of Capital Gains Tax, taxation planning, Fringe Benefits Tax and Goods and Services Tax; 3. Communicate knowledge of taxation law both in writing and orally clearly and be open to critical analysis of own ideas and others; 4. Interpret relevant taxation legislation and rules accurately and apply to problem scenarios.

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Course intended learning outcomes (CILOs) This subject also contributes specifically to the development of the following graduate attributes which reflect the course intended learning outcomes: Legal Knowledge An advanced and integrated understanding of a complex body of legal knowledge, including the Australian legal system, social justice, cultural and international contexts, the principles and values of ethical practice, and contemporary developments in law and its professional practice (1.0) Ethics and Professional Responsibility An advanced and integrated capacity to value and promote honesty, integrity, accountability, public service and ethical standards, including an understanding of approaches to ethical decision-making, the rules of professional responsibility, an ability to reflect upon and respond to ethical challenges in practice, and a developing ability to engage in the profession of law and to exercise professional judgment (2.0) Critical Analysis and Evaluation A capacity to think critically, strategically and creatively including an ability to identify and articulate complex legal issues, apply reasoning and research to generate appropriate theoretical and practical responses, and demonstrate sophisticated cognitive and creative skills in approaching complex legal issues and generating appropriate responses (3.0) Communication and Collaboration Effective and appropriate professional communication skills, including highly effective use of the English language, an ability to inform, analyse, report and persuade using an appropriate medium and message and an ability to respond appropriately (5.0) Self-Management A high level of autonomy, accountability and professionalism, the ability to implement appropriate self-management and lifelong learning strategies, including initiating self-directed work and learning, judgment and responsibility, self-assessment of skills, personal wellbeing and appropriate use of feedback, and a capacity to adapt to and embrace change (6.0)

Teaching and learning strategies Strategy 1: Preparing for professional practice in taxation law By completing readings and preparatory work prior to each class, students establish a strong foundational understanding of key issues and controversies of taxation law. Preparation allows students to better engage with complex content. As part of preparation, students are required to respond to questions prior to class. In approaching the questions the workbook and textbook may be used as a starting point in conjunction with lectures, together with cases, the legislation itself, and all other research materials to which you have access. You, as students, need to develop the skill of identifying the issues in the problems and researching the materials widely in order to find a solution. Sometimes this will involve reading cases, sometimes close examination of the legislation and sometimes researching specialist areas using the resources on the Internet or within the library services. More often than not, it will involve all of these resources. Online learning and preparation occurs from Week 1 onwards. Online materials will include précis outlining sources of law, research skills in accessing tax materials, jurisdictional issues such as residence and source and constitutional power to tax. Strategy 2: Developing critical analysis through research of case law, tax rules and legislation Students undertake research of relevant legislation, tax rules and case law. Research is synthesised and summarised by students and applied in practically-oriented hypotheticals and problems. Essential to student learning is mastery of literacy and numeracy skills, allowing students to analyse facts, explain assumptions and determining taxpayer liability. This will also involve a development of students’ ability to apply law alongside mathematical calculation to produce reliable numerical and legal outcomes. Strategy 3: Active learning through problem solving To effectively grasp the core concepts of taxation law, students are encouraged to actively engage with problems throughout the subject. Active learning is the only way to test and amend understanding of tax rules, case law and 20/07/2020 (Spring 2020)

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legislation, based on regular feedback during class. By responding to preparatory questions and completing assessable problem questions, students are able to actively learn how to reliably calculate tax liability for hypothetical clients. This process may involve determining assessable income, and understanding how this is determined, as well as specific and general deductions. Other core concepts are tested and mastered by applying knowledge through problem solving. Strategy 4: Class participation Students will be expected to attend class. Students should prepare answers to the homework questions and be prepared to give considered answers in class when called upon to do so. Students may like to work with buddies or groups when researching the homework, but students must take responsibility for the final answers. Students are expected to read texts, legislation, cases and articles available in the library, on the internet and in current journals. A workbook is included herein. Students will be responsible for ensuring that the booklet is brought to every class. Students should try to answer the problems before their lectures and then engage in discussion when the answers are presented. Students receive ongoing feedback on their understanding of core concepts by active participation in class discussion, which involves engaging with the teacher and peers. Students are encouraged to ask questions in lectures and to bring their problems to their lecturers in class. This aids and stimulates the whole class. Strategy 5: Feedback to encourage critical reflection and self-improvement Feedback is provided throughout the session by teachers and peers. Feedback comes in a number of forms, including responses to completed preparatory questions and discussion during class. Students are also encouraged to deepen their understanding of subject content by posing questions to teachers and peers throughout the session. Formal feedback is provided by teachers for each assessment. Informal feedback is provided via in class and online discussion with peers and the teacher.

Content (topics) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Introduction to the Taxation System Calculation of Income Tax Residence and Source Assessable Income (Ordinary Income and Statutory Income) Capital Gains Tax Deductions (General and Specific) Trading Stock Tax Accounting Small Business Entity System Taxation of Partnerships Taxation of Trusts Taxation of Companies and Shareholders Taxation Administration Tax Planning and Anti-Avoidance Fringe Benefits Tax Goods and Services Tax

Program Week/Session

Dates

Description

Wk 1

27-31 Jul

PLEASE LOGIN to CANVAS for: Welcome Subject Outline & Reading Guide Podcasts & Wk 1 Materials Students should also obtain a copy of the Prescribed Textbook. Notes: There are no classes this week.

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Wk 2 beginning

3 Aug

Overview of the Australian Taxation System Sources of Taxation Law The Tax Pyramid and Key Legislation Key Phrases

Wk 3 beginning

10 Aug

Residence and Source Tax Rates, Offsets and PAYG with simple examples

Wk 4 beginning

17 Aug

(Part 1) Types of Income, Ordinary and Statutory Income from Personal Exertion Income from Property Income from Business Compensation and Periodic Receipts

Wk 5 beginning

24 Aug

(Part 2) Types of Income, Ordinary and Statutory Income from Personal Exertion Income from Property Income from Business Compensation and Periodic Receipts

Wk 6 beginning

31 Aug

Capital Gains Tax (CGT)

Wk 7 beginning

7 Sep

Fringe Benefits Tax (FBT) Deductions (Part 1) Notes: Assessment 1 Due Date

14-20 Sep

Midsession Stuvac

Wk 8 beginning

21 Sep

Deductions (Part 2)

Wk 9 beginning

28 Sep

Tax Accounting, Trading Stock & SBE's

Wk 10 beginning

6 Oct

Business Entities, Sole Traders & Partnerships Notes: Assessment 2 Due Date

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Wk 11 beginning

12 Oct

Trusts, Companies & Shareholders Notes:

Wk 12 beginning

19 Oct

Goods and Services Tax (GST) Tax Administration, Planning and Anti-Avoidance

26-30 Oct

FINAL STUVAC

31 Oct- 14 Nov

FORMAL EXAM PERIOD Note: Assessment 3 Final Exam will be held during this period.

In the above table the "Description" column contains the topic(s) covered in the first part of each lecture and the "Notes" column contains the content for the second half including lecture topics, assessment and interactive questions.

Assessment Assessment task 1: Mid-session Online Multiple Choice Test Objective(s): This task addresses the following subject learning objectives: 1, 2 and 4 This task contributes specifically to the development of the following graduate attributes: 1.0, 2.0, 3.0 and 6.0 Weight:

10%

Task:

Midsession Multiple Choice Online Test The test will be made up of 20 multiple-choice questions. Each question is worth 0.5 marks and students will need to select one correct answer a, b , c or d for each question. The test will cover material in topics up to and including the end of Week 7. It is an open book test. The test will be available online via Canvas between 4pm on Friday 11 September 2020 until 11:59pm on Sunday 13 September. Students can complete the test online at any time during this period. The test will not be available outside of this period. Students will have 45 minutes to complete the test online once commenced.

Length:

20 multiple choice questions, 45 minutes (total time)

Due:

The test will be available online via Canvas between 4pm on Friday 11 September 2020 until 11:59pm on Sunday 13 September 2020. Students can complete the test online at any time during this period. Students will have 45 minutes to complete the test online once commenced.

Criteria:

Critical thinking under time-restricted conditions (SLO 1, 2, 4; GA 1, 3, 6) Decision making in an efficient manner (SLO 1, 2, 4; GA 1, 2, 3, 6) Demonstrate knowledge and a sound understanding of key tax law concepts (SLO 1, 2, 4; GA 1, 3)

Assessment task 2: Problem Solving Research Assignment

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Objective(s): This task addresses the following subject learning objectives: 1, 2, 3 and 4 This task contributes specifically to the development of the following graduate attributes: 1.0, 3.0 and 5.0 Weight:

40%

Task:

You will be required to submit an answer to a problem based assignment which requires students to critically apply relevant tax rules. The topics covered in class and designated materials etc will provide useful guidance. However, this is a research assignment and is designed to help students develop skills in finding and identifying relevant tax rules and applying the relevant rules to the problem. Students will need to refer to relevant legislation, case law and tax rulings to support their answer.

Length:

1500 words (not including references) maximum word limit.

Due:

The assignment question will be made available on CANVAS on Friday 25 September 2020. The assignment must be submitted by 6pm on Friday 9 October 2020 online via Turnitin on CANVAS. Late Assignments: Any assignment submitted after the due time on the due date may be penalised by way of loss of marks (five per cent (5%) of the marks for the assessment task will be deducted per day for assessment tasks submitted after the due date, including Saturdays, Sundays and public holidays). For assessment tasks submitted after the due date and time when the following day is a week-end or public holiday, the date of receipt will be deemed to be the first business day following the week-end or public holiday.

Criteria:

Comprehension of the task (identifying relevant issues and demonstrating understanding of the task. Students may need to undertake independent research to understand the issues involved which requires self-management) (SLO 1, 2; GA 1, 3) Identification, interpretation and application of the relevant legislation, case law and tax rulings (SLO 1, 2, 4; GA 1) Critical analysis and development of arguments (identify, comprehend and evaluate relevant legal and factual issues as applied to the problem, ability to determine and assess strong and weak arguments and arrive at a reasoned conclusion.) (SLO 3, 4; GA 3) Presentation / written expression (including correct spelling and grammar and correct referencing) (SLO 3; GA 5)

Assessment task 3: Final Examination Objective(s): This task addresses the following subject learning objectives: 1, 2, 3 and 4 This task contributes specifically to the development of the following graduate attributes: 1.0, 3.0 and 5.0 Weight:

50%

Task:

Students are required to complete a final exam held during the university exam period. The Exam is Open-Book. Students may bring any relevant printed or written materials. Calculators may be used. More detail on the contents of the exam will be provided in the last few weeks of session. The final exam requires students to demonstrate that they can apply relevant tax rules to solve problems for clients. This will require them to not only demonstrate the understanding of the content of the subject but also demonstrate their ability to apply their understanding of tax law to solve tax problems they

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may encounter in future commercial practice. Students will need to undertake independent study and preparation prior to the exam which may require independent research to understand issues commonly arising in tax problems. Length:

2,000 words

Due:

UTS Exam Period

Criteria:

Communicating assumptions and arguments regarding tax liability (SLO 1, 2, 3; GA 5) Determining accurate calculations of taxation liability (SLO 1, 2, 4: GA 1) Reflecting an understanding of fringe benefits tax, basic principles of GST and the impact of taxation on different business structures (SLO 1, 2; GA 1) Critically analysing economic, social and legal issues which impact the calculation of taxation (SLO 3; GA 3)

Minimum requirements To obtain a pass in this subject, students must obtain a total of at least 50 marks from all components of the assessment.

Required texts Required Text: R H Woellner, S Barkoczy, S Murphy, C Evans and D Pinto, Australian Taxation Law 2020, Oxford University Press, South Melbourne, 30th edition Students are required to complete prescribed readings prior to each class. The prescribed readings are listed in the Reading Guide which is available on CANVAS. Required Legislation: Students are required to have an up to date (2020) version of the income tax legislation and should bring it to every class. Required legislation eitherCore Tax Legislation & Study Guide (Oxford University Press) (latest edition); or Fundamental Tax Legislation (Thomson Reuters) (latest edition) Cases, Rulings and additional statutory materials: Most cases can be accessed via the Lexis Advance Pacific database available on the UTS Library website: https://databases.lib.uts.edu.au/search_databases.py?subcategory_id=221 Tax rulings and other administrative materials are available on the ATO's legal database: https://www.ato.gov.au/law/#Law Statutory material is also available at the Federal Register of Legislation: https://www.legislation.gov.au/ ,and the AustLII website: http://www.austlii.edu.au/

Recommended texts Case Books: Stephen Barkoczy, Australian Tax Casebook, 14th ed., Oxford University Press, South Melbourne Australian Tax Analysis: Cases, Commentary, Commercial Applications and Questions, Coleman, Hart, et al, latest Edition, Thomson Reuters Australian Taxation Law Cases, Krever, Latest Edition Thomson Reuters Reference Books: Australian Tax Handbook (latest edition), Thomson Reuters Australian Master Tax Guide , Latest Edition Wolters Kluwer 20/07/2020 (Spring 2020)

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Foundations of Taxation Law (latest edition), Barkoczy, Oxford University Press Principles of Taxati...