Assessment - Problem Solving Question

Task -

Question 1 - Henry, a tax resident of Australia, was a famous jazz singer who passed away recently. Jack, a publisher was interested on Henry's life story and wanted to write a bibliography on Henry's life. Jack approached Henry's wife, Jenny (also a tax resident of Australia) to interview her on Henry's life story. She was offered $1 million for Henry story. Jenny was paid $500,000 deposit before the interview. After the interview she was paid the balance of the money.

Would the tax consequences have changed if Jenny had written the book herself?

Required - Advise Jenny on her tax consequences. You must cite the relevant case law and legislation

Question 2 - Sally is a single parent who is employed as an accountant. In order to attend employment she must put her young child in a day-care centre. Sally considers the expense is necessarily incurred in gaining her income. Would she be entitled to a tax deduction under s8-1?

Required - Advise Sally of her tax consequences

Question 3 - Joseph conducts an plumbing business. With a view to future retirement he purchases 20ha of land and plants native wildflowers that he plans to harvest and sell. As a preliminary measure he arranges to clear the land and plough in compost. It is expected that the first commercial crop will not be harvested for five years. He incurs interest on a loan to finance the land purchase, land preparation costs, fertilizer costs and costs of acquiring native seedlings.

Advise Joseph of the tax consequences of the venture. You must cite the relevant case law and legislation.

Rationale - This assessment task covers topics from week 1 to 10 and has been designed to ensure that you are engaging with the subject content on a regular basis. :

This assignment has been designed to assess your ability to

• be able to identify and explain the rules of law relating to taxation law topics covered in the subject
• be able demonstrate a capacity to engage in legal research
• be able to use legal research skills to apply the law to legal problems relating to taxation so as to reach a solution
• be able to analyse legal rules so as to differentiate between possible outcomes to the legal issues arising from novel fact situations.

Students should be able to identify and apply legislation and case law to the issues identified as well as demonstrate the ability to analyse the issues fully and discuss the application of taxation principles.

Attachment:- Assignment File.rar