BUSL320 SESSION 2 - 2015

EXAM PREPARATION GUIDELINES

PLEASE NOTE:
Important information about ALL assessment tasks in this unit can be
found on pages 9 16 of the units Assessment Guide.

OTHER MATTERS RELATING TO THE EXAM:

There are 15 multiple choice questions (worth 15 marks) - and 3 case study
questions (worth 40 marks). Candidates are expected to answer all questions. The
case study questions involve calculations and the provision of explanations, advice,
and tax structuring issues.

Each one of the Case Study question must be answered in a separate book.

Any tax rates that you will require for your calculations will be provided at the end
of the examination paper.

The questions in the Case Study section of the examination paper will also be
assessing your understanding of the interaction between the different provisions of
the tax legislation and how they are reconciled. You are therefore expected to have a
good understanding of the interaction between:

Deductions and GST;

Deductions and CGT;
FBT and GST;
FBT and income tax.

ESSENTIAL:
To be able to answer the questions effectively in this exam, students are expected to have
a STRONG UNDERSTANDING of:

The tax formula and how to apply it in working out simple tax calculations;

The mechanics of the objections and appeals process.

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PREPARATION:

Ensure that additional notes that you have prepared to supplement the information in
your Lecture power point slides are up to date;

Ensure that you have worked through and understood ALL the tutorial questions; as
well as the ATSM questions that have been provided at the end of each weeks PPT
Lecture slides on the topics to be examined.

OTHER:
The Library holds copies of past examination papers in the unit. Students are advised to
look at them to provide them with an idea of how the exam paper is structured

CONSULTATION TIMES:

We shall be providing extra hours for consultation to deal with exam inquiries.

The extra consultation times in the unit will be posted on iLearn towards the end of
next week.

I would encourage students who are unable to make it during the consultation times
to use the units General Discussion Forum. I would also encourage students to
respond to inquiries posted by their classmates on the forum.

TOPICS TO FOCUS ON FOR EXAM PREPARATION

THE TAX FORMULA:
Calculation of tax liability
CAPITAL GAINS TAX:
Calculation of liability (CGT Event A1 only)

DEDUCTIONS: Candidates are expected to have a comprehensive understanding of

how the deduction provisions (general and specific) work.
Particular attention should be given to the following:

Section 8-1: The concept of incurrence of expenditures and its effect on the
timing of the deductibility (e.g. - the treatment of provisions);
o The two positive limbs

The Specific Deduction provisions:

o Repairs and capital expenditures;
o Payments to associates;
o Bad Debts;
o Substantiation of car expenses: (How does this differ from the treatment
of car fringe benefits?);
o Depreciation: Balancing adjustments;
o Tax-related expenses.

GOODS AND SERVICES TAX:

Enterprise: meaning and scope;

Registration and its significance;
Types of supply and their tax consequences;
Calculations: GST payable; input tax credit entitlement;
Tax invoices;
Miscellaneous: adjustment events and adjustment notes, deposits
Reconciliation of GST and provisions dealing with the deductibility of expenses.

ENTITIES:
Flow through entities: What are they?
What does this mean?

PARTNERSHIPS:

Tax treatment of partnership net income and losses at the entity level and the
individual partner level.

TRUSTS:

The incidence of tax: Who pays tax? The underlying concepts.

COMPANIES:

Changes in corporate control and the treatment of losses and bad debts;
Assessability of dividends: Dividends and the imputation system:
o The franking account;
o Scenarios involving individual shareholders.

FRINGE BENEFITS TAX:

Categories of benefits subject to FBT;

Miscellaneous exemptions;
Computation: cars, loans, and expense payment fringe benefits.
Reconciliation with the ITAA legislation (e.g.- the types of benefits assessed
as income under section 15-2 ITAA97);
Interaction between the FBT provisions and the GST provisions.

PLEASE NOTE: You must provide reasons that explain and support your answers.
Yes or No responses will not be sufficient. Failure to provide adequate
explanations will result in very low marks. Where you undertake calculations show
your workings in full.

REMEMBER: IT IS FACULTY POLICY THAT STUDENTS MUST PASS THE

FINAL EXAM TO PASS THE UNIT.
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