Swinburne University of Technology

Swinburne Business School

ACC30005 Taxation
Mid Semester Test Semester 1 2017

1. The Mid Semester Test will be held during your normal tutorial during the
week commencing 3 April 2017. The time allowed is one hour 45 minutes.

2. The test has three questions, from topics one four.

3. The marks for the test total 48 and is 30% of the units total assessment .

4. Suggested approaches to answering the test questions are outlined below.

Question one
This question comprises eight short answer questions on income. For each
question you are required to indicate whether the item is assessable income and
the relevant section(s) of the Income Tax Assessement Act. Then in a few
sentences justify your answer with reference to appropriate cases.

These are questions similar to those in question 6.1, chapter 6 from the text and
the additional questions in topics 1 and 2, they are usually one to three
sentence questions.
To answer them you may start with a one sentence direct answer to the
question, the item is or is not ordinary income and therefore assessable income
and then indicate the relevant section of the Income Tax Assessment Act and
cases. Finally give brief reasons to support your answer

An example
Question:
Discuss whether a tip received by a waiter from a customer is ordinary income
Suggested answer.
Tips are ordinary income and therefore assessable according to ITAA97 s6-5.
They are received as a reward for services rendered by the waiter to the
customer.
Its not relevant that they are not paid by the employer, they are paid by the
person receiving the service.
This is supported by the judgements in Moorhouse v Dooland and Brent v FCT.

Question two
This is a practical question. An employee receives seven employment related
benefits from his/her employer. You are required to identfify whether each benefit
is subject to the Fringe Benefit Tax or the Income Tax Assessment Act. If they
are subject to FBT you will be required to determine the tax value for each benefit
and how much fringe benefit tax will be paid. Your answer will include
calculations and you will need to make reference to appropriate sections in the
Fringe Benefit Tax Act and/or the Income Tax Assessment Act.

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Question three
This question requires you to indicate the capital gains tax implications for six
different situations and calculate the taxpayers Net Capital Gain or Net Capital Loss
for the year. You are required to refer to relevant sections of the Income Tax
Assessment Act 1997.

5. You may bring the following text books into the test and the final examination:
Principles of Taxation Law and
Australian Taxation Law Cases

6. Tabbing the texts

There must be no writing in any books taken into the test or
examination.However, you may underline and highlight where necessary and
use tabs.

Examples of acceptable tabbing are as follows:

Section
8-1

DEDUCTIONS
(STOCK)

REBATES
& CREDITS

NOTE: Amaximum of 3 words may be written on each tab.

The size of a tab should be as follows.

Good Luck

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