SUBJECT OUTLINE 79017 Taxation Law Subject coordinator Dilu Ulluwishewa Email: [email protected] Teaching staff Dilu Ulluwishewa Email: [email protected] Cyrus Thistleton Email: [email protected] Subject description This subject 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. The course looks at the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997, the Tax Law Reform Project and the New Tax System. Particular concepts to be considered include income and capital, assessable income, allowable deductions, capital gains tax, fringe benefits tax, goods and services tax, trusts, partnerships, tax accounting, tax planning and anti-avoidance provisions. Subject learning objectives (SLOs) Upon successful completion of this subject students should be able to: 1. Understand and determine the taxable income of taxpayers and correctly calculate the tax payable thereon. 2. Critically analyse and appreciate the economic, social and legal issues arising from differing taxes. 3. Understand the differences between: allowable and non-allowable deductions, different capital gains events and the effect of rebates on taxable income. 4. Identify the impact of taxation on different forms of business structures. 5. Communicate knowledge of taxation law clearly, both in writing and orally, and be open to critical analysis of own and others’ ideas. 6. Interpret relevant taxation legislation and rules accurately and apply to problem scenarios. 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 A coherent understanding of fundamental areas of legal knowledge including the Australian legal system, social justice, cultural and international contexts and the principles and values of ethical practice. (1.0) Critical Analysis and Evaluation A capacity to think critically, strategically and creatively including an ability to identify and articulate legal issues, apply reasoning and research, engage in critical analysis and make reasoned choices. (3.0) Communication and Collaboration Course area UTS: Law Delivery Summer 2017; City Credit points 6cp Result type Grade and marks 13/11/2017 (Summer 2017) © University of Technology Sydney Page 1 of 9Effective and appropriate 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) 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. Students receive ongoing feedback on their understanding of core concepts by active participation in class discussion, which involves engaging with the teacher and peers. 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 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 such as trading stock, accounting methods and timing, bad debts and capital gains tax calculations are tested and mastered by applying knowledge through problem solving. Strategy 4: 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) Introduction to the Taxation System Calculation of Income Tax Residence and Source Assessable Income (Ordinary Income and Statutory Income) Fringe Benefits Tax Goods and Services Tax Capital Gains Tax Deductions (General and Specific) Trading Stock Tax Accounting Small Business Entity System Sole Traders Taxation of Partnerships Taxation of Trusts & Superannuation Taxation of Companies and Shareholders Taxation Administration 13/11/2017 (Summer 2017) © University of Technology Sydney Page 2 of 9Tax Planning and Anti-Avoidance Program Week/Session Dates Description 1 20 Nov Orientation and Preparation Week Please LOGIN to UTSOnline for: Welcome Subject Outline and Pre-Class Reading materials Students should also obtain the Prescribed Texts and read Chapter 1 of the Prescribed Textbook. 2 28 Nov Lecture: Overview of the Australian Taxation System Sources of Taxation Law The Tax Pyramid and 97 Act. Key Phrases 3 5 Dec Lecture: Tax Rates, Offsets and PAYG with simple examples 4 12 Dec Lecture: Types of Income, Ordinary and Statutory Income from Personal Exertion Income from Property Income from Business 5 19 Dec Lecture: Fringe Benefits Tax (FBT) Introduction to A New Tax System (GST) 25-31 Dec Mid-session StuVac Notes: No classes 6 2 Jan Lecture: Capital Gains Tax (CGT) 7 9 Jan Lecture: Deductions 13/11/2017 (Summer 2017) © University of Technology Sydney Page 3 of 98 16 Jan Lecture: Deductions (cont) 9 23 Jan Lecture: Tax accounting, Trading Stock & SBE 10 30 Jan Lecture: Business Entities, Sole Traders & Partners Notes: 11 6 Feb Lecture: Trusts, Companies and Shareholders Notes: See Due date for Research Assignment (Assessment item 2) 12 13 Feb Lecture: Tax Administration Tax Planning Anti-Avoidance EXAM REVISION 19-23 Feb Final StuVac 24 Feb – 3 Mar Final assessment period Final Examination (Open Book) (Assessment item 3) will take place during the Centrally-Conducted Exam period Additional information Plagiarism Warning Where individual work is required for the purposes of assessment, the copying, unacknowledged use of, or reliance on the work of other individuals without acknowledgment is considered to be cheating / misconduct. The penalties imposed for cheating / misconduct or allowing work to be plagiarised are severe under the University rules and regulations. Plagiarism is one of the most serious crimes in the academic community – it indicates an attempt by someone to pass off the words and/or ideas of a
nother as their own. To take any but a few sequential words of another without acknowledgment is plagiarism and tantamount to cheating. Experience shows that one of the most common ways for plagiarism to occur is when students work together. The academic staff acknowledges that study groups are an efficient and beneficial method of learning – peer tuition is effective – but problems arise when it is extended into the assessment process. The Faculty expects – in fact, demands – all assignments submitted to be the work of the person who is credited with the mark. It can be an 13/11/2017 (Summer 2017) © University of Technology Sydney Page 4 of 9extremely fine line between discussion of an essay topic with another, and collaboration, but where comparisons of various students’ work indicate collaboration, this will be taken to be plagiarism and the Faculty policy will be invoked. Assessment Assessment task 1: Tutorial Participation Intent: Through participation in tutorials, students will benefit from ongoing peer and staff feedback in relation to their understanding of the designated material, presentation of ideas and arguments, and problem-solving skills. Objective(s): This task addresses the following subject learning objectives: 1, 2, 3, 4, 5 and 6 This task contributes specifically to the development of the following graduate attributes: 1.0, 3.0 and 5.0 Weight: 20% Task: This component comprises your participation in tutorials over the course of the session. Your mark will be based upon the quality, not quantity of your contributions. You will be rewarded for oral contributions which demonstrate that you have read the designated materials and reflected on the issues raised by these. It is important to note that the Tutorial Participation mark is not a mark for attendance: whilst you must attend class in order to participate, mere attendance does not score you marks – ‘participation’ means participation. Higher marks are scored by students who demonstrate their understanding of what they have read and reflected on before class, develop their contributions beyond merely describing what they have watched before class, and extend their own critical analysis of that material and the issues raised. Students may need to undertake independent research and reading to gain a better understanding of issues raised in the designated materials. Length: 1,000 words (nominal) Due: Ongoing throughout session Criteria: Coming to class prepared with relevant contributions which evidence prior reading/preparation (SLO 1, 2, 3; GA 1) Consistent high-quality participation in tutorial discussions of the problem exercises (SLO 1, 2, 3, 4, 5; GA 5) Consistent high quality contributions to small group discussion (SLO 1, 2, 3, 5; GA 5) The ability to verbally express ideas in an orderly, clear, logical and succinct manner (SLO 1, 2, 3, 5; GA 5) The ability to deal with questions, counter arguments and interjections, and promote and/or participate in discussion. (SLO 5; GA 3, 5) Displaying respect for other class members in your contributions and counter-arguments. (SLO 5; GA 5) Problem-solving skills and application of key legal principles. (SLO 6; GA 3) Assessment task 2: Research Assignment Objective(s): This task addresses the following subject learning objectives: 1, 2, 3, 4, 5 and 6 This task contributes specifically to the development of the following graduate attributes: 1.0, 3.0 and 5.0 13/11/2017 (Summer 2017) © University of Technology Sydney Page 5 of 9Weight: 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 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 footnotes and bibliography). This is a maximum word limit and no 10% leeway applies. Footnotes should only be used for references. Any content apart from references in the footnotes will not be marked. Due: The assignment question will be made available on UTSOnline on Monday 15 January (Week 8). The assignment must be submitted by 6pm on Monday 5 February (Week 11) both in hard copy to Law Reception (CB05B Level 3) and via Turnitin on UTSOnline. 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, 3, 4; GA 1, 3) Identification, interpretation and application of the relevant legislation, case law and tax rulings. (SLO 1, 2, 3, 4, 5; 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 2, 5 6; GA 3) Presentation / written expression (including correct spelling and grammar, and correct referencing). (SLO 5; GA 5) Assessment task 3: Final Examination (Open Book) Objective(s): This task addresses the following subject learning objectives: 1, 2, 3, 4, 5 and 6 This task contributes specifically to the development of the following graduate attributes: 1.0 and 3.0 Weight: 40% Task: Students are required to complete a two-hour final exam held during the University’s Centrally-Conducted 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 students 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 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 hours (plus 10 minutes reading time); 2,000 words (nominal) Due: UTS Exam Period Criteria: Communicating assumptions and arguments regarding tax liability. (SLO 1, 2, 4, 5; GA 5) 13/11/2017 (Summer 2017) © University of Technology Sydney Page 6 of 9Criteria: Communicating assumptions and arguments regarding tax liability. (SLO 1, 2, 4, 5; GA 5) Determining accurate calculations of taxation liability. (SLO 1, 3, 4, 6: 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, 3, 4, 6; GA 1) Critically analysing economic, social and legal issues which impact the calculation of taxation. (SLO 2; GA 3) Required texts R H Woellner, S Barkoczy, S Murphy, C Evans and D Pinto, Australian Taxation Law 2017, 27th ed., Oxford University Press, South Melbourne, 2017 Stephen Barkoczy, Australian Tax Casebook, 13th ed., Oxford University Press, South Melbourne, 2016 Recommended texts S Barkoczy, Core Tax Legislation and Study Guide 2017, 20th ed, Oxford University Press References Australian Tax Handbook 2017, Thomson Reuters Australian Master Tax Guide 2017, 55th Edition CCH Principles of Taxation Law 2017, Sadiq, Coleman et ors, Thomson Reuters, General Edition Tax Questions and Answers 2017, Fisher, Hodgson et ors, Thomson Reuters Australian Tax 2017, Paul Kenny, LexisNexis Case Books: Australian Tax Analysis: Cases, Commentary, Commercial Applications and Questions, Coleman, Hart, et al, latest Edition, Thomson Reuters Australian Tax Casebook, Barkoczy, Latest Edition, CCH Australian Taxation Law Cases, Krever, Latest Edition, Thomson Reuters Study Guides: Master Tax Examples, latest Edition CCH Successful Tax Study latest
edition, Obst, and Hanegbi, Thomson ATP Australian Taxation Study Manual: Questions and Suggested Solutions, Nethercott, Richardson and Devos, latest edition CCH GST: Australian GST Handbook latest edn, Hill,Thomson Reuter GST Legislation Plus latest edition, Richard Krever, Thomson Reuter Australian GST Legislation with Overview latest edition, CCH Australian Master GST Guide latest edition, Philip McCouat, CCH OTHER: Australian Federal Tax Reporter, CCH, (Looseleaf Service) Financial Planning latest edition, Monahan and Perkins, LexisNexis FBT: A Practical Guide latest edition, CCH Australian FBT Handbook Koit, O’Flynn & Fitton,Thomson Reuter Capital Gains Tax, Wilson, Thomson ATP, (Looseleaf Service) Australian Superannuation Handbook, Jones, latest edition, Thomson Reuter Legal Research & Writing, Tjaden,Latest Edition, Federation Press LexisNexis Study Guide: Trusts, Barkehall Thomas & Vann,Latest Edition, LexisNexis Online Research An important area of this subject involves the skill of finding appropriate legislation, tax rulings and cases. To assist you we will make available on UTSOnline a number of links to important sites. During lectures and tutorials, students will be informed where cases may be found. Students are also expected to use the UTS Library and the internet. Internet-based Legal Resources www.ato.gov.au 13/11/2017 (Summer 2017) © University of Technology Sydney Page 7 of 9This is probably the best site for this subject, being the homepage of the Australian Tax Office. www.austlii.edu.au AustLII is a full-text Australian and World Case Law and Legislation Database jointly owned and operated by the faculties of law of UTS and UNSW. www.brw.com.au Business Review Weekly’s website. Online access to one of Australia’s best Business and Law magazines, including an excellent law section with access to BRW’s legal articles and law notes written in conjunction with Freehills. www.lawportal.com.au LawPortal is an Internet-based legal resources navigator offering access to AustLII, SCALE plus, daily Australia-wide court listings, as well as links to all major national newspapers. http://scaleplus.law.gov.au SCALEplus is the legal information retrieval service owned by the Australian Attorney General’s Department. www.findlaw.com American legal resource website. www.law.com American legal resource website. Other resources OTHER LEGAL RESOURCES: UTS LIBRARY The UTS Library has a wide range of services and resources that you will find useful, including law reports, law journals, textbooks, and access to online resources www.lib.uts.edu.au. Relevant materials in this subject may also be available on Closed Reserve, which is a special borrowing service that allows you to use the material for two hours or overnight, to ensure the materials are available to many students. Materials on closed reserve are listed in the library catalogue by subject details and Subject Coordinator. Contact the Law Librarian on (02) 9514 3341 for further information or assistance Assessment: faculty procedures and advice Students are reminded that access to their UTSOnline subject sites will cease following the session’s conclusion. If you wish to retain any electronic materials currently accessed via UTSOnline, you should download and save these. Staff are unable to reinstate student access to UTSOnline subject sites. Academic integrity ACADEMIC MISCONDUCT BY STUDENTS Some students against whom allegations of academic misconduct are brought say that they did not know or understand the meaning of misconduct, or that if they did know and understand that they were simply careless or under pressure. Are you confident that you know and understand the University definition of Student Misconduct? Are you aware of the penalties if allegations of misconduct are proven? Allegations of student misconduct are taken seriously by UTS and if proven can lead to penalties that may be relevant to a student’s application to the Legal Profession Admission Board for admission to the Supreme Court of NSW to practise as a lawyer. Academic misconduct includes the following: cheating or acting dishonestly in any academic assessment (for example, in an exam or an assignment) assisting or inciting another student to cheat or act dishonestly plagiarism. Plagiarism is easy to avoid, and referencing skills are an essential part of your legal education. In some subjects, referencing and citation skills form part of the marking criteria. It is important that you understand how to avoid 13/11/2017 (Summer 2017) © University of Technology Sydney Page 8 of 9plagiarism and have the practical skills to reference and cite all materials appropriately. Failure to acknowledge the ideas and/or writing of others, and representing their work as your own is dishonest. If you did not write something yourself, you need to say who did through a footnote or other obvious and acceptable referencing technique. Students should note that academics have access to resources that can check for evidence of student plagiarism in addition to their existing knowledge of the literature on the subject. Online plagiarism prevention is an important way that you can check your own work prior to submission for any failure to reference sources appropriately. Students are encouraged to use Turnitin as an opportunity to double-check their work for any potential issues prior to submission. If you are confused about referencing skills please consult the University’s online resource to help students learn and practise their referencing skills. It is better to ask if you are confused and reference properly than to risk a penalty which might form part of your Student Record. Check with your tutor if you have any queries. Statement about assessment procedures and advice Final result Marks of individual assessment components in a subject may be released by the subject coordinator prior to the end of the Final Assessment period. The final mark for a subject is not determined until after ratification by the Faculty Results Ratification Committee. After ratification, the final subject assessment results will be released officially in the manner prescribed by the Provost. The final mark may differ from the initial total marks. Statement on copyright Please remember that teaching materials and resources provided to you at UTS are protected by copyright. You are not permitted to re-use those for commercial purposes (including in kind benefit or gain) without permission of the copyright owner. Improper or illegal use of teaching materials may lead to prosecution for copyright infringement. Statement on UTS email account Email from the University to a student will only be sent to the student’s UTS email address. Email sent from a student to the University must be sent from the student’s UTS email address. University staff will not respond to email from any other email accounts for currently enrolled students. Disclaimer This subject outline must be read in conjunction with the UTS:Law Subject Information Booklet which contains important information for all Law subjects. Students must regularly check UTSOnline for any changes to the subject material and for announcements throughout the session. 13/11/2017 (Summer 2017) © University of Technology Sydney Page 9 of 9