Professional Documents
Culture Documents
Marking
Criteria
9.0-10.0:
Detail
analysis
of
the
scenario
using
relevant
Tax
Law
and
sections.
Proper
application
of
Law
matching
the
scenario.
All
data
used
correctly.
Correct
calculations
with
proper
recommendations.
7.0-8.0:
Partial
analysis
of
the
scenario
using
appropriate
Law.
Application
of
Law
matching
the
scenario.
All
data
used
correctly.
Correct
calculations
with
proper
recommendations.
5.0-6.0:
Short
description
of
the
scenario
using
appropriate
Act
only.
Application
of
Law
partially
matching
the
scenario.
Correct
use
of
Scenario
2:
Income
from
personal
services
and
employment
(Marks-10)
(Word
limit:
500)
Jane
and
Sally
are
employed
school
teachers
who
have
a
very
wide
general
knowledge.
Both
decide
to
enter
a
television
quiz
program
called
Lease
of
the
Decade.
Under
the
rules,
contestants
receive
$100
for
each
appearance,
but
if
questions
are
answered
correctly,
they
receive
substantial
cash
prizes
and
other
prizes,
such
as
household
items
and
holiday
packages.
The
holiday
packages
cannot
be
transferred
or
redeemed,
but
the
organizers
of
the
program
allow
them
to
be
converted
into
alternative
venues
and
accommodation.
Jane
and
Sally
go
on
the
show
but
Jane
is
eliminated
in
the
first
contest
and
receives
her
$100.
Sally,
however,
makes
10
appearances.
She
wins
cash
prizes
of
$50,000,
household
appliances
worth
$20,000
and
a
trip
to
Europe
with
her
family
valued
at
$30,000.
Required:
Analyze
the
scenario
given
above
for
Jane
and
sally
by
identifying
and
applying
the
relevant
law.
Discuss
and
recommend
on
the
assessability
of
these
prizes.
Present
a
conclusion.
Scenario
3:
Fringe
Benefit
Tax
(Marks-10)
(Word
limit:
500)
Evaluate
and
show
proper
reasoning
whether
the
following
benefits
are
fringe
benefits
or
exempt
fringe
benefits
and,
where
applicable,
the
relevant
category
of
fringe
benefit.
Support
your
answer
with
relevant
sections
of
law:
(a) Payment
to
employee
for
the
estimated
cost
of
the
employees
home
phone
bill
as
the
employee
sometimes
has
to
use
the
home
phone
for
work
purposes.
(b) Provision
of
accommodation
at
the
family
home
to
a
child
who
is
over
21
and
works
in
the
family
business.
(c) Payment
of
employees
superannuation
contribution
by
the
employer
to
a
complying
superannuation
fund.
(d) Loan
by
Company
X
to
one
of
its
directors,
Ron,
who
is
also
a
shareholder
in
the
company.
The
companys
rules
do
not
permit
loans
to
directors.
(e) Payment
of
taxi
fare
by
employer
for
employee
to
travel
home
after
working
late.
(f) Flowers
sent
to
a
sick
employee
who
is
hospitalized.
The
flowers
cost
$75.
(g) Provision
of
a
car
for
an
employees
private
use,
including
payment
of
all
fuel
costs
by
the
employer.
(h) Provision
of
sandwiches
at
a
lunchtime
seminar
held
at
the
employers
premises.
(i) Provision
of
an
all-expenses-paid
holiday
to
an
employee
who
has
had
to
work
every
weekend
for
the
last
six
months.
(j) Provision
of
two
laptop
computers
to
an
employee
who
regularly
attends
clients
premises.
Scenario
4:
Capital
Gain
Tax
(Marks-10)
(Word
limit:
500)
Nadin
is
a
client
of
your
tax
firm.
To
fund
her
career
as
an
artist
Nadin
sold
some
of
her
art
collection
by
other
artists.
It
consisted
of:
(a)
An
antique
ceramic
bowl
purchased
in
February
1985
for
$4,000.
She
sold
the
bowl
on
1
December
of
the
current
tax
year
for
$12,000.
(b)
A
sculpture
purchased
in
December
1993
for
$5,500.
She
sold
the
sculpture
on
1
January
of
the
current
tax
year
for
$6,000.
(c)
A
bronze
gure
purchased
in
October
1987
for
$13,000.
She
sold
the
bronze
gure
on
20
March
of
the
current
tax
year
for
$13,000.
(d)
A
painting
purchased
in
March
1987
for
$480.
She
sold
the
painting
on
1
July
of
the
current
tax
year
for
$5,000.
Required
Consider
the
CGT
consequences
of
the
above
transactions
by
determining
whether
the
assets
are
CGT
assets,
collectables
or
personal
use
assets.
Identify
the
relevant
laws
and
apply
them
with
appropriate
details
required
to
support
your
recommendation.
Source: