Assessment item 2 Question 1 Amber owned and operated a boutique chocolate shop in Sydney that she purchased for $240,000 in August 2010. The purchase price consisted of equipment and stock worth $110,000 and the balance being goodwill. Following the birth of her child, Amber decided to sell the shop in February 2018 for $440,000 of which $280,000 was attributed to goodwill. Amber was also required to sign a contract restricting her from opening another similar business within a 20km radius for the next 5 years. She received an additional sum of $50,000 for this contract. Due to their expanding family, Amber and her husband purchased a four bedroom home in the outer suburbs of Sydney in June 2018. The purchase was partly funded by the sale of the business but also by the sale of Amber’s one bedroom inner-city apartment. Amber had lived in the apartment since she inherited it from her Uncle in October 2013. He had purchased it in September 1992 for $180,000 and lived in it until he died. At the time of his death the apartment was   valued at $390,000.  Amber signed a contract for the sale of the apartment in May 2018 for $550,000 and settlement took place in July 2018. Required Advise Amber of the taxation consequences of these transactions. You are not required to calculate any capital gains or losses. (20 marks) Question 2 Jamie is a real estate agent working for ‘Houses R Us’ real estate. As part of his employment contract, Jamie receives a base salary of $50,000 per annum plus 10% of the agency’s commission on sold properties where he has had a direct connection with the sale. He is also provided with a car, a Toyota Kluger costing $48,000. He is not required to contribute to the running costs of the car which total $13,500 per year and is allowed to use the car outside of work hours and on weekends. Jamie's salary package also includes a laptop which cost $2,300 and a mobile phone costing $1,200 per year. His employer also reimburses his annual professional subscription of $550 and provides him with an entertainment allowance of $2,000 per year. Jamie was also lucky enough to achieve the highest sales for the previous six month period and was rewarded with a high tech home entertainment system worth $4,800. ‘Houses R Us’ also offer their staff loans of up to $100,000 towards purchasing their own house at a rate of 4% per annum. Jamie is considering taking up this offer to purchase his first home. Required Advise Jamie and ‘Houses R Us’ of the taxation and FBT consequences of these transactions. You are not required to calculate any FBT liability.(15 marks) Rationale back to top This assessment task will assess the following learning outcomes: 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 ...

1. Assessment item 2
Question 1
Amber owned and operated a boutique chocolate shop in Sydney
that she purchased for $240,000 in August 2010. The purchase
price consisted of equipment and stock worth $110,000 and the
balance being goodwill. Following the birth of her child, Amber
decided to sell the shop in February 2018 for $440,000 of which
$280,000 was attributed to goodwill.
Amber was also required to sign a contract restricting her from
opening another similar business within a 20km radius for the
next 5 years. She received an additional sum of $50,000 for this
contract.
Due to their expanding family, Amber and her husband
purchased a four bedroom home in the outer suburbs of Sydney
in June 2018. The purchase was partly funded by the sale of the
business but also by the sale of Amber’s one bedroom inner-city
apartment. Amber had lived in the apartment since she inherited
it from her Uncle in October 2013. He had purchased it in
September 1992 for $180,000 and lived in it until he died. At
the time of his death the apartment was valued at $390,000.
Amber signed a contract for the sale of the apartment in May
2018 for $550,000 and settlement took place in July 2018.
Required
Advise Amber of the taxation consequences of these
transactions. You are not required to calculate any capital gains
or losses. (20 marks)

2. Question 2
Jamie is a real estate agent working for ‘Houses R Us’ real
estate. As part of his employment contract, Jamie receives a
base salary of $50,000 per annum plus 10% of the agency’ s
commission on sold properties where he has had a direct
connection with the sale. He is also provided with a car, a
Toyota Kluger costing $48,000. He is not required to contribute
to the running costs of the car which total $13,500 per year and
is allowed to use the car outside of work hours and on
weekends.
Jamie's salary package also includes a laptop which cost $2,300
and a mobile phone costing $1,200 per year. His employer also
reimburses his annual professional subscription of $550 and
provides him with an entertainment allowance of $2,000 per
year.
Jamie was also lucky enough to achieve the highest sales for the
previous six month period and was rewarded with a high tech
home entertainment system worth $4,800.
‘Houses R Us’ also offer their staff loans of up to $100,000
towards purchasing their own house at a rate of 4% per annum.
Jamie is considering taking up this offer to purchase his first
home.
Required
Advise Jamie and ‘Houses R Us’ of the taxation and FBT
consequences of these transactions. You are not required to
calculate any FBT liability.(15 marks)
Rationale
back to top

3. This assessment task will assess the following learning
outcomes:
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 differenti ate between
possible outcomes to the legal issues arising from novel fact
situations.
Covering topics 5 to 11, this assignment has been designed to
ensure that students are able to identify and apply legislation,
rulings and case law to the issues identified as well as
demonstrate the ability to analyse the issues fully and apply this
knowledge to a hypothetical, practical situation.
Marking criteria and standards
back to top
In assessing your assignment the marker will expect you to:
present an essay that is readable and coherent;
use appropriate language, correct spelling and grammar;
identify and analyse relevant issues;

4. explain and apply relevant cases, rulings and legislation;
reach a sound and well-reasoned conclusion;
use appropriate referencing; and
demonstrate time management skills.
The following criteria will form the basis of assignment of
marks for the problem solving question.
Criteria
High Distinction
Distinction
Credit
Pass
Fail
Students are required to answer problem type questions in
order to demonstrate:

5. To meet this level you will achieve a cumulative mark of 85-
100%. A mark in this range indicates that a student:
To meet this level you will achieve a cumulative mark of 75-
84%. A mark in this range indicates that a student:
To meet this level you will achieve a cumulative mark of 65-
74%. A mark in this range indicates that a student:
To meet this level you will achieve a cumulative mark of 50-
64%. A mark in this range indicates that a student:
At this level you will obtain a mark of 0-49%. A mark in this
range indicates that a student:
Identification of relevant legal issues
Correctly identifies all legal issues and formulates them
clearly with consideration of all links to relevant law, with no
errors.
Correctly identifies all the tax law issues and formulates them
with consideration of links to relevant law, with only minor
errors.

6. Identifies and correctly formulates most major ltax law issues
and supported by relevant law.
Identifies some tax lawl issues. May or may not formulate
them correctly. Considers and links to relevant law,
Identifies no relevant issues or only a few of them. Some of
these may be unclearly formulated. Considers few contextual
factors of relevant law.
Explanation of law and citation of relevant legal authority
Provides a complete explanation of the law, justified by
relevant taxation law, with no errors. Discussion identifies key
statute and case law stating relevant principles and shows
insight in identification and discussion of potentially hidden
issues. Research of relevant legal authority shows a breadth of
investigation through detailed analysis, discussion and tax
computation.
Provides a comprehensive explanation of the taxation law with
few errors, substantiated by relevant case and statute law
stating relevant principles. Research of relevant legal authority
shows a breadth of investigation through detailed analysis,
discussion and tax computation.
Provides a substantial explanation of taxation law and tax
computation but with some errors, substantiated by significant
legal authority in the form of statute and case law.

7. Provides a basic explanation of the taxation law and tax
computation, but with significant errors, substantiated by some
legal authority.
Provides incorrect or limited explanation of the taxation law
and tax computation using no, or only a limited range of,
authority.
Application of legal principles to the facts and tax
computation
Applies the law to the facts so as to reach a correct conclusion
on all issues, with no errors. Argument discusses linkages
between facts and the law and considers counter-arguments,
completes tax computation correctly if required and evaluates
the impacts of applying the law to the situation considering a
broad range of factors that may affect the application.
Conclusion draws together advice for client.
Applies the law correctly to the facts so as to address all
issues, with only minor errors. Argument discusses linkages
between facts and the law, completes tax computation
correctly if required and evaluates the impacts of applying the
law to the situation considering factors that may affect the
application. Conclusion draws together advice for client.
Applies the law correctly to most issues arising from the facts,
but with some errors. Argument discusses application of the

8. law and completes tax computation correctly if required with
some minor errors. Conclusion summarises advice for client.
Makes a basic attempt to apply the law to the facts, but applies
wrong law and / or contains significant errors in the
application. Argument summarises application of the law,
formula for tax computation identified and completed with
errors. Advice to client is incomplete.
Paper does not correctly apply law to the facts and / or applies
incorrect law. May be descriptive, rather than putting forward
a reasoned argument. Does not attempt tax computations.
Compliance with the Style Guide, tax computation format and
overall structure.
Uses Style Guide comprehensively, accurately and
consistently. Uses ILAC model and tax computation format.
Extremely well structured and organised, with one main
argument introduced per paragraph, supported by well-written
supporting sentences.
Uses Style Guide accurately and with only minimal errors.
Uses ILAC model and tax computation format. Well
structured, with one main argument introduced per paragraph.
Adequate use of Style Guide, with some errors or lapses. Uses
ILAC model, tax tax computation format and is clearly
structured.

9. Limited or inconsistent use of Style Guide. Some attempt at
use of ILAC model, tax computation format and at structuring
of answer.
Poor, inconsistent or inaccurate use of Style Guide. Poorly
structured. Inadequate or no use of paragraphs. May have
disregarded the ILAC model and tax computation format.
Written expression, calculation and editing.
Uses appropriate academic writing which is formal, impersonal
and which contains no spelling, grammar, punctuation and
calculation errors. Paper demonstrates careful proofreading.
Uses appropriate academic writing which is formal, and
impersonal with only very minor spelling, grammar,
punctuation and calculation errors. Paper demonstrates careful
proofreading.
Uses appropriate academic writing which is formal and
impersonal, with a few spelling, grammar, punctuation and
calculation errors. Paper demonstrates evidence of
proofreading.
Significant spelling, grammar, punctuation and calculation
errors but the paper is readable and demonstrates some attempt
at proofreading.

10. Poor grammar, spelling, and /or punctuation. Showing little or
no calculation. Paper gives no evidence of having been proof-
read.
Presentation
back to top
General Guidance for Law Assessment Tasks
:
•Word-process or type your assignment clearly.
•Clearly show the subject name, your name and the date at the
beginning of the assignment.
•Use size A4 paper and leave at least a 3 cm margin on the
right-hand side of the page. (This is the best format for both
marking and photocopying.)
•Number each page of the assignment.
•The answers should be confined to 3,500 words in total,
bibliography excluded. Assignments should be neatly typed in
Times New Roman, 12 point font.
•A consistent system of footnotes or the APA Referencing
System is required. Case and statute names should be italicised.
•Answers must be original. They should demonstrate that
students not only have read and understood the Study Guide and
prescribed readings but also have broadened their knowledge by

11. having read other reference works. Marks will not be awarded
for duplication of paragraphs from the Modules or textbooks.
•Answers should have a complete bibliography listing all books
and articles consulted. Beware of using the unacknowledged
work of others. Plagiarism will result in zero marks and
possible failure of the subject. (Refer to handbook rules).
•Students must, in the course of answering questions, refer to
and discuss relevant case authorities and appropriate statutory
provisions in order to support the propositions and submissions
made.
Also note the following style guide
:
1. You should use the ILAC style of essay writing for this
assignment
2. Do not re-state the question as part of your answer. This
often gets repeated in the 'issue' section, however that is
incorrect.
3. Use in-text referencing. Do not use footnotes.
4. Names of cases or statutes should be italicised, and followed
by the jurisdiction not in italics, for example: Acts
Interpretation Act 1901. Note the abbreviation for
‘Commonwealth’ is ‘Cth’ not ‘Cwlth’.
5. Do not start a new line simply because you are starting a new
sentence.
6. Start each paragraph on a new line, and leave a clear line gap

12. after the preceding paragraph. Don't make your paragraphs too
long.
7. You must end your assignment with a bibliography that is
divided into three separate parts, listing statutes, cases and
books / articles / on-line Modules.
PLEASE NOTE THAT YOU WILL LOSE MARKS IF YOU DO
NOT COMPLY WITH THIS STYLE GUIDE.
NOTE: Assessments for this subject are required to be
submitted via EASTS.
Requirements
back to top
Your answers to both the Problem Solving Questions in this
Assessment task must be fully referenced. Referencing is the
acknowledgement of information sources in your work; it is the
appropriate way to give credit to the original owner of an idea,
piece of writing or creative work. You will be required to use
the APA style of referencing and guidelines for using this style
can be found on the CSU Referencing website at
https://student.csu.edu.au/study/referencing-at-csu.