79017 Taxation Law
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particular session, location and mode of offering is the authoritative source
of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.
Subject handbook information prior to 2024 is available in the Archives.
Credit points: 6 cp
Result type: Grade and marks
There are course requisites for this subject. See access conditions.
Anti-requisite(s): 76212 Revenue Law
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. |
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| 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:
a. The Australian colonial and post-colonial legal system, international and comparative contexts, theoretical and technical knowledge;
b. The broader contexts within which legal issues arise and the law operates including cultural awareness, social justice and policy;
c. The impact of Anglo-Australian laws on Indigenous peoples, including their historical origins in the process of colonisation and ongoing impact; and
d. The principles and values of justice and ethical practices in lawyers' roles. (LAW.1.1) - Ethics and Professional Responsibility
A capacity to value and promote honesty, integrity, accountability, public service and ethical standards including:
a. An understanding of approaches to ethical decision making and professional responsibility;
b. An ability to recognise, reflect upon and respond to ethical issues likely to arise in professional contexts in ways that evidence professional judgment, promote justice and serve the community; and
c. An ability to reflect on and engage constructively with diversity in practice. (LAW.2.1) - Critical Analysis and Evaluation
A capacity to think critically, strategically and creatively, including the ability to:
a. Identify and articulate legal issues in context, including the skill of critical reading and writing;
b. Apply reasoning and research to generate appropriate responses;
c. Engage in critical analysis and make a reasoned choice amongst alternatives; and
d. Think creatively in approaching legal issues and generating appropriate responses. (LAW.3.1) - Communication
Effective and appropriate communication skills including:
a. Highly effective use of the English language to convey legal ideas and views to different and diverse audiences and environments;
b. An ability to communicate to inform, analyse, report and persuade;
c. An ability to strategically select an appropriate medium and message;
d. An ability to assess how messages are received and alter communication strategies accordingly; and
e. An ability to be responsive and adaptive to the perspectives of collaborators, clients, counter parties and others. (LAW.5.1) - Collaboration
Effective and appropriate collaboration skills in working together to achieve a common goal in a group learning environment or the workplace including:
a. An ability to give and receive feedback;
b. Appropriate professional and interpersonal skills in working collaboratively;
c. A capacity to develop strategies to successfully negotiate group challenges; and
d. An ability to be responsive and adaptive to the perspectives of collaborators, clients, counter parties and others. (LAW.6.1) - Self management
The ability to implement appropriate self-management and lifelong learning strategies including:
a. An ability to undertake and initiate self-directed work and learning;
b. Well-developed judgment and responsibility as a legal professional in a broader social context;
c. The ability to support personal and professional development by:
(i). Reflecting on and assessing their own capabilities, wellbeing and performance;
(ii). Making use of feedback as appropriate;
(iii). Identifying and accessing appropriate resources and assistance; and
(iv). Making use of resources and support in developing resilience; and
d. A capacity to adapt to and embrace change and a commitment to ongoing learning. (LAW.8.1)
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
- Tax Planning and Anti-Avoidance
Assessment
Assessment task 1: Mid-session Online Multiple Choice Test
| Objective(s): | This task addresses the following subject learning objectives: 1, 2 and 4 This task contributes specifically to the development of the following graduate attributes: LAW.1.1, LAW.2.1, LAW.3.1 and LAW.8.1 |
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| Weight: | 10% |
| Length: | 20 multiple choice questions, 45 minutes (total time) |
| Criteria: |
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Assessment task 2: Professional Task
| 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: LAW.1.1, LAW.3.1, LAW.5.1 and LAW.6.1 |
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| Weight: | 40% |
| Length: | 2000 words (maximum word limit) not including references. |
| Criteria: |
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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: LAW.1.1 and LAW.3.1 |
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| Weight: | 50% |
| Length: | 2,000 words |
| Criteria: |
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Required texts
Required Text:
- Principles of Taxation Law (latest edition), Sadiq et al, Thomson Reuters
Students are required to complete prescribed readings prior to each class. The prescribed readings are listed in the Reading Guide which is available on Canvas.
Required Legislation:
Students are required to have an up to date version of the income tax legislation and should bring it to every class.
Required legislation either-
- Core Tax Legislation & Study Guide (Oxford University Press) (latest edition);
or
- Fundamental Tax Legislation (Thomson Reuters) (latest edition)
or
available online via http://www.austlii.edu.au/ or alternatively via https://www.legislation.gov.au/
Cases, Rulings and additional statutory materials:
- Most cases can be accessed via the Lexis Advance Pacific database available on the UTS Library website: https://databases.lib.uts.edu.au/search_databases.py?subcategory_id=221
- Tax rulings and other administrative materials are available on the ATO's legal database: https://www.ato.gov.au/law/#Law
- Additional statutory material is also available at the Federal Register of Legislation: https://www.legislation.gov.au/ ,and the AustLII website: http://www.austlii.edu.au/
Recommended texts
- Stephen Barkoczy, Australian Tax Casebook (latest edition)., Oxford University Press, South Melbourne
References
- Foundations of Taxation Law, latest edition, Barkoczy
- Australian Tax Handbook ,latest edition, Thomson Reuters
- Master Tax Guide latest edition, Wolters Kluwer
- Tax Questions and Answers,latest edition, Hodgson et ors, Thomson Reuters
- Australian Tax, latest edition, Paul Kenny, LexisNexis
Case Books:
- Australian Tax Analysis: Cases, Commentary, Commercial Applications and Questions, Coleman, Hart, et al, latest Edition, Thomson Reuters
- 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 Canvas 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
This 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.