LAWS7012 Business Taxation Semester 2, 2022 1 LAWS7012 FINAL EXAM EXAM STRUCTURE All questions are compulsory and must be answered during the exam working time. PART A – MULTIPLE CHOICE QUESTIONS QUESTIONS 1 to 8 (12 marks) Eight multiple choice questions worth 1.5 marks each → 3 minutes each (24 minutes) Focus: All examinable course content PART B – PROBLEM QUESTIONS (WRITTEN ANSWERS) QUESTION 9 (18 marks) → 36 minutes in total Six True/False statements worth 3 marks each. For each statement, you need to state whether it is TRUE or FALSE but to be entitled to any marks, you must also back up your assertion with a short explanation. Focus: All examinable course content Note: At 3 marks each, you should only be spending up to 6 minutes on each statement. One or two sentences (in your own words) should be adequate to explain your response – please do NOT write an essay! EXAMPLE Statement 1 – The decision in FCT v Western Suburbs Cinemas Ltd confirms that taxpayers are entitled to claim a tax deduction under s 25-10 for a ‘notional repair’. Suggested response: FALSE: Actually, this case is an authority for the principle that no deduction is available for a notional repair under s 25-10 as the expense has not actually been incurred. A notional expense is one based on an estimated cost only. [You could also refer to the facts of the case if you have enough time] LAWS7012 Business Taxation Semester 2, 2022 2 QUESTION 10 (15 marks) → 30 minutes One set of facts with a single FBT calculation task. Full workings must be shown, and relevant section references and/or case law names must be cited as part of your answer. Focus: FBT, GST, and deductions QUESTION 11 (15 marks) → 30 minutes One set of facts with a single income tax calculation task. Full workings must be shown, and relevant section references and/or case law names must be cited as part of your answer. Focus: Income tax content (other than CGT). EXAM COVERAGE The exam will broadly cover the following topics: TOPICS EXAM COVERAGE (LECTURE SLIDES CONTENT) 1 Introduction to the Australian Taxation System Part 2 | The assessment of income tax 2 Assessable income All 3 Residency, source and derivation Residency overview (slides 7 & 8) Withholding tax (slides 57 & 58) Derivation of income (slides 63 to 78) 4 General deductions All 5 Specific deductions All 6 Capital allowances All 7 CGT – General concepts Only a general awareness of the concepts covered in Lecture 7 is necessary. 8 CGT – Calculations Only a general awareness of the concepts covered in Lecture 8 is necessary. 9 Trading stock All 10 Goods and services tax (GST) All 11 Fringe benefits tax (FBT) All 12 Business structures All Note that all related Seminar Revision questions and weekly Revision Quiz questions will also be examinable. LAWS7012 Business Taxation Semester 2, 2022 3 GENERAL EXAM ADVICE Mode of exam delivery: You must take
your exam as outlined in your ECP(s) and associated enrolment in that course. For External mode students, ensure that you are familiar with sitting a Blackboard exam and using ProctorU. Also, be aware of what to do if you run into any technical difficulties during the exam. For Internal mode students, ensure that you bring your writing implements, printed notes, and an approved calculator to the exam venue. For ALL students, ensure that you have properly revised the course content and have printed your summaries and any course materials you require ahead of your exam. Also, ensure that you have the necessary tools at hand (such as an approved calculator and pens). Calculators: Where permitted, calculators must have an official ‘Approved’ sticker attached unless it is a Casio FX-82 [any series]. Referencing the law in the exam: There is no need to write out a case law citation in full, instead just note the taxpayer’s name. For example: – Sun Newspapers Ltd & Associated Newspapers Ltd v FCT (1938) 61 CLR 337 → Sun Newspapers – FCT v Munro (1926) 38 CLR 153 → Munro’s case Generally, there is no need to specify the name of an Act as it will be obvious from the context. – For example, if you’re calculating taxable income or net income, it is obvious that the section references will relate to either the ITAA36 or ITAA97. You will need to include all relevant rates and thresholds for the 2021/22 income year and 2021/22 FBT year in your notes as they will typically not be specified in the exam facts. However, for any: – depreciating assets, please use the effective life specified in the exam facts. – capital works issues, please use the rate specified in the exam facts. Deferred/supplementary exams: If you are sitting a deferred or supplementary exam, you must be available to sit it during 13 December to 16 December 2022. Familiarise yourself with the rules and procedures around applying for a deferred exam just in case you are unexpectedly sick on the day of the exam. LAWS7012 Business Taxation Semester 2, 2022 4 On the day: Keep calm and read the paper carefully, if you’ve prepared well, you will know how to work out the answers – just do it methodically (and in the required format). Make sure that you deal with ALL the issues and facts in the questions – if something should be included or excluded from a calculation, explain why. Try to stick to the suggested time limits per question so that you finish the paper – if you finish early, re-read the questions, and ensure that you have answered each question in full. If you get stuck in a long answer question – for example, working out what is included in a particular calculation, go with the most logical answer, and CONTINUE TO ANSWER THE QUESTION EVEN IF YOU SUSPECT THE FINAL FIGURE WILL BE INCORRECT → If you don’t tell me anything, I cannot award you any marks! GOOD LUCK and STUDY HARD by revising the examinable content, preparing exam summaries, and using them to complete the Practice Exam.