Outline

Overview

This unit, along with LAWS6841 Taxation of Business and Investment Income B, is designed to provide an advanced study of the tax treatment of various important business transactions. It provides a detailed examination of the income tax and capital gains treatment of selected complex commercial transactions and their impact on the tax base. The goal of the unit is to develop an understanding of the policies, detailed rules and current practical problems involved in this area of taxation, through the analysis of a number of specific problems discussed in each seminar. Because of continual change to the taxation system, recent legislative amendments and judicial decisions will be examined in detail where applicable. The unit will cover the following topics: core income and expense rules and operational concepts underlying the income tax system; treatment of realised business income and the differentiation of capital gains; treatment of business expenses and the differentiation of expenses recoverable under depreciation, CGT or not at all; issues in the treatment of trading stock; issues in the tax treatment of the costs (and revenues) associated with business equipment and intangibles. This unit can be taken alone or in conjunction with LAWS6841 Taxation of Business and Investment Income B.

Unit details and rules

Unit code	LAWS6840
Academic unit	Law
Credit points	6
Prohibitions ?	None
Prerequisites ?	None
Corequisites ?	None
Assumed knowledge ?	It is assumed that students undertaking this unit have an understanding of Australian income taxation law commensurate with that which would be obtained from completing undergraduate study in Australian taxation law or five years working with Australian tax law in a law or accounting practice in an industry role or in the Australian Taxation Office. For students who do not have such knowledge or work experience they first should undertake LAWS6825 Introduction to Australian Business Tax before enrolling in this unit.
Available to study abroad and exchange students	No

Teaching staff

Coordinator	Michael Dirkis, michael.dirkis@sydney.edu.au

Type	Description	Weight	Due	Length
Assignment	Short release assignment Online task	30%	Week 05 Due date: 31 Mar 2021 at 11:10 Closing date: 31 Mar 2021	1200 words / 70 minutes
Outcomes assessed:
Assignment	Final assignment Online final assignment	70%	Week 13 Due date: 02 Jun 2021 at 16:30 Closing date: 02 Jun 2021	3000 words / 150 minutes
Outcomes assessed:
= hurdle task ?

Assessment summary

The short-release assignment will be released via Canvas on 31 March 2021 at 10:00am AEDT and due on 31 March 2021 at 11.10am AEDT. It will be an open book assignment in the form of a problem style question. You will have one hour and 10 minutes to prepare your response to the question. There is a strict word limit of 1200 words for this assignment. Any words in excess of 1200 will not be read or marked. Students must submit the assignment by the due date and time. It is up to you to ensure that you finish writing allowing sufficient time to upload your paper. If you encounter technical difficulties during submission, please email law.taxprogram@sydney.edu.au for assistance. If you are unable to submit the assessment on time, please submit a special consideration application https://www.sydney.edu.au/students/special-consideration.html. If your application is successful, an alternate assessment may be granted.

The final assignment will be released via Canvas on 2 June 2021 at 2:00pm AEST and due on 2 June 2021 at 4:30pm AEST. It will be open book assignment in the form of a number of problem style questions. You will have two hours and 30 minutes to prepare your responses to the questions. There is a strict word limit of 3000 words for this assignment. Any words in excess of 3000 will not be read or marked. All materials and topics from the unit are examinable. Students must submit the assignment by the due date and time. It is up to you to ensure that you finish writing allowing sufficient time to upload your paper prior to the end of the buffer period. If you encounter technical difficulties during submission, please email law.taxprogram@sydney.edu.au for assistance. If you are unable to submit the assessment on time, please submit a special consideration application https://www.sydney.edu.au/students/special-consideration.html. If your application is successful, an alternate assessment may be granted.

IMPORTANT NOTE: A student must make a satisfactory attempt at all assessment tasks set out for this Unit of Study in order to obtain a Pass mark and grade (or above); otherwise an Absent Fail grade will be recorded as the student’s result for this Unit of Study.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

These guidelines are designed to provide students with an understanding of the standards applied when grading assessments. Students should note that the type of assessment will affect the relevance of each factor. For example, the amount and type of research required will vary between a research essay, which will require independent research beyond the prescribed materials, and a problem question which may only require appropriate analysis of the prescribed materials. Conversely application of law to the facts is crucial in problem questions, where often less so in research essays.
These standards may be applied in conjunction with specific marking criteria.

Result name	Mark range	Description
High distinction	85 - 100	Work receiving a high distinction grade will generally exhibit the following characteristics: • Completely answers the question. • Contains striking originality of approach or analysis. • Demonstrates exhaustive or innovative research (where independent research required). • Exceptionally well written, structured and expressed. • Is otherwise exceptional in some way.
Distinction	75 - 84	Work receiving a distinction grade will generally exhibit the following characteristics: • Completely answers the question. • Achieves a critical and evaluative approach to the issues. • Content and structure is well organised in support of the argument. • Demonstrates extensive research and analysis to support a well-documented argument. • Generally well expressed and free from errors. • Has a clear structure and is well articulated.
Credit	65 - 74	Work receiving a credit grade will generally exhibit the following characteristics: • Covers main issues fairly well in answering the question. • Contains no significant errors • Demonstrates an attempted critical approach to the issues. • Demonstrates reasonably sound research and analysis in addressing the key issues. • Has a clear structure and reasonably clear expression.
Pass	50 - 64	Work receiving a pass grade will generally exhibit the following characteristics: • Identifies the key issues but does not follow through with a reasoned argument. • Contains some significant errors. • Displays satisfactory engagement with the key issues. • Offers descriptive summary of material relevant to the question. • Superficial use of material and may display a tendency to paraphrase. • Demonstrates little evidence of in-depth research or analysis. • Adequate expression. • Overall, demonstrates the minimum level of competence in the assessment and satisfies the requirements to proceed to higher-level studies in the degree or subject area.
Fail	0 - 49	Work may fail for any or all of the following reasons: • Does not answer the question. • Contains significant or numerous errors. • Few or no identifiable arguments. • Content that is inappropriate or irrelevant. • Lack of research or analysis. • Difficult or impossible to understand through poor grammar, expression or structure. • Overall, does not demonstrate the minimum level of competence in the assessment.

For more information see sydney.edu.au/students/guide-to-grades.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

Deduction of 5% of the maximum mark for each calendar day after the due date.
After ten calendar days late, a mark of zero will be awarded.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

For short-release assignment and final assignment: Due to the nature of the assessment(s), no late submission of work will be accepted. After the assessment due date/time, please apply for an alternate assessment by submitting a special consideration application https://www.sydney.edu.au/students/special-consideration.html

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

Learning support

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Weekly schedule

WK	Topic	Learning activity
Week -01	Q2: The meaning of income Q3: Reconciling overlapping regimes	Lecture (3 hr)
Week -02	Overview Q1: Introduction and Core Principles	Lecture (3 hr)
Week 01	Q4: Valuation issues Q5: Income from business: business v hobby	Lecture (2 hr)
Week 02	Q6: Business of Investing Q7: Isolated Ventures	Lecture (2 hr)
Week 03	Q8: Business intangibles: agency agreements Q9: Damages and compensation receipts	Lecture (2 hr)
Week 04	Q10: Business expenses: relevance Q11: Capital/revenue distinction	Lecture (2 hr)
Week 06	Q12: Product of business v sale of business Q13: Removing restrictions and satisfying liabilities	Lecture (2 hr)
Week 07	Q14: Sale/purchase of asset for periodic payments Q15: Wasting assets	Lecture (2 hr)
Week 08	Q16: Capital allowances - overview Q17: Capital allowances – business intangibles	Lecture (2 hr)
Week 09	Q18: Trading stock – basic concepts Q19: Trading stock – cost and valuation	Lecture (2 hr)
Week 10	Q20: Trading stock accounting Q21: Trading stock – sales outside the ordinary course	Lecture (2 hr)
Week 11	Q22: Non-commercial losses Exam Review	Lecture (2 hr)

Attendance and class requirements

Attendance: All students are required to attend 70% of classes (or as otherwise specified by the Unit Coordinator) to satisfy the pass requirements for each unit of study. Attendance requirements may be satisfied by online attendance as specified by the Unit Coordinator. Failure to meet this requirement may result in a student being precluded from sitting the final assessment.

Word count penalty (short release assignment and final assignment): No words beyond the word limit will be read or marked. The total word count will include all body text including headings and quotations. Footnotes and endnotes should not be used for these assignments.

Referencing: The Sydney Law School expects you to use the Australian Guide to Legal Citation (4th edition, 2018) for your footnoting style, although you should confirm this with your lecturer, and a link to the library website where this is set out comprehensively is available at https://libguides.library.usyd.edu.au/c.php?g=508212&p=3476376

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

Required reading

Participants are required to have an up-to-date (2021) full multi-volume version of the income tax legislation as produced by one of the commercial publishers and should bring it to every seminar. You do not need the volume of legislation on superannuation.

The readings for each class problem are listed. This provides a list of legislation, ATO rulings, cases and additional readings. The most important cases for a particular problem are identified with an asterisk (*). From time to time, additional readings, such as new court decisions, may be added to the reading list. Notice of such additions will be provided in class as well as via announcements posted on the eLearning/LMS site.

Note: In this document the Income Tax Assessment Act 1936 is referred to as ITAA36 and the Income Tax Assessment Act 1997 as ITAA97.

Recommended supplementary reading

Cooper, Dirkis, Stewart & Vann, Income Taxation: Commentary and Materials (2020, 9th ed) Thomson Reuters, Sydney

Woellner, Barkoczy, Murphy, Evans & Pinto, Australian Taxation Law 2021, 31st Edition (2021: Oxford)

Deutsch, Friezer, Fullerton, Hanley & Snape, Australian Tax Handbook 2021, (Thompson Reuters)

RW Parsons Income Tax in Australia (1985) (Facsimile ed 2011: Thompson Reuters) http://setis.library.usyd.edu.au/oztexts/parsons.html

Learning outcomes

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

Outcomes
Graduate qualities

At the completion of this unit, you should be able to:

LO1. understand the policies underlying detailed rules in this area of taxation
LO2. understand the detailed rules in this area of taxation
LO3. identify tax issues in a variety of current complex commercial and private relationships
LO4. apply complex statutory and general tax law rules to complex factual situations involving a variety of commercial and private relationships.
LO5. clearly and accurately communicate analysis of the tax consequences arising from a variety of commercial and private relationships

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1	Depth of disciplinary expertise Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.
GQ2	Critical thinking and problem solving Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.
GQ3	Oral and written communication Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.
GQ4	Information and digital literacy Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.
GQ5	Inventiveness Generating novel ideas and solutions.
GQ6	Cultural competence Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.
GQ7	Interdisciplinary effectiveness Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.
GQ8	Integrated professional, ethical, and personal identity An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.
GQ9	Influence Engaging others in a process, idea or vision.

Outcome map

Learning outcomes	Graduate qualities
Learning outcomes

Responding to student feedback

This section outlines changes made to this unit following staff and student reviews.

No changes have been made since this unit was last offered

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect

Current students

LAWS6840: Tax of Business and Investment Income A

Semester 1a, 2021 [Normal day] - Remote

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect