Outline

Overview

This unit, along with LAWS6840 Tax of Business and Investment Income A, is designed to provide an advanced study of the income and capital gains tax treatment of various complex commercial transactions. The goal of this 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 that will be discussed in the seminars. Because of continual change to the taxation system, recent legislative amendments and judicial decisions will be examined in detail where applicable. This unit will cover the following topics: issues in business financing, including asset leasing; tax issues related to the use and development of land and buildings; the treatment of 'black hole' expenses; tax accounting for income, expenses and profits; and specific and general anti-avoidance rules. This unit can be taken alone or in conjunction with LAWS6840 Tax of Business and Investment Income A.

Unit details and rules

Unit code	LAWS6841
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	Celeste Black, celeste.black@sydney.edu.au
Lecturer(s)	Celeste Black, celeste.black@sydney.edu.au

Type	Description	Weight	Due	Length
Participation	Structured participation (10%) Structured participation	10%	Ongoing	1000 word equivalent
Outcomes assessed:
Small test	In-class test (30%) In-class supervised open book, pen and paper test	30%	Week 09 Due date: 27 Sep 2023 at 16:00 Closing date: 27 Sep 2023	One hour plus 15 minutes reading time
Outcomes assessed:
Short release assignment	Short release assignment (60%) Short-release assignment	60%	Week 13 Due date: 30 Oct 2023 at 09:00 Closing date: 13 Nov 2023	4500 words / 72 hours
Outcomes assessed:

Assessment summary

Structured Participation (10%): Each student will be allocated a discussion problem from the Reading Guide and is expected to prepare and lead the discussion of that problem in class. The outcome of a successful special consideration application is allocation to an alternative problem at a later date or an alternative task.

In-class test (30%): The in-class pen and paper test (30%) will be held in the normal class time on 27 September 2023. It will be an open book test (but no electronic devices allowed) in the form of problem style questions. You will have one hour of writing time and 15 minutes of reading time to prepare your responses. The outcome of a successful special consideration application is a replacement test.

Short release assignment (60%): The short release assignment (60%) will be released at 9:00am on 27 October 2023 Sydney, Australia time and is due at 9:00am on 30 October 2023. The short-release assignment will be in the form of a number of problem style questions based on the content for the whole of the unit of study. There is a strict word limit of 4500 words for this assignment. Any words in excess of 4500 will not be read or marked. The outcome of a successful special consideration application is a replacement assignment.

Word limit penalty: A piece of assessment which exceeds the prescribed word limit will attract a penalty of 10% of the total marks available for the piece of assessment for every 100 words, or part thereof. The prescribed word limit includes all words (including references). For the avoidance of doubt this includes all body text, titles, headings, quotations, numbering, footnote citations, footnote text, etc. All words count. A bibliography is not required and should not be included.

Use of editors or proof-readers: The use of assistance in preparing and editing assessment tasks in this unit of study is strictly prohibited. Assistance includes human and automated writing tools (not including spell checking). The use of Studiosity does not breach this rule but must be acknowledged.

Special consideration: Successful grants of Special Consideration may involve alternative tasks, as appropriate.

Assessment requirements to pass a unit of study: A student must make a genuine attempt at all assessment tasks set out in 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	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	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	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	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 a 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	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:

The late submission of a piece of assessment, without an approved extension, will attract a penalty of 10% of the total marks available for the piece of assessment per 24 hours or part thereof, after the due time on the due date. For example, a submission after 4.00pm but before the same time the following day, will attract a 10% penalty. Late penalties will be strictly applied. The date and time of submission as recorded by Canvas is taken as the official and final record of a student’s submission. Late penalties do not apply to tests.

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	Q1: Interest – Relevance (cont) Q2: Interest and price	Seminar (2 hr)
Week -02	Introduction; Q1: Interest - Relevance	Seminar (2 hr)
Week 01	Q3: Interest substitutes; Q4: Bad debts	Seminar (2 hr)
Week 03	Q5: Sales of interest-bearing securities; Q6: Debt defeasance	Seminar (2 hr)
Week 04	Q7: Commercial debt forgiveness and limited recourse debt; Q8: Equipment financing: leasing	Seminar (2 hr)
Week 05	Q9: Vehicle leasing	Seminar (2 hr)
Week 06	Q10: Sale/leaseback of fixtures; Q11: Capital allowances for buildings	Seminar (2 hr)
Week 07	Q12: Real estate: substantial improvements and fitouts; Q13: Exploitation of real property	Seminar (2 hr)
Week 08	Q14 Lease incentives; Q15: “Black hole” business expenses	Seminar (2 hr)
Week 09	In-class test	Seminar (2 hr)
Week 10	Q16: Tax accounting methods; Q17: Profit and loss accounting	Seminar (2 hr)
Week 11	Q18: Multi-step transactions	Seminar (2 hr)
Week 12	Q19: Specific anti-avoidance rules; Q20: General anti-avoidance rules	Seminar (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.

For units offered in Intensive mode, participation in all scheduled sessions may be expected by a Unit Coordinator in order to satisfy the requirements of the unit.

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

(a) Legislation
Participants are required to have an up-to-date (2023) 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.
Any newer amendments to the legislation should also be obtained, such as by way of downloading them from ComLaw or AustLII.
Note: In this outline and the Class Problems, the Income Tax Assessment Act 1936 is referred to as ITAA36 and the Income Tax Assessment Act 1997 as ITAA97.

(b) Suggested Text
Cooper, Dirkis, Stewart & Vann, Income Taxation: Commentary and Materials (2023, 10th ed) Thomson Reuters, Sydney

Deutsch, Friezer, Fullerton, Hanley & Snape, Australian Tax Handbook 2023, (Thompson Reuters)

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

(c) Cases, rulings and additional statutory materials
•   Most Australian cases can now be accessed via Austlii: http://www.austlii.edu.au/
•   Tax rulings and other administrative materials are available from the ATO’s legal database: http://law.ato.gov.au/atolaw/index.htm
•   Statutory material (including the explanatory memorandum to a bill) can be found at Comlaw: http://www.comlaw.gov.au/

(d) Problems and Reading Guide
The readings for each class problem are provided in a rolling Reading Guide, to be provided on Canvas. The Reading Guide 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 Canvas site.

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. Identify and describe relevant principles of taxation law derived from statutory rules and case law that apply in relation to the taxation of business and investment income
LO2. Apply relevant taxation law to a variety of complex commercial settings through constructing and defending coherent and persuasive written arguments
LO3. Synthesise relevant statutory tax rules and case law by analysing a variety of complex commercial scenarios to accurately communicate tax issues and consequences orally and in writing to an advanced standard
LO4. Evaluate relevant primary and secondary sources from taxation law to create and sustain complex legal arguments in relation to tax issues arising in relation to business and investment income

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.

The assessment tasks for this unit of study have changed.

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

LAWS6841: Tax of Business and Investment Income B

Semester 2a, 2023 [Block mode] - Castlereagh St, Sydney

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