LEGL602 - Taxation Law

Year

Credit points

Campus offering

Prerequisites

Teaching organisation

Unit rationale, description and aim

There are two major reasons for business students to learn about Taxation. First, most taxpayers are subject to income tax, and to function in a business or investment environment, it is useful to know some basic principles of taxation law. Second, one of the major fields of accounting and financial practice is taxation law. Against this backdrop the unit examines taxation imposed by statute: the Income Tax Assessment Act 1997 (Cth) and the Income Tax Assessment Act 1936 (Cth), the Goods and Services Tax (GST) and the Fringe Benefits Tax (FBT) and the application of case law and taxation rulings issued by the Australian Tax Office. The unit also examines the key principles relating to taxation law in Australia, [i.e. what is income, what is deductible, how various entities are taxed and the administration of the taxation system and the impact of tax offsets].

Learning outcomes

To successfully complete this unit you will be able to demonstrate you have achieved the learning outcomes (LO) detailed in the below table.

Each outcome is informed by a number of graduate capabilities (GC) to ensure your work in this, and every unit, is part of a larger goal of graduating from ACU with the attributes of insight, empathy, imagination and impact.

Explore the graduate capabilities.

On successful completion of this unit, students should be able to:

LO1 - Understand the key principles of taxation law in respect to income tax, Capital Gains Tax, GST and FBT (GA4, GA5, GA6) 

LO2 - Understand how the law is applied to different problems (GA3, GA4, GA8, GA9) 

LO3 - Use Taxation law databases, textbooks and the internet to obtain answers to different practical problems (GA5, GA7, GA8) and

LO4 - Understand the taxation treatment of different taxation entities and learn to develop appropriate tax management strategies for business and other entities (GA5, GA6, GA8) 

Graduate attributes

GA3 - apply ethical perspectives in informed decision making

GA4 - think critically and reflectively 

GA5 - demonstrate values, knowledge, skills and attitudes appropriate to the discipline and/or profession 

GA6 - solve problems in a variety of settings taking local and international perspectives into account

GA7 - work both autonomously and collaboratively 

GA8 - locate, organise, analyse, synthesise and evaluate information 

GA9 - demonstrate effective communication in oral and written English language and visual media 

Content

Topics will include: 

• Introduction and Overview of the Australian tax system 
• Concepts of income, source, derivation and residence, tax treatment vs. accounting treatment, implications of GST, business vs. hobby, small business concessions 
• Trading stock, key principles of Fringe Benefits Tax, non-cash business benefits 
• Key principles of Capital Gains Tax 
• Introduction to general allowable deductions 
• Specific deductions, decline in value for depreciating assets, repairs, superannuation, limitations on deductions 
• Introduction and overview of GST, BAS and payment system 
• Introduction to entities, individuals, offsets relevant to individuals and the Medicare levy and Medicare levy surcharge 
• Taxation of companies, taxation of dividends and the imputation system, taxation of trusts and taxation of partnerships 
• Overview of international tax issues, residence, withholding tax, double tax agreements  

Learning and teaching strategy and rationale

ACU’s teaching policy focuses on learning outcomes for students in the form of knowledge, capabilities and background. Our teaching aims to engage students as active participants in the learning process while acknowledging that all learning must involve a complex interplay of active and receptive processes, the constructing of meaning for oneself, and learning form others. ACU promotes and facilitates learning that is autonomous and self-motivated, which is characterised by the individual taking satisfaction in the mastering of content and skills and is critical, looking beneath the surface level of information for the meaning and significance of what is being studied. 

Mode of delivery: This unit is offered in different modes. These are: “Attendance” mode and “Online” mode.  

This unit is offered in two modes to cater to the learning needs and preferences of a range of participants and maximise effective participation for isolated and/or marginalised groups. Students are able to attend the interactive online sessions or face-to-face sessions, engage in self-directed learning supported by online activities, readings, forum discussions, assignment preparation and complete authentic activities and assessments. 

Attendance mode 

There are 12 Lectures and 12 Tutorials in LEGL602 conducted within a 12 week-semester.  

Students should anticipate undertaking 150 hours of study for this unit, including class attendance, readings and assessment preparation. This includes upfront preparation before attending the lectures and tutorials, while most students report that they spend an average of one hour preparing before the workshop and one or more hours after the workshop practicing and revising what was covered.  

The online learning platforms used in this unit provide multiple forms of preparatory and practice opportunities for you to prepare and revise. It is up to individual students to ensure that the out of class study is adequate for the optimal learning outcomes and successes. 

The following technology assistance will be accessible to students online: 

• unit outline 
• notices/announcements 
• assessment information, submission, marking and return of results/feedback 
• learning resources (readings, direction to further sources of online information, lecture slides, audio and video recorded material) 

Online mode 

This unit uses an active learning approach to support students in the exploration of the essential knowledge associated with taxation law. Students can explore the essential knowledge underpinning taxation law and develop knowledge in a series of online interactive lessons and modules. Students are given the opportunity to attend facilitated synchronous online seminar classes with other students and participate in the construction and synthesis of knowledge, while developing their knowledge of taxation law. Students are required to participate in a series of online interactive workshops which include activities, knowledge checks, discussion and interactive sessions. This approach allows flexibility for students and facilitates learning and participation for students with a preference for virtual learning. 

Assessment strategy and rationale

Assessment is an integral part of the learning process. This unit is assessed by two assignments and a final examination. Assessment tasks in this unit are aimed at measuring and developing student’s achievement of both the learning outcomes and graduate attributes noted above. The assessment in this unit may include, but are not limited to quizzes, essays, reports, examinations, or case studies. In order to pass this unit, students are required to submit all pieces of assessment and achieve an overall score of at least 50%.  

Each of these assessment pieces have been designed to empower students, lead to greater equity and deepen students’ skillsets by virtue of their design. They are assessment that are constructed to integrate the unit’s instruction and curriculum. The first assessment, which is an individual task, will enable students to understand how the law is applied to different problems. The second assessment is a group assessment which enables students to learn to be a part of a collaborative and consultative team to understand the key principles of taxation law in respect to income tax, Capital Gains Tax, GST and FBT. Students will also get to use Taxation law databases, textbooks and the internet to obtain answers to different practical problems. In the final assessment students get to delve further into understanding the key principles of taxation law in respect to income tax, Capital Gains Tax, GST and FBT. Additionally, students will understand the taxation treatment of different taxation entities and learn to develop appropriate tax management strategies for business and other entities. 

Overview of assessments

Attendance mode ;

Online mode 

Representative texts and references

The latest editions of: 

Sadiq K et al., (current edition), Principles of Taxation Law, Thomson Reuters, Sydney. 

Chow M, Australian Master Tax Guide, or recent edition, CCH, Sydney.  

Deutsch R et al, Fundamental Tax Legislation 2018 or recent edition, Thomson Reuters, Sydney. 

Deutsch R et al, Australian Tax Handbook 2018 or recent edition, Thomson Reuters, Sydney. 

Fisher and Hodgson, Tax Questions and Answers 2016 or recent edition, Thomson Reuters, Sydney.