Btx9651

Department of Business Law and Taxation
BTX9651 Taxation Law
Semester Two, 2013

Group Assignment (Due: 12 noon, Monday, 23 Sept. 2013)
Your group of four (or three) students will combine your organisational skills and tax knowledge to complete this assignment. Your understanding of tax legislation and case law principles covered over weeks one to eight will be applied to this project. Each group member must have kept up to date with all the prescribed readings and tests to ensure success. Don’t let your team down. Preparation of a tax return is required and that needs independent research from you. Why a tax return?? Because taxpayers with taxable income are required to lodge an annual return. In addition, all taxpayers want to know their tax liability, with some reasoned support.
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Group assignment data
Herman Jennings his wife, Lily, have resided in the same rented house for 30 years in Carnegie, Melbourne. Herman has contacted your group, as his tax advisors, about his 2013 individual income tax return. Herman is also concerned about the 2013 tax affairs of his five children: Alice, Tom, Rita, John and Danny. Lily was not employed in 2013.


Part 1. The information on the Jennings children is as follows:
  a. Alice Jennings is age 28 and a school teacher in New Zealand. For 2012/13 her gross salary was $60,000 and other income from Australian rental properties was $240,000. She has never had Australian private health insurance.


  b. **Tom Jennings is age 27 and worked in advertising for Big Star Ltd in Sydney from 1 July to 31 December 2012. He then left home and works for Big Star Ltd in London, where he has bought a flat. His 2012/13 gross salary was $180,000. He recently dropped his Australian private health insurance. In addition, Tom received a gift of $2,000 from a former Sydney client for the timely completion of his final project.


  c. Rita Jennings is age 20 and a researcher at a chemical company...