ACCG3020 Taxation Law and Practice

ACCG3020 Taxation Law and Practice
TAKE-HOME ASSIGNMENT: INFORMATION AND INSTRUCTIONS
Weighting: 20%
Posted on iLearn: Friday, 2 October 2020, at 14:00
Due Date: Tuesday, 6 October, 2020, at 15:00
Format of Submission: Microsoft Word document, 12-point type, double spaced
Method of Submission: Online, uploaded to iLearn. IMPORTANT: After receiving your Turnit-in report, it takes at least 24 hours for a subsequent report to be received. Please avoid
requesting for a second report to avoid a situation in which your work will be submitted
late.
Task Overview:
 Your written response to this assignment must be presented in an essay format – (It
must have an introduction/executive summary, a main body, and a conclusion).
Bullet points are not acceptable.
 Responses to this assessment task must not exceed 1,500 words.
 You must cite relevant cases, ATO rulings, and legislative references – (as footnotes
or endnotes) – to support your answers.
 Your response must also provide reasons that explain and support your answers.
ACCG3020 – Take-home Assignment – Session 2, 2020
Mr Pierre Boulet is a famous French chef who moved from Paris to Melbourne in October
2016 to work for an Australian fine dining restaurant. Since then, he has been leasing a unit
in South Yarra, but he maintained some of his investments at the local branch of his French
bank – the BNP Paribas, in Paris. During the 2019/20 year, he received a total of 4,250 in
interest which was paid into the local branch of his BNP Paribas account (15% withholding
tax was paid in France).
On 2 July 2018 Pierre purchased a vintage car for $35,000. The vehicle was sold at auction in
August 2019 for $55,000.
With the proceeds from the car, Pierre purchased a painting for $35,000 and two stamps for
$980 (individual prices were $510 and $470). Both purchases were in August 2019.
On 15 September 2019 he sold his old apartment in Paris that he had owned since 2000. He
made a profit of 100,000 on that sale. Pierre never repatriated or declared any part of the
interest or the profit realised on the sale of his Parisian apartment in his Australian tax
return.
In April 2020 he sold the painting for $45,000 and the two stamps for $9,000 – one of the
stamps sold for $5,200 and the other for $3,800).
Pierre has always declared in his Australian tax returns all salaries received from his
Australian employer, as well as profits from his Australian investments. For the year
2019/20 his salaries amounted to $230,000.
On 5 October 2020, Pierre received a notice of amended assessment, which included the
amounts derived in France in his taxable income.
Assume that you are a tax consultant, and Pierre has approached you for advice on the
following matters:
a) Under what circumstances and on what grounds could the ATO issue such an
amended assessment? (5 marks)
b) What should Pierre do if he decides to dispute this amended assessment, and what
time limits would apply? (4 marks)
c) What would be the extent of his liability to income tax for the year ended 30 June
2020. (4 marks)
d) He has already booked plans to go on a cruise to Europe in early November 2020,
and will not be back in Sydney till the end of April 2021. Would it make a difference
if he pays the outstanding tax in mid-May 2021? (5 marks)
Prepare a report advising Pierre on these matters. (2 marks)