7106AFE

Income Tax Law

Semester 1,
2016
Review Lecture
John Minas

Student evaluations
There are two evaluations: one of my teaching and one of
the course itself.
Please take the time to complete these evaluations as:
YOUR FEEDBACK IS CRITICAL TO THE CONTINUED
IMPROVEMENT OF THE COURSE:
Please make comments about:
What things are done well and/or what needs
improvement

Last Week

Fringe Benefits Tax

1. Policy reasons for FBT
2. FBT general concepts
3. Steps for calculating FBT payable
4. Is there a fringe benefit?
5. Exempt fringe benefits
6. Summary of benefits types
7. Car benefits
8. Expense payment benefits
9. Recipients contribution
10. Otherwise deductible rule
11. Calculating FBT payable
12. Reporting of FBT on PAYG Payment Summaries
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This Week

Review Lecture

Course Overview Linking it altogether

Exam hints

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Areas examinable / non-examinable

Business School
Department of Accounting, Finance and Economics

This week
Why is it important?

It is important to understand not only the individual concepts we have

looked at, but how they relate to each other.

You will be assessed on your knowledge AND understanding of the law!

Also, its important to understand how to approach an closed book with

notes exam.

Summarise your notes:

Use diagrams to help put info in logical order
Practise using your summary notes BEFORE the exam.

1. Course Overview
How can you bring all the material together in a coherent and logical way?

What we have covered:

Chapter 1: Introduction
Chapter 2: Assessable income
Chapter 3: Business income
Chapter 4: Residency, source & derivation
Chapter 5: General deductions
Chapter 6: Special deductions
Chapter 7: Capital gains tax
Chapter 8: Goods & services tax
Chapter 9: Individuals & partnerships
Chapter 10: Companies & trusts
Chapter 11: Fringe benefits tax

How do each of these relate

to our basic tax equation?

[(Assessable income less

deductions) x Tax rate]
less Offsets

Topics Covered
What are the KEY terms for:
Introduction
Assessable income
Business income
Residency, source & derivation
General deductions
Special deductions
Capital gains tax
Goods and services tax
Taxation of individuals
Taxation of partnerships
Taxation of companies
Taxation of trusts
Fringe benefits tax
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Department of Accounting, Finance and Economics

Topics Covered
What are the KEY dates of:

Introduction
Assessable income
Business income
Residency, source & derivation
General deductions
Special deductions
Capital gains tax
Goods and services tax
Taxation of individuals
Taxation of partnerships
Taxation of companies
Taxation of trusts
Fringe benefits tax

Incorporate these dates into your summaries.

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Department of Accounting, Finance and Economics

Topics Covered
What are the KEY sections of:

Introduction
Assessable income
Business income
Residency, source & derivation
General deductions
Special deductions
Capital gains tax
Goods and services tax
Taxation of individuals
Taxation of partnerships
Taxation of companies
Taxation of trusts
Fringe benefits tax

Incorporate these sections into your summaries.

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Department of Accounting, Finance and Economics

Topics Covered
What are the KEY cases of:

Introduction
Assessable income
Business income
Residency, source & derivation
General deductions
Special deductions
Capital gains tax
Goods and services tax
Taxation of individuals
Taxation of partnerships
Taxation of companies
Taxation of trusts
Fringe benefits tax

Incorporate these dates into your summaries.

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Business School
Department of Accounting, Finance and Economics

1. Course Overview
How can you bring all the material together in a coherent and logical way?

With each of the entities discussed (Individuals,

Partnerships, Companies and Trusts), how do they relate to:
Income tax
Capital gains tax
Goods and services tax
Fringe benefits tax

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How to Study Effectively?

Suggestion
Use the Study Guide as your central framework
Follow the suggested readings (these are relevant that is why I
refer to them)
Read the legislation referred to
Add your own summaries to the study guide when youve done
the reading
Complete the review activities from the lecture or seminar
Add additional material that you might of obtained from
seminars
Then summarise study guide chapter
Flow diagrams
Instructions or maps on a particular topic
Then practice using your summary notes on seminar questions and
review activities.

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Department of Accounting, Finance and Economics

Other Strategies

Doing Summaries
You need to collate all of your information into a readily accessible form
Practice using your summary notes BEFORE the exam
Go over again the practice exam question
How much time did it take?
Do you understand all of the issues raised?
Write Instructions for yourself
How to calculate net income of a partnership
How to calculate a net capital gain on shares
Dont forget to bring:
pencil and eraser for multi-choice
calculator

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Business School
Department of Accounting, Finance and Economics

Next two weeks

Study Week

Prepare summaries and use them to revise the examinable course

content and practise using them on the past exams.
Attend student consultations if assistance is needed
Post technical questions on the Discussion Board.

Final Exam
Verify the details including the venue using your student number
through Griffith Portal (and confirm the venue again the day before
your exam).

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Final Semester Exam

Currently scheduled to occur on Monday 20 June 2016 at 8.30am
Please check for your room allocation and any changes.
The exam is closed book with notes - with students only
allowed to bring in twenty (20) sheets of A4 size notes with them
into the exam (students are allowed to write on both sides of the
sheets). Each page is to be consecutively numbered 1 to 40 in the
top right hand corner - with notes either handwritten or word
processed
Any student found to have more than the allowed pages of notes
with them will be subject to academic misconduct.

Final Semester Exam

A coversheet for the exam notes is provided on the Learning@Griffith

and MUST be used (under assessment).

Students will be able to take their notes with them at the end of the
exam

Exam Format & Technique

Final exam worth 50% for the subject and has 50 marks.

Format consists of two sections:

Section A:
7 multiple choice questions (worth 7 marks).

Section B:
3 problem questions (must do all) (worth a total of 43 marks total).

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Department of Accounting, Finance and Economics

Exam Outline & Technique

Exam is 3 hours (15 minutes for perusal)

Try to divide time according to the weighting. Recommend:

Section A: 25 minutes; then

Section B:

43 minutes for Q8 (12 marks)

76 minutes for Q9 (21 marks)
36 minutes for Q10 (10 marks)

So suggest:

8.30 to 8.45 Perusal - identify problem question topics, start reviewing multiple choice
8.45 to 9.10 Section A - multi- choice
9.10 to 9.53 Section B Q8
9.53 to 11.09 Section B Q9
10.09 to 11.45 Section B Q10

Try to adhere to the time limits you have set!

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Department of Accounting, Finance and Economics

Exam Format & Technique

Section A: 7 multiple choice questions

Focussed on GST, partnerships, trusts, FBT and CGT:
Chapters 8, 9 and 10
Although concepts from other topics may be involved!

Some of the questions are calculation based.

Take the time to ensure that you clearly understand what the questions
are asking, and carefully read the answer options.
Remember there are NO part marks for multi-choice!

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Department of Accounting, Finance and Economics

Exam Format & Technique

Section A: 7 multiple choice questions

Remember to read what the question is asking.

Chose the best alternative - at first skip questions that you dont know
the answer to (come back to it later) - at worst your answer should be
an educated guess

Highlight important terms, such as:

Not
* True/False
Only
* Price/value
Dates

Try not to look for a trickbase your answer on the information

presented

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Exam Outline: 7106AFE

Section B: 3 problem questions

Question 8: Has short statements that requires you to answer true or false
and give a short explanation identifying legislation, cases or rulings to
support your answers.
Question 9 : large fact scenario, with questions that follow
Question 10: shorter fact scenario, with questions that follow
To be answered in the answer booklet.
Students must answer all questions
Questions cover:

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Question 8: Chapters 1, 4, 5, 6, 8 and 9 (12 marks)

Question 9: Chapter 7 (21 marks)
Question 10: Chapters 2, 3, 5 and 6 (10 marks)
Concepts from other chapters may be involved!

Business School
Department of Accounting, Finance and Economics

What is expected?

Section B Problem Questions:

I am expecting that you include legislative references for your

answers when the question instructs you to do so:
At the beginning of the question you can say all references are
to the _______ Act (unless stated otherwise).
Marks are allocated for referencing (YOU ARE MISSING OUT ON
MARKS IF YOU DONT INCLUDE REFERENCES)
If there are separate parts to a question then follow them in
orderdont discuss things that arent required.

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Answer each distinct part separately

Business School
Department of Accounting, Finance and Economics

What is expected?

Section B Problem Questions:

Read a question and identify the issues (write them down at the beginning
of the question so you make sure that you dont forget to address them).
Make sure that you answer the question being asked (ASK yourself - what
is the question asking?)
You can give your answers in dot point form
Write legibly
Write down any assumptions or further facts that you might need.
Connect the facts of the question to elements/requirements that you are
considering
On the paper you should outline your thinking

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If you exclude an amount from income tell me why!

i.e. The GST component of price when determining the assessable income of
an entity.

Business School
Department of Accounting, Finance and Economics

Exam Outline & Technique

Topics examinable:

Emphasis on Chapters 7 to 11 of the Study Guide

Emphasis on Seminars 7 to 10

Though still need a good understanding of material covered in Chapters 1 to 6 (for

example what is assessable income and how is it derived, what are allowable
deductions (such as repairs) and how depreciation is calculated)

Look at:

Lecture presentations
What was said in lectures
Study Guide Chapters
Seminars

Look at what was covered in seminars questions and review activities:

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questions are similar format

for what was emphasised

Business School
Department of Accounting, Finance and Economics

Exam Outline & Technique

From the first six study guide chapters that were covered in the mid-semester exam, you
STILL NEED TO KNOW and need to be able to explain the concepts taught

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Department of Accounting, Finance and Economics

Exam Outline & Technique

TOPICS NOT EXAMINABLE in the Final Exam:

Study Guide Chapter 4:

Source of income assume all income is Australian sourced

Withholding tax
Residency of companies

Study Guide Chapter 6:

Low value pools

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Business School
Department of Accounting, Finance and Economics

Exam Outline & Technique

TOPICS NOT EXAMINABLE in the Final Exam:

Study Guide Chapter 7

Study Guide Chapter 8

Indexation method
Law that applied before CGT was introduced (e.g. s 25A).
Division 152 small business concessions
Taxable importations and creditable importations.

Study Guide Chapter 10

Consolidations
Clubs and associations
Franking accounts

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Business School
Department of Accounting, Finance and Economics

Admin matters
Deferred exams

For full
details, see the
latest version of
the Assessment
Policy

Apply online within 3 working days of the exam

Applications are assessed centrally by Examinations &
Timetabling
I dont see them at all
You must have a good reason to apply for one (see the online
form & instructions) and suitable documentary evidence.
If granted, they are run centrally by the University in the
Deferred/Supplementary exam period.
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Admin matters

For full
details, see the
latest version of
the Assessment
Policy

Review of Grade Applications

Must lodge application at Student Admin within 10 working days of
the official grade release date (note the AFE course grades are
normally released two days early; Monday instead of Wednesday)
Can ONLY be made on academic grounds (NOT personal grounds)
So if you have any personal grounds, lodge an Application
for Special Consideration within 3 working days of the
exam and supply the necessary documentary evidence)
Academic grounds include if there is a fundamental error in
recording your assessment marks.
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Consultation times during exam period

Date

Time

8 June
and
15 June

2.30pm to NA50_1.32
4.30pm

16 June

10am to
1pm

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Location

Person

Email

John Minas

j.minas@griffith.edu.au

Good luck with your exams

and your
careers!!!
NA50_1.32
John
Minas
j.minas@griffith.edu.au

Business School
Department of Accounting, Finance and Economics

Good luck
All the best with your exams
and your future careers!

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Business School
Department of Accounting, Finance and Economics