Busl 320 Summer

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BUSL320 2011 Summer School
TOPICS TO FOCUS ON FOR EXAM PREPARATION
Notes on the coverage of this exam are set out on pages 15-18 of your Study Guide.

OTHER MATTERS RELATING TO THE EXAM: The final exam is divided into 2 parts. The first part covers 15 multiple choice questions, and the second part covers 3 case study questions.

Candidates are expected to answer ALL questions.

PART A – (15 marks): 15 Multiple Choice Questions 1 mark each

TOPICS COVERED IN PART A:
1. 2. GENERAL DEDUCTIONS SPECIFIC DEDUCTIONS:

Repairs Depreciation Car expenses Non-commercial losses
3. IMPUTATION

Page 1

PART B – (45 marks): Question 1 – 23 marks Question 2 – 12 marks Question 3 – 10 marks Part a – 5 marks Part b – 5 marks

TOPICS COVERED IN PART B:
The THREE (3) case study questions cover the following topics and areas: 1. GENERAL DEDUCTIONS: Note: It is assumed that students have a clear understanding of how this provision works. 2. SPECIFIC DEDUCTIONS: Depreciation- Calculation Borrowing Expenses Repairs Non-business deductions Reconciliation of deduction provisions with other taxes 3. GOODS AND SERVICES TAX: GST: The different types of supply and their tax effects; GST Registration GST: computation of liability Interaction between GST and income tax Note: The content covered in Lecture 6 slides 24 -33 of your PowerPoint slides on this topic will not be examined Page 2

4.

COMPANY TAXATION: Deemed Dividends Tax Effects of various entities receiving dividends Tax effects of residency status on the receipt of dividends The treatment of corporate losses Note: The content covered in Lecture 7 slides 28, and 33 of your PowerPoint slides on this topic will not be examined

5.

PARTNERSHIPS

PLEASE NOTE ALL questions in this Part require calculations and the provision of explanations, advice, and tax structuring issues.

You must provide reasons to explain your answers.
Failure to provide reasonable explanations will result in very low marks being awarded. Where you undertake calculations these must be shown in full

EACH QUESTION - IN PART B -MUST BE ANSWERED IN A SEPARATE BOOK.

Page 3

The following Tax Rates will be provided in the exam paper INDIVIDUAL INCOME TAX RATES 2009-10 Resident Individuals Taxable income $0 – $6,000 $6,001 – $35,000 $35,001 – $80,000 $80,001 – $180,000 $180,001 and over Tax on this income Nil 15c for each $1 over $6,000 $4,350 plus 30c for each $1 over $35,000 $17,850 plus 38c for each $1 over $80,000 $55,850 plus 45c for each $1 over $180,000

Non-Resident Individuals Taxable income 0 – $35,000 $35,001 – $80,000 $80,001 – $180,000 $180,001 and over Tax on this income 29c for each $1 $10,150 plus 30c for each $1 over $35,000 $23,650 plus 38c for each $1 over $80,000 $61,650 plus 45c for each $1 over $180,000

MEDICARE LEVY:
A Medicare levy of 1.5% of taxable income is payable by any resident individual taxpayer whose taxable income for 2009/2010 exceeds $18,488. In addition to the basic Medicare levy rate of 1.5%, a 1% Medicare levy surcharge may be imposed on a taxpayer who does not have private hospital insurance. The surcharge applies to single individuals with a taxable income in excess of $73,000 pa, or couples and families with a taxable income in excess of $146,000 p.a. plus $1,500 for the second and every subsequent dependent child who do not have private hospital insurance. Page 4

CAPITAL GAINS TAX: INDEX NUMBERS
Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 --March ---74.4 81.4 87.0 92.9 100.9 105.8 107.6 108.9 110.4 114.7 119.0 120.5 120.3 121.8 --Quarterly CPI Number June September 71.3 ---75.6 77.6 82.6 84.0 88.5 90.2 95.2 97.4 102.5 103.3 106.0 106.6 107.3 107.4 109.3 109.8 111.2 111.9 116.2 117.6 119.8 120.1 120.2 119.7 121.0 121.3 122.3 123.4* -----

December 72.7 79.8 85.5 92.0 99.2 106.0 107.6 107.9 110.0 112.8 118.5 120.3 120.0 121.9 -----

*

For CGT purposes, indexation is frozen at the September 1999...
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