1. Answer ALL questions, below, in not more than 4,000 words in total (inclusive of footnotes). 2. A good answer will demonstrate the following qualities: (i) A sound grasp of the relevant legal issues and principles. (ii) An ability to explain the legal position comprehensively and clearly. (iii) A good command of the English language and the ability to produce a document that meets professional standards in relation to grammar, spelling and punctuation. 3. Format: Answers must be typed and double-spaced. Page margins should be the usual Word default margins (approximately 2.5 cm). Use Times New Roman and 12 point font (this does not apply to footnotes / endnotes). 4. Bibliography: No bibliography is required, provided you use footnotes (or endnotes) to reference your sources. 5. Referencing: Follow the Australian Guide to Legal Citation, available at http://www.law.unimelb.edu.au/files/dmfile/FinalOnlinePDF-2012Reprint.pdf or by googling AGLC and clicking on the relevant links. 6. Word count: Print the total number of words used in your answers on the cover sheet. A separate document entitled ‘Assignment: Word Limit’ explains how to do the word count. 7. Punctuality: In order to encourage punctuality, 5% will be deducted from your raw mark for each day (finishing at 6 p.m.), or part thereof, by which the date of submission exceeds the submission deadline. 8. Plagiarism: this will be penalised severely, normally by failure. ANSWER ALL QUESTIONS QUESTION 1 (COMPULSORY – ANSWER BOTH PARTS) a) Why was section 260 of the Income Tax Assessment Act 1936 (‘the Act’) enacted? What were its principal shortcomings? [25 marks] b) Has Part IVA of the Act overcome the shortcomings of section 260? Has it given rise to any difficulties of its own? [50 marks] Illustrate your answers with relevant cases. QUESTION 2 (COMPULSORY) Lucky was born and raised in New Zealand. His ambition was to study abroad and in 2013, when he was aged 20, he was offered a place to read journalism at Murwest University in Perth. Each year from 2013-2015 inclusive, Lucky travelled to Perth in February in time for the start of 1st semester and returned to New Zealand in late November to stay with his parents in Wellington over the long vacation. During his first two years at Murwest, Lucky lived in a student hall of residence on campus, but in his final year he rented a unit in Shenton Park with his Australian girlfriend, Noelene. In November 2015, Lucky completed his degree and returned to New Zealand where he remained until June 2016. He then returned to Perth with permanent residence status and has remained there ever since. Since first coming to Western Australia in February 2013, Lucky has received in his bank account in Perth, each June and November, approximately $A12,000 in dividends from his parents’ family company based in New Zealand. From time to time, Lucky has also received fees in respect of occasional articles published by him in the Wellington Gazette. The articles were commissioned by the Gazette’s editor at a meeting with Lucky in Wellington in December 2013. Lucky wrote all the articles in Perth. The Wellington Gazette paid all the fees into Lucky’s bank account in Wellington. Advise Lucky whether he may be liable to income tax in Australia on the dividends and fees. [25 marks] MARKING MURDOCH UNIVERSITY TAXATION (MBS514) ASSIGNMENT: TSA, 2016 INSTRUCTIONS 1. Answer ALL questions, below, in not more than 4,000 words in total (inclusive of footnotes). 2. A good answer will demonstrate the following qualities: (i) A sound grasp of the relevant legal issues and principles. (ii) An ability to explain the legal position comprehensively and clearly. (iii) A good command of the English language and the ability to produce a document that meets professional standards in relation to grammar, spelling and punctuation. 3. Format: Answers must be typed and double-spaced. Page margins should be the usual Word default margins (approximately 2.5 cm). Use Times New Roman and 12 point font (this does not apply to footnotes / endnotes). 4. Bibliography: No bibliography is required, provided you use footnotes (or endnotes) to reference your sources. 5. Referencing: Follow the Australian Guide to Legal Citation, available at http://www.law.unimelb.edu.au/files/dmfile/FinalOnlinePDF-2012Reprint.pdf or by googling AGLC and clicking on the relevant links. 6. Word count: Print the total number of words used in your answers on the cover sheet. A separate document entitled ‘Assignment: Word Limit’ explains how to do the word count. 7. Punctuality: In order to encourage punctuality, 5% will be deducted from your raw mark for each day (finishing at 6 p.m.), or part thereof, by which the date of submission exceeds the submission deadline. 8. Plagiarism: this will be penalised severely, normally by failure. ANSWER ALL QUESTIONS QUESTION 1 (COMPULSORY – ANSWER BOTH PARTS) a) Why was section 260 of the Income Tax Assessment Act 1936 (‘the Act’) enacted? What were its principal shortcomings? [25 marks] b) Has Part IVA of the Act overcome the shortcomings of section 260? Has it given rise to any difficulties of its own? [50 marks] Illustrate your answers with relevant cases. QUESTION 2 (COMPULSORY) Lucky was born and raised in New Zealand. His ambition was to study abroad and in 2013, when he was aged 20, he was offered a place to read journalism at Murwest University in Perth. Each year from 2013-2015 inclusive, Lucky travelled to Perth in February in time for the start of 1st semester and returned to New Zealand in late November to stay with his parents in Wellington over the long vacation. During his first two years at Murwest, Lucky lived in a student hall of residence on campus, but in his final year he rented a unit in Shenton Park with his Australian girlfriend, Noelene. In November 2015, Lucky completed his degree and returned to New Zealand where he remained until June 2016. He then returned to Perth with permanent residence status and has remained there ever since. Since first coming to Western Australia in February 2013, Lucky has received in his bank account in Perth, each June and November, approximately $A12,000 in dividends from his parents’ family company based in New Zealand. From time to time, Lucky has also received fees in respect of occasional articles published by him in the Wellington Gazette. The articles were commissioned by the Gazette’s editor at a meeting with Lucky in Wellington in December 2013. Lucky wrote all the articles in Perth. The Wellington Gazette paid all the fees into Lucky’s bank account in Wellington. Advise Lucky whether he may be liable to income tax in Australia on the dividends and fees. [25 marks] .