Comprehensive Analysis of Australian Taxation Law: Case Studies on Residency, Deductions, and Capital Gains Tax (CGT) for the 2024-25 Income Year

LAW6001 Assessment Brief 3: Case Study T1 2025

Subject Code and Title: LAW6001 Taxation Law Assessment: Assessment 3: Case Study Individual/Group: Individual Length: 2000 words (+/- 10%) Submission: By 11:55pm AEST/AEDT Sunday of Week 10 Weighting: 20% Total Marks: 50 marks

Learning Outcomes

This case study must be presented as an individual effort. The case study requires individual research. The course manual and set texts are intended to be the starting point of the research. It is expected that the student will survey the relevant literature, including decided cases, and select appropriate additional resources.

The case study is designed to incorporate uncertainty. The student is expected to develop a piece of work which is written advice for their client. It must therefore:

• Identify the facts and issues presented by each aspect of the case study.
• Identify and apply the relevant legislation and/or case law.
• Reach a conclusion and make a recommendation to the client.

Specific Learning Outcomes

(b) Explain ethical and professional responsibilities of tax agents, including obligations under the Tax Agent Services Act 2009 (TASA) and Tax Agent Services Regulations 2009 (TASR).

(c) Interpret and apply selected sections of the Income Tax Assessment Acts (ITAA36 and ITAA97).

(d) Identify and analyse the tax treatment of various types of income and deductions.

(e) Effectively apply taxation law in determining tax outcomes in various scenarios and structures.

Context

This assessment evaluates:

• Your research skills.
• Your ability to synthesise an original piece of work to specific content requirements.
• Your ability to produce comprehensible advice addressing the client’s needs.
• Your written communication skills.

The ability to deliver to a brief is an essential workplace skill. Clients may approach advisors for specific information needs and advice on the tax implications of arrangements in the Australian jurisdiction. It is therefore important to identify all issues presented and to consider the potential consequences of different approaches.

Instructions

Your case study needs to identify and discuss the tax implications of the various issues raised. To do this, you will need to review relevant case law and legislation.

The subject manual and set texts are starting points only.

You will be expected to use these initial materials to identify potential useful resources.

You will then need to review your selected resources to see if they add value to your analysis.

⚠️ Note: Your case study is not just a list of answers. Your conclusions and recommendations must be based on your research into relevant cases and legislation.

Case Study Questions

Question 1 (6 marks)

Explain the: a) Constitutional basis of the Australian taxation system, i.e., what section(s) of the Australian Constitution confer taxation powers? b) Role of the Courts, the Parliament, and the ATO in developing taxation law in terms of the theory of the separation of powers in government.

Question 2 (9 marks)

A non-resident manufacturer based in the US derives profits from sales to Australian customers. The US manufacturer has a sales representative in Australia operating out of a serviced office, and this representative has been instrumental in obtaining orders.

Required: With reference to the relevant Double Tax Agreement, determine whether the profits from the Australian sales by this US manufacturer are taxable in Australia.

Question 3 (15 marks)

Indianna is a resident taxpayer who owns 22 hectares of land used for producing assessable income. She decides to develop it into residential housing.

She considers three scenarios: a) Sub-divides into 80 lots (plus 2 hectares for her family home) and sells all undeveloped blocks to a property developer. b) Sub-divides as above but auctions off all 80 blocks individually. c) Sells the land as a whole to a development company, which develops the land and returns 35% of proceeds to Indianna upon final sales.

Required:

Part 1: As Indianna’s tax advisor, explain the potential assessable income issues for each scenario if:

• The property has been owned since 1 November 1976.
• The property has been owned since 20 September 1985.

Part 2: The project may take place over at least two financial years. Discuss when Indianna will derive any assessable income she receives from each of the three scenarios.

Question 4 (10 marks)

Amity sold her catering business, purchased land in the Adelaide Hills for $5 million (on instalments with interest accruing) in 2022, and planned to develop an accommodation business. She ran cattle and alpacas on the land while awaiting council zoning approval. Later, she sold a quarter interest to Archie. After disagreements, Amity sold her share in 2025.

Required: With reference to legislation and case law, determine whether Amity can claim the loan interest as a deduction over the three-year period.

Question 5 (15 marks)

Maurice, an Australian tax resident, has the following assets:

• Home (acquired 20 February 1995 for $250,000; sold 1 March 2024 for $1,200,000).
• Shares in FUL Pty (acquired 10 April 1990 for $25,000; sold 15 March 2024 for $45,000).
• Furniture (acquired 20 May 2015 for $12,000; sold 1 May 2024 for $8,000).
• Vacant land (acquired 20 June 2000 for $150,000; sold 15 May 2024 for $950,000).

Additional details:

• Market value of home on 1 March 2024: $1,150,000.
• Market value of land on 15 May 2024: $975,000.
• Carry forward capital losses: $20,000 (antique drumkit), $8,000 (shares).
• Interest expenses of $180,000 incurred on vacant land (not income-producing).

Required: With reference to relevant legislation and cases, calculate Maurice’s net capital gain or loss for the 2023/24 income year.

Question 6 (10 marks)

Source two articles from the Australian Financial Review or a similar resource. For each article provide: a) A précis of the relevant facts. b) A concise explanation of the taxation concepts discussed. c) An explanation of the connection between the concepts and indicators of good tax policy.

Question 7 (5 marks)

Comment, with reference to the Tax Agent Code of Conduct, on the role the tax advisor has in ensuring their client’s compliance with taxation laws.

Learning Rubrics

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Subject: TAX7002 – Advanced Taxation Law (or similar)

Assessment: Assessment 3 – Case Study / Client Advice
Type: Individual
Length: 2,200 words ± 10%
Submission deadline: By 11:55 pm (local time) Sunday of Week 10
Weighting: 25%
Total marks: 50

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Learning Outcomes

On successful completion of this assessment, you should be able to:

1. Identify and analyse key tax issues arising from complex factual scenarios.

2. Interpret and apply relevant provisions of the Income Tax Assessment Acts (ITAA 1936, ITAA 1997), related regulations, and double taxation agreements.

3. Critically engage with statutory anti-avoidance rules (e.g. Part IVA) and tax integrity measures.

4. Advise on the professional, ethical, and regulatory obligations of tax practitioners (e.g. under the Tax Agent Services Act 2009, relevant codes).

5. Present clear, reasoned, and practical advice to a hypothetical client, with justified recommendations and awareness of alternative positions.

6. Demonstrate sound legal research, referencing legislation, case law, ATO rulings, and secondary materials.

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Context / Purpose

A key skill for tax professionals (lawyers, accountants, advisers) is translating complex fact patterns into structured legal advice. This case study aims to simulate a real-world scenario, requiring you to:

• sift through a fact pattern to identify potentially contentious tax issues;

• apply and integrate relevant tax law (statutory, case law, rulings) under uncertainty;

• formulate reasoned conclusions and recommendations for the client;

• communicate your advice in a professional, persuasive and structured manner.

Your submission should not merely list issues or reproduce textbook summaries, but should be written as advice to your client, showing your reasoning (with legal authority) and giving pragmatic recommendations.

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Instructions & Requirements

1. Individual work only. Collaboration or sharing of substantive content is not permitted.

2. Research beyond the set text is expected. You should consult legislation, cases, ATO rulings/interpretative decisions, and high-quality secondary materials (articles, textbooks).

3. Use headings/subheadings to organise your answers.

4. You must footnote or endnote all legal authority (legislation citations, case names, rulings).

5. The word limit includes headings and in-text discussion, but excludes footnotes or reference list.

6. Over-length submissions will attract a penalty (e.g. 5% deduction per 100 words or part thereof).

7. Submit via the LMS / Turnitin link (Word / PDF).

8. Late submissions incur penalties unless prior approval is granted.

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Case Study Scenario & Questions

Scenario

You are consulted by Orion Solar Solutions Pty Ltd (“Orion”), an Australian resident company in the renewable energy sector, in relation to several transactions undertaken during the 2024–25 and 2025–26 income years. The following key events occurred:

1. Solar Farm Lease and EPC Contract
   Orion has entered into a 20-year lease of land in regional Victoria from a local council. Under the lease, Orion agrees to pay annual lease payments of $500,000 (indexed) plus commit to an engineering, procurement and construction (EPC) contract with a foreign contractor (based in Germany) to build a large solar farm. The EPC contractor also provides operation & maintenance services for the first 5 years.
   The EPC contract includes an option that, if Orion procures certain specialised German components via intercompany arrangements, the contractor will discount the build cost. Orion is considering whether to source these components through its newly established German affiliate, which would charge Orion a margin.

2. Sale of Renewable Energy Credits (RECs) and Forward Contracts
   In 2025, Orion enters into forward contracts to sell Renewable Energy Credits (RECs) (created after operations commence) to a financial market counterparty. Some of these forward REC contracts are structured with embedded derivatives features.

3. Acquisition and Disposal of Land for Expansion
   Orion acquired a parcel of adjacent rural land in mid-2024 for $12 million to allow future expansion of capacity. No development has occurred yet. In July 2025, it sold the property for $15 million. Orion carried forward capital losses from past years of $1.2 million.

4. Dividends from Foreign Affiliates & Imputation Issues
   Through its German affiliate, Orion receives dividends in late 2025. Orion is evaluating whether to stream franking credits to its Australian shareholders, and whether withholding tax applies under the relevant double taxation agreement between Australia and Germany.

5. Professional & Ethical Issue
   In mid-2025, Orion’s CFO obtains an internal draft of proposed Australian legislation (yet to be enacted) that would materially affect tax deductions for forward contracts. The draft was leaked to the CFO by a government advisory committee member. Orion’s CEO asks whether and how this information can (or should) be used in Orion’s tax planning.

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Questions

Q1 (8 marks)
Critically discuss the arm’s length transfer pricing and thin capitalisation / debt limitation issues that arise in the EPC / component supply arrangement, including the application of relevant Australian tax law (e.g. Division 815 ITAA 1997, sections 820-830, Division 820, etc.). Provide advice on risk mitigation and compliance strategies for Orion.

Q2 (10 marks)
Analyse the tax treatment of the forward contracts for the RECs. In your answer, consider:

• whether gains or losses should be taxed under financial instrument / derivatives rules (e.g. section 230-37, or other relevant provisions) or some other regime;

• the timing of recognition of gains or losses;

• whether any hedging or financial risk management exceptions may apply;

• possible anti-avoidance or integrity concerns.

Q3 (10 marks)
Address the capital gains tax consequences (or otherwise) of Orion’s acquisition and disposal of the land, given the facts above. In particular:

• is the gain on sale assessable as a capital gain, or caught as ordinary income?

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• how do the carried forward capital losses apply?

• if development in future is contemplated, how might the character of the land be treated in later years?

• any timing / apportionment issues given the holding period overlaps financial years.

Q4 (8 marks)
Advise on the Australian tax treatment of the dividends received from the German affiliate, especially:

• whether franking credits can be streamed to Australian shareholders;

• whether withholding tax applies under the Australia-Germany double taxation agreement;

• how foreign income tax offsets might be applied;

• any integrity / anti-avoidance concerns (e.g. DTA anti-abuse).

Q5 (8 marks)
With reference to the Tax Agent Services Act 2009 and the Tax Agent Code of Conduct (or similar professional obligations), advise on the ethical and regulatory constraints facing Orion (or its tax advisers) in using the leaked draft legislation information in its tax planning. In your discussion:

• identify relevant duties and constraints (e.g. misuse of inside information, confidentiality, professional independence);

• compare alternative courses of action;

• recommend a risk-aware strategy.

Q6 (6 marks)
Select two recent (2023–2025) taxation news items or articles (from credible Australian sources such as Australian Financial Review, The Tax Institute, or ATO announcements). For each:

a) Give a short précis of the facts or proposals;
b) Explain the taxation law or policy issues involved;
c) Critically reflect on how the issues relate to Orion’s situation, especially in light of good tax policy principles (equity, efficiency, integrity).

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Marking Rubric (summary)

Notes on standards:

• Fail: misses major issues, incorrect or superficial legal analysis, little authority.

• Pass / Credit: identifies most issues, applies correct law, some gaps or weak reasoning.

• Distinction: well-reasoned and supported advice, awareness of alternative views, good use of authority.

• High Distinction: sophisticated treatment, nuanced discussion, strong integration of policy/ethics, exemplary presentation.

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Assg II

LAW6001 Assessment Brief 3: Case Study T1 2019

Subject Code and Title: LAW6001 Taxation Law
Assessment: Assessment 3: Case Study
Individual/Group: Individual
Length: 2000 words (+/- 10%)
Submission: By 11:55pm AEST/AEDT Sunday of Week 10
Weighting: 20%
Total Marks: 50 marks

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Learning Outcomes

This case study must be presented as an individual effort. The case study requires individual research. The course manual and set texts are intended to be the starting point of the research. It is expected that the student will survey the relevant literature, including decided cases, and select appropriate additional resources.

The case study is designed to incorporate uncertainty. The student is expected to develop a piece of work which is written advice for their client. It must therefore:

• Identify the facts and issues presented by each aspect of the case study.

• Identify and apply the relevant legislation and/or case law.

• Reach a conclusion and make a recommendation to the client.

Specific Learning Outcomes

• (b) Explain ethical and professional responsibilities of tax agents, including obligations under the Tax Agent Services Act 2009 (TASA) and Tax Agent Services Regulations 2009 (TASR).

• (c) Interpret and apply selected sections of the Income Tax Assessment Acts (ITAA36 and ITAA97).

• (d) Identify and analyse the tax treatment of various types of income and deductions.

• (e) Effectively apply taxation law in determining tax outcomes in various scenarios and structures.

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Context

This assessment evaluates:

• Your research skills.

• Your ability to synthesise an original piece of work to specific content requirements.

• Your ability to produce comprehensible advice addressing the client’s needs.

• Your written communication skills.

The ability to deliver to a brief is an essential workplace skill. Clients may approach advisors for specific information needs and advice on the tax implications of arrangements in the Australian jurisdiction. It is therefore important to identify all issues presented and to consider the potential consequences of different approaches.

---

Instructions

Your case study needs to identify and discuss the tax implications of the various issues raised. To do this, you will need to review relevant case law and legislation.

• The subject manual and set texts are starting points only.

• You will be expected to use these initial materials to identify potential useful resources.

• You will then need to review your selected resources to see if they add value to your analysis.

⚠️ Note: Your case study is not just a list of answers. Your conclusions and recommendations must be based on your research into relevant cases and legislation.

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Case Study Questions

Question 1 (6 marks)

Explain the:
a) Constitutional basis of the Australian taxation system, i.e., what section(s) of the Australian Constitution confer taxation powers?
b) Role of the Courts, the Parliament, and the ATO in developing taxation law in terms of the theory of the separation of powers in government.

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Question 2 (9 marks)

A non-resident manufacturer based in the US derives profits from sales to Australian customers. The US manufacturer has a sales representative in Australia operating out of a serviced office, and this representative has been instrumental in obtaining orders.

Required:
With reference to the relevant Double Tax Agreement, determine whether the profits from the Australian sales by this US manufacturer are taxable in Australia.

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Question 3 (15 marks)

Indianna is a resident taxpayer who owns 22 hectares of land used for producing assessable income. She decides to develop it into residential housing.

She considers three scenarios:
a) Sub-divides into 80 lots (plus 2 hectares for her family home) and sells all undeveloped blocks to a property developer.
b) Sub-divides as above but auctions off all 80 blocks individually.
c) Sells the land as a whole to a development company, which develops the land and returns 35% of proceeds to Indianna upon final sales.

Required:

Part 1: As Indianna’s tax advisor, explain the potential assessable income issues for each scenario if:

• The property has been owned since 1 November 1976.

• The property has been owned since 1 November 1986.

Part 2: The project may take place over at least two financial years. Discuss when Indianna will derive any assessable income she receives from each of the three scenarios.

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Question 4 (10 marks)

Amity sold her catering business, purchased land in Adelaide Hills for $3m (on instalments with interest accruing), and planned to develop an accommodation business. She ran cattle and alpacas on the land while awaiting council zoning approval. Later, she sold a quarter interest to Archie. After disagreements, Amity sold her share.

Required:
With reference to legislation and case law, determine whether Amity can claim the loan interest as a deduction over the three-year period.

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Question 5 (15 marks)

Maurice, an Australian tax resident, has the following assets:

• Home (acquired 20 Feb 1989 for $140,000; sold 1 Mar 2018 for $325,000).

• Shares in FUL Pty (acquired 10 Apr 1984 for $15,000; sold 15 Mar 2018 for $19,000).

• Furniture (acquired 20 May 2010 for $9,500; sold 1 May 2018 for $5,000).

• Vacant land (acquired 20 Jun 1997 for $100,000; sold 15 May 2018 for $465,000).

Additional details:

• Market value of home on 1 Mar 2018: $310,000.

• Market value of land on 15 May 2018: $475,000.

• Carry forward capital losses: $12,500 (antique drumkit), $5,000 (shares).

• Interest expenses of $110,000 incurred on vacant land (not income-producing).

Required:
With reference to relevant legislation and cases, calculate Maurice’s net capital gain or loss for the 2017/18 income year.

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Question 6 (10 marks)

Source two articles from the Australian Financial Review or a similar resource. For each article provide:
a) A précis of the relevant facts.
b) A concise explanation of the taxation concepts discussed.
c) An explanation of the connection between the concepts and indicators of good tax policy.

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Question 7 (5 marks)

Comment, with reference to the Tax Agent Code of Conduct, on the role the tax advisor has in ensuring their client’s compliance with taxation laws.

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Learning Rubrics

1. Knowledge and Understanding (30%)

• Fail (0–2): Limited understanding, key concepts not addressed.

• Pass (3–4): Basic knowledge, recalls key ideas, limited analysis.

• Credit (5–6): Good understanding, explains and applies concepts.

• Distinction (7–8): Highly developed knowledge, well-applied concepts.

• High Distinction (9–10): Sophisticated understanding, mastery of concepts, applies to new contexts.

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2. Critical Reasoning, Presentation, and Defence of an Argument (30%)

• Fail (0–3): Oversimplified, unjustified assertions.

• Pass (4–7): Some justification, scope partly considered.

• Credit (8–11): Well-formed arguments, acknowledges other views.

• Distinction (12–16): Expertly presented, developed arguments.

• High Distinction (17–20): Sophisticated, authoritative, acknowledges limits.

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3. Formation of Recommendations (20%)

• Fail (0–3): Issues not recognised, weak application of law.

• Pass (4–6): Some recognition, partial application of law.

• Credit (7–10): Opinion partly justified with law.

• Distinction (11–15): Justified with solid application of law.

• High Distinction (15–20): Sophisticated recommendations, broad recognition of issues.

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4. Use of Academic Conventions and Sources (10%)

• Fail (0–2): Poor writing, APA errors, weak sources.

• Pass (3–4): Adequate writing, consistent use of credible sources, no APA errors.

• Credit (5–6): Strong sources, clear writing.

• Distinction (7–8): Expert use of sources, extended reading.

• High Distinction (9–10): Exceptional writing, extensive evidence, flawless APA style.

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5. Effective Communication (10%)

• Fail (0–2): Poor clarity, weak structure, unsupported arguments.

• Pass (3–4): Some logical flow, occasional unclear writing.

• Credit (5–6): Well-structured, clear arguments.

• Distinction (7–8): Very well-presented, logical, considers related issues.

• High Distinction (9–10): Excellent presentation, detailed consideration of implications

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Assign III

LAW6001 Assessment Brief 3: Case Study

 

 

Trimester 1, 2025

 

Subject Code and Title: LAW6001 Taxation Law Assessment: Assessment 3: Case Study Individual/Group: Individual Length: 2,000 words (+/- 10%) Submission: By 11:55pm AEST Sunday of Week 10 Weighting: 30% Total Marks: 60 marks

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Learning Outcomes

 

This case study is an individual assessment. The case study requires individual research, with the course manual and prescribed texts serving as the starting point. You are expected to survey the relevant literature, including decided cases and ATO rulings, and select appropriate additional resources to formulate your advice.

The case study is designed to incorporate uncertainty and replicate a real-world advisory task. You are expected to develop a piece of written advice for a client. It must therefore:

• Identify the material facts and taxation issues presented by each aspect of the case study.
• Identify and correctly apply the relevant legislation, case law, and administrative practices.
• Reach a well-reasoned conclusion and make a clear recommendation to the client.

Specific Learning Outcomes Addressed:

(b) Explain ethical and professional responsibilities of tax practitioners, including obligations under the Tax Agent Services Act 2009 (Cth) (TASA) and associated regulations. (c) Interpret and apply selected sections of the Income Tax Assessment Act 1936 (Cth) and the Income Tax Assessment Act 1997 (Cth). (d) Identify and analyse the tax treatment of various types of income and deductions. (e) Effectively apply taxation law in determining tax outcomes in various scenarios and structures.

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Context

 

This assessment evaluates your ability to synthesise research into a coherent and original piece of work that addresses a client’s specific needs. Delivering clear, accurate, and practical advice is an essential workplace skill for any tax professional. This task requires you to identify all relevant issues and consider the potential consequences of different tax treatments.

Your written communication skills are paramount. Your advice must be structured logically, written clearly, and be comprehensible to a client who is not a tax expert, while still being grounded in rigorous legal analysis.

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Instructions

 

Your case study must identify and discuss the tax implications of the various issues raised in the questions below. Your analysis must be supported by relevant legislation and case law.

• The subject manual and set texts are starting points only.
• You are expected to use these initial materials to identify key search terms and find relevant primary and secondary sources (e.g., journal articles, ATO rulings, explanatory memoranda).
• Review your selected resources critically to ensure they add value to your analysis.

⚠️ Note: This assessment is not a simple list of answers. Your conclusions and recommendations must be directly and explicitly based on your research into, and application of, relevant cases and legislation. You are acting as the client’s trusted advisor.

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Case Study Questions

 

 

Question 1 (8 marks)

 

Explain the key differences between the common law concepts of residency for an individual and a company for Australian income tax purposes. In your answer, refer to the relevant legislative tests and supporting case law.

 

Question 2 (10 marks)

 

Digital Nomad Pty Ltd is a company resident in the United Kingdom that provides specialised data analytics software and consulting services. It has no office or employees in Australia. However, it enters into a 12-month contract with an Australian client, MegaCorp Ltd. To service the contract, Digital Nomad Pty Ltd sends one senior consultant to Australia who works exclusively at MegaCorp’s Sydney office for 8 months during the 2024-25 income year. Digital Nomad Pty Ltd invoices MegaCorp Ltd a total of AUD $500,000 for its services.

Required:

With reference to the Australia-UK Double Tax Agreement, determine whether the profits derived from the contract with MegaCorp Ltd are taxable in Australia.

 

Question 3 (12 marks)

 

Priya is an influencer who runs a popular social media channel focused on sustainable living from her home in Melbourne. On 1 July 2024, she decides to upgrade her home office setup to improve her video production quality. She incurs the following expenses:

• A new high-end camera for $8,000.
• A new computer for $6,000.
• Soundproofing materials for one room in her house, costing $5,000 for installation.
• A subscription to video editing software for $1,200 per year.
• Increased electricity and internet costs, which she calculates at $2,000 for the year, attributable to her work.

Her dedicated home office occupies 15% of the total floor area of her home. The camera and computer are used 80% of the time for her business and 20% for personal use.

Required:

With reference to legislation and case law, advise Priya on the deductibility of these expenses for the 2024-25 income year, including any relevant depreciation or capital allowance considerations.

 

Question 4 (15 marks)

 

Aisha, an Australian tax resident, has the following transactions during the 2024-25 income year:

1. Main Residence: She sells her home in Perth on 1 May 2025 for $950,000. She acquired it on 1 February 2005 for $300,000. From 1 February 2020 until the date of sale, she rented out two rooms on Airbnb, which constituted 25% of the home’s floor area.
2. Shares: She sells 1,000 shares in BHP Ltd on 10 December 2024 for $45,000. She acquired them on 15 January 2015 for $30,000.
3. Antique Painting (Collectible): She sells an antique painting on 20 June 2025 for $4,500. She acquired it on 30 March 2018 for $800.
4. Boat (Personal Use Asset): She sells her private motorboat on 1 September 2024 for $8,000. She had acquired it on 1 July 2021 for $15,000.

Aisha has a carried-forward net capital loss of $12,000 from the 2022-23 income year, which resulted from the sale of cryptocurrency.

Required:

With reference to the relevant provisions of the ITAA 1997, calculate Aisha’s net capital gain or loss for the 2024-25 income year. Show all steps in your calculation.

 

Question 5 (10 marks)

 

Find one recent (2024 or 2025) article from a reputable source (e.g., the Australian Financial Review, The Conversation, a major newspaper, or a professional journal) that discusses the federal government’s new “Division 296” tax on superannuation earnings for balances over $3 million.

For the article you have chosen, provide: a) A brief summary of the key points. b) An explanation of the taxation concepts being discussed (e.g., taxation of earnings, unrealised gains, progressivity). c) A critical analysis of how the new tax aligns with, or deviates from, the principles of good tax policy (equity, efficiency, and simplicity).

 

Question 6 (5 marks)

 

During a meeting, a new client tells you, their tax advisor, “I’ve got about $15,000 in cash takings that I didn’t put through the books this year. Just leave that out of the tax return; the ATO will never know.”

Required:

With specific reference to the Code of Professional Conduct in the Tax Agent Services Act 2009 (Cth), explain what your professional and ethical obligations are in this situation.

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Marking Rubric