CORPFIN 6003 - Tax, Estate and Wealth Planning
North Terrace Campus - Semester 2 - 2015
General Course Information
Course Code CORPFIN 6003 Course Tax, Estate and Wealth Planning Coordinating Unit Business School Term Semester 2 Level Postgraduate Coursework Location/s North Terrace Campus Units 3 Available for Study Abroad and Exchange N Assumed Knowledge CORPFIN 7005 Course Description This course covers four sections tax planning, business planning, estate planning and wealth protection. The tax planning section focuses on an overview of the Australian tax system & tax planning, taxation of employee remuneration, taxation of investment structures, taxation of investment income, and international taxation. The business tax planning section covers tax accounting for business income, income tax issues for business, specific anti-avoidance issues for business, the tax issues on the acquisition of a business and the tax issues on the disposal of a business. The term 'estate planning' refers to the process of planning and implementing the orderly transfer of a person's wealth in the event of his or her death for the benefit of his or her intended beneficiaries. This section focuses on what are estate & non-estate assets, estate planning objectives, strategies to achieve objectives, specific strategies for estate planning, taxation issues relating to deceased estates and the estate administration process. Wealth Protection focuses on principles of insurance and insurance as risk management tool in financial planning.
Course Coordinator: Mr Domenic Carbone
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning Outcomes
This course is designed to:
- Provide students with the fundamental concepts of Australian income tax law and tax planning
- Apply critical thinking and problem solving skills to resolve income tax and tax planning issues
- Assist students to communicate effectively orally income tax information and solutions to income tax and tax planning issues
- Assist students to communicate effectively in writing income tax information and solutions to income tax and tax planning issues
- Explain the different approaches to accounting for business income
- Explain the income tax treatment of trading stock, capital allowances, small business entity system, prepayment, black-hole expenditure and the company and trust loss rules
- Explain and highlight the different taxation issues that arise on both the acquisition and disposal of a business, including the CGT small business concessions, GST and stamp duty issues
- Assist students understand typical documents used in estate planning, the legal requirements to establish these documents and consequences if these documents are not in place
- Distinguish between 'estate' and 'non estate' assets and their effect on estate planning
- Understand specific strategies in estate planning including the use of inter vivos trusts, testamentary trusts, protective trusts and life interests
- Understand the interaction of superannuation with estate planning, including the establishment of superannuation proceeds trusts and funding life insurance through superannuation
- Learn what is involved in the estate administation process
- Understand how deceased estate are taxed and the tax benefits that can be obtained within a testamentary trust and within the superannuation environment
- Understand the general concepts of personal and business succession planning
University Graduate Attributes
This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:
University Graduate Attribute Course Learning Outcome(s) The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 2 An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 2 A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. All An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. All
Required reading will be provided in the course folder and advised to students during the course
Australian Financial Planning Handbook 2013-14, Thomson Reuters, Australia
Australian Master Financial Planning Guide 2013/14, 16th Edition, CCH Australia
Learning & Teaching Activities
Learning & Teaching ModesPrior to each seminar, students will be expected to have reviewed the topics to be discussed and attempted any set questions/exercises.
There is a strong assumption that students will engage in seminar discussions in an informed way.
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.The University expects full-time students (ie those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are expected to commit approximately 12 hours for a three-unit course of private study outside of your regular seminars.
Students in this course are expected to attend all seminars.
Learning Activities SummaryTAX PLANNING
Topic 1 – Overview of the Australian Tax System & Tax Planning
1. Historical background
2. Scheme of the tax legislation
3. Administration of the tax system
4. Outline of the tax process & tax compliance
5. Core concepts of income tax
6. Core concepts of anti-avoidance
7. Basic principles of tax planning
Topic 2 – Taxation of Employee Remuneration
1. Employee as an individual taxpayer entity
2. Employee assessable income
3. Employee deductions
4. Employee tax offsets
5. Fringe benefits tax (FBT)
6. Tax planning issues for employee remuneration
Topic 3 – Taxation of Investment Income
1. Investment assessable income
2. Investment & capital gains tax (see topic 4)
3. Investment deductions
4. Investment tax offsets
5. Tax planning issues for investment income
Topic 4 – Investment & Capital Gains Tax
1. Overview of capital gains tax (CGT)
2. Determining whether a capital gain or capital loss has been made
3. Working out the capital gain or capital loss
4. Working out the net capital gain or capital loss
5. Working out the tax payable on a net capital gain
6. Tax planning issues for CGT
Topic 5 – Taxation of Investment Structures
1. Tax entities that must pay income tax
6. Tax planning issues for investment structures
Topic 6 – International Taxation
1. Residence of tax entities
2. Source of assessable income
3. Foreign income of Australian resident individuals
4. Effect of International Tax Agreements
5. Tax planning issues for international taxation
BUSINESS TAX PLANNING
Topic 1 – Tax Differences between entities and Tax Accounting for Business Income
1. Tax differences between entities
2. Tax accounting
Topic 2 – Income Tax Issues for Business
1. Trading stock issues
2. Capital allowance rules
3. Small Business entity rules
4. Black-hole expenditure rules
Topic 3 – Specific Anti-avoidance Issues
1. Personal services income rules
2. Non commercial loss rules
3. Prepayment rules
4. Company loss rules
5. Trust loss rules
Topic 4 – Business Acquisition Issues
1. Stamp Duty
2. Goods and Services Tax (GST)
3. Income Tax - trading stock and depreciable assets
Topic 5 – Business Disposal Issues
1. Capital Gains Tax (CGT)
2. CGT small business concessions
3. GST and Stamp Duty
4. Sale of assets versus a sale of equity
5. General anti-avoidance rules
ESTATE AND WEALTH PLANNING
Topic 1 – Introduction to Estate Planning
1. Wills, probate and succession
2. The law of wills
3. The law of intestacy
4. Family Provision Legislation and Strategies to Manage potential claims
5. Administration of estates
Topic 2 – Complex Estate Planning
1. Joint Tenants and Tenants in Common
2. Tax and Social Security aspects of inter vivos transfers
3. Inter vivos Trusts
4. Testamentary trusts
5. Distributions to minor beneficiaries
6. Life interests
7. Assets in Foreign Jurisdictions
8. Spendthrift Dependents
Topic 3 – Powers of Attorney and Guardianship
Topic 4 – Superannuation
1. Treatment of death benefits from superannuation
2. Taxation implications of a superannuation death benefit and death benefit termination payments
3. Superannuation Proceeds Trusts
4. Funding Life insurance through superannuation
Topic 5 – Taxation Implications of Deceased Estates
Topic 6 – Personal and Business Insurance
The University's policy on Assessment for Coursework Programs is based on the following four principles:
- Assessment must encourage and reinforce learning.
- Assessment must enable robust and fair judgements about student performance.
- Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
- Assessment must maintain academic standards.
Assessment Summary3 hour open book exam 50% Learning Outcomes 1 -4
Assignment 1 25% Learning Outcomes 5 - 7
Assignment 2 25% Learning Outcomes 8 - 14
Assessment DetailStudents must complete ALL assessment components for this course.
To gain a pass in the course, a mark of at least 50% overall is required. There is no requirement that a particular part of the assessment must be passed.
Due to the intensive nature of this course it is a requirement that students attend at least 80% of the scheduled seminars. Consideration will be given to medical and compassionate reasons for non attendance, but supporting documentation will need to be presented with these requests. If at least 80% attendance is not met for each seminar, then students will be be eligible to undertake the assessment for that seminar, ie not sit for the exam and or not submit the assignments.
This will consist of 9 problem type questions. The assessment criteria include the extent to which the student identigies relevant legal issues and the application of these legal issues to a given set of facts, and whether the student demonstrates sound reasoning in support of their conclusions. Research skills will also be assessed as to the level in which each student demonstrates further research into relevant topics of the course along with communciation skills as to whether the answers are clearly set out and easy to read and understand.
This will consist of a 2000 word research essay on a problem question. The assessment criteria include the extent to which the essay identifies relevant issues and sets out sound reasoning in support of the discussion, the extent to which the essay demonstrates research into relevant topics of the course and whether the essay is easy to read and understand.
SubmissionPresentation of Assignments
- Please retain a copy of all assignments submitted
- Please attach an Assignment Cover Sheet, which is siged and dated by you before submission
Lecturers can refuse to accept assignment, which do not have a signed acknwledgemrnt of the University's policy on plagarism.
Assignment Guidelines including Referencing Details
A copy of the Postgraduate Programs: Communication Skills Guide will have been given to you at the beginning of your program. This guide will assist you structure your assignments. A copy of the guide can also be downloaded from: http://www.adelaide.edu.au/professions/hub/downloads/Communication-Skills-Guide.pdf
This publication also provides guidelines on a range of other important communication skills including writing essays and management reports, making oral presentations etc.
In preparing any written piece of assessment for your postgraduate studies it is important to draw on the relevant ‘literature’ to support critical analysis. Also essential is to reference the literature used. Correct referencing is important because it identifies the source of the ideas and arguments that you present, and sometimes the source of the actual words you use, and helps to avoid the problem of plagiarism. (Further information on plagiarism is provided later in this course outline.)
The Harvard system is widely used in the Business School. Guidelines for the use of this style of referencing can be found in the Communication Skills Guide.
Further assistance with referencing is available from the Faculty’s Learning Support Advisors. The contact details are provided on page 6 of the Communication Skills Guide.
Late Assignment Submission
Students are expected to submit their work by the due date to maintain a fair and equitable system. Extensions will generally only be given for medical or other serious reasons. All requests for extensions must be emailed to the lecturer in charge of the course before the due date. Each request will be assessed on its merits. A late assignment (without prior arrangement) will be penalised by a 5% mark reduction for each day that it is late.
Return of Assignments
Lecturer’s aim to mark and return assignments to students within two (2) weeks of the due date with written feedback. Students are responsible for collecting their marked assignments as advised via email. If assignments aren’t collected after two (2) weeks, the assignments will be available at the Student Hub for two (2) weeks. The remaining assignments will only be posted out to the students, if the correct mailing addresses are on the assignments.
Grades for your performance in this course will be awarded in accordance with the following scheme:
M10 (Coursework Mark Scheme) Grade Mark Description FNS Fail No Submission F 1-49 Fail P 50-64 Pass C 65-74 Credit D 75-84 Distinction HD 85-100 High Distinction CN Continuing NFE No Formal Examination RP Result Pending
Further details of the grades/results can be obtained from Examinations.
Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.
Final results for this course will be made available through Access Adelaide.
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SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
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