CORPFIN 6003 - Tax, Estate and Wealth Planning
North Terrace Campus - Summer - 2017
General Course Information
Course Code CORPFIN 6003 Course Tax, Estate and Wealth Planning Coordinating Unit Business School Term Summer Level Postgraduate Coursework Location/s North Terrace Campus Units 3 Contact Up to 12 hours per week Available for Study Abroad and Exchange N Assumed Knowledge CORPFIN 7005 Course Description This course covers tax planning generally and also business tax planning, and estate and wealth planning. The tax planning section focuses on an overview of the Australian tax system and tax planning principles, taxation of employee remuneration, taxation of investment income, taxation of investment structures, and international taxation. As well as providing students with knowledge of fundamental concepts of Australian income tax law and basic tax planning principles, specific strategies for tax planning are covered for each of these topics. 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 estate planning section deals with the process of planning and implementing the orderly transfer of a person's wealth in the event of their death for the benefit of their intended beneficiaries. This section focuses on what are estate and 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. The wealth planning section focuses on principles of insurance and insurance as risk management tool in protecting wealth.
Course Coordinator: Mr Domenic Carbone
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning OutcomesOn successful completion of this course students will be able to:
- Apply the fundamental concepts of Australian income tax law, tax planning, and estate and wealth planning to make informed financial decisions.
- Apply critical thinking and problem solving skills to resolve income tax, tax planning, and estate and wealth planning issues.
- Communicate effectively orally income tax information and solutions to income tax, tax planning, and estate and wealth planning issues.
- Communicate effectively in writing income tax information and solutions to income tax, tax planning, and estate and wealth planning issues.
- Demonstrate how to use documentation for estate planning both in a legal and administrative context, and the consequences of non-compliance.
- Apply strategies used in estate planning, in the interaction of superannuation with estate planning and in the taxation of deceased estates.
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) Deep discipline knowledge
- informed and infused by cutting edge research, scaffolded throughout their program of studies
- acquired from personal interaction with research active educators, from year 1
- accredited or validated against national or international standards (for relevant programs)
1, 2 & 6 Critical thinking and problem solving
- steeped in research methods and rigor
- based on empirical evidence and the scientific approach to knowledge development
- demonstrated through appropriate and relevant assessment
1, 2, 5 & 6 Teamwork and communication skills
- developed from, with, and via the SGDE
- honed through assessment and practice throughout the program of studies
- encouraged and valued in all aspects of learning
3 & 4 Career and leadership readiness
- technology savvy
- professional and, where relevant, fully accredited
- forward thinking and well informed
- tested and validated by work based experiences
1 to 6 Intercultural and ethical competency
- adept at operating in other cultures
- comfortable with different nationalities and social contexts
- able to determine and contribute to desirable social outcomes
- demonstrated by study abroad or with an understanding of indigenous knowledges
Required reading will be provided in the course folder and advised to students during the course
Australian Financial Planning Handbook 2016-17, Thomson Reuters, Australia
Australian Master Financial Planning Guide 2016/17, 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 (i.e. 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 classes.
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
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 rules
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 & Capital Gains Tax (CGT)
4. General anti-avoidance rules
Topic 5 – Business Disposal Issues
1. Capital Gains Tax (CGT)
2. CGT small business concessions
3. Goods & Services Tax (GST)
4. Stamp Duty5. Income Tax issues
6. Sale of assets versus a sale of equity
7. 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. Testamentary capacity
4. The law of intestacy
5. Family Provision Legislation and Strategies to Manage potential claims
6. 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. Protecting Beneficiaries
Topic 3 – Powers of Attorney and Advanced Care Directives
Topic 4 – Superannuation
1. Treatment of death benefits from superannuation
2. Death benefit nominations
3. Taxation implications of a superannuation death benefit payments
4. Superannuation Proceeds Trusts
5. Life insurance through superannuation
Topic 5 – Taxation Implications of Deceased Estates
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 Task Weighting Learning Outcome Exam
(3 hour open book)
50% 1-4 Assignment 25% 1-4 Online test
25% 1,2,6 Total 100%
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 not be eligible to undertake the assessment for that seminar, ie not sit for the exam and or not submit the assignments.
The exam is of 3 hours duration. In addition, you are allowed 15 minutes reading time before the examination begins, to read the paper and to make notes.
The exam is “open book” but you must not bring into the exam room any book belonging to the University of Adelaide Libraries. “Permitted Materials” in the exam room are the prescribed textbook or any other tax textbook, the legislation, course materials and handouts, your own lecture and other notes written and prepared by you, and not prepared by or taken from someone else. You may also bring into the exam room an English or English/foreign language dictionary (paper only), and calculator incapable of sending text.
Examinations will be held only at the time and locations stated in the University’s Examination Timetable, so may not be taken in another
country. Students should not make any arrangements to be absent until after the replacement/additional (sup) exam period.
This will consist of 9 problem type questions. The assessment criteria include the extent to which the student identifies 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 communication skills as to whether the answers are clearly set out and easy to read and understand.
Suggested word length for the assignment is a minimum of 2,000 words. All assignments MUST be typed, no hand written submissions.
The Online Test comprises 25 multiple choice questions and students must answer all 25 questions. The Online Test must be completed in no more than 75 minutes from starting to answer the questions and in a single sitting.
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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This section contains links to relevant assessment-related policies and guidelines - all university policies.
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- Academic Progress by Coursework Students Policy
- Assessment for Coursework Programs
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- Student Experience of Learning and Teaching Policy
- Student Grievance Resolution Process
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