Content

 

Course content

The Diploma of Advanced Tax content is focused around research and discussion of six case study areas. The content of the case studies is decided by the Education, Examinations and Quality Assurance Board and is related to the issues that arise in the year of delivery. Consequently, the list of case studies below is an indication only of the topics covered and the issues raised, and is subject to change without notice.

2012 Case Studies

Case study 1: CGT/ATO risk review/loss provisions

This case study examines in detail issues arising from an ATO risk review
including:

  • the current year loss provisions
  • the bad debt provisions
  • the CGT small business concessions
  • Division 7A.

Case study 2: Thin capitalisation, transfer pricing/debt equity

This case study will consider how the interaction may operate with reference
to:

  • transfer pricing policy and guidelines relevant to determining an arm's length capital structure, including the use of guarantee arrangements between parent and subsidiary entities
  • policy intention of the thin capitalisation rules
  • the use of debt and equity classifications to gain tax advantages - interaction of the debt/equity rules with the thin capitalisation and the transfer pricing rules
  • ATO rulings, including Taxation Determinations TD 2007/D20 and TD 2008/D3 dealing with Australia's double tax treaties.

Case study 3: Employee share plans

Part 1: Provisions of Division 13A 'Employee share acquisition schemes' in circumstances where an employer makes regular contributions to an employee share option trust to enable shares to be acquired at market value for provision to employees under an option plan.

Part 2: The same provisions where rather than options, employees are granted units in a unit trust that acquires shares in an employer's holding company.

Case study 4: Extracting value from companies

Releasing value from private or public corporate groups in a tax-effective way poses very considerable difficulties, not the least of which is the operation of the anti-avoidance provision, s 45B. This case study will consider:

  • capital reductions
  • share buy-backs
  • dividend access shares
  • share dividends (Condell v FC of T)
  • forward purchases (Lend Lease).

Case study 5: Trusts

This case study involves a number of trusts and examines trust issues including:

  • the application of Div 6 of ITAA 1936
  • the difference between trust law and income tax law
  • capital gains in trusts
  • special income in superannuation funds.

Case study 6: GST

Part 1: GST-free supplies: s 38-190 issues:

  • global supply scenarios involving a multitude of suppliers and recipients
  • issues with different types of supplying entities
  • issues with resident agents
  • apportionment issues

Part 2: GST and insolvency:

  • registration requirements
  • GST grouping
  • who is liable for what GST?
  • mortgagee sales
  • interaction with 'special rules'

Applied learning outcomes

The learning approach within the Advanced Tax course is designed to foster the higher level skills and understandings characteristic of learning at postgraduate level. The course is arranged in two Phases which are offered in a blended mode:

Phase 1: Orientation + Learning how to learn PLUS underpinning knowledge gained through reading topical and technical papers - this phase is self-selecting, where candidates analyse the gaps in their knowledge and access the profession's collective knowledge via the Taxation Institute of Australia's IP database.

Phase 2: Pre-reading of materials, formulating suggested solutions and participation at case study discussions (6).

Phase 1 - applied outcomes

After completing this phase of the course, you will be able to apply the learning to your work in the following ways:

  • Interview clients with more complicated tax issues and prepare associated working papers to instruct staff on the preparation of individual, partnership, trust, not-for-profit, superannuation fund and company returns.
  • Advise high-net-worth individual clients, partnership, trust, superannuation fund, business and company tax clients on a range of complex tax issues including:
  • tax effective structuring and strategic tax planning
  • primary production averaging, concessions and elections
  • tax-effective treatment of losses
  • company elections including trading stock, controlled foreign corporations, GST, and debt/equity considerations
  • CGT structuring and planning including rollover provisions
  • business and asset valuations
  • FBT planning including involving more complicated benefits and issues pertinent to not-for-profit entities
  • trustees, beneficiaries and deceased estates
  • commercial tax planning
  • year-end planning
  • valuations
  • international tax planning
  • transfer pricing
  • loss transfer
  • share and dividend issues
  • integrity measure
  • off-shore subsidiaries
  • co-operative companies
  • CGT rollovers
  • consolidated groups
  • controlled foreign corporations
  • thin capitalisation
  • anti-tax avoidance legislation
  • tax implications of mergers and acquisitions
  • Supervise the preparation of more complicated Austrlian Taxation Office submissions and communications including private tax rulings, complicated tax rulings and appeals.

Phase 2 - applied outcomes

After completing this level, candidates will be able to apply the learning to their work in the following ways:

  • Apply the legislation and procedures associated with the taxation of all clients on a full range of tax compliance issues and remain aware of non-tax issues, which could impact clients including assurance, financial reporting and business planning issues.
  • Integrate the impact of risk and assurance, ethics, corporate governance and commercial issues on a corporation and advise corporate tax clients on a full range of tax issues
  • Be a member of a management team and proactively devise and implement practice management policies, mentor staff and demonstrate behaviour based on ethics and consistency