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    TABL2751 T2 2021 Sample Quiz Questions

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    This document contains sample questions and answers from a tax law quiz. Sample Question 1 asks about the difference between cost base and reduced cost base for capital gains tax purposes. Sample Question 2 describes a drug dealer's income and lottery winnings and asks which tax treatment applies. Sample Question 3 asks about a key High Court case that determined whether land sale profits were ordinary income. Sample Question 4 provides information about an individual's employment income, superannuation, fringe benefits, interest and deductions to calculate taxable income. The correct answers are provided.

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    TABL2751 T2 2021 Sample Quiz Questions

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    Peper12345
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    This document contains sample questions and answers from a tax law quiz. Sample Question 1 asks about the difference between cost base and reduced cost base for capital gains tax purposes. Sample Question 2 describes a drug dealer's income and lottery winnings and asks which tax treatment applies. Sample Question 3 asks about a key High Court case that determined whether land sale profits were ordinary income. Sample Question 4 provides information about an individual's employment income, superannuation, fringe benefits, interest and deductions to calculate taxable income. The correct answers are provided.

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    This document contains sample questions and answers from a tax law quiz. Sample Question 1 asks about the difference between cost base and reduced cost base for capital gains tax purposes. Sample Question 2 describes a drug dealer's income and lottery winnings and asks which tax treatment applies. Sample Question 3 asks about a key High Court case that determined whether land sale profits were ordinary income. Sample Question 4 provides information about an individual's employment income, superannuation, fringe benefits, interest and deductions to calculate taxable income. The correct answers are provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    44 views3 pages

    TABL2751 T2 2021 Sample Quiz Questions

    Uploaded by

    Peper12345
    This document contains sample questions and answers from a tax law quiz. Sample Question 1 asks about the difference between cost base and reduced cost base for capital gains tax purposes. Sample Question 2 describes a drug dealer's income and lottery winnings and asks which tax treatment applies. Sample Question 3 asks about a key High Court case that determined whether land sale profits were ordinary income. Sample Question 4 provides information about an individual's employment income, superannuation, fringe benefits, interest and deductions to calculate taxable income. The correct answers are provided.

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    © All Rights Reserved
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    of 3

    TABL2751 SAMPLE QUIZ QUESTIONS

    TERM 2, 2021

    Sample question 1

    With respect to capital gains, the difference between the cost base and reduced cost base
    is:

    (a) The reduced cost base does not include incidental costs (2nd element)

    (b) The reduced cost base does not include costs of owning the CGT asset (3rd element)

    (c) The reduced cost base cannot be indexed.

    (d) Both (a) and (c) are correct.

    (e) Both (b) and (c) are correct.

    Sample question 2
    Alfred is a drug dealer who sells illegal narcotics. His sales of drugs for the year ended 30
    June 2019 were $250,000. Alfred uses some of the money from selling narcotics to buy
    lottery tickets each week. He will spend up to $100 per week on lottery tickets. During the
    year ended 30 June 2019, he won $10,000 on one of these tickets.

    Which of the following statements is most correct?


    (a) The $250,000 from selling drugs is ordinary income from a business activity. The
    $10,000 is also ordinary income from a business activity as he purchased the lottery
    tickets on a regular basis.

    (b) The $250,000 from selling drugs is ordinary income from a business activity. The
    $10,000 is a capital gain as it was received as a lump-sum.

    (c) The $250,000 from selling drugs is ordinary income from a business activity. The
    $10,000 is a windfall gain and is not assessable income.

    (d) The $250,000 from selling drugs is not ordinary income as it is from an illegal activity.
    The $10,000 will be ordinary income from a business activity as he purchased lottery
    tickets on a regular basis.

    (e) The $250,000 from selling drugs is not ordinary income as it is from an illegal activity.
    The $10,000 is a windfall gain and is not assessable income.
    Sample question 3

    In FCT v Whitfords Beach (1982) 150 CLR 355, the High Court:

    (a) Determined that the profit on the sale of the land was ordinary income as it was a
    business venture.

    (b) Determined that profit on the land was not assessable as ordinary income, as it
    represented a mere realisation of an asset.

    (c) Found that the change in the company’s articles was a critical factor in establishing
    that the purpose of the company had changed.

    (d) Followed the decision of Scottish Australian Mining Co Ltd v FCT (1950) 81 CLR
    188.

    (e) Both (a) and (c) are correct.

    Sample question 4

    Jennifer is an Australian resident who is employed as a management consultant. The


    following information relates to the year ended 30 June 2021.

     She received $110,000 salary. Her employer also paid $10,450 (9.5%) superannuation
    into Jennifer’s nominated superannuation account.
     She was provided with fringe benefits by her employer, that had a value of $8,000.
     She received $200 interest from an Australian bank account.
     She had $3,500 of deductions (you can assume these are all allowable deductions under
    the Income Tax Assessment Act 1997 (Cth).
     She was entitled to a $600 tax offset.

    What will be her taxable income for the year ended 30 June 2021?

    (a) $106,500

    (b) $106,700

    (c) $114,700

    (d) $124,550

    (e) $124,950
    SAMPLE QUESTION ANSWERS

    1) E
    2) C
    3) E
    4) B

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