Taxpayer entity, Imposition of taxation, HECS payments in the tax system James is 18 and graduated from school scoring highly in his ATAR results but chooses not to further his career at the tertiary level. James decides to take up a carpentry apprenticeship with Uncle Jack and begins on 1 December 2019 earning wages of $28,000p.a. But, James submits a late enrolment in civil engineering as a part-time student. James has savings in his bank account and chooses to pay his Student Contribution fees upfront to take advantage of the 10% discount. His discounted Student Contribution payment part-time for the year is $4,100. Required Referring to the appropriate legislation: a) Is James a taxpayer entity that should pay tax? 2 marks Legislation required b) What law imposes an income tax upon James? 1 mark - Legislation required c) If James didnt pay his HECS fees upfront, can he pay this debt through the taxation system? 2 marks - Legislation NOT required Part 2 Tax Avoidance Meaning, an example, and the associated taxation law. Required: a) What is tax avoidance? Explain 2 marks b) Choose and describe an example of Tax Avoidance practiced by a taxpayer. 1 mark c) How does the current taxation law apply to the example you have chosen. 2 marks Part 3 Source of income foreign income Background Scenario Jovanni P/L Jovanni P/L is a manufacturer of shoes, whose directors reside in Italy and conduct most of director meetings in Italy. Jovanni P/L was incorporated in Italy and 80% of its shareholders are Italian. It exports its shoes around the world. Jerrrabomberah P/L is an Australian primary producer and manufacturing company that raises young cattle, pigs and goats to make sales of meat, but also to tan the hides of the animals and supply them to Julius P/L to make shoes in Italy. While in Australia, the directors of Julius P/L enter into a contract with an unrelated company, Jolimont P/L that distributes shoes nationally to stores around Australia. Jovanni P/L has the following receipts in 2019-20 1. Interest income Jovanni P/L has an Australian bank account where all of its Australian business receipts are deposited and derives interest from that account. 2. Contract business income Jovanni P/L receives income from the sale of shoes to Jolimont P/L. Required For the 2019-2020 year of tax, based on source rules/residency, what receipts need to be included in Jovanni P/Ls assessable income regarding: a) interest income 3 marks, and b) contract business income 2