Assignment Task:
Task:
Assessment details Instructions
Assessment overview The objective of this assessment is to assess your knowledge and performance as would be required to research and analyse legal principles and issues in corporations and trust law matters and then apply this knowledge to provide advice to clients.
Assessment Event number 1 of 3
Instructions for this assessment This is a project based assessment and will be assessing you on your knowledge and performance of the unit.
This assessment is in 4 parts and includes an Assessment Feedback form:
Part 1 – Project tasks – Research, analyse and present a recommendation on business structures
Part 2 – Project tasks – Collate, research, recommend and update
Part 3 – Research based tasks
Part 4 – Appendices:
Appendix 1: Organisational Policy and Procedures for advice and correspondence.
Appendix 2: Relevant legislation, regulations and codes of practice.
Assessment feedback.
Submission instructions On completion of this assessment, you are required to submit it to your assessor for marking. You may have to email it to your assessor or upload it to an online learning platform such as Moodle. Your assessor will give you detailed submission instructions when this assessment is distributed.
Ensure you have written/recorded your name at the bottom of each page of this assessment.
It is important that you keep a copy of all electronic and hardcopy assessments submitted to TAFE and complete the assessment declaration when submitting the assessment.
What do I need to do to achieve a satisfactory result? To achieve a satisfactory result for this assessment all tasks must be completed correctly.
What do I need to provide? You will need to provide to your assessor a typed completed assessment with Harvard (AGPS) referencing. If submitted electronically, your assessment should be uploaded to the learning platform for marking. The assessment must also contain as an Appendix a typed Letter of Advice (Part 2 Task 4(a)) and Email reviewing client circumstances (Part 2 Task 4(b)). The assessment, with the exception of the Report, can be submitted physically to the assessor. The Report in Part 1 Task 2(c) must be saved and stored on a USB Flash Drive and submitted for assessment OR uploaded to the learning platform for marking.
What the assessor will provide? A printed or electronic copy of the assessment. Classroom use for research.
Due date and time allowed Refer to the Unit Assessment Guide for the due date, or delivery schedule if online.
Please allow 10 hours to complete this assessment.
This is an unsupervised, take-home assessment.
Supervision This assessment may take place in the classroom or as a ‘take-home’ task.
You may access your referenced text, learning notes and other resources.
Assessment feedback, review or appeals In accordance with the TAFE NSW policy Manage Assessment Appeals, all students have the right to appeal an assessment decision in relation to how the assessment was conducted and the outcome of the assessment. Appeals must be lodged within 14 working days of the formal notification of the result of the assessment.
If you would like to request a review of your results or if you have any concerns about your results, contact your Teacher or Head Teacher. If they are unavailable, contact the Student Administration Officer.
Contact your Head Teacher for the assessment appeals procedures at your college/campus.
Specific task instructions
The instructions and the criteria in the tasks and activities below will be used by the assessor to determine if you have satisfactorily completed this assessment event. Use these instructions as a guide to ensure you demonstrate the required knowledge.
Part 1: Project tasks – research, analyse and present a recommendation on business structures
Scenario – This scenario relates to all tasks in Part 1 of the assessmentBackground: Riley and Casey have come to see you to ask for advice regarding the operation of a new hairdressing and beauty business to trade as Ultimate Makeovers. They have both been working in this industry for the last 5 years and now wish to establish their own business.
Client circumstances. The business will commence in two locations with Riley managing the salons and Casey attending to office administration, bookkeeping and payroll. They will rent the premises for the salons. They anticipate they will need to employ two hairdressers and one beauty therapist and estimate initial set up costs for each salon to be around $10,000.00. Riley, an award-winning hairdresser, anticipates the business will be very successful and return a profit of around $100,000.00 in the first year. Riley has negotiated a profitable contract for the new business with a major TV station (BubbleTV) to provide hairdressing and beauty services for the popular “Dancing on the Moon” TV show.
Riley and Casey are interested in setting up a new business structure and want to minimise their tax liability for the profit made by the business and protect their personal assets. They own their own home, which is debt free, two cars and have $100,000.00 invested in shares and a property trust. They would like a business structure that is inexpensive to set up and operate.
Advice sought: Riley and Casey have asked for advice regarding the advantages and disadvantages of different business structures and a recommendation on the establishment of a business structure that might best suit their circumstances. They would also like you to provide them with instructions about how the structure can be established.
Task 1 Evaluate client needs
Summarise the client’s circumstances from the scenario that require advice. (100 – 150 words)
Task 2 Research and analyse business structures and prepare a report
(a) Before advising Riley and Casey you are required to research different business structures and legal entities (Sole Trader, Partnership, Trust and Company) and their impacts for Riley and Casey’s business. Interpret your research and analyse the impact of legal issues involved in the business structures including the ease of establishment, size, risk and complexity in operation. Your research should include regulation of and practice relating to the following aspects:
Business structures and their operation;
Legal principles for establishment;
Size of structure;
Risk implications in the operation of the structure and an assessment of ways risk can be mitigated; and
Complexity in operation of the business and tax implications.
(b) Collect and collate the client’s business information, evaluate the relevance of your analysis to the client’s circumstances and apply the legal principles you have researched to develop a recommendation to present to the client.
(c) Based on your research, analysis and application of legal principles in Tasks 2(a) and (b) above, prepare a short business report to demonstrate the plan for the new business structure for Riley and Casey. Present your research, analysis and recommendation in your Report using the following headings:
Business structures and their operation;
Legal principles for establishment;
Size of structure;
Risk implications in the operation of the structure and an assessment of ways risk can be mitigated;
Complexity in operation of the business and tax implications;
Structure’s relevance to client circumstances; and
Recommended business structure.
Your report must:
comply with organisational guidelines (refer to Appendix 2) and regulatory requirements for preparation of reports and providing advice to clients; and
Include your research, analysis, evaluation and application of relevant legal principles and your recommendation developed in Task 2(b) above.
Save and store your Report in electronic form on a USB Flash Drive with the following file name: your_name_Part1_Task2_Report (example – John_Smith_Part1_Task2_Report. Take a screen shot of your saved file using the filename and include the screen shot in the text box below.
Your USB Flash Drive containing the Report must be submitted to your assessor for assessment or uploaded to the learning platform as a separate file.
Refer to Appendix 3 for a list of Relevant Legislation, Regulations and Codes of practice relevant to regulatory compliance.
In Assessment 2, the Skills Assessment for this unit, you will use the report to discuss your research and recommendation with your supervisor, to seek advice and guidance and to have a discussion with your clients explaining your strategy.
Part 2: Research, recommend, review and update knowledge
Scenario – This scenario relates to Tasks 1 – 4 inclusive in Part 2 of the assessment
Client circumstances: Riley and Casey have come back to see you after considering your advice regarding business structures. They have chosen to operate the business using a family trust structure, the White Family Trust, with a company to be registered and then to act as trustee of the Trust. Riley and Casey have decided that they will act as directors of the trustee company and they will be the beneficiaries of the trust together with their four children, Avery, Angel, Peyton and Quinn.
They want further advice about:
(a) the type and establishment of the trust and the registration of a company to be appointed as the trustee;
(b) their legal responsibilities as directors of the company and the company’s responsibilities as trustee of the trust;
(c) whether Riley can sign the contract with BubbleTV on the new company’s behalf before it is registered; and
(d) their circumstances regarding legal liability of the trustee and their liability as directors of the trustee company and taxation implications for the trustee and beneficiaries of the Trust.
In order to provide Riley and Casey with the advice they seek, complete Tasks 1 – 4 below. These tasks require you to review the client’s circumstances and the relevant corporations and trust law, apply the law to the client’s circumstances and advise the client.
Task 1 (a) Identify legal information to guide research
Using the information in the scenario above, identify and summarise legal issues relevant to corporation and trust law, including legislation, regulation and practice that can be applied to the client circumstances in the scenario. Process this information to guide your research and to gather further information to enable you to provide advice sought by the client. (100 – 150 words)
Task 1 (b) Collect and collate client’s business information for analysis.
Collect and collate any additional information you would need from your client to identify the client’s circumstances and to inform your research of their circumstances. Record that additional information here and combine it with the relevant information extracted from the client scenarios. (100 – 150 words)
Task 1(c) Identify different types of corporations and trust transactions
(i)Outline each of the following concepts relating to transactions involving the acquisition of property by a trust to constitute trust property. (150 – 200 words)
Legal context:
Establishment:
Procedures:
Purpose:
ii. Outline each of the following concepts relating to transactions involving the reduction of capital of a company limited by shares, particularly in relation to companies acquiring their own shares.
Legal context:
Establishment:
Procedures:
Purpose:
Task 2(a) Plan and manage tasks
In Task 1(a) you identified legal principles, regulation and practice relevant to corporations and trust law relating to the clients’ circumstances. Task 2(a) requires you to develop a plan to manage your research and review of legal principles and sources of legal information to conduct that review.
Create a plan itemising the tasks you will need to complete in order to manage your review. Include in your plan the legal principles you will need to review and legal sources you will access and explain how this plan might contribute to achieving your broader goal of providing advice to your client.
Task 2(b) Research, analyse and interpret legal principles
Research, interpret and analyse the legal principles, regulation and practice identified in Task 1(a) and detail the aspects of corporations and trust law relevant to this scenario. Use the plan you developed in Task 2(a) to guide your research. In your answer include details of the legal sources you used to conduct your research and the date the sources were accessed. If an internet source is included, name of the source (e.g. website title) and the URL should be included. (600- 800 words).
Task 3 Apply current law to develop solutions and recommend changes
Based on your research and review in Task 2, apply the legal principles of corporations and trust law you have researched to address the client’s legal issues and formulate recommendations to present to your client to address their legal issues and changed circumstances. Summarise the outcomes of the recommendations and changes below.
(600-700 words).
Task 4 (a) Present recommendation to client on suitable business structures, their risks and management
Present your research and make a recommendation to your client Riley and Casey in the form of a letter providing them with the advice sought by them that arise from their circumstances. (600 – 800 words).
Required:
Your advice must be based upon your review and consolidation of all relevant information and must apply relevant legal principles and legislation. In addition, your letter must:
comply with organisational guidelines (refer to Appendix 2) and regulatory requirements for preparation of client correspondence and providing advice to clients; and
present the advice and recommendations you have developed in Task 3 to your client.
In your letter, you may organize your advice and recommendations under headings for the advice areas developed in Task 3.
Task 4(b) Review client’s circumstances and apply changes to client advice
In the course of maintaining your legal knowledge of corporations law, you become aware that the regulator has issued information regarding Directors duties in the context of Covid-19, particularly in relation to duty to prevent insolvent trading. This information is contained in the ASIC media release on its website at https://asic.gov.au/about-asic/news-centre/articles/directors-duties-in-the-context-of-covid-19
Review this change to legislation and regulatory approach and consider the effect on Riley and Casey’s circumstances and the advice you provided to them in Part 2 Task 4(a). Write an email to Casey and Riley advising them of this change.
Required:
Your email should:
Comply with organisational guidelines and regulatory requirements for preparation of client correspondence and providing advice to clients and;
Include the following:
a review of the advice you gave to Riley and Casey based on their circumstances regarding their duties as directors; and
an explanation of the change to regulatory practice and how that change should be applied in their business operations.
Task 5 Maintain legal knowledge
Tasks 5 (a) – (f) require you to access and use systems to maintain up-to-date knowledge of corporations and trust law, and review relevant legal sources regularly and apply any changes to your daily work.
Task 5(a) Identify ways to maintain and update legal knowledge
Identify two (2) ways you can maintain and update your legal knowledge for your legal role in this scenario. (50 – 100 words)
Task 5(b) Develop strategies that ensure requirements are being met
Review the organisational procedures regarding adviser currency and develop a plan and strategy that complies with the procedure for managing gaps in and updating your personal knowledge of legal aspects of corporations and trust law. Include in your plan the date of an activity, a description of the activities you will undertake to maintain currency, how the activities relate to corporations or trust law, and how frequently you will update your legal knowledge to maintain currency (daily, weekly, monthly or yearly). Your plan can include a variety of activities such as accessing and reviewing material on websites; reading of articles; attending seminars; discussions with colleagues/industry professionals. (200 – 300 words)
Task 5(c) Implement strategies that ensure requirements are being met
Implement the strategy you developed in (b) above. In response to this task you will need to provide evidence that that you have implemented at least three (3) items recorded in your strategy with the following details:
-the date of the activity;
-a description of the activity;
-the relevant area of corporations or trust law;
-a short reflection on how your knowledge of corporations and trust law has been updated by the activity AND how that knowledge will be applied in your daily work.
Task 5(d) Access systems for maintaining up-to-date knowledge
Access the Australian Securities and Investments Commission website at www.asic.gov.auSearch the website for “find a media release” and access the Media releases issued by the ASIC. Choose ONE media release (2019 – 2020) involving corporations law issued by ASIC and summarise the content below. Include the URL and the date you accessed this website in your response. (200 – 300 words)
Task 5(e) Review legal sources and apply changes to daily work
Write a short reflection about how the information you have summarised in Task 5(d) above has updated your knowledge of corporations law how this knowledge could be applied in your your daily work. (100 – 200 words)
Task 5(f) Use systems for maintaining up-to-date knowledge
Locate appropriate websites where you can stay up to date with industry practice regarding corporations and trust law. Provide a screen shot of your subscription and a short description of how this website can help you maintain currency in your knowledge of the law. (80 – 100 words)
Part 3: Research based tasks
Research and answer the following questions:
To complete this part of the assessment, you will be required to research and answer the following questions. Responses to the questions must be in your own words. Once completed you will have to submit this assessment to your assessor for marking.
Plagiarism is the presentation of the work, idea or creation of another person as though it is your own. Plagiarism occurs when the origin of the material used is not appropriately cited. Sources used in creating your responses must be cited in a Bibliography using the Harvard (AGPS) Referencing method. Appendix 3 contains some useful weblinks you may use to guide your research.
Task 1
To demonstrate your knowledge and understanding of the enactment of laws and their underlying policy aims, provide responses to the following questions. (500 – 800 words)
Task 1a: Explain how statute law or legislation is enacted in Australia. In your answer identify the body responsible for, and the process of, enacting legislation.
Task 1b: Outline the main policy aims of legislation. Provide an example to illustrate your answer.
Task 2 Interpretation of legislation
To demonstrate your knowledge and understanding of how laws may be interpreted by existing common law and equitable rules particularly relating to corporations and trust law, provide responses to the following questions. (500 – 800 words).
Task 2a: Explain how statute laws may be interpreted by using existing common law and equitable rules. In your response, explain the operation of the Literal Rule and Purpose Approach to interpretation of legislation used by the Courts.
Task 2b: In relation to corporations law, provide a case law example where a Court has used existing common law and statutory principles to interpret legislation.
Task 2c: In relation to trust law, provide a case example where a Court has used existing common law and statutory principles to interpret legislation.
Task 3 Business structures – joint ventures and incorporated associations
Analyse legal concepts of business organisational structures, and underlying regulation, including the application of these to the following structures: 500 – 800 words).
Business Organisational Structure Response
3a. Legal concepts and regulation of a joint venture 3b. Legal concepts and regulation of Incorporated associations Task 4 Legal aspects of superannuation
Examine legal aspects of superannuation with reference to the following. (500 – 800 words).
Legal aspects of superannuation Response
4a. Duties of superannuation trustees with reference to equitable and statutory duties 4b. How superannuation interests are protected and litigated 4c. Current and future developments in superannuation law and policy
Task 5 Key features of Australian Corporations Law
Identify and reference key features of Australian corporations law and requirements relating to the following topics. Your answers must include reference to relevant legal principles from legislation and/or case law. (500 – 800 words)
Corporations law Key features and relevant legal principles
5a. Promoters and statutory requirements for pre-registration contracts 5b. Members meetings with particular reference to the nature of meetings and statutory requirements holding meetings 5c. Members remedies with particularly reference to statutory remedies 5d. Consequences of bankruptcy with particular reference to directors of companies; and
Types of, and requirements for, insolvency and external administration Task 6 Legal concepts and scope of trust law
Examine legal concepts and scope of law of trust with reference to the following. (500 – 800 words).
Trust law Legal concepts and scope of law
6a. Requirements for and effectiveness of corporate management of a trust 6b. Common law duties of trustees according to law relating to trusts 6c. Role and responsibilities of a trustee 6d. Member (beneficiary) remediation 6e. Bankruptcy and insolvency
Part 4 – Appendices
Appendix 1
Organisational policy and procedures for advice and correspondence in contract and consumer law
Bluebottle Tax Agents and Business Advisers
ABN 23456789
Policy number: FNP12 Policy date: 10/07/2019
12.1Purpose of the policyThis policy is to detail a process and procedure for the undertaking of financial and legal advice and all work necessary in the undertaking of providing advice including reports and correspondence entered into by this organization.
ProceduresClarification of information of client circumstances and advice required.
Ascertainment of which line of business is required to prepare brief and provide advice based on information.
Research requirements and up-to-date legal aspects consideration to generate solution or provision of advice.
Correspondence to be prepared either email or report to vindicate advice to client.
12.3Legal and Ethical AspectsAll advice given comply with ethical and code of professional conduct for tax agents and financial advisors and the obligations thereto when dealing with the public.
The organisation requires that all advice provided both verbal and documented must comply with its policies and procedures and the Tax Practitioners Board Code of Conduct.
The Code of Professional Conduct
The Code of Professional Conduct is provided for your reference:
https://www.tpb.gov.au/code-obligationsRecommended Research Links – Relevant legislation and regulations
Recommended external authorities for research to assist in contract and consumer law are as follows, this however, is not a complete list. You are expected to do further research or seek advice when necessary in variation of the operation of the Australian legal systems, real property and tax law to provide the most reliable and accurate advice to clientele
https://www.alrc.gov.au/publications/definitions-property-0https://www.lawcouncil.asn.au/legal-practice/our-committees/australian-property-lawhttp://www.austlii.edu.au/https://www.parliament.nsw.gov.au/search/Pages/bill-results.aspxhttps://www.legislation.nsw.gov.au/#/notificationshttps://www.legislation.gov.au/https://www.timebase.com.au/news.htmlhttps://www.lawyersweekly.com.au/https://blog.feedspot.com/australia_law_blogs/http://insight.thomsonreuters.com.au/https://www.lawcouncil.asn.au/eventshttps://www.lawsociety.com.au/eventshttps://sydney.edu.au/news-opinion/sydney-ideas.htmlhttps://www.law.unsw.edu.au/upcoming-eventshttps://www.mq.edu.au/about/about-the-university/faculties-and-departments/faculty-of-arts/departments-and-centres/macquarie-law-school/seminarsOther Authorities include:
Acronym Name of Authority
ATO Australian Taxation OfficeAASB Australian Accounting Standards BoardAFSA Australian Financial Security AuthorityAPRA Australian Prudential Regulation AuthorityASIC Australian Securities and Investments CommissionASX Australian Stock ExchangeABS Australian Bureau of Statistics12.3.3Requirements for Advice – Organisational and Regulatory requirements
Requirements for advice: Advisers must ensure that when providing advice to clients, the requirements of the Code of Professional Conduct prescribed by the Tax Agent Services Act, 2009 (Cth) are met. This includes the requirement to act with honesty and integrity, act lawfully in the best interests of the client and to take reasonable care to ascertain the client’s circumstances and ensure that taxation law is applied correctly to the client circumstances. The code can be accessed here: https://www.tpb.gov.au/explanatory-paper-tpbep-012010-code-professional-conductKeeping records: It is essential that a written record be maintained for all client communications, research and advice. These records must be kept electronically in the firm’s database and attached to the client file. Written records must be retained regarding instructions given by the client, research conducted into client circumstances and advice given to clients. Those records must be stored securely and retained for a period of 7 years.
Adviser currency: Obtaining the required knowledge applicable to our clients’ circumstances is key to this organisation. Review of relevant legal sources regularly and applied to our daily work including access and using systems for keeping up with change and maintaining up-to-date knowledge is a priority. Currency plans must be developed by advisers and approved by their line manager. The plans, and implementation of the plans must maintained by advisers for a period of 2 years. Written records can be maintained on the firm’s employee database in the employee’s personnel file.
The organisation has inherent expectations that all employees share their knowledge, information and experience openly fostering a collaborative culture which in itself facilitates a sense of commitment and workplace cohesion.
Client reports and other correspondenceClient documents, including reports and correspondence will be created upon request of the client and appropriate documentation completed for commencement of engagement. Fees will be charged as per schedule of fees for professional services rendered. Client correspondence and reports should be logically constructed and succinctly and accurately express information and advice intended for the client. All documents, reports and correspondence must use clear language and correct spelling and grammar and appropriate terminology should be used.
When preparing reports, including reports to clients, the following procedure applies:
Report FormatReports must include an introduction or overview that clearly expresses the purpose of the engagement. The report must contain –
Introduction
Main Body; and
Conclusion.
Reports must be signed and dated by the advisor. The report should be written in clear language using the correct grammar and spelling. The use of jargon or complex terminology and technical terms, should unless the context requires it, be avoided. Information, including legal information, ideas and recommendations should be expressed concisely and accurately.
12.4.1 Introduction
The Introduction will contain the purpose of the engagement and the information that has been provided by the client.
The conclusion should contain a recommended course of action the client should take and outline the reason why this is the preferred option based on their circumstances; and
The report should be signed and dated by the advisor.
Main Body The main body will contain:
Details of research or investigation into the subject of the engagement and the findings as a result of that investigation.
Analysis and evaluation of legal issues and risks associated if applicable and client circumstances will be undertaken. If insufficient information has been provided by the client, the advisor must make reasonable enquiries to ascertain further information.
A summary of options or solutions should be presented to the client which would meet the client’s circumstances. Analysis and evaluation of legal issues and risks associated if applicable and client circumstances will be undertaken. If insufficient information has been provided by the client, the advisor must make reasonable enquiries to ascertain further information.
If required advice will be sought from specialist for opinion and guidance ensuring up-to-date and current knowledge applicable for clients request and to consolidate information to include in report and provide appropriate advice.
All research necessary in formulating advice will be undertaken including latest case decisions and case law, any changes to, or new, legislative requirements with regard to current statute, common, property (both real and personal) and taxation. Disclosure may be considered in reporting to vindicate the basis of advice ensure correct referencing is performed.
Conclusion
The conclusion should contain the advisor’s opinion about the solutions developed and provide a recommendation about the course of action the client should/should not take and the reasons for that opinion.
Other client correspondence
All other correspondence including letters and emails are to follow professional standards. Correspondence must include the name of the firm and ABN (Bluebottle Tax and Business Advisers ABN 23456789) and contact details of both the firm and the author of the correspondence. Correspondence must contain a date, an appropriate salutation, a subject heading and be signed by the author of the correspondence. A digital signature can be included for the purposes of electronic communication. Information contained in the correspondence must be succinctly and accurately expressed and presented in a logical structure. All correspondence to clients should be written in plain English and the use of jargon and, where possible, technical terms, should be avoided. The use of clear language, correct spelling, grammar and terminology must be used.
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