Saturday, December 28, 2019
Education: Education is invaluable when it comes to looking at child poverty and the way in which this issue effects New Zealand communities. MÃ ori overall tend to have lower pass rates at all levels of NCEA than European New Zealanders. This alone however is a very much western way of viewing education. It measures academic success against exams that a very much created through western thought processes that may not accurately portray the ways in MÃ ori learn and achieve. Education is both an outcome and leading factor in the cycle of Child Poverty in New Zealand as with such a high importance placed on tertiary education today it is harder to obtain reasonable or higher paying jobs without such higher education. But poverty in itselfÃ¢â¬ ¦show more contentÃ¢â¬ ¦However, it also needs to be questioned as whether or not systems such as NCEA do truly benefit and assess everyone equally or whether they unintentionally favor those who prescribe to mainstream European discourse through the w ay questions and answers are structured or whether NCEA is an entire discourse on its own. Addressing Poverty: Hands outs vs. A Hand Up: How sustainable long term equitable solutions can be achieved. In order to reduce the disproportionate numbers of MÃ ori living in poverty an approach that incorporates MÃ ori discourses and acknowledges the past as well as the future is key. The WhÃ nau Ora Approach: The WhÃ nau Ora Approach is an approach to welfare that was launched in 2010 with the goal of empowering MÃ ori to be able to take charge of their own lives. It focuses on being able to achieve better livelihood outcomes in areas such as health, education, housing and employment (WhÃ nau Ora at a glance, 2016). This program incorporates the MÃ ori ideas around the importance of Community and WhÃ nau into an approach that will empower MÃ ori to be able to take charge of their own lives rather than being reliant on the government. By creating a strengths-based approach that is in line with MÃ ori ideas surrounding the importance of community and the collective a much more relatable and holistic program is created (Dale, O Brien, St John, 2011, P.34). The framework in which this approach is underpinned by seeksShow MoreRelatedGerman Culture and Lifestyle1252 Words Ã |Ã 6 Pagescan lead to increased tension among differing cultures. German cultures have been known to ha ve a difficult past but if others view their lifestyles, dietary habits, health care, education, and recreational activities, other cultures may view them in a different light. Ã Ã Ã Ã Ã Ã Ã German living is very similar to the American way of life; they both enjoy variety and a wholesome feeling to living life. There may be a few differences, but similarities are there. City living for Germans is mostly made upRead MoreThe Importance Of African American Education1559 Words Ã |Ã 7 Pagesthe defining factors in determining the quality of education received by people in the United States ( Gordon, 1990; Williams Land, 2006). The western curriculum serves the cultural interest of whites, who have their roots in the European countries. It does not favor the cultural interest of African Americans, but it would only make sense that African American people are educated on true African history. The African American quest for education has been discussed by many African scholars and theRead MorePerfect Research Essay876 Words Ã |Ã 4 PagesunderstandingÃ¢â¬ . Based on theoretical framework, research can be either quantitative or qualitative. It is undeniably that research has become an essential for producing knowledge in numerous fields such as science, technology, design, psychology, education, and so on. Since the purpose of research is for advancement of human knowledge, the perfection of research has been a topic of argument of professionals. From my perspective, I agree that perfect research does not exist. As the name suggests, researchRead MoreDiverse Students May Learn Differently Than Their Peers Essay1157 Words Ã |Ã 5 Pages When I first read this question I automatically thought of different ways that ethnically diverse students may learn differently than their peers. These included being better oral/auditory learners because of a focus on storytelling in their culture, or having an aversion to working independently because of the emphasis on community learning in their own culture. These were then things that ran through my head but when I was reading our textbook it told me something different, though no less extraordinaryRead MoreCree Poetic Discourse By Neal Mcleod1640 Words Ã |Ã 7 PagesThe Power of Evolution In the essay Ã¢â¬Å"Cree Poetic DiscourseÃ¢â¬ , the author Neal McLeod addresses an intellectual problem that the western academic writing approach harms the indigenous Cree narratives. According to McLeod, the Cree narrative process, which involves poetic thinking, embraces new possibilities and keeps changing (9). This evolution process not only depends on various occasions of speaking but also depends on different storytellers and audiences who absorb stories, thus allowing Cree poeticRead MoreThe Start of Child Labor Laws687 Words Ã |Ã 3 Pages During the Early Modern Era the opinions toward children varied between different societies. In most civilizations children werenÃ¢â¬â¢t treated with any special treatments and were raised to be obedient workers and in turn affecting their education. In these societies children were brought depending on social status, and because of this bias many children were forced to hard labor. Though there are many regional and culture differences, at this time the world was opening up to reform and rebuildingRead MoreThe Great Gatsby : Coming Of Age Novel1453 Words Ã |Ã 6 PagesGreat Gatsby is more of a postponed coming of age novel 1. The idea that the protagonist has remained mentally a child his/her entire life. a. Nick may have physically grown, but in a sense has remained enclosed in his mid-western morals. b. Although Nick may have gained an education and even fought in a war, he still has child-like innocence. 2. The protagonist is finally exposed to new ideologies that allow him to grow mentally between his late 20s and mid-40s. a. Fitzgerald starts off the novel withRead MoreChild Labour And Its Ethical Implications859 Words Ã |Ã 4 Pages#2 This week we discussed the topic of child labour and its ethical implications. While this topic caused a great deal of discussion, I could not help but reflect upon how often western society was used to compare what was or was not ethically correct. Upon discussing the ethical philosophies related to the case, western society was continually used as the focus point to defend the ethical decisions. In my opinion, the ethical philosophies of Kantianism and Utilitarianism discussed in class can easilyRead MoreThe Tasks And Traditions Of Interpretation By Jane Mcauliffe1452 Words Ã |Ã 6 PagesTasks and Traditions of InterpretationÃ¢â¬ and Ã¢â¬Å"Western Scholarship and The QurÃ¢â¬â¢anÃ¢â¬ , interpret the QurÃ¢â¬â¢an from two distinct points of view. The first article, Ã¢â¬Å"The Tasks and Traditions of InterpretationÃ¢â¬ by Jane McAuliffe introduces a famous commentator named Ali Ibn-al-JawzÃ « and explains his analysis on the different SurÃ s within the QurÃ¢â¬â¢an. McAuliffe also introduces other famous commentators and compares them to Ibn al-JawzÃ «Ã¢â¬â¢s view. In the article Ã¢â¬Å"Western Scholarship and the QurÃ¢â¬â¢anÃ¢â¬ by Andrew RippinRead MoreAnalysis Of Orientalism, Criticizes And Confronts The Ideas Of Truth And Representation, By Edward Said1642 Words Ã |Ã 7 PagesEdward Said in his book Orientalism, criticizes and confronts the ideas of truth and representation, Ã¢â¬Å"it is not Ã¢â¬ËtruthÃ¢â¬â¢ but representationÃ¢â¬ (p. 29). Our representations of the world do not always hold truth. Western countries, such as the US, have sculpted a media in which the enemy of the East, is at the forefront and represents an entire population and geographical location as something to fear. Said explains this as an Ã¢â¬Å"us vs. themÃ¢â¬ scenario Ã¢â¬Å"On the one hand there are Westerners, and on the other
Friday, December 20, 2019
The essay, Ã¢â¬Å"EvanÃ¢â¬â¢s Two MomsÃ¢â¬ , was written by Anna Quindlen and published in The New York Times and the 2004 edition of Good Reasons with Contemporary Arguments. Also, this essay takes a liberal point of view concerning gay marriage and the ability to raise a child in a gay family. Throughout QuindlenÃ¢â¬â¢s essay, her structure introduces ethos, pathos and logos through a variety of court cases to gain the readers trust; she appeals to both emotion and logic in her reader through passion and unwavering intensity, which disapproves of those who take a radical point of view against gay marriage. Anna QuindlenÃ¢â¬â¢s structure of Ã¢â¬Å"EvanÃ¢â¬â¢s Two MomsÃ¢â¬ provides the reader with explicit details concerning the debate about gay marriage. Also, in QuindlenÃ¢â¬â¢sÃ¢â¬ ¦show more contentÃ¢â¬ ¦A marriage is by definition a union between a man and a woman because we have defined it that way. However, she starts off by telling about a situation where gay adoption was accepted. In her first paragraph she states that, Ã¢â¬Å"a judge in New York approved an adoption of a six-year-old by his biological motherÃ¢â¬â¢s lesbian partnerÃ¢â¬ . She also speaks of a seven year court case in which the care of a quadriplegic lesbian was given in her lover, and gives an example of company called Lotus announced that the gay partners of their employees would receive the same benefits as their spouses. She then goes on to talk about the negative judgment society imposes on gay marriages in society. She lists an event in which lawyer lost her job offer after the Attorney General found that she and her partner were getting married. She also lists other experiences such as when a child was refused admittance to the YMCA, and compared these to court cases such as Loving v Virginia, when the judge dismissed the trial provided Loving and his wife left the state of Virginia. Another key type of argument she uses is logos. These types of arguments are proved by different types of statistics. Quindlen shows different examples of how gays cannot receive their partnersÃ¢â¬â¢ health insurance or benefits, asking how all the benefits of a straight marriage cannot be included in a gay marriage. She briefly talks of AIDS survivors that have been
Thursday, December 12, 2019
Question: Discuss about the The Risks of Companies. Answer: Introduction Peoples attempts involve risks. For any business venture to prosper, risks must be dealt with in a conscious manner (Ritchie and Marshall, 2007). That implies there is no immaculate venture in the development business in which every one of the dangers can be recognized and comprehended. Hazard can be evaded or understood. It can only be relieved and afterward either exchanged or share to some other body that is still part and parcel of the business. Businesses succeed well when depending on how the involved team has analyzed the project. There are three parameters that determine the achievement of a business. They include, time, cost and quality. These three are subjected to risk or uncertainties. The project team has the obligation to organize all the usage all through the usage, arrange how legitimately they are assessing the venture by giving fitting recompenses to every one of those expected dangers or vulnerabilities (Ritchie and Marshall, 2007). The Companies chosen for this project are from the Software services, energy and materials industry as shown below: Energy Industry A-cap Resources Ltd Tec Limited African Energy Resources Alligator Energy Ltd Acacia Coal Limited Adx Energy Ltd Allegiance Coal Limited Adavale Resources Alice queen Limited Abilene Oil and Gas Limited Materials Industry Anglo Australian Resources Amcor Limited Amani Gold Limited Anchor Resources Limited Aneka Tambang Anglogold Ashanti Limited Amex Resources Limited Anova Metals Limited Andromeda Metals Limited Anson Resources Limited Software Services Industry Aconex Limited Activistic Limited Adacel Technologies Limited Adslot Ltd Aeeris Ltd Afterpay Holdings Limited Ahalife Holdings Limited Altium Limited Animoca Brands Corporation Limited Appen Limited Company ratios Energy, Materials, Software and service industries margin ratios are 3.1, 6.64 and 8.45 respectively. The industry with the highest ratio is the software and service industry. The software and service industry seems to be doing well compared to the other company ratios. P/E ratio This is a system used to compare the stock level prices of a companys profits. It provides investors with the sense of a stocks value The following formula is used to calculate a companys P/E ratio P/E ratio = price per share Earnings per share (EPS) EPS = earnings total shares outstanding Energy sector current ratio = $200,000,000 $60,700,000 = 3.1 Materials sector current ration = $360,000,000 $54,200,000 = 6.64 Software sector current margin = 410,000,000 $48,500,400 = 8.45 From the above rations, it is clear that the riskier industry to invest is in the energy sector. The industry that is better to invest in the software and service industry since the profit margin is at 8.45 as compared to the other sectors which are at 6.64 and 3.1. Risks are by and large of various types that can be arranged in light of these criteria which involves the distinguishing all the dangers, the outcomes, and the effect of hazard. (Chen, 2005) proposed an alternate strategy for grouping of hazard i.e. Elemental classification and Global characterization. The proposed strategy is to separate the additional broad dangers which might impact a venture yet it may not be within the control of the venture parties against the dangers related with crucial business fundamentals; these are known as worldwide and natural threats (Flanagan and Norman, 2009). Risks Business dangers result from critical conditions, events, circumstances, activities or inactions that could influence a substance's capacity to accomplish the association's goals and execute its methodologies or setting of wrong destinations and systems (Carey and Stulz, 2006). External Environment Risks These are dangers from expansive variables outside to the business including substitute items, calamitous peril misfortune, and changes in clients' tastes and inclinations, contenders, political condition, laws/controls, and capital and work accessibility. Business Process and Asset Loss Risks These are dangers from ineffectual or wasteful business forms for procuring, financing, changing, and promoting merchandise and enterprises, and dangers of loss of firm resources including its notoriety. Geological These type of risks refer to the difficulty the extraction and difficulty involved in accessing the reserves is lesser than the estimated. The Oil and gas experts strive to limit geographical hazard by use of frequent tests every now and then, this makes it very rare uncommon that evaluations are off track. The terms that they normally use utilize the expressions "proven," "likely" and "possible" before save evaluations, to show their confidence levels in their findings. Price Oil and gas prices are the essential factors that are used to calculate in selecting whether a reserve is economically feasible. The higher the geographical limitations to simple extraction, the higher the chances the business will face. The result of this is that unpredictable extraction as a rule costs more than a vertical drill down to a deposit. Political Regulatory sense is the primary in which politics affects oil. Gas companies are normally covered by various regulations which limit how and when the extractions are done. The interpretation of these laws in these ways differs between states. And with that in mind, political risks normally increase when the oil and gas organizations are busy working on deposits abroad. Financial Risk This hazard relies on upon how a business is supported over the long haul. There are two sorts of financing accessible to a business, which are shareholders' assets value or obligation. Value prompts proprietorship and benefit sharing, though obligation prompts reimbursement of intrigue and capital. The Debt to Equity proportion is referred to as Gearing and as this builds, the money related hazard confronted by the shareholders increments too. A profoundly outfitted organization will be extremely helpless against liquidation or disappointment if its benefits and money streams plunge essentially since it won't have the capacity to pay premium and capital. The dangers confronted by exceptionally outfitted organization shareholders are in this manner high when contrasted with their partners in low-adapted organizations. This review endeavors to look at this directing impact, particularly in the business setting. Since both ?nancial use and capital force assume signi?cant parts in the business, such directing impact might be all the more unmistakably recognizable. (Sheel, 2009) states that the guarantee impact of capital power all the more viably brings down here and now obligation for the business than for assembling. These ?ndings might be appropriate to the business, given that the vitality and materials industry share a few signi?cant normal attributes, for example, a high level of use and regularity of business, which prompt a more prominent affectability to loan cost chance (Tang Jang, 2009). Business chance and intrinsic hazard both bear on the review; the review chance model; and the nature, timing, and degree of work performed. Innate hazard and business chance bear a converse relationship to location chance and directly affect the level of work performed. Business hazard identifies with the money related explanations and influences general review chance; intrinsic hazard applies to an individual review zone. Inborn hazard is unequivocally incorporated into the expert gauges and the audit?risk display while business hazard is not and has just a circuitous bearing on the model. Administration can find a way to influence the level of characteristic hazard, however the impression of clients of the money related articulations bear on business chance. Correlation between financial risk and capital intensity There are two courses for the positive adjustment of the connection between the budgetary use and money related pain through the capital power. One route is to reduction escalated impacts of the money related use on the monetary misery and the other one is to quicken beneficial outcomes of the budgetary use on the monetary pain and the expanded level of capital power. The reason for this review is the principal contention, i.e. as per the symptoms which can be given by the capital power with respect to the concentrated impact of monetary use on money related pain under scrutiny. It implies that on the normal, budgetary use costs command the benefits as per the money related trouble and such costs can be decreased when the level of capital power increments. Analysis of the significant ratios of the selected companies of the energy industry The table below shows the ratios of the ten selected companies of the energy sector. The three ratios are analyzed to understand the profitability, liquidity and the solvency of the companies. Ratio Analysis Particulars Return On Equity Current Ratio Debt Equity Ratio A-cap Resources Ltd -2.54% 5.77 Algae.Tec Limited -473.51% 0.62 African Energy Resource -8.61% 20.64 Alligator Energy Ltd -56.01% 4.06 Acacia Coal Limited -144.59% 9 Adx Energy Ltd -227.87% 2.73 Allegiance Coal Limited -261.54% 0.69 Adavale Resources -48.38% 0.06 Alice queen Limited -180.01% 1.82 Abilene Oil and Gas Limited -21.01% 0.11 0.64 The table above highlights three significant ratios. The return on equity is calculated to understand the profit earning ability of the company. The calculation shows that the average return on equity of the 10 selected companies is -142.41%. This means that all the companies on an average are making net losses. The company that has the highest negative return on equity is Adx Energy Ltd and the company that has the lowest negative return on equity is A-cap Resources Ltd. This suggests that the company A-cap Resources Ltd is in a relatively better position in the industry. This ratio gives a clear indication that the profitability of the industry represented by the ten companies is very weak. Therefore, it is suggested that necessary steps should be taken so that overall profitability condition of the industry could be improved. In the energy sector, the cost related to input is primarily the main component of the cost. It can be said that if the cost of input can be reduced then the profitability situation of the industry can be improved. The liquidity of the company is measured by the current ratio. The current ratio represents the readily available assets that can be used for settling the current obligations. On analyzing, the current ratio of the industry as represented by the 10 companies it can be seen that the average current ratio of the industry is 4.55 times. This means it is the industry standard to maintain 4.5 time of the current assets over the current liability. On analyzing the ten companies, it is seen that African Energy Resource has the highest current ratio of 20.64 times. On the other hand, Adavale Resources has the lowest current ratio of 0.06. In general it can be said that higher the current ratio the better it is for the company. However, it should be noted that very high current ratio represents underutilization of assets and it is not a positive sign for the company. Therefore it can be said that it is an industry standard to maintain sufficient liquidity. However, it is suggested that the li quid assets can be properly utilized for increasing the revenue of the companies. The solvency of the company can be determined by calculating debt equity ratio. The debt equity ratio measures the level of debt over equity. The increase in the ratio means that the proportion of debt is increasing in the capital structure. The cost of equity is very high so it is necessary to maintain an optimum level of debt in the capital structure. The optimum mix of the debt equity ratio will ensure that the cost of capital of the company is reduced. On analyzing the 10 companies of industry, it has been found that only one company Abilene Oil and Gas Limited has debt in its capital structure. This suggest that the companies in the industry relies more equity for financing then debt. Therefore, it can be said that the overall cost of the capital of the industries high. Analysis of the significant ratios of the selected companies of the Mineral industry Ratio Analysis Particulars Return On Equity Current Ratio Debt Equity Ratio Anglo Australian Resources -31.10% 0.55 Amcor Limited 22.17% 0.88 4.37 Amani Gold Limited -74.16% 0.98 Anchor Resources Limited -41.12% 2.62 Aneka Tambang 0.36% 2.44 0.36 Anglogold Ashanti Limited 2.45% 1.53 0.79 Amex Resources Limited -219.67% 0.13 Anova Metals Limited -17.87% 3.81 Andromeda Metals Limited -35.60% 2.06 Anson Resources Limited -87.83% 59.12 Table 2: Ratio Analysis (Source: created by Author) The table above shows the ratios of 10 companys mineral industry. The three ratio that have been computed are return on equity, current ratio, and debt to equity ratio. The average return on equity of the industry is -48.24%. This means that on an overall evaluation the industry as represented by the ten companies are making losses. The company that have the highest return on equity is AngloGold Ashanti Limited. This company have a return on equity of 2.45%. This means the company from the funds invested by the shareholders earns 2.45% return. The lowest return on equity is of Amex Resources Limited. This company have a very high negative return on equity of -219.67%. The analysis of this ratio of the company indicates that the losses made by the company is more than twice of the capital. It is suggested that necessary steps should be taken to improve the profit earning ability of the industry. The average current ratio of the industry is 7.41 times. This means in the industry the current asset maintained is more than 7 times the current liability. The company Anson Resources Limited has current ratio of 59.12 times there is extremely high what any industry standard. This means the company has 60 times the current asset of its current liability. This represents that the company is not is not utilizing the current assets efficiently. On the other hand, the company Amex Resources Limited has current ratio of 0.13 times. In this case the the company has insufficient current assets for paying off the current liability. The average debt to equity ratio of the industry is 1.84 times. In the selected 10 companies, only 3-company uses debt in its capital structure. This suggests that more confidence is placed on equity for financing the business. This could increase the cost of Financing the business. Analysis of the significant ratios of the selected companies of the Software and service industry Ratio Analysis Particulars Return On Equity Current Ratio Debt Equity Ratio Aconex Limited 16.95% 0.9 0.01 Activistic Limited -255.24% 5.1 Adacel Technologies Limited 56.66% 2.88 Adslot Ltd -24.45% 2.28 Aeeris Ltd -42.69% 6.4 Afterpay Holdings Limited -9.33% 29.64 Ahalife Holdings Limited -809.64% 3.96 0.02 Altium Limited 18.54% 1.53 Animoca Brands Corporation Limited -312.78% 1.5 Appen Limited 32.75% 2.51 Table 3: Ratio Analysis (Source: Created by Author) The average return on equity of the selected company is negative. This indicates that the companies are making losses. The average return on equity of the industry is -312.92%. The return on equity of Ahalife Holdings Limited is -809.64%. The ratio suggests that the company is making a loss that is equivalent to 8 times the capital of the company. On the other hand, the return on equity of the company Adacel Technologies Limited is 56.66%. This suggests that this company is making sufficient profit. The current ratio of the industry is 5.67 times. That means on an average every company in the industry has five time more the current assets than the current liability. The current ratio of After pay Holdings Limited is very high at 29.64 times. This means the company has 30 times the current assets than current liability. It clearly indicates that the current assets are not properly utilised. The lowest current ratio is of Aconex Limited at .9 times. The average debt to equity ratio of the industries is 0.02 times. There are ten companies that are selected but only two company has utilised debt in its capital structure. This suggests that utilization of debt in the capital structure is not a predominant trend in the industry. Conclusion This report has clearly shown the difference that exists between business risk and the uncertainties and how the risks affect projects and also the methods used to reduce the risk impacts. Risk management value is explained for major projects with case study help. The study analysis is conducted in a convenient way such that every risk in the case is explained. References Carey, M. and Stulz, R. (2006). The risks of financial institutions. 1st ed. Chicago: University of Chicago Press. Chapman. C B. (1990). A risk engineering approach to project risk management. International Journal of Project Management. 8(1990), Pp 5-16 Chapman. C, Ward. S, (2003). Project risk management. Processes, Techniques and Insights. John Wiley Sons Ltd. Kunreuther. H, Deodatis. G, Smyth. A. (2004). Integrating Mitigation with Risk- Transfer Instruments. Edited by Gurenko. E N, Catastrophe Risk and Reinsurance- A Country risk management perspective. Pp 117-129. Risk Book Publications. Perminova. O, Gustafsson. M, Wikstrom. K. (2007). Defining Uncertainty in projects - a new perspective. Perry. J G, Hayes. R W. (1985). Risk and its management in construction projects. Proceedings- Institution of Civil Engineers, Part 1 (1985)/78, Pp 499-521. Ritchie, B., Marshall, D. (2006). Business risk management. London etc.: Chapman and Hall. Smith N J. (2002). Engineering Project Management. Blackwell Science Limited, Oxford. Thompson. P, Perry. J (1992). Engineering construction risks. Thomas Telford publishing.
Wednesday, December 4, 2019
Question: Describe about the Foundation of Taxation Law for Source of Payment. Answer: 1. Issue The case pertains to a famous mountain climber named Hilary. She has never written any book before but is given offer by the local newspaper to write a book on her own life (autobiography) and in lieu of that, the newspaper promises to make a payment of $ 10,000. She accepted the offer and went on to complete the book and sold the rights for $ 10,000. Further, the manuscript was also sold by Hilary and a compensation of $ 5,000 was derived. Lastly, $ 2,000 were derived on account of sale of photographs she had from her expedition. The core issue is to determine if the income derived by Hilary would be considered as that derived on account of personal exertion. Rule In the event of a payment being received, the key question from the taxpayer is to determine the source of that payment. If the payment is obtained from any business or employment in which the taxpayer is engaged, then it is classified as ordinary income as defined in Section 6-5, ITAA 1997. It is also noteworthy in this context that the any activity undertaken by the taxpayer, which is of isolated nature but with profit intention would also contribute to ordinary income under the ambit of Section 15-15 ITAA, 1997 (Woellner, 2014). However, in the event that the payment is derived from the sale of any capital asset such as land, machine, share then the receipt would be of capital nature and would not contribute to the assessable income. However, even in such cases, capital gains made may be taxed as per Section 10-5, ITAA 1997 (Barkozcy, 2014). A pertinent case which needs analysis in the backdrop of the current situation is Brent vs Federal Commissioner of Taxation(1971) 125 CLR case. The relevant facts of this case are summarised below (Sadiq et. al, 2015). The wife of a famed robber is approached by many newspapers to provide information about their married life with special emphasis on the husbands conduct towards the wife. The wife agrees to one offer and through a series of interviews extending into several days gives all the information to journalists from that newspaper. The wife does not take any active participation in the writing process. Finally, once the book is ready, the wife is asked to put her signature on every page for authenticity purposes. The central question was with regards to classification of the receipts as capital or revenue. The court in the above case had reached the verdict that the receipts derived by the wife would not be assessable as they are essentially capital. The relevant explanation put forward by the court is given below (Coleman, 2011). The various offers that the wife was getting was on account of the information she had. Hence, the real asset which the newspapers were seeking was this information of her martial life which only she could provide. Hence, the indulgence of the wife in sharing of the information is not pivotal and does not lead to the creation of any asset or any valuable service for the newspaper. The involvement in the interview is a mere mechanism to transfer the information from herself to the journalists. Similarly, the activity of putting signatures, amounts to authentication of the fact that the information is correct and the signatures otherwise do not have any worth. Hence, essentially through the contract, there is transfer of ownership of information from the wife to the newspaper for which capital receipts would be derived. Application The court reasoning and point of view would now be made applicable on the income derived by Hilary through the following arguments. The offer by The Daily Terror was not inspired from Hilarys writing skills but by her celebrity status and the information that she could provide about her personal life through the book. This information has been in the private domain and through this book, this could be brought into public domain and enable the newspaper to earn money. Thereby, the payment made is for information which is shared through writing being the medium just like interview was the medium in the Brent v. FCT Thus, the proceeds earned by Hilary through the book is capital. Similarly, since Hilarys profession is not writing or photography, hence the income derived from manuscript and photographs does not fall under the purview of either Section 6(5) or Section 15(15), thus these would be non-assessable income as they would be capital receipts. Driven by self-satisfaction In the given case, Hilary engages in book writing and is driven by only self-satisfaction as the driving factor and does not intend to earn any income. Since, Hilary is not a writer and engages in the act of writing without any profit intention, hence this would be termed as mere hobby and therefore any income derived from the same would not be assessable and be termed as capital receipts (Gilders et. al., 2013). 2. Issue The facts of the given scenario are summarised below. An oral agreement is enacted between the mother (lender) and son (borrower) as per which a financial help of $ 40,000 is given by the borrower and the lender promises to given back a sum of $ 50,000 at the end of five years. But the mother categorically states to the son that she does not have interest earning intention from the loan. The loan is repaid back by the son at the end of the second year when he makes a payment of $ 44,000 in which $ 40,000 amounts to principal repayment and the remaining amount is interest computed at 5% pa. The impact of the above lending on the assessable income of the mother needs to be analysed. Rule In accordance with Section 6(5), one of key constituents of ordinary income is interest payments. This may be earned by engaging in business of money lending. Also, investment in a security which pays interest would also contribute to the interest income. However, in accordance with Section 15-15, any casual lending with profit making intention would also lead to the interest income being termed as ordinary income (Deutsch et. al., 2016). Further, in order to segregate casual lending with commercial lending operations, comparison needs to be derived between the execution of the given transaction with the manner of execution of commercial transactions. It is noteworthy that interest periodicity is not essential parameter and even lump sum interest payment can make contribution to ordinary income provided the source falls within the ambit (Hodgson, Mortimer Butler, 2016). For any payment to be termed as gift, the list of condition is summarised below (Barkoczy, 2014). The ownership of the gift needs to be transferred in the favour of the recipient. The gift giver should have no favours in mind to be derived from the recipient either in present or near future. The recipient must not make any demand for a gift and the gift giver should engage in gift giving voluntarily. The gift extended to the recipient must be on account of personal feelings. Application The scenario given clearly signifies that the mother has engaged in a casual lending transaction as there is no requisite legal documentation or the demand of any collateral from the mothers side. Hence, the amount is given to the son on faith without any expectations of interest and this is also known to the son at the time of lending itself. As a result, any incremental repayment over and above the principal cannot be categorised as ordinary income either under Section 6-5 (since no money lending business) or under Section 15-15 (since no profit intention). There is no dispute with regards to the principal component repayment which would be capital, however the remainder payment of $ 4,000 in the given case is termed as gift on account of explanation tendered below. The interest payment was extended to the mother in a voluntary manner even when she expressed her desire of not wanting any interest. As the cheque was given to mother drawn in her mother, hence it amounts to ownership transfer. The son had no incentive or reciprocal expectation of benefit from the mother for the payment of $ 4,000. The payment of $ 4,000 is given as a personal gesture. Thus, it is wise to conclude based on above arguments that the given transaction will have no effect on the assessable income derived by the mother. 3. Part a) The information given is summarised below. The acquisition of land by Scott was enacted in the year 1980 and in 1986 he constructed a house on the premises. The property has been sold in the current financial year for a consideration of $ 800,000 which is the fair market value of the property. It is known that Capital Gains Tax (CGT) is applicable on the capital gains made on the capital assets that have been purchased after September 20, 1985. Thus in accordance with this rule, the land would be exempt from CGT but the house would surely attract CGT on the capital gains component (Sadiq et. al., 2015). Initial valuation and share At the time of construction of house, a capital expense of $ 60,000 was incurred to build the house. Also, market price of land at that time amounted to $ 90,000. Hence, when both the assets came into existence, then the contribution to the property price was in the ratio of 60000:90000 or 2:3 in favour of land. Current valuation and share Market value of property in the present = $ 800,000 [Given] Hence, dividing the value in the same ratio as initially, the value of land and house would be $480,000 and $ 320,000 respectively. As per the discussion above, no CGT would be put on the $ 480,000 component as land is CGT exempt but CGT would be put on $320,000 which is liable to CGT. In order to compute capital gains that would be levied CGT, the discount method and indexation method are available as Scott is an individual taxpayer (Nethercott, Richardson Devos, 2016). Indexation Method Index for inflation adjustment = (68.72/43.2) = 1.59 Thus, adjusted construction cost of the house which forms the cost base of the asset is 1.59*60000 = $ 95, 400 Hence, taxable gains eligible for CGT = 320000 95400 = $ 224,600 Discount method The cost base of the house would be only the construction cost as no information has been offered on any further capital works on the house. Hence, house related capital gains = 320000 60000 = $ 260,000 Under discount method, only 50% of the capital gains are subject to CGT, therefore the derived capital gains from the property = (260000/2) = $ 130,000 Clearly, the discount method would be preferred here since Scott can lower the tax payable on account of CGT by choosing this method. Hence, taxable capital gains from the property would amount to $ 130,000. Part b) The property now derives a sale price of $ 200,000 instead of the market value of $ 800,000 since the buyer is Scotts own daughter. The aim is to ascertain if this would alter the taxable capital gains. However, in accordance with Section 116-30(2), the taxable capital gains would still continue to be $ 130,000. This is because this section states that in capital gains computation the higher of the actual selling price and market value are used (Deutsch et. al., 2016). Part c) As per the provided information, there is ownership change from individual to company. This would impact capital gains tax as companies cannot use discount method and thus indexation method would be used which would leads to gains of $ 224, 600 (Woellner, 2014). References Barkoczy,S 2014,Foundation of Taxation Law 2014,6th eds., CCH Publications, North Ryde Coleman, C 2011, Australian Tax Analysis, 4th eds., Thomson Reuters (Professional) Australia, Sydney Deutsch, R, Freizer, M, Fullerton, I, Hanley, P, Snape, T 2016, Australian tax handbook 9th eds., Thomson Reuters, Pymont Gilders, F, Taylor, J, Walpole, M, Burton, M. Ciro, T 2013, Understanding taxation law 2013, 6th eds., LexisNexis/Butterworths Hodgson, H, Mortimer, C Butler, J 2016, Tax Questions and Answers 2016, 6th ed., Thomson Reuters, Sydney, NSW Nethercott, L, Richardson, G Devos, K 2016, Australian Taxation Study Manual 2016, 8th ed., Oxford University Press, Sydney Sadiq, K, Coleman, C, Hanegbi, R, Jogarajan, S, Krever, R, Obst, W, and Ting, A 2015 ,Principles of Taxation Law 2015, 7th eds., Thomson Reuters, Pymont Woellner, R 2014, Australian taxation law 2014, 8th eds., CCH Australia, North Ryde