Category Archives: LAW505

Business Law Assessment

Business Law Assessment

Question 1

There exists a contract in restraint of trade between Globe Tickets Ltd and Juliet. The courts defined a contract in restraint of trade to be an arrangement whereby the employer agrees with the employee or any other party to restrict their future liberty in carrying out the trade with other parties which are not a party to that contract.[1] The essence of such an arrangement is to ensure that first the employer is cushioned from business competition from his former employers; and secondly that the salient trade secrets and confidential information of the business are kept a secret in a manner that does not harm the employer’s business. Juliet explicitly flouted the restraint of trade clause barring her not to represent sportsmen nor sell tickets relating to opera and classical music or theatre within two years after ceasing to be employed by Globe. In as much as this seems straightforward, Globe Tickets Ltd. is advised that courts have a structured approach to solving such disputes.

There are no hard and fast rules while interpreting clauses on restraint of trade. Courts tend not to enforce a restraint of trade clause which is made by an employer merely to protect the employer from competition. There must be some cogent legitimate proprietary or business interest which must be protected by the employer. The nature of the interest in question determines the preferable length and geographical extent of the restraint of trade provision. Courts are also alive to the fact that a prolonged restraint means that the employee remains without income for a while. If the Company goes ahead and sues Juliet, the most likely approach of the Court would be as explained below.

The first question that has to be asked would be whether the restraint is reasonable. In the case of Nordenfelt v Maxim Nordenfelt Guns &Ammunition Co Ltd[2], McNaghten LJ, held that contracts in restraint of trade are generally in contravention of public policy to the extent that they bar any sought of competition against the employer. An exception to this conception, however, is that if the restraint is limited in scope and serves a legitimate purpose, then it can be enforceable. The onus of proving that the clause was reasonable squarely lies on Globe Tickets Ltd.  Secondly, the court will determine the legitimacy of the purpose of inserting that clause in the contract. In the case of Littlewoods Organization Ltd v Harris,[3]It was asserted that at this point, the employer cannot rely on the general perception of trade secrets. There has to be a concise elucidation of the trade secrets that are being protected and what the employer would lose if they are not protected.

In the case at hand, given the fact that the employee decided to sabotage her former company by soliciting business for the new employer using the previous’ contacts, there is a legitimate interest that has to be protected by the law. Also, the nature and scope of restraint are not extrapolated to frustrate the employee technically. Therefore, Globe Tickets Ltd. are likely to succeed in their claim against Juliet.

Question 2

From a Labour Law perspective, for purposes of determining who an employee is, there are a number of tests that are employed. The very first test in this respect is the control test. Under the control test, if the master controls the actions of the servant or the employee, then an employment relationship subsists. This position was taken in the case of Yewens v Noakes.[4] Regarding Frank’s working conditions, in as much as his attendance at the place of work is not so much regulated, the employer superintends all the other aspects of work. From this perspective, he can easily be regarded as an employee.

Secondly, there is the integration test. Under this test, Courts consider whether the person or his or her role forms part of the organization. If what the servant does form the core business of the organization, then he or she can be considered as an employee. In Express & Echo Publications Ltd. v Tanton,[5] It was pronounced that under a Contract of service, an employed person is part of the business, and he carries out work which is an integral part of the business. On the other hand, in a contract for service, even though work is done for the firm, it is not fundamental to the operation of the business. Considering the case at hand, the role of guarding and inspecting areas at night is so central to the firm in the sense that the security company cannot be in operation without the services of people in Frank’s position. This approach was reaffirmed in Stevenson Jordan and Harrison v Mc Donald & Evans.[6]

There is also the substitution test under which, if the servant is allowed by the employer to take leave or to abscond duty and another worker can substitute his position, then he cannot be deemed to be an employee. In the case at hand, it appears that there was no obligation for Frank to appear at work and that he could easily be replaced. Finally, there is the business test. Also known as the economic reality test, the business test is concerned with whether or not the worker is in the business on their account. In Ready Mixed Concrete v Ministry of Pensions and National Insurance [1968] 2QB497, the court considered a number of factors associated with a contract of service and concluded that the independence with which the plaintiff operated would not render him an employee. Looking at all these tests, it would be plausible to conclude that Frank was an employee of the theatre.

Question 3

The Equality Act 2010 is a protectionist instrument which was enacted to curb discrimination and differential or preferential treatment in many spheres of human life. The Act stipulates that a person may not be discriminated against on grounds of sex, gender, race, religion or disability. This provision also applies when it comes to matters of employment. In the case at hand, Ranjat was denied a job because all the requirements of the job did not augur well with his religion and race and this occurred despite his justification of alternate approaches. This in many instances would readily amount to discrimination on the two grounds, but a closer look calls for more details.

The requirement of not wearing beards in the factory and that of putting on a safety helmet, are technically opposed to the Sikh religious faith. In addition to this, being subjected to an English test even though it was not a major requirement slightly points to racial discrimination. The provisions of the Equality Act 2010 are not absolute, however. So long as the employer can justify the reasons for actions taken, the allegations would stand no more. The justification given must point to the fact that first the stipulation is an occupational requirement. Secondly, there has to be a good reason or legitimate purpose of applying the requirement. It must also be proportional to invoke the requirement. That means that the rule must be the best way possible of achieving the goals of the employee. Finally, the employer must have reasonable grounds to believe that one does not meet the requirements.

Looking at this case, it is evident that the employer had a justification for every requirement imposed on interviewees, especially Ranjat. In the factory, it is of primary interest that hygiene is maintained and since Ranjat did not give an alternative of maintaining hygiene with his beard on, this cannot be construed as discrimination. Also, the safety of employees must be guaranteed by the management and as such the Company cannot be faulted for requiring that employees wear helmets. Finally, communication is essential in that setting, and English test was in order if it was aimed at establishing the communication skills of the interviewee.

 Question 4

The case of Fred and Yogesh reveals a number of malpractices by employers, especially when managing their employees. This dispute presents two major issues; the first one being unfair dismissal. The manner in which Fred and Yogesh were dismissed from work is unprocedural, and it disregards the provisions of the Employment Act. The two employees were first dismissed before being given a chance to explain themselves or to appeal. At Common Law, an employer is at liberty to dismiss the employee even without giving reasons. This was evidenced in the case of Ridge v Baldwin.[7] However, the employer has an obligation to give sufficient reasons for the dismissal. Fred and Yogesh were not subjected to a fair administrative action because they were not given a chance to say their side of the story before being dismissed.

The second issue presented by this case is that of differential or preferential treatment at the place of work. While two employees were dismissed even without explaining themselves, Anila’s job was still intact. She was not even investigated at all even though they had been working together for over two years. Therefore, the two employees who were prosecuted may also institute proceedings on grounds of discrimination from their employer.[8] Fred may not have any real claim because he was ultimately convicted. Yogesh, however, has the avenue of filing civil suits for false incarceration and subsequently sue the employer for discrimination at the place of work.

 

Bibliography

Basson, A. C., & Strydom, E. M. L. ‘Restraint of trade; Essential Labour Law’ 4th edn Oxford,   Oxford University Press, 2005

Collins, H.. Employment law. Oxford, Oxford University Press, 2010.

Hardy, S. T. Labour law in Great Britain. Alphen Aan dens Rijn, The Netherlands:           Kluwer            Law International, 2011.

Smith, I. T., Wood, J. C., & Baker, A.. Smith & Wood’s Employment Law. Oxford, UK:    Oxford             University Press, 2003.

 

[1] Esso Petroleum Co Ltd v Harper’s Garage (Stourport) Ltd [1968] AC 269 at page 317

[2][1894] AC 535 at 565

[3](1977) 1 WLR 1472 at 1485

[4] (1881) 6 QBD 530

[5] [1999] IRLR 367

[6] [1952] 1 TLR 101

[7] [1964]A.C 40

[8] Hardy, S. T. Labour law in Great Britain. (Alphen aan den Rijn, The Netherlands: Kluwer                 Law International, 2011), 76.

 

The Ford Pinto Case Analysis -Business Law

Question

Case Analysis

The Ford Pinto case is a well-known case that is often discussed in the context of business ethics. To summarize, Ford’s design of the Pinto’s fuel tank was defective, causing fires if the Pinto was involved in even minor rear-end collisions. Ford came to learn of the defect, but the company failed to correct it; Ford then predicted, based on a cost-benefit analysis, that it would cost more to repair the defect ($11 per vehicle, or $137 million total) than it would to pay for damages resulting from burn deaths, burn injuries, and burned vehicles ($47.5 million). Consider the Ford Pinto case in light of the who-how

(WH) framework for business ethics.

Would Ford’s decision to forego repairing the defective design comply with these ethical guidelines? If so, why? If not, then what actions should Ford have taken to satisfy them? Explain your reasoning.

The Ford Pinto Case Analysis -Business Law

Owing to the changes in customer needs, tastes, and preferences, businesses and companies are constantly dilemmas when it comes to business operations. As a result, the government has designed and implemented business laws through its agencies in an attempt to protect the business as well as the individual customers. However, for the business law to successfully, effectively and efficiently work, there is the need to incorporate the already designed principles with morals to create a safer operating place for both the business and the stakeholders. However, in the case of the Ford Pinto, the investor the Ford company failed on their part to create a safe product for their customers. According to the case, the ford company decided to match the high competition in the foreign markets by designing a pinto vehicle that was to weigh less than 2000 pounds and cost less than $ 2000 (Kubasek, 2016). Unfortunately, the new ford pinto failed to meet the new the National Highway Traffic Safety Administration (NHTSA) regulations to reduce fires from traffic collisions. According to these regulations, all vehicles produced 1972 would have the ability to withstand a rear-end impact of 20mph without fuel loss. However, this was not the case with the ford pinto, and the company was faced with a dilemma. The management has to decide whether to go on with the production of the vehicle and endanger the lives of the commuters or delay production and redesign the fuel tank (Kubasek, 2016).

The Ford’s decision to go ahead with the production of the Ford Pinto and to put the lives of the people in danger would not go with ethical guidelines. Ethical guidelines often emphasize on the correct rules of conduct necessary when carrying out research. The company had a moral responsibility of protecting the lives of the people regardless of the amount of cash and resources used in making the car safer for the people (Kubasek, 2016). Given the reputation and the size of the company, the company officials would have delayed the production of the vehicle as stated in the timetable, redesign the fuel tank and any other necessary defects to ensure that they meet the needs and demands of their customers without putting their lives in danger. In this case, both the customers and the business would be affected in the sense that the more customers would lose their lives or get injured while the reputation and PR of the company would be tainted. Ford critics believe that more than 500 people lost their lives as a result of a collision even at a low speed when riding on their Ford Pinto despite the company insisting that only 23 people lost their lives (Kubasek, 2016). Further research shows that there were European and Japanese models in the country with similar design to that of pinto regarding price and weight ranges but with safer tank position. Therefore, Ford’s irresponsible decision significantly affected their reputation and image among the people. Given the importance of the consumers to the company, the company should have put their safety first rather than paying much attention to the benefits realized from this project. There was an ethical failure on the part of the company.

References

Kubasek, N. B. (2016). Dynamic business law: The essentials (3rd ed.). . New York, NY:: McGraw-Hill Education.

Federal and State Drug Statutes PowerPoint

Officer Joe

Question

Complete the Unit 7 Assignment: Officer Joe

You are a manager within a criminal justice agency. One day, during duty hours, while speaking with Officer Joe you detect a strong odor of alcohol on his breath. Officer Joe has maintained the status of a top performer within your department; however, recently he has been displaying the following behavior:

Answer

Officer Joe

There are a number of problems associated with Officer Joe. Some of the possible problems include mental health issues, trauma, or stress. According to Clarke-Miller & Brady (2013), various police stressors can contribute to the above problems. These include nature of police work, dealing with the criminal justice system, dealing with the public and organizational practice. Other stressor factors identified include family issues and underlying psychological factors. A study conducted by Pienaar et al. (2007) (as cited in Clarke-Miller & Brady, 2013) found that three aspects significantly determine police officer stress levels. The three include management style in departments, judicial decisions that are contrary to police opinions, and spending lengthy period away from family.

Stress has severe impacts on the physical and mental wellbeing of police officers. Most police officers will display a range of symptoms when they are under stress. Common symptoms include fatigue, restlessness, excessive consumption of alcohol, poor interrelationships with coworkers, and other symptoms (Clarke-Miller & Brady, 2013). These symptoms match some of those manifested by Officer Joe. Officer Joe violates the rules of the department simply because he perceives it as one of the stressor factors contributing to his misery. His disheveled look clearly indicates that Officer Joe has neglected his personal grooming due to the high stress levels. Officer Joe has poor interrelationships with other employees as evidenced by his disrespectful nature towards others.

Officer Joe’s actions may have severe consequences upon the police organization. The first consequence is a negative image of the police department among the public. When a single officer acts in an unethical manner, the public perceives rot in the entire department. Officer Joe is engaging in unethical behavior such as appearing to work under the influence of alcohol. The public may develop a negative attitude towards the department upon learning about the officer’s behavior. His actions can lead to development of strained relationships with other employees including the seniors. Officer Joe is rude towards other employees, which means they will likely develop a negative attitude towards him. This also makes it difficult to work with him.

Officer Joe’s effect may lead to reduced performance of the department. With the kind of behavior the officer exudes, it would be difficult to cooperate with him for the benefit of the department. The success of police departments is based on team efforts, which means that when some of the team members produce poor results, the entire department suffers. Violating the rules of the department may lead to legal litigations against the department. It is important for police officers to act in accordance with the department protocols to avoid legal litigation. Maintaining a disheveled appearance may make the public lose trust of the police department. The public expects police officers to be properly groomed at all times.

There are various management priorities to put into consideration. The management priorities should be in line with the mission of the police department. The first management priority is to establish and maintain ethics and integrity within the organization. The department aims at fostering an environment that promotes ethical conduct, accountability, integrity, respect for civil and constitutional rights, and ethical decision-making. The second management priority is to implement the best practices in policing. Policing is a critical police role. The department aims at overseeing the implementation of safety guidelines for police officers. The department also ensures the implementation of appropriate crime prevention, detection and investigation strategies to improve security among the community.

The third management priority is to develop and maintain strong community links or partnerships. The community is a critical partner to the department in the fight against crime. Developing and maintaining positive relations with the community ensures that the community is willing to volunteer vital information to the department and thus help in preventing and apprehending crime. The forth management priority is to ensure departmental efficiency and effectiveness. The management should ensure that the department minimizes operational costs while still providing quality services to the public. Use of modern technology and equipment can help achieve efficiency and effectiveness within the department.

As a manager, one should be able to anticipate problems and develop solutions to these problems (Baker & Doran, 2007). One of the possible options is to recommend Officer Joe for a mandatory attendance to employee assistance programs. Qualified counseling professionals who can help Officer Joe identify the causes of his behavior change and provide appropriate remedies run the employee assistance programs. These programs may focus on relaxation, physical fitness, diet, or other remedies. Another option is develop an open communication plan within the department that can encourage police officers to talk about their problems. Developing open communication can enable officers share the problems they are experiencing within the department and in the line or work. This can help the department improve on its management practices.

Another option is to allocate adequate financial resources to stress identification and management programs to police department. Increased funding to stress management programs can help reduce stress among police officers in the department. Another available option to manage the problem is to reorganize duties among police officers. As a manager, Officer Joe should be given different roles or duties to handle. This can help reduce stress especially in the officer’s behavior is related to the current assigned duties. On-duty work hours should be limited to give the officer time to relax. The best solution is to recommend Officer Joe for a mandatory attendance to an employee assistance program. Such a program will be able to help Officer Joe in identifying the causes of his problems and recommend possible solutions.

One of the indicators that determine the success or failure of the employee assistance program is the qualification levels and experience of the counselors. The qualification level and experience determines the quality of counseling provided to police officers undergoing various challenges in the line of duty. Counselors having high qualifications and many years of experience are more likely to find the causes of the problems facing the officer as well as the solutions. Another factor that determines the success or failure of the employee assistance program relates to the amount of financial resources allocated to the employee assistance program. When the amount of financial resources allocated is high, the department can be able to provide quality-counseling services by employed qualified personnel. The department is also able to provide the resources necessary for the welfare of the police officers.

References

Baker, J. R., & Doran, M. S. (2007). Human resource management: A problem-solving approach             linked to ISLLC standards. Lanham, Md: Rowman & Littlefield Education.

Clarke-Miller, J., & Brady, H. C. (2013). Critical stress: police officer religiosity and coping        with critical stress incidents. Journal of Police Criminal Psychology, 28(1): 26 – 34.

Federal and State Drug Statutes PowerPoint

Creating Policy -Steelhead Police Department

The security and safeness of the citizens of each county and country are paramount to the country, and that is the main reason as to why different states have various police force so that they can maintain law and order in their areas of jurisdiction. However, despite the duty to keep the entire population safe and protecting them from internal attacks, the police force should also take caution of their health and lives given the violent nature of their job and the police force sector. As a result, all police forces are required to procure and purchase the soft body armor which is one of the greatest of modern marvels. Despite saving thousands of soldiers and cops from death or severe wounds, most of them still resist to wear soft body armor in their line of duty while to others donning soft body armor has just become part of the job (Prat, 2012). This essay will provide an analysis of the actions and steps that can be taken to create and implement this soft body armor mandatory wear policy.

Question 1

Law enforcement and criminal agencies are known to have different organization theories and structures that are related to the nature of their work. Below are some of the theories and structures widely adopted by these agencies:

  1. Structural contingency theory – this theory states Law enforcement and criminal organizations alter their structures to adapt best to their rational and technical environments and thus improve organization efficiency and effectiveness. However, the environments of police organization differ from one police to another, and it is widely composed of the population the agency serves, the demand inflicted on the agency by the population and the political system that governs the force. Contingency theory states that the organization must fully adapt to its population to work effectively.
  2. Organizational institutional theory – this theory states that organizations and agencies change in response to their institutional environment but not due to their rational/technical environment. The institutional environment comprises of powerful external constituents and forces such as politicians, the media and community groups(Fridell, 2009).
  3. Appropriate organization structure – this theory states that police agencies and organization are neither driven by the urge to achieve efficiency and effectiveness nor institutional environment but rather what the agency deems appropriate for the organization in that particular time and moment.

Question 2

Procurement of soft body armor is a relatively new responsibility for law enforcement organization and as an abrupt change in the organization change; it is poised to face challenges and resistance from the police forces. Some of the arguments that are posed to be put forth by these forces include the high cost of purchasing these body armors. When the safety jackets were first introduced in the market, they were going for high prices that made it almost impossible for various forces to fully equip their officers with the same. However, to some, it was generally uncomfortable because they were not used to wear in their daily operations. On the same note, there are those who felt that they were too hot to be worn in a warm climate and those who felt that the armor limited their flexibility. The armor may have caused all these discomforts only because the officers had not worn them ever again and they were using them for the first time.  Consistency in wearing and using them can develop into a habit, and with time, they can develop a liking to these soft body armors.

Question 3

There are various ways that the administration of the force can use and implement to ensure that it faces the minimum resistance in trying to introduce a policy for the use of these soft body armors. Some of the best and viable solutions to this policy include:

  • Training – some of the officers complained of not being comfortable and limited flexibility, it is upon the leadership of the forces to organize training sessions where the officers can be trained and taught in the best way to use the soft body armors. Training can ensure they are comfortable as well as flexible enough to work effectively and efficiently.
  • Provision of information in advance – the police administration and senior officers should provide information on the impending policy to the entire police force particularly to those that will be affected by the new policy. Information in advance concerning the reasons for the police, its nature, its planned timing and its possible effects on individuals will prepare the officers psychologically for what is coming(Wagner, 2009).
  • Providing counseling – not all the employees that my get it right for the first time and the senior employees should formulate a way to help such officers through discussion and counseling as well as further training on how to adopt the policy as well as finding the appropriate and right way to make the policy work. Nondirective counseling and negotiation have been used effectively in the past, and there is a high chance if implemented in this scenario, it can produce desirable results.

 

References

Fridell, L. F. (2009). The impact of agency context, policies, and practices on violence against                 police. . Journal of Criminal Justice, 37(6), , 542-552.

Prat, N. R. (2012). Contemporary body armor: technical data, injuries, and limits. European                     journal of trauma and emergency surgery, 38(2), , 95-105.

Wagner, N. &. (2009). U.S. Patent No. 7,498,276. . Washington, DC: U.S. Patent and                              Trademark Office.

 

Dealing with an Economic Downtown

Dealing with an Economic Downtown

Dealing with an Economic Downtown

As the chief of the police organization, there is need to ensure that I prioritize staffing within the Patrol Division by providing necessary coverage with a fraction of the staff in order to fulfill the department’s mission. In order to prioritize staffing within the Patrol Division and considering the reduction in staff, there is need to employ leaner and more efficient processes. One way of doing this is to engage the community with an aim of identifying the critical areas of concern. Engaging the community will entail a detailed process of involving the community in the organization’s planning process (Wilson, 2010).  Community consultation will enable the department to identify and concentrate operations in issues of greatest concern among the community members. For instance, the community can assist the organization to establish areas with high insecurity levels that require deployment of the Patrol Division, rather than patrolling the entire area.

Another plan of prioritizing staffing entails using the modern technology to improve the efficiency of the few patrol officers. Crime prediction technologies has become commonplace in most police departments. Application of predictive modeling is the future of community policing. It primarily entails the use of computer models and complex algorithms to predict crime. Such applications can help the organization concentrate on localized areas where crime is likely to occur. This will improve the efficiency and effectiveness of the few patrol officers. Another plan involves innovating through developing collaborations with various experts in the field of crime. Consulting various experts in the field of crime prevention will enable the organization to identify new and proactive ways of dealing with crime (Wilson, 2010). For instance instead of concentrating enforcement efforts in a community lavished by prostitution and drug trade, the organization may find new ways of dealing with the situation by engaging the community leaders to identify drug lords and kingpins involved.

Related: The Budgeting Dilemma

It is important to prioritize job functions with regard to impeding job cuts. Job functions that will receive highest priority include crime analysis, scenes of crime investigations, police intelligence gathering, fingerprint operations, detention activities, and community support operations. Areas of low priority include human resources, communications, command and dispatch roles, and police lawyers. In determining the staff members to face the layoff, the multiple criteria ranking method will be applied. This method weights several employee factors separately and then considers the final score for each employee (Truxillo, Bauer, & Erdogan, 2015). Employees will earn points depending on length of tenure, their education level, attendance history, their skills, abilities, and knowledge, and their eligibility for promotions in that order. This means that length of tenure will give each employee the highest score. This method is suitable since it will enable the organization retain the most productive employees who have been of greatest service to the organization (Truxillo, Bauer, & Erdogan, 2015). The method is also the fairest considering all other methods since it offers little room for discriminatory tendencies by the senior officers.

A number of ethical issues will emerge in the selection of personnel to face the redundancy. One of the ethical issues relates to the need to protect the vulnerable employees such as those with chronic conditions such as diabetes, single parents, and those from minority groups. Another possible ethical issue relates the need to protect family members such as the officer who is married to my sister. On firing him, the repercussions may be severe and may lead to sibling conflict. Thus, it is possible for one to establish a selection criteria in favor of the civilian staff member married to my sister. Another ethical issue relates to letting go off productive members who I would be sure they might be able to find jobs, in contrast to keeping unproductive workers who are unlikely to find employment elsewhere. Another ethical issue regards family responsibilities. It may be difficult to determine whether to fire those who are not married or those with families.

Related: Understanding the Purpose of Research

There could be internal and external influences with regard to the selection process. One of the internal influences may be pressure from high-ranking officers to retain particular officers or civilian staff members. This may create issues since it may be difficult to follow the multiple ranking criteria in selecting members to face the job cut. Another internal influence will be pressure from the workers, both officers and civilian members, who may even offer bribes and rewards. Some section of workers (such as those who with short tenures) may agitate for a different selection criteria that is more inclusive. This may lead to divisions on the best selection strategy to be applied. External influences include pressure from employee labor organizations that may advocate for different selection process or even terms and conditions for leaving employment.

To maintain fairness during the process, I will engage employees fully in the entire exercise. As such, the selection method will be the one agreed upon by majority of the employees, and the most fair of all the selection processes. In line with this, the selection process will entirely determine the employees that face the job cuts and those that will remain. It will also be important to establish a management team that will ensure that there is fairness as well as consistency involving the layoff decisions. The management team will make it difficult for employees to interfere with the process through coercion or through other influences. The management team will also be responsible for planning a work distribution schedule for those retained. This will ensure the fairness of then process and reduce the likelihood of personal influence, either from internal or external sources.

The public may react negatively to the decisions made by the department. The public may feel insecure on learning that the police organization plans to reduce the number of officers. Public safety is put at great risk when the number of police officers serving a particular area is reduced. The public may develop a negative reputation of the department. This may occur especially when some of the workers fired are part of the local community. Resentment may build among those fired, their relatives, and friends against the department. The public may also feel that the department is unable to address the problems in the community effectively.

 

An important management method to keep employees motivated is to keep communicate to them often. Keeping communication lines open is critical since it helps eliminate any doubts the employees may be having relating to job security or the organization in general. For instance, question-and-answer sessions can help clear issues or areas of concern among employees. Another method the management can use is to ensure training of employees (Lauby, 2005). Training and development can greatly improve the officers’ skills in serving the community better. In addition, training is one of the key factors in ensuring employee motivation.

References

Lauby, S. J. (2005). Motivating employees. Alexandria, Va: ASTD Press.

Truxillo, D. M., Bauer, T. N., & Erdogan, B. (2015). Psychology and work: perspectives on         industrial and organization psychology. United Kingdom, UK: Routledge.

Wilson, C. (2010). Improving Services at Small- and Medium-Sized Police Agencies during a     Recession. The Police Chief Magazine.

Federal and State Drug Statutes PowerPoint

The Budgeting Dilemma

Question

Complete the Unit 2 Assignment: The Budgeting Dilemma

Watch the Jacksonville Police Department Scenario.

As the Chief of Police you may be asked to make budget cuts in the department in response to state or national policy changes. This week you will analyze two budgeting approaches to determine which is most appropriate for the Jacksonville Police Department.

Prepare a 700–1,050 word essay justifying the implementation of a budgeting approach for the Jacksonville Police Department.

Include the following in your essay:

Describe the advantages and disadvantages of the two following budgeting approaches:

Zero-Based Budgeting (ZBB)

Planning-Programming Budgeting (PPB)

Choose one or more of the following police programs from the scenario:

D.A.R.E.

Eagle Academy

Explorer Program

Drug Rehabilitation Program

Then, address the following:Explain how Zero-Based Budgeting could be implemented to the program(s) you chose.

Explain how Planning-Programming Budgeting could be implemented to the program(s) you chose.

Determine which budgeting approach is best for the Jacksonville Police Department. Justify your reasoning.

Answer

The Budgeting Dilemma

Due to the current recession in the economy, there have been challenges in meeting the services demand because of reduction in tax revenues. With no additional federal funding, the police agencies have no other alternative but to cut back on services they provide. As such, there is need to implement either zero-based budgeting or planning programming budgeting for Jacksonville police department. Zero-based budgeting is also known as priority-based is a system that calls for all activities to all activities to be prioritized and justified before making decisions , which are made depending on the resources available(Drury, 2007).

The zero-based budgeting, managers are supposed to have zero expenditure baselines. Its advantages are that it has alternative analysis hence they have ways of performing each activity .the people in charge of budgeting are able to tie expenditures to activities hence efficient allocation of funds and reduces budget inflation (Drury, 2007). The budgetary discussions and allotment are significant and purposeful. They require constant review in order to ensure that all aspects of the police agency are in line with expectations at all times. It increases staff motivation by providing initiative and an opportunity to take part in decision-making. It assists in to identify areas of wasteful expenditure and providing alternative courses of action.

Related: Creative Project-The Bill of Rights

It increases staff motivation by providing initiative and an opportunity to take part in decision-making. It assists in to identify areas of wasteful expenditure and providing alternative courses of action (Rasmussen, 2003). By implementing zero-based budgeting employees, forms and practices that are not effective are eliminated.

The major demerit of zero-based budget is that it requires a lot of effort to investigate and document the activities of the department. It takes a lot of time to prepare and increases the expenses of the budget. It tends to be too drastic hence difficult to obtain a consensus. Justifying every expense may not be practical and departments such as research and development may find themselves in a critical situation. The managers and staff need to be trained and educated on the concepts of applying for the zero-based budgeting.

Planning-programming and budgeting method is used by organizations to help them make better decisions concerning resources allocation. It is different from the other methods in that it is prepared basing on programs (Lal, 2002). Planning-programming budgeting acts as a suitable approach that provides a basis for better decision-making and implementation. It entails a program structure, decision-making process that ascertains the rules, functions and schedules required, standard program document that entails needs, resource inputs and outputs and analysis for evaluating effectiveness and weighing alternatives.

Planning-programming budgeting is useful for planning the delivery of services and determines if allocation reflects priorities. It helps in monitoring the use of resources as well as to identify programs that need more funds (Drury, 2007). One of the major shortfalls of planning-programming budgeting is that it was developed without putting into consideration the resources available. As such, it may take many years before one can find suitable ways to fund the program sufficiently. There is overlapping of services, which can result in double spending. It is also difficult to evaluate performance of services that have several levels of administration. The actual revenues and expenditure is known to a few people or only in retrospect at the end of the fiscal year.

Related: Crime Prevention through Environmental Design Proposal

Zero-based budgeting can be implemented in a drug rehabilitation program by first organizing budget proposals prioritizing the important ones. Secondly, conducting a feasibility study and implementing a cost benefit analysis can also help implement zero-based budgeting in a drug rehabilitation program. Following the identification of key activities, a strategic plan and vision is laid out on how to achieve the objectives. The staff to perform the various activities are also identified and the fraction of their time on each activity.

The second step is to identify the resources that are needed by analyzing all non-salary costs to carry out all the activities within the program. Such costs can include travel and supplies expenses. The costs have to be justified by explaining how the agency will get from those expenditures. A program summary is given by outlining a brief account on the key activities of the program. Finally, the goals and performance of the program are identified and measured and the success of each activity evaluated.

Planning-program budgeting can be implemented in a drug rehabilitation program by fist assessing the needs. A brief description of the project and ways to conduct it is given according to the requirements of the law and regulation. A budget is made. It should entail an estimate of the costs and income of the project. A description of the standards and qualifications is given. The objectives of the project should be measurable, specific and realistic.

Zero-based budgeting is the most appropriate for Jacksonville police department. It is obtained from planning-programming budgeting, but it is more elaborate. It requires managers to give good reason for all their budgeted expenditures as opposed to justifying for increments to the budget or the actual results of the previous year. It emphasizes on detailed planning, identifying objectives, creating and evaluating strategies for accomplishing the objectives, assessing alternative funding levels depending on how they meet the goals of the agency and setting priorities.

 

References

Drury, C. (2007). Management and cost accounting. London: Thomson Learning.

Lal, J. (2002). Cost accounting. New Delhi: Tata McGraw-Hill Pub.

Rasmussen, N. (2003). Process improvement for effective budgeting and financial reporting.        Hoboken, N.J: Wiley.

Amber and Jamie taxation case advise

Understanding the Purposes of Research

Question

Complete the Unit 2 Assignment: Understanding the Purposes of Research

Review examples of the four different purposes of research in the Research Purpose Learning Activity.

Your Chief of Police has started a task force to identify the highest crime areas in your city. He is relying on you to advise him on the best way to determine these areas based on your research methodology expertise.

Therefore, you must draft an essay to help the chief understand the four major purposes of research as well as to indicate which is the best approach for identifying the highest crime areas.

In a minimum of 1 – 2 pages of written text (not including the cover page and reference page), you will:

Identify and describe the 4 purposes of research

Provide an example for each purpose of research

Indicate the relationship among the 4 purposes of research

Indicate which of the 4 purposes would be best for identifying the highest crime areas in the city

Answer

Understanding the Purpose of Research

Research is of great significance in the modern world. Research is undertaken for four main purposes which include: exploration, description, explanation, and application. The four purposes cannot be said to be mutually exclusive, but depend on the emphasis of research. Thus the purpose of a research study may develop or change with time.

Exploratory research is conducted when there is little research or earlier studies conducted on a particular problem (Babbie, 2008). The main focus of the research is to gain insight into a particular problem under investigation. Exploratory research can be conducted to investigate problems during the preliminary levels of investigation. Exploratory research is conducted to fulfill a number of goals. First, it enables researchers to familiarize with the settings of a problem. Second, it helps in development of general theories about a problem and hypothesis formulation. Third, exploratory research helps in determining the feasibility of the study in future.

An example of exploratory research can be derived from the business field. A researcher may opt to conduct an exploratory study about a new style of management technique. The research may help the management in deciding whether to adopt the new technique.

Research is also undertaken to describe a particular problem or phenomenon. Descriptive research aims at explaining or giving more details about a situation or phenomenon under investigation (Babbie, 2008). Descriptive research addresses the ‘what’ of a problem rather than ‘how’, ‘when’, and ‘why’. For example, it may describe the characteristics of a problem under study, rather than why a situation is as such. Descriptive studies do not establish the cause and effect in studying a particular situation, and neither make predictions about them. Instead, they describe situations.

An example of research undertaken for descriptive purposes is profiling of criminals based on their characteristics. A researcher may aim at understanding the characteristics of a particular group of people such as terrorists. The research study may aim at identifying their characteristics or those of other groups.

The other purpose of research is to explain a situation or phenomena. Explanatory research aims at describing the nature of relationships between situations (Blaikie, 2009). Explanatory research defines cause-and-effect relationships. Explanatory research is conducted through statistical research or experimentation such as laboratory experiments. Hypothesis testing is common in explanatory studies.

An example of research conducted for explanatory purposes is research carried out to determine whether a training program is effective in reintegrating prisoners back into the community successfully. This type of research would require analyzing how ex-convicts settle back in their community and how training helps them in gaining new life skills.

The last purpose of research is application. Research is conducted with an aim of applying the findings to real life situations. Research helps in solving complex problems or phenomena by seeking answers that might be of help to individuals (Blaikie, 2009). Research is critical in formulation of policies especially by government, organization, institutions and among other bodies. An example of research undertaken for application purposes is research conducted to establish whether a particular policy will be effective in bringing required change in an organization.

The relationship among the four purposes of the research is that they all seek to explain or describe something that is unknown to the researcher. All of the purposes also aim at establishing the accuracy of particular theories concerning a problem. The best purpose for identifying the highest crime areas in the city is exploratory. Exploratory research helps in gaining new insight about a particular situation. It is undertaken when there is little knowledge about a problem. For instance, in identifying the highest crime areas.

 

References

Babbie, E. R. (2008). The basics of social research. Belmont, CA: Thomson/Wadsworth.

Blaikie, N. (2009). Designing social research the logic of anticipation. Cambridge, Polity.

Federal and State Drug Statutes PowerPoint

Creative Project-The Bill of Rights

Question

Creative Project

For this week’s Assignment you will create a minimum 10 slide (excluding the title and reference slides) PowerPoint presentation. In your presentation, demonstrate how the Bill of Rights is applied in major criminal justice cases. You must incorporate speaker notes as part of this presentation which contains notes that you would utilize if presenting to a live audience.

Include at least one slide for each of the following Amendments explaining how each is applied to criminal cases.

First Amendment

Second Amendment

Fifth Amendment

Eighth Amendment

Discuss the historical context of why these Amendments were created as rights to protect individuals.

Research the Eighth Amendment and advocate a position both for and against the Eighth Amendment regardless of your personal beliefs. Based on your research and personal beliefs, conclude this presentation by choosing a position either for or against the Eighth Amendment (or possibly a combination of the two). Provide rationale for your reasoning.

Answer

Creative Project-The Bill of Rights

Footer notes

Slide 2

The Bill of Rights refers to the initial amendments made on the United States Constitution. These amendments were part of long protracted push for ratification of the United States Constitution during the late 1780s. The Bill of Rights is fundamental in that it guarantees basic rights and freedoms to individuals. The Bill of Rights also checks the state’s power in judicial proceedings. This is important so as to prevent the government from abuse of power. The Bill of Rights also categorically spells out the powers of the Congress. Prior to the introduction of the Bill of Rights, loopholes existed which could be used by the government to exploit people. The Bill of Rights was thus established to seal the loopholes by outlining limits on the powers of the federal government. Due to the above, the Bill of Rights is applied in solving major criminal justice issues.

Slide 3

The First Amendment addresses the rights to freedom, petitions and assembly. With regard to religion, the amendment makes it clear that Congress should not curtail religious freedom, and neither should it make laws establishing a religion. This gives the federal government neutrality in matters concerning religion. The amendment also declares the freedom to speech and free press. Lastly, it gives people the right to assemble for peaceful reasons and to petition the government. In addition, individuals have the right to petition government agencies. In criminal proceedings, the courts applies the first amendment while giving the defendant the right to hearing in a fair trial and by a just jury. The press and the public is free to attend legal proceedings. However, the courts determines whether cases should be heard in confidentiality depending on its nature (Bedford, 2008). The free press clause guides a variety of media.

Slide 4

The Second Amendment gives establishes the “right to keep and bear arms.” This amendment has been interpreted to mean that U.S. citizens have the right to bear or keep arms for self-defense purposes (Bedford, 2008). With regard to the phrase “A well-regulated Militia”, scholars point that this amendment was meant for state. As such, no law would prohibit the state from establishing self-defense mechanisms. For long, majority of courts have upheld that citizens are not constitutionally entitled to bear arms. However, no gun control law has ever been invalidated. In criminal justice, the amendment is interpreted that the people have the right to bear arms for self-defense. Thus individuals can protect themselves against criminal violence in situations where the societal bodies appointed to do so fail. Thus in criminal proceedings, a person who commits murder out of self-defense is given a linient punishment.

Slide  5

The Fifth Amendment protects the people against self-incrimination and double jeopardy. The amendment also guarantees individuals the right to grand jury. The “due process of law” should be applied in any legal proceedings that may deny an individual certain rights such as right to liberty, life and property. The government should also provide due compensation to any citizen who gives private property for public use. In criminal justice, due process means that criminal proceedings should be fairly applied upon all suspected persons. This amendment thus protects individuals from the government. This amendment also prevents the national government from seizing private property without following the due process. It also protects individuals from being coerced into incriminating themselves. It also establishes that defendants should be made aware of their rights to an attorney before interrogation.

Slide  6

The Eighth Amendment is important in criminal justice cases since it is concerned with the manner in which punishment should be meted out to persons found guilty. According to the amendment, The amendment also curtails giving excessive fines and penalties. For instance, cruel and unusual punishments should not be meted out on individuals convicted of any crime. For example, poor prison conditions may constitute unusual or cruel punishment as per the amendment. The Eighth Amendment was meant to curtail the government and courts from meting out disproportionate punishments on criminal defendants who had lost their case. This amendment also curtails excess bails. This means that courts are supposed to give fair bails based on the level of crime committed and the likelihood of the offender repeating the crime.

Slide 7

The Bill of Rights originated from England and can be traced to the Anglo-American history. In 1215, King John from England had signed into law the Magna Carta, which enshrined basic rights to people. Among these was protection of individuals from abuse of power by the rulers. This document also made a requirement for fair proceedings in courts as per “the law of the land.” America, being one of England’s colonies enjoyed the same laws as England (Burgan, 2002). Colonial charters extended the laws in England to migrants in various places such as the U.S. In 1628, the Petition of Right document was passed by Parliament. This petition was passed in response to the actions of Charles 1. The Petition of Right protected individuals against unlawful imprisonment, including those in the U.S. Another important document which became the foundation of the Bill of Rights was the English Bill of Rights of 1689.

Slide 8

Following the declaration of independence in 1776, the documentation of state constitutions and bills of rights became imperative. Various states begun developing constitutions to guide their operations. In Virginia, George Mason drafted the bill of rights which became a benchmark for other states.  This became known as Virginia Declaration of Rights. The bill of rights protected citizens against specific abuses. In 1787, there were growing concerns on the need to ratify the U.S. constitution. In 1789, Madison introduced a raft of amendments to the U.S. constitution. Seven of these ratifications were adopted becoming the Bill of Rights amendments (Labunski, 2006).

Slide 9

The Eighth Amendment has stirred controversy in the legal sector for long, with some factions calling removal of some clauses. Those in favor of the Eighth Amendment cite a number of concerns. First, it is important to check the powers of the state when dealing with its citizens. It is argued that states which are allowed to prescribe severe punishments can become oppressive or authoritarian. Second, the amendment curtails the amount of fines that can be imposed on a defendant who is found guilty.  A number of rulings have been made regarding the Eighth Amendment. For instance, some courts have found capital punishment due to rape as excessive punishment. This prevents the federal government or courts from misusing their powers. Thirdly, the amendment helps in keeping jails less crowded. This is because the amendment curtails judges from giving excessive bail.

Slide  10

There are a number of reasons why individuals take a stand against the amendment. First, the interpretation of the Eighth Amendment is left to the discretion of the judges or courts. It might often confusing to determine what “excessive bail” or “excessive” fine constitutes (Labunski, 2006). The judges also serve courts which are in some way monopolized by the state. The judges can thus be manipulated into giving excessive punishment or denying bail to a defendant. In addition, the term “excessive bail” is a relative term with regard to the material wealth of the defendant. The Eighth Amendment’s prohibition of “cruel and unusual punishment” is not clear. In referring to “unusual punishment”, the amendment seems to allude that punishment can be legitimized if applied frequently. The Eighth Amendment also appears to contravene the death penalty or capital punishment. According to the amendment, the state should not impose a “cruel” punishment on an individual. Capital punishment may be regarded as cruel.

Slide  11

In conclusion, the Eight Amendment is an important part of the U.S. society. The amendment specifically deals with fines, bail and punishments. It is important to check on the powers of state or courts upon the common man. If the state and courts are given more powers to inflict punishment or court sentences, this may be a loophole for developing authoritarian sentences. For instance, individuals against the state who commit minor crimes could be given cruel or unusual punishments as intimidation. The amendment also ensures that offenders are treated in a humane manner, and that their rights are respected too. The Eighth Amendment is thus critical to the entire society. Nonetheless, there is need to provide clear clauses with regard to the phrase excessive fines or bail an unusual punishment.

 

Related

Federal and State Drug Statutes PowerPoint

amber and jamie taxation consequences

Amber and Jamie taxation case advise

Sample taxation assessment paper that advises Amber and Jamie who is a real estate agent working for ‘Houses R US’ on taxation consequences based on the transactions that they make.

Taxation Assessment Item

Case 1

  1. Sale of Boutique and Capital Gain Taxation

    • Issue

The issue in the first Amber case is whether the sale of the boutique chocolate shop in Sydney attracted any capital gain taxation or any form of exemption

1.2. Laws

The Div Income Tax Assessment Act 1997 (ITAA97) defines a number of capital gain events with one of these events being event A1 which occurs when a capital gain tax (CGT) asset is disposed by the taxpayer. A CGT asset according to s 185-5(1) includes any kind of property which includes shares, land, premise, and goodwill among others. The aspects regarded assets were clarified in the Queen v Toohey clarified that property refers to something which can be transferred to others including both intangible and tangible items. This makes patent, copyright, and goodwill to qualify as property. Capital gain based on s 104-10 (4) is recorded by tax payer when the capital acquired from the disposal is more than the base cost of the asset.

Capital loss on the other hand is recorded when the capital proceeds from the disposal are below reduced cost base of the asset. S 102-5 incorporates a net capital gain occurring in a year to the taxpayer assessable where by any capital gain in the income year is reduced by year capital losses (Barkoczy, 2017). The remaining capital gains are in addition reduced by earlier years’ net capital losses. They are then discounted where necessary, reduced under concession and the remaining amount is regarded as net capital gain of the year which is taxable. In case of net capital loss after the property disposal, s 102-10(2) the taxpayers are not eligible to deductions, though capital losses can be carried forward to lower net capital gains in the years to come as per s 102-15. However, based on s 104-10(5) capital loss or capital gain is disregarded in case it associates to a CGT asset was obtained before 20th Sep 1985.

  • Application

Amber purchased the shop in 2010 and sold it in 2018. The initial purchase according to the provided case took place after 20th Sep 1985 and thus according to s 104-10(5), the transaction is guided by the Income Tax Assessment Act 1997 (ITAA97) and thus, the transaction cannot be disregarded but it is eligible for taxation as per the CGT laws.  Based on Div ITAA97, the 2018 transaction event of Amber boutique chocolate shop in Sydney was a capital gain tax event which involved selling of the boutique chocolate shop property at $440000.

The original price of the property was $2400000, meaning that the disposal price was higher than the cost base price and hence the event involved net profit gain as per s 104-10 (4). As per the case study, the purchase price included $110,000 stock and $130 000 goodwill, which according to Queen v Toohey qualify to be defined as property. The February sales comprised of $280000 goodwill and $160000 as the cost of stock. This implies that Amber made a capital profit gain of $200000 which is taxable based on the guide line provided by s 102-5. This implies that that $200000 will be included in Amber assessable income where capital losses will be deducted, concession and discounts reduced and eventually the net capital gain will be taxed as per the range of Amber’s assessable income.

1.4. Conclusion

Amber transaction took place in 2010 and 2018 and thus qualifies for taxation. The transaction involved properties that qualify as asset, and it recorded a capital gain worth $200000, which is supposed to be included in her assessable taxable income for the year 2018, but with no noted exceptions requirements.

  1. Compensation Payment

2.1. Issue

The issue in the second case of Amber is whether the compensation provided to restrict her from opening similar business within 20km radius for the next 5 years is part of assessable income or not

2.2. Law

According to Osborn’s Concise Law Dictionary, compensation refers to a payment made to make amends for injury or loss to property or person or compensation for some deprivation. In this case, Amber is compensated for restrictive covenants, where she is restricted on her right to work or open similar business within 25 kilometer of the current business for 5 years.  Under ITAA97 s 6-5, in case a compensation payment substitutes an amount which would have been received as ordinary income, it will be reckonable as ordinary income. Under ITAA97 s 6-10 and s 15-30, an amount is considered as stator income in case payment of compensation would have been considered as statutory income when received but falls outside ITAA97 s 6-10 and s 15-30.

Based on the two rules, compensation is assessable, considered as a regular income and hence it is taxable based on the Australian law. Assessable income according to section 6-5(2) includes ordinary income derived indirectly or directly from all sources, in the income year, whether out of or in Australia. In section 6-10 (1 and 2) assessable income can as well include certain amounts which are not ordinary income. This amount is regarded as statutory income. As based on section 6-15, in case an amount is not statutory income and ordinary income law.

To determine the taxability of compensation, the nature of compensation is also regarded to determine whether the compensation can be regarded as an income and whether it is assessable. A compensation that is income in nature as per the case of Phillips (1936) is regarded as assessable and hence it is taxable. In this particular case, the taxpayer received the compensation payments in series and the payment were to be settled at the same consistent periods as salary could have been paid, in case the original agreement service continued.  The regularity and recurrence element of the payment made it income in nature and hence assessable.

However, a compensation payment that is not regular in nature.  However, when compensation is not income in nature it is normally regarded as non-assessable. Based on this case, compensation payment is not regular and adapting a certain system cannot be regarded to be assessable. Higgs v Olivier (1951) also supports the non-assessable nature of compensation given for restriction covenant, particularly restriction on the work right. In this case the payment was made once to restrict the taxpayer from opening a similar business within a certain area for a certain time period. The court held that the income was not assessable since it was not regular and it placed restriction on the future capacity of income earning of the tax payers. The restriction order limited the taxpayer ability to apply personal skills to earn more in the future. Thus the compensation given in this case is not income in nature but capital in nature, and hence it is not taxable.

2.3. Application

In this particular case, amber is made to sign a contract restricting her from establishing another similar business as the sold one within 20 km radius for the next 5 years. TO adhere to this contract, she is paid $50000. This amount is paid once and it is paid to restrict her ability to earn cash using her skills within the region for five years. The income is not recurrence in nature and hence it cannot be regarded as income but capital and hence non-assessable. Moreover, the cash is meant to restrict her from making future earnings and hence it is not given as profit. Based on Higgs v Olivier (1951) case, this compensation is non-assessable and hence it is not taxable.

2.4 Conclusion

Thus the compensation payment for restricting amber from opening similar business within 20km radius for 5 years is not an income but a capital payment and thus it is not assessable, which implies that the amount cannot be taxed

 

  1. Purchase and Sale of Residential Asset

3.1 Issue

To determine whether capital gains from sale of personal asset inherited from a relative and purchased after 20th Sep 1985 is eligible for exemption

3.2. Laws

An asset acquired for personal use is normally a CGT asset which is kept or used mostly for the taxpayers’ personal enjoyment or use. According to s 108-20(2) this includes rights or choice to obtain such assets, particular debts in regard to such non-business or non-income-producing debts and assets. To lower compliance costs, distinct rule apply to assets of CGT which are grouped as assets for personal use.

Based on s 108-20(1) personal use assets capital losses are disregarded and thus they cannot be utilized against capital gains. Moreover, a capital gain from asset of personal use is ignored in case the CGT asset was purchased for a price not exceeding $10000. According to s 108-55(1), a structure or building on a land purchased after or on 20th Sep 1985 is regarded as a distinct CGT asset from a land in case certain provisions balancing adjustment apply to the structure or building. Capital loss and gains for an asset acquired before or on 20th Sep 1985 should be disregarded and hence CGT does not have retrospective impact on the capital gains or capital loss of such a property. S 118-110 defines one of the most significant exemptions provided by the regime of CGT associated to taxpayer’s main residence.

This section offers that a capital loss or capital gain made in association with a dwelling which is a main residence of a taxpayer is disregarded. Main residence has no main definition though according to the Capital Gains Tax ATO, main residence can be determined by a number of factors which include time the taxpayer lived in the place, where tax payers belonging are kept, the taxpayer main address in electoral role and where mails are directed. Main residence can also be defined based on Couch & Anor v. FC of T where the couple intended residential home sale was taxed on the basis that, they did not live in it due to work related reasons, despite having purchased it as their main home residence. In case of spouse who does not live in the same residence, or with two residences, they should nominate one residence to act as the main residence for tax payment purpose.

According to s 118-185 the main residence has pro-rated exemption in case the dwelling acts as the main residence just for the part of period of ownership. Subdivision 118-B has various special rules associated to dwelling obtained under estates of deceased.

Section 118-195 dictates that a capital loss or capital gain from a CGT event which happens in association to a dwelling might be ignored in case the tax payer is a person who obtained interest of ownership in the dwelling as a trustee or beneficiary of a deceased estate. This is only fulfilled in case the deceased must have obtained his interest of ownership in the residence before 20th Sep 1985 or the deceases had acquired the dwelling ownership interest after the 20th Sep 1985, and the residence must have been the main residence of the deceased shortly before his death and must not have then been utilized for the purpose of making assessable income.

The other requirement is that the current owner must have disposed of her ownership interest in two years of death of the deceased, or the dwelling need to have been, from death of the deceased until the ownership interest ends of the taxpayer, the main residence of spouse of the deceased, a person who had right to dwell in it based on the deceased will or the taxpayer. In case where the above conditions are not adhered to, only partial exemption might be provided based on s 118-200 (2).

3.3. Application

In this particular case, Amber purchases a new and bigger house to accommodate the growing family. To make this purchase, Amber and her husband use some of the money acquired after selling the boutique, with the rest acquired from a sale of apartment amber had inherited from her uncle following her uncle’s death in October 2013. Amber’s uncle had purchased the house in 1992 for $180000 and lived there until his death. Amber had lived in this apartment since she inherited it, but now needed a bigger house as the family grew bigger. Based on this information, it is clear the one bedroom apartment has been Amber’s main residence, since she has been living in it since she inherited it from her uncle.

In addition, it is clear that the apartment was Amber’s uncle main residence he was living in the apartment until his death. This certify that Section 118-195 requirements for an inherited dwelling to be exempted based on the fact that the apartment the apartment was purchased after 20th of September 1985, it was the uncle’s main residence from the date of purchase till his death, that amber claimed it immediately after uncle’s death, and did not dispose the apartment within two years after her uncle’s death.

Amber used the apartment as her main residence from the day she inherited it to the date of sale, which was five years later. Moreover, she never used the apartment to acquire any kind of earnings. Thus the apartment capital gain will be fully exempted since it qualifies to the exempted after satisfying all legal requirements.

3.4. Conclusion

Amber sale of her inherited one-bedroom apartment inner-city apartment was fully exempted from capital gain taxation after certifying all the requirements for exemption and hence Amber will enjoy the entire profit of selling the property unlike in a situation where there was no exemption.

Case 2

  • Income Tax

    • Issue

Which part of Jamile income or compensation is taxable based on Australia Taxation laws and which one is not

  • Laws

Taxable income represents the base of tax under the income tax system. The taxable income of an entity for an income year is computed by subtracting income year deductions from its assessable income for the financial year as provided by s 4-15 ITAA97. The deductions and assessable income concept are fundamental to the income tax systems operations and a huge part of the provision in the ITAA97 and ITAA36 are regarded with these concepts. Assessable income as provided by Div 6 ITAA97 contains statutory income and ordinary income, but does not incorporate statutory or ordinary income which is non-assessable non-exempt income or exempt income as provided by s 6-1, s 6-15n ITAA97.

Ordinary income does not have legislation definition and hence it is determined based on various case laws. However the main examples of ordinary income include wages and salary, bank deposit interest, receipts of ordinary business, and property investment rent (Barkoczy, 2017). It includes income from personal exertion which comprises of employment remuneration and rewards for offering personal services. Statutory income is also included in assessable income under ITAA97 s 6-10(2) provision.

Some of the statutory incomes based on Div 10 ITAA97 include allowances in association to employment, work in progress payments, net capital gains, trading stock, superannuation benefits, dividends, unused annual and long service leave, return to work payment, and recoupments among others. An amount of statutory or ordinary income is exempted income in case it is made exempt or non-assessable non-exempt based on the ITAA97 provision, ITAA36 provision or any other common law as provided by s 6-20(1) ITAA97 and s 6-23 ITAA97 respectively. Div 8 ITAA97 focused on deductions which include specific deductions and general deductions.

General deduction provision in s 8-1 ITAA97 permits taxpayer deductions for outgoings and losses to the level that they are incurred in producing or gaining the assessable income of taxpayers. However, capital outgoings and losses are not deductible based on s 8-1 general deduction provision. Specific deductions based on s 8-5 ITAA97 focuses on covering specific forms of expenditure and other amount which might not be deductible under the provision of general deduction. Some these specific deductions include tax-related expenses, borrowing expenses, pensions, retiring and gratuities allowances, gift, capital works, trading stock, capital allowances, balancing adjustment, blackhole expenditure and tax losses.

An employee may also receive some of allowances which are not in monetary form. To determine whether those allowances are taxable or not the law determines whether the allowances or earnings are directly related to the services provided during the employee operation and whether they are easily convertible to cash. In case the allowances cannot be converted into cash, they are then regarded as capital and hence they are not taxable as indicated in Eisner v Macomber case, and in case the payment is not related to individual work are not regarded as taxable as indicated in FC of T v Harris. Allowance provided in form free housing as indicated in Tennant v Smith was found not to be taxable since it was not convertible to cash.

2.2. Application

In this particular case, Jamie an employee of Houses R Us receives a base salary of $50000 per year plus 10% commission on all properties sold with direct connection to him. This according to Div 6 ITAA9 is an ordinary income which Jamie receives as salary or wages and hence it is assessable for taxation. Beside this Jamie is also offered with a car whose cost is fully catered for by the company. This is given as a privilege for the services offered by the company. However, the car still remains as the company’s property. Free car can be equated to free housing in Tennant v Smith which employee cannot convert into cash and where not using it will not result to extra income.

This implies that the privilege is capital in nature and hence it cannot be included in Jamie taxable income. Jamie’s salary package also includes laptop and a phone costing $2300, and $1200 respectively per year. These are capitals that can easily be converted into cash and hence the two will be included in taxable income. Other Jamie allowances entertainment allowance of $2000 per year. All these are allowances associated to Jamie’s work or employment and hence they are taxable based on Div 10 ITAA9.

Jamie also received a reward for high sales which comprised of tech home entertainment system worth $4800. This award according to Eisner v Macomber can easily be liquidated and unlike in FC of T v Harris case, it is directly related to Jamie’s work related activities. Thus the amount is taxable and will be included in his taxable income. Jamie is issued with a housing loan of $100000, and interest rate of 4%.

According to s 8-5 ITAA97 borrowing expenses are regarded as special deduction and hence they will be exempted from taxation. In addition payment for membership of association is as well regarded as a special exception. However, in this case, the company is offering a refund of $550 from Jamie subscription, meaning this amount should be taxed (Barkoczy, 2017, p. 122)

1.4. Conclusion

Jamie salary and allowances are subject to income taxation, deductions and exemption. Among all recorded income transactions, Jamie will be exempted from the car allowance since it cannot be converted to cash. He will also have deductions from borrowing expenses. However, all other transactions will be taxable including a reward for high sales and other yearly privileges entertainment allowance.

  • Fringe Benefit

    • Issue

Which part of Jamie income, allowances and benefits are fridge benefits

 

  • Laws

According to Fringe Benefit Tax Assessment Act 1968 (FBTAA) s 136 (1) fringe benefit are benefits offered at any time in respect of or during the tax year to an employee’s associate or to the employee by the employer associate or the employer, or a third party  with employer arrangement, in respect of worker employment. Fringe benefits comprise of any right in association to an interest in personal or real property, facility, service or privilege. However, fringe benefits do not include wages and salaries payment, commission, allowances or bonuses.

An employer paying FBT is entitled to deduction of income tax based on the amount paid (Barkoczy, 2017). However, according to H&G Knowles case, there must be a discernible, reasonable and rational connection between the employment and the benefit. Examples of FBT based on FBTAA include car benefits, loan benefits, expense payment benefits, housing benefits, car parking benefits, and board benefits among others. According to s 7 FBTAA a car fringe benefit happens when an employer offers a worker with a car available for private use. The car owner handles all related car cost including maintenance, insurance, fuel, repairs, registration, and depreciation. As per s 16, loan fringe benefits occur when a provide avails loan for the employee. FBT also includes miscellaneous exempt benefits as per 253 to s 58Z which include mobile phones, laptop computers, tablets and note book computer in s 58x.

  • Application

Jamie has been provided a number of benefits which are not in monetary form. Most of these benefits qualify as FBT. Jamie is provided with a car to be used for business purposes and car maintenance fees which is exclusively done by the company. He is also provided with laptop and mobile phone to use in his work related activity and also a loan with low interest rate to cater for future housing. All these are regarded as Fringe benefits as provided by FBTAA Div 2 s 7, div 13 s 58X and Div 4 s16 respectively. As provided by H&G Knowles case, the benefits are provided to aid in Jamie contribution to his work related operations, and hence they are eligible for FBT treatment.

  • Conclusion

Jamie has a number of Fringe Benefits which are provided by the employer to aid in his work operations. These FBT include car and car maintenance, mobile phone and laptop, and also a housing loan.

 

Bibliography

Statue

Commonwealth common law

Fringe Benefits Tax Act 1986 (Cth)  

Fringe Benefits Tax Assessment Act 1986(Cth)

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997 (Cth)

Cases

Brent v FC of T 71 ATC 4195

Couch & Anor v. FC of T 2009 ATC

Dean & Anor v FC of T 97 ATC 4762

Eisner v Macomber (1920) 252 US 189

FC of T v Harris 80 ATC 4238

Higgs v Olivier (1951) 33 TC 136

J & G Knowles & Associated Pty Ltd v FCT (2000) 44 ATR 22

Tennant v Smith [1892] AC 150

The Queen v Toohey; Ex parte Meneling Station Pty Ltd (1982) 158 CLR 327,

Book

Barkoczy, S (2017). Foundation of Taxation Law 2017, (10th edition), Oxford University Press.