FNSACC502_Tax Administration Research Assignment


FNSACC502_Tax Administration Research Assignment

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Submission cover sheet and declaration

Student number:   Student name:  
Unit code: FNSACC502

FNSACC512

Unit name: Prepare Tax Documentation for Individuals
Assessment event number 1 of 3 Assessment event title Home

Tax Administration Research Assignment

Student declaration
This assignment is my original work and no part of it has been copied from any other source except where due acknowledgement is made.

No part of this assignment has been written for me by any other person except where such collaboration has been authorised by the assessor concerned.

I understand that plagiarism in the presentation of the work, idea or creation of another person as though it is your own. Plagiarism occurs when the origin of the material used is not appropriately cited. No part of this assignment is plagiarised.

I understand that TAFE NSW is required to retain copies of all my completed assessments, where practical, for a period of 3 years (or longer in accordance with regulatory/licencing requirements) after the completion of my studies

Student Signature:   Date: _____  /  _____  /  20_____

 

 

 

Make sure you have written your name on each page of your submission before attaching this cover sheet and submitting to your teacher/assessor for marking

This will help ensure all your work is taken into consideration.

 

 

 

                   Accounting & finance/liverpool          

Learner Number   Learner Name  
Unit code FNSACC502

FNSACC512

Unit name and release number Prepare Tax Documentation for Individuals
Assessment Instructions This is assessment event number 1 of 3 for unit FNSACC502/ FNSACC512.
Type of Assessment This assessment requires you to undertake research or other tasks away from the campus, then submit your evidence.

Responses will be required to be in writing using the templates provided within the document. Please use the templates only as a guide – they are not an indication of how long/short your response should be.

The tasks covered by this assessment include:

·          Gather client income data and verify client, organisational and legislative requirements (E1, 1.1, 1.2, 1.6)

·          Identify, record and present clients non-complex income tax documentation (E2, 2.4)

·          Manage lodgement of clients non-complex income tax documentation (E3, 3.1, 3.2, 3.3)

·          Research, critically evaluate and apply new or changed legislative requirements (PE1)

·          Identify client data required to calculate taxable income (PE 2)

·          Provide advice to client on tax documentation presented and obtain verification and approval (PE 6)

·          Conflict of interest (KE1)

·          Responsibilities of tax agents, including code of professional conduct obligations under the Tax Agent Services Act (TASA) and Tax Agent Services Regulations (TASR) (KE2)

·          Rules and principles of Australian tax law, and the legal environment in which these principles operate (KE 3)

·          Basics of the legal system, constitutional considerations, and separation of powers that relate to preparing non-complex income tax documentation (KE4)

·          Residence and source (KE5)

·          Related elements of international tax (KE 6)

·          Assessable income (KE 7)

·          Deductions, including general, specific, and decline in value (KE 8)

·          Tax rebates and offsets (KE 9)

·          Tax accounting (KE 10)

·          Income test definitions that include reportable superannuation and fringe benefits tax (FBT) (KE 11)

·          Key aspects of principles and application of capital gains tax (CGT), FBT and employment termination payment (ETP) rules for individual taxpayers (KE 12)

·          Basic concept of goods and services tax (GST) (KE 13)

·          Administrative aspects of the taxes identified above, including documentation, tax collection and withholding mechanisms, assessments, obligations, rulings, penalties and audits (KE 14)

·          Specific and general anti-avoidance tax rules for individuals (KE 15)

·          Key sources of information and data required to calculate taxable income (KE 16)

·          Key features of organisational policies and procedures required to prepare non-complex income tax documentation for individual taxpayers (KE 17)

·          Key accounting principles and practices required to prepare non-complex income tax documentation for individual taxpayers (KE 18)

Instructions for Written Assessment Write your name on each page of this assessment task.

Write your name and student number in the appropriate fields.

Write the date in the appropriate field.

A signed declaration is required. If you’re electronically submitting, ensure your declaration form is signed and dated.

Reasonable adjustment will be allowed for those candidates who are eligible to receive it.

Attempt ALL questions in the assessment.

All work is to be done in this assessment paper in the relevant fields. Attachments will not be accepted.

Answers should be typed in Arial, font size 12 in the answer box provided under each question.

Assessment results for this unit will be reported as competent / not competent.

Resources permitted during the assessment include bilingual dictionaries and calculators as well as the ATO website.

Resources to be supplied by students include: stationery, textbook & appropriate internet access e.g Google.

Submission instructions The assessment Question AND Answer paper must be handed in to your teacher/assessor by the due date. Refer to your Student Assessment Guide for the due date.

Ensure you keep a copy of your completed assessment paper for your own records prior to submitting your completed assessment paper with your teacher/assessor.

What do I need to do to achieve a satisfactory result? To successfully complete this assessment event all questions must be answered to a satisfactory level.

Where a Not Yet Satisfactory result is achieved, a competency conversation may be applied to achieve a satisfactory outcome.

This unit is Ungraded. Final Results for the Unit will be reported as either:

Achieved Competence AC

Not Yet Competent   NC

Due date/time allowed  

22 October 2018 (as per your timetable)

 

Assessment feedback, review or appeals Feedback must be provided to you no later than 10 days after all assessment activities have been conducted.

If you want a review of your results or if you have any concerns about your results, you can contact the teacher/assessor or your Head Teacher.

You have three weeks from the date you receive your results in which to make an appeal and/or request a review.

You should receive a response within ten days of the receipt of the request.

Teachers and their Head Teacher will address any appeal in accordance with Assessment Guidelines for TAFE NSW.

 

FEEDBACK Date Student Initials Assessor

Initials

Satisfactory/

Not Yet Satisfactory

       
Re-submits        

 

 

 

 

 

Q1. Jack and Jill recently decided to divorce and advised their tax agent. John Horner was the tax agent for both Jack and Jill and prepared their income tax returns for the past 10 years. While Jack and Jill were in the process of divorcing, John was still preparing both their 2017 tax returns and providing information to divorce lawyers and other parties. When preparing their latest tax returns, John realises that if he claims a rebate for Jill, this would prevent the claiming of an offset by Jack.

The Code of Professional Conduct sets out the professional and ethical standards required by tax practitioners. Identify and explain the core principles John may have breached, if any. State and explain at least 2 examples. (TASA, Code of conduct, Conflict of Interest)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q2. Rules for determining how much income tax an individual taxpayer should pay can only be found in the Income Tax Assessment Act 1997. Discuss whether this statement is correct and state any other Acts that may be applicable, if any. (Rules and principles).

Answer

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q3. Briefly explain the purpose of s51(ii) of the Constitution. State where the sources of taxation law are derived from. (Constitutional considerations, powers)

Answer

 

 

 

Teacher Feedback:  Circle: S / NS

 

Q4. Peter Hewitt is 28 years of age and is a resident Australian tax payer. He lives in a house with his wife and kids in Balmain. He earns $100,000 each year as a teacher at Liverpool Boys high school. He has just inherited a residential unit located in Germany from a rich uncle that passed away and received $25,000 in cash as a gift for being a good nephew. The German unit earns $45,000 in net rental income per year. Peter is unsure if he has to declare any of amounts received in his Australian tax return. Briefly explain whether Peter must include any of these items in his tax return & why. State what happens if he pays foreign tax in Germany in relation to his Australian tax return.

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q5. Penny Jones just started operating a new coffee shop and consequently purchased a new oven for $2,200 (including GST), incurred electricity of $440 (including GST) and a fine of $120 she received while travelling to a supplier. She wants to know if she can claim all of these amounts as a business tax deduction. (She does not elect to use SBE concessions). (Deductions)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q6.What is a tax rebate or tax offset. List 2 types. (Tax offsets)

 

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q7. You are the tax accountant for Crown Cars Pty Ltd, a large car reseller. You have been asked to review the 30 June financial accounts for this year. During the review, you notice the following items had been claimed as a tax deduction. Write a short note to the directors explaining the correct taxation treatment. (Tax accounting)

  1. Provision for long service leave $67,000
  2. Provision for bad debts of $8,600 (estimate provided by the accounts receivable department but no legal action has been entered into.)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

Q8. HELP repayments are calculated based on a % of the repayment income. How is repayment income calculated? (Income tests)

Answer

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q9. What work related items are exempt from FBT.(FBT)

Answer

 

 

Teacher Feedback:  Circle: S / NS

 

 

Q10. Jason owns 10 residential houses which he rents out throughout the year to university students. He charges $550 in rent for each house. He incurs $660 (incl GST) for an electrician to repair a few power points. He is registered for GST.

Explain whether Jason has to add GST to rental fees and whether he can claim the $60 GST. (GST)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q11. List 3 sources of information you would request from a client for evidence, where the client is an employee, had one bank account earning interest and wished to deduct $500 spent on a compulsory employee uniform. (Documentation)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

 

Q12. What is SIC and GIC?. Which rate is higher? (Tax collection, obligations)

Answer

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q13. Explain the two methods, PAYG instalments and PAYG withholding that the ATO uses to collect tax. (Withholding)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q14. What is the general date for lodgement of tax returns and what is the time limit for amendments on tax returns for most individual & small business taxpayers. (Assessments)

Answer

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q15. If a taxpayer is dissatisfied with their assessment or other taxation decision, how can they object? (Assessments).

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

 

 

 

 

 

Q16. What is a public ruling? (Rulings)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q17. What is the current value of a penalty unit and what are the types of penalties that may apply? (Penalties)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q18. The tax office has queried a net rental loss submitted by a client. How would you respond to the ATO on behalf of the client and what documents would you ask your client to provide? (Tax Audit)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

 

 

 

Q19. Helen is a sole trader and runs a cleaning business.  The business provides cleaning services for residential and commercial properties.  Duties include dusting, vacuuming, mopping, emptying bins, cleaning mirrors, kitchens and bathrooms.  Helen’s clients provide her with a vacuum, mop and their preferred cleaning products.  She quotes clients based on the time it will take for her to complete the job.  She runs on a strict schedule and if she looks like she may run overtime she will rush mopping the floor so she finishes on time. She has 25 clients and has recently hired her sister full time to help her out. Her main client makes up 15% of the income.  Helen conducts all administrative tasks relating to the business from home at the end of the day. Her business has a Facebook page which is publicly available.  She encourages her clients to join the Facebook page and share with their friends and colleagues.

Is the income that Helen earns from the cleaning business considered to be PSI? Briefly explain what test she passes. Would Helen be treated as a Personal Services Business? (PSI, Anti Avoidance Rules)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q20.If a taxpayer entered into a financial arrangement with the sole purpose of obtaining a tax advantage, would this trigger Part IVa Anti Avoidance rules?  Explain. Hint: see Master Tax Guide 30-120 (Anti Avoidance Rules)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

 

 

 

Q21. During 2015 tax year your client used the 12% original value method to calculate motor vehicle deductions.  This year (2018 tax year) you have had to use cents per kilometre method.  Explain to the client what methods they could use in the 2018 tax year and how they are both applicable to the client. Only explain the methods that are available in the current tax year. (Conduct research on compliance requirements)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

 

Q22. Outline in an email to a client, the process for preparing and lodging an individual income tax return as required by the ATO (after you have calculate the Tax payable/refundable. (Policy, procedures & accounting principles)

Answer

 

 

 

 

Teacher Feedback:  Circle: S / NS

 

 

To get your Assignment/Homework solutions;

Simply Click ORDER NOW and your paper details. Our support team will review the assignment(s) and assign the right expert whose specialization is same to yours to complete it within your deadline. Our Editor(s) will then review the completed paper (to ensure that it is answered accordingly) before we email you a complete paper 

Email Us for help in writing this paper for you at: support@customwritings-us.com

End of Assessment

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