Reference no: EM133634850

Taxation Law

Assessment Type: Statement of Advice

Your Task
You must prepare a Statement of Advice (SoA) that addresses all the questions raised in a letter that will be made available to you at the start.

Assessment Description
Assume that you are a team of graduate tax accountants working for a registered tax firm. Your firm provides its clients with advice regarding tax issues, including applying the relevant cases and/or legislation in preparing tax returns. You must prepare a Statement of Advice (SoA) for your client(s).

The maximum length for the SoA is 1,500 words (+/- 10%) You should address all the technical issues in your advice, followed by a Reference List. Marks will be awarded based on two components:

Technical component 30% - This includes the technical discussion in your SoA, the explanation of each issue, and the sources used. You must analyse the information provided and recommend the correct accounting treatment. You must justify your recommendations by referencing specific paragraphs of relevant accounting standards. You must explain the rationale behind each accounting standard requirement.

Communication Skills (Writing Skills) component 10% - marks will be awarded based on your ability to gather information and effectively communicate strategies to the client as part of the SoA. It will also cover the generic skill of writing, clear meaning, structure and organisation, appropriate tone and grammar, spelling, and punctuation, etc., throughout the whole assignment.

Additional Requirements
You must include the following in your Statement of Advice (SoA):
Cover Page should include:
Name of your tax firm
The words "Statement of Advice"
Who the document is prepared by
Date
Table of Contents
Recommendations and explanations - include in-text referencing
Conclusion
Reference list

Case Study Data Background

Amity Holdings Pty Limited (Amity) is an Australian resident company that was incorporated during 2022. After purchasing several investments including real estate and shares, in 2023 Amity commenced business as a golf equipment wholesaler with both Australian and overseas clients.

Katy Mahon, the Managing Director of Amity, has terminated Kurt Aild, the company's accountant, as she is concerned that there are several errors in the returns prepared. Katy has provided the following information produced by Kurt:

2023 Income Tax Return

Additional notes accompanying the income tax return including franking account

June 2023 Business Activity Statement (BAS)

Additional notes accompanying the BAS

2023 Fringe Benefits Tax Return

Notes and workings accompanying the FBT return

Requirements
Katy has requested that you prepare a statement of advice including:

Any necessary corrections to Amity's Income Tax Return that impacts taxable income, income tax liability or the franking account. Each correction should be supported by a brief explanation and correct referencing from legislation, along with any workings and calculations.

Any necessary corrections to Amity's Fringe Benefits Tax Return that impacts the taxable value of benefits and fringe benefits tax liability. Each correction should be supported by a brief explanation and correct referencing from legislation, along with any workings and calculations.

Any necessary corrections to Amity's Business Activity Statement that impacts GST on sales, GST on purchases and net GST payable. Each correction should be supported by a brief explanation and correct referencing from legislation, along with any workings and calculations.

Attachment:- Taxation Law Case.rar