Reference no: EM132375389

Prepare Tax Documentation For Individuals Assignment -

ASSESSMENT INFORMATION - Throughout your training we are committed to your learning by providing a training and assessment framework that ensures the knowledge gained through training is translated into practical on the job improvements.

You are going to be assessed for:

• Your skills and knowledge using written and observation activities that apply to the workplace.
• Your ability to apply your learning.
• Your ability to recognise common principles and actively use these on the job.

All of your assessment and training is provided as a positive learning tool. Your assessor will guide your learning and provide feedback on your responses to the assessment materials until you have been deemed competent in this unit.

1. REPORT

Instructions - You will need to research information to assist with your responses for this task.

What you will need to complete this task

• Research materials such as books, internet, magazines, workplace documentation etc.
• Access to legislative and regulatory documentation relevant to own state or territory.

You should use a variety of sources to gather information including training resources, workplace policies and procedures (if you are able to access these) and government and industry bodies.

You are required to provide information about the following points. You must prepare a written response to each point, which can be supported by example documentation as required. Ensure material is referenced appropriately.

Word limit - To complete this activity, you are required to submit a portfolio and written responses of Long Answer 8 typed lines = 100 words, or 10 lines of handwritten text.

Your task is to research the following topics then outline your findings in a report. Use the questions below as a guide to your research:

1. Explain the following ethical considerations and legislative requirements which are relevant to the preparation of non-complex income tax documentation for individual taxpayers:

a. Conflict of interest

b. Responsibilities of tax agents, including those outlined in the Code of Professional Conduct obligations under TASA and the TASR

2. Briefly explain the following key elements of Australian tax law, as it relates to individual taxpayer income tax documentation:

a. The rules and principles of Australian tax law, and the basics of legal system and environment in which these principles operate, including the constitutional considerations and the separation of powers

b. The key aspects of the income tax law which cover:

i. Residence and source and the related elements of international tax

ii. Assessable income

iii. Deductions, including general, specific, and decline in value

iv. Tax rebates and offsets

v. Tax accounting

vi. Income test definitions that include reportable superannuation and FBT

c. The key aspects of principles and application the following for individual taxpayers:

i. CGT

ii. FBT

iii. ETP rules

3. Explain the basic concept of GST

4. Identify the inclusions in the administrative aspects that apply to the taxes discussed.

5. Explain the specific and the general anti-avoidance tax rules for individual.

6. What are the key sources of information and data you could access and use to calculate taxable income?

7. Identify the organisational policies and procedures which relate to the preparation of tax documentation for individual taxpayers, and discuss their key features.

8. Reflect the key accounting principles and practices which are relevant to of tax documentation for individual taxpayers.

2. SCENARIO

Instructions - Referring to the information provided in the task and using the form provided you are required to complete a Tax Return for an Individual. For this assessment, you will need to perform the following task. This will need to be completed and submitted in a professional, word processed, format.

Once you have completed all the steps, you are required to document and submit the completed documentation with your assessment.

During your activity, you must ensure that you:

1. Identify all client data required to calculate taxable income.

2. Research, critically evaluate and apply new or changed legislative requirements and apply where relevant to the preparation of the client's tax documentation.

3. Prepare tax documentation for an individual that complies with:

a. Australian taxation law and Australian Taxation Office (ATO) rulings

b. Accounting principles and practices

c. Organisational policy and procedures

4. Provide advice to client on tax documentation presented and obtain verification and approval.

You will require access to the following for your activity:

5. Common office equipment

6. Technology

7. Software

8. Consumables

When you have successfully finished this assessment, you will need to submit the assignment that you have completed.

Scenario - Task 1 - Your client, Roberto Case is a single taxpayer. Roberto is a bank manager and has approached you to prepare his 2017 income tax return.

Instructions: Your task is to read the following scenario and using the tax return form provided complete a full tax return for this client or complete the tax return using software that you have access to.

Based on the information attached, you need to submit a hard copy of the tax return completing all relevant details for the year, specifically pages 2-7 inclusive.

In place of the front page, attach the cover sheet and showing all workings, calculate the taxpayer's taxable income and tax payable/refundable for the year ended 30 June 2017.

For the year ended 30 June 2016, Roberto received a payment summary from his employer Two Hills Banking Corporation [ABN: 12 345 678 900] disclosing the following information (see attached file).

3. THIRD PARTY REPORT ACTIVITY

The following task must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

Office equipment, technology, software and consumables required to prepare non-complex income tax documentation for individuals, including:

• Access to the internet
• Digital systems and programs for preparing and lodging tax returns

For this task you are to undertake the following activity to demonstrate your ability to prepare tax documentation for individuals.

Complete the following steps to gather the clients' income data and to verify all client, organisational and legislative requirements for the tax documentation:

1. Consulting with the client, determine their tax documentation preparation requirements. Document these requirements.

2. Conduct research to identify and critically evaluate any updates or additions to the compliance requirements which are relevant to the client circumstances, and to establish any recording and reporting requirements. Document this research, including relevant updates or additions, and the recording and reporting requirements established.

3. Using authoritative sources, gather current data, and identify and consult with the client to resolve any outstanding information requirements. Provide the data gathered, documenting any client consultation required to gather outstanding information.

4. Identify, and record, the assessable income and allowable deductions.

5. Accurately complete and record the required amounts on the documentation, according to organisational and legislative requirements.

6. Identify if there are any discrepancies or unusual features, and conduct research to resolve these, or refer them to the designated authority. Record any discrepancies or unusual features identified, as well as any research conducted and the resolution/referral.

7. Identify any accrued or prepaid income and expenditure, and record adjustments to the value of assets and liabilities.

Identify, record and present the client's non-complex income tax documentation through completion of the following actions:

8. According to legislative requirements and industry-accepted information gathering practices, calculate client's tax obligations and prepare the required documentation within established timeframes, ensuring that it complies with Australian taxation law and ATO rulings, accounting principles and practices as well as the organisational policies and procedures.

9. As required, seek advice and guidance from specialists to evaluate and moderate decision processes. Document all advice and guidance sought.

10. Discuss and confirm the documentation with the client, obtaining their signature, authorisation and endorsement, and ensuring legislative requirements are met

Complete the following steps to manage the lodgement of the client's non-complex income tax documentation:

11. Within the established timeframes, submit the required documentation to the ATO. Provide evidence of submitting within the required timeframe.

12. Advise the client of their current tax obligations and provide them with information regarding expected future taxation authority advice. Document all advice provided.

13. When applicable, respond to tax office enquiries and meet taxation audit requirements, in timely manner. Document all tax office communications for enquiries and/or audit requirements.

4. SHORT ANSWER QUESTIONS

Instructions - Answer the questions below by writing in the space provided. If you require more space, use a blank sheet of paper. Alternatively, you may like to use Microsoft Word and print out your answers to each question.

What you will need

• Research materials such as books, internet, magazines, workplace documentation etc.
• Access to legislative and regulatory documentation
• Your Learner Guide for this unit of competence

Suggested Word limit - Short Answer Responses 4 typed lines = 50 words, or 5 lines of handwritten text.

Answer the following questions and submit to your assessor in writing.

1. What method should be used to determine a client's tax documentation preparation requirements, and to resolve outstanding information requirements?

2. Where can you source information to determine the tax preparation requirements of your client?

3. Outline at least five of the questions you might ask when identifying a client's assessable income and allowable deductions.

4. List six examples of the types of changes you might identify when conducting research into the updates or additions to compliance requirements, as relevant to client circumstances.

5. List four amounts that may need to be completed and recorded on an individual's tax return.

6. What might cause discrepancies, or unusual features, in taxation documentation? Provide at least three examples.

7. What will need to be done if you identify accrued or prepaid income and expenditure?

8. Outline the process to be followed for calculating a client's tax obligations, so you can prepare the required documentation with the required timeframe.

9. Outline three examples of the timeframes required for the lodgement of prepared tax documentation.

10. What specialist advice and guidance might you seek from specialists during the process?

11. Why is it essential for you to discuss and confirm the documentation with the client, prior to obtaining their signature, authorisation and endorsement?

12. What are the consequences for failing to submit required documentation to the ATO, within the established timeframes?

13. What will you need to advise your client of after the lodgement of individual tax documentation?

Attachment:- Tax Documentation Assignment File.rar