Instructions for use Candidate Instructions Requirements for satisfactory completion • This is a research project so please use relevant websites to help find answers to the tasks. • Please follow the...

Complete Business Activity & Instalment Activity Statements


Instructions for use Candidate Instructions Requirements for satisfactory completion • This is a research project so please use relevant websites to help find answers to the tasks. • Please follow the specific instructions provided in tasks 5 and 6 • Where tasks require mathematical calculations, make sure you provide evidence for all calculations • Responses will differ in length - some tasks will require longer responses, some shorter. • You have to meet the requirements of each part of a task before a mark will be allocated for the task • Print off all answers and submit by the due date, together with the Cover sheet, signed and dated. • You must submit typed (not hand-written) responses to all tasks • You must address all parts of each task • You must use your own words-when occasionally quoting information from another source, you must acknowledge that source. Tasks to comploto Taak 1 (20 marks) a. LISt tho four parts of the Tax Agent Services Legislative package b. ~~t 5 line the current qualifications and experience requirements that. a registered Agent must satisfy under the Tax Agent Services Act 2009. c. Outli~e and describe the major principles of the Code of Professional Conduct applying to BAS Agents. d . Outline the possible consequences if a BAS agent fails to comply with the Code of Professional Conduct. When completing this task, you must refer to the Tax Practitioners Board website for the most current regulations. Task 2 (10 marks) Select the correct answer: a) Preparinq a bank reconciliation for a client is a BAS Service True False b) PAYG Instalments of tax will not be required to be paid on income True False earned by a subcontractor who has entered into a voluntary agreement with a business. c) A voluntary agreement cannot take place without the worker True False having an ABN d) The rate of withholding where a business has not provided an True False ABN is set at 47%. e) To correct an under-claim of input tax credrts on a prior BAS you True False would be required to lodge a revised Activity Statement. f) If a taxpayer is due for a refund from a BAS It will be payable True False within 14 days of lodgement of the return. g) A charity must register for GST when Its turnover exceeds True False $150,000 h) Only businesses registered for GST need an ABN True False i) Only wine producers pay Wine Equalisation Tax True False j) A business with an annual turnover of $2.5m can use the cash True False system of accountinq for reportinq GST Tasks to complote Task 3 (12 marks) (a) Amazon Sales Pty Ltd has a turnover of $3m and is a medium remitter for PAYG Withholding purposes. Complete the following table: Type of Payment Month Reported on Lodgement and which document payment date Aoril PAYG Withholding May June GST Collected and April paid Mav June (b) Complete the following calculations (show all workings): a) PJ Industries has a pre-printed FBT amount of $7800 on their $ September 2018 BAS but have estimated that their FBT liability for the year ended 31 March 2019 will increase from $31 ,200 to $46,000. Calculate the FBT instalment due for September b) Calculate the amount of luxury car tax payable in the 2018-2019 $ financial year, on a new vehicle initially priced for sale at $95,000, GST inclusive. c) Calculate the Fuel Tax Credit entitlement for a GST-registered $ farming business which purchased 4570 litres of diesel fuel in December 2018 for use in its farming equipment. d) Calculate the standard penalty for a business (turnover $25m) $ lodging an activity statement 90 days late. Tasks to complete Task 4 (6 marks) ~rene Abbott operates a small business as a sole trader and receives investment income, but is not registered for GST. She is required to pay PA YG Withholding quarterly and PAYG Instalments and uses Option 2. During the September quarter Irene paid wages of $2000 (net of $500 PA YG withheld) and a subcontractor $3650, from which $730 was withheld. Details of Cash Receipts for the September quarter were as follows: Trading income Rental income Sales of shares Dividend income $ 17650 2200 4500 3450 PAYG Instalment rate notified by ATO 19.6% Irene has had a downturn in her business due to other competition and wishes to amend her PAYG Instalment. She now expects her annual PAYG instalment income to be $67,000 and her annual PAYG income tax to be $8,700. Required: (a) Select and print the appropriate IAS and complete Irene's IAS for the September quarter. (b) Explain how Irene might ensure she has sufficient funds to pay the amount due on her IAS You must show all calculations in your answer. Task 5 (5 marks) This task will be completed at a suitable time arranged with your assessor, and must be completed before the due date for the submission of the whole assignment You are required to consider the scenario below and prepare a printed short summary (approximately five main points) of the conversation you might have with Mr Green, which you will then present verbally to your assessor. You will be assessed on your ability to participate in a verbal interaction and to articulate information clearly and concisely. Your assessor will consider the assessment criteria below. Scenario: Mr Green owns and operates a small lawn mowing business and telephones you, asking you to give him a brief summary of the duties you are likely to perform for him should you be engaged to prepare his quarterly BAS. He currently does not have a bookkeeper at all to help him. Assessment criteria: Candidate actively participated in simulated conversation Yes/No Candidate clearly articulated relevant information Yes/No Candidate was able to clarify a point when questioned Yes/No