PFA
Assessment 2 and 3 to be done
FNS60215 | FNSACC603 Implement Tax Plans and Evaluate Tax Obligations Learner’s Guide | V 1.0 | June 2016 Pass Global Pty Ltd t/a Australian Learning, Training & Education Centre | RTO Code 22034 | CRICOS Code 02926D Approved by: Quality Manager | Next Review: Jun 2017 Page 20 of 28 6. Assessment Tasks Assessment Task 1: Assessment Task Prepare Tax Preparation Checklists (x4): Company, Trust, Non‐complex Super Funds, Sole Trader Schedule TBA Outcomes Assessed Performance Criteria: 1.3, 2.4, Underpinning Knowledge Addresses some elements of required skills and knowledge as shown in the Assessment Matrix Description: Registered tax agents play a vital role in influencing participation in our taxation system by ensuring their clients are meeting their tax obligations (Field, ATO, 2012). Registered tax agents should also ensure they keep their personal tax obligations, and those of entities they are associated with, up to date. Instances where registered tax agents do not meet their personal obligations can be forwarded by ATO to the Tax Practitioners Board for consideration as potential breaches of the code of professional conduct under the Tax Agent Services Act 2009 (Field, ATO, 2012). In this assessment task, you will assume the role of a tax agent and prepare comprehensive and detailed checklists for preparing tax returns for Company, Trust, Non‐complex Super Funds, and Sole Trader for your own use and reference. The checklists should incorporate all evidences or resources (client information, reports, documents etc.) that you will require under legal and ethical provisions as a tax agent to accurately prepare the tax returns. Ensure that you include all taxation requirements for the relevant entities including, but not limited to, assessable income, foreign income and assets/interests, deductions, tax rebates/offsets, FBT, CGT, Wine Equalisation Tax, Luxury Car Tax, GST, PAYG, superannuation, payroll tax, fuel tax credits, withholdings, and lodgement schedules. Prepare your checklists using separate headings for each type of requirement (e.g. all depreciation related information under “Decline in Value” section). The checklist style could either be a “inquiry” style with questions prepared for clients or a list of things/tasks to be undertaken. You will need to refer relevant legislations and/or guidelines where needed to support the requirement; to enhance the legal importance of it. Items for quarterly and yearly reporting must be clearly identified and listed. As part of the checklist, you will also be required to research and write a brief statement describing your role as a tax agent, relevant laws and regulations relevant to Tax Agent responsibilities and conduct, including ethical conducts (including obligations under the Tax Agent Services Act (TASA) and Tax Agent Services Regulations (TASR)). Starting with your role and responsibility as a tax agent, prepare the above checklists (x4), assuming that you will be using these checklists during client interviews/meetings on tax preparation. You may use sample checklists provided in your learning sessions as “examples” and reference documents. Your checklists should be prepared according to your own research and understanding of taxation requirements. FNS60215 | FNSACC603 Implement Tax Plans and Evaluate Tax Obligations Learner’s Guide | V 1.0 | June 2016 Pass Global Pty Ltd t/a Australian Learning, Training & Education Centre | RTO Code 22034 | CRICOS Code 02926D Approved by: Quality Manager | Next Review: Jun 2017 Page 21 of 28 Assessment Criteria The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work; Separate checklists are prepared for separate entities; Company, Trust, Non‐complex Super Funds, Sole Trader Checklists are appropriately formatted and included entity specific taxation information (e.g. Statement of Distribution, TOFA, capital gains, foreign income, Franked Dividends, employee share schemes, fringe benefits, etc.) and requirements Checklists follow a logical pattern and designed to obtain and/or gather all the required information and resources for preparation of a tax return Checklists reflect unique style and format with clearly distinguished areas of taxation Detailed information on specific taxation item is provided with a view to gather the required evidence/supporting document Legal and regulatory information is appropriately referenced by respective legislations, status and/or standards relevant to each item/task/inquiry Checklists include a list of action items the need to be carried forward to the next period Checklist include review provisions and references for respective taxation items/tasks; and a review of taxation preparation process consistent with ATO’s lodgement schedules Checklists are within the scope of taxation and reporting laws relevant to the entity Own role and responsibility as a tax agent are outlined in a clear and a concise manner with reference to relevant standards (TASR)/bodies (TASA) or Tax Practitioners Board Code of conduct as a tax agent and/or ethical guidelines are provided with appropriate reference Cited all external sources using an appropriate referencing system Submission Guidelines Submit: Hard copies of the checklists (x4) with a signed assignment cover sheet Soft/Electronic copies of the checklist on a media or a designated folder on a server Reference documents as attachments/annexures Electronic versions of the assessment task and email/electronic submission arrangements can be discussed with the trainer/assessor. FNS60215 | FNSACC603 Implement Tax Plans and Evaluate Tax Obligations Learner’s Guide | V 1.0 | June 2016 Pass Global Pty Ltd t/a Australian Learning, Training & Education Centre | RTO Code 22034 | CRICOS Code 02926D Approved by: Quality Manager | Next Review: Jun 2017 Page 22 of 28 Assessment Task 2: Assessment Task Evaluate Tax Obligations: Melbourne Cricket Ground (MCG) Trust Schedule TBA Outcomes Assessed Performance Criteria: 1.1, 1.2, 1.3, 1.4, 1.5 Addresses some elements of required skills and knowledge as shown in the Assessment Matrix Description: In this assessment task, you will be evaluating tax obligations for a given entity using the checklist you developed in Assessment Task 1 as a reference. For the purpose of this assessment task, you will assume the role of a Tax Agent preparing the information on behalf of your client. You client for this task would be “Melbourne Cricket Ground Trust”. Copies of Financial Statements of the trust will be provided to you to help you work out the tax information. You may also choose a different organisation in consultation with your trainer/assessor. With a view to simulate the actual work environment, your trainer/assessor will play both the roles of the client (trustee) as well as of the ATO tax officer and provide you with the required information, feedback, and recommendations for enhancing/amending the tax calculations after you have completed them. Use the following task flow to help with completion of this assessment task; Obtain and review trust’s financial statements Use the checklist prepared in Assessment Task1 to ensure that you have all the required information Research trust information on the ATO website and determine appropriate taxation obligations for the entity type Identify taxable transactions and prepare a statement of income and expenses Prepare a samples Trust Tax return using ATO’s prescribed form (download from ATO website) to determine tax obligations Write a fictitious letter (or an email) to the MCG Trustees advising of tax obligations Calculate and schedule tax payments to the ATO (Excel sheet) assuming that a return will have been lodged prior to due date This task simulates tax calculations and payment procedures, and should contain realistic lodgement dates and proper completion of the tax return to reflect a real‐life practice. You will be using a tax return form for the purpose of accurate calculations of tax obligations, which simulates a tax preparation exercise. Assessment Criteria The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work; FNS60215 | FNSACC603 Implement Tax Plans and Evaluate Tax Obligations Learner’s Guide | V 1.0 | June 2016 Pass Global Pty Ltd t/a Australian Learning, Training & Education Centre | RTO Code 22034 | CRICOS Code 02926D Approved by: Quality Manager | Next Review: Jun 2017 Page 23 of 28 Gathered and used client information for calculation of tax obligations A tax return is completed using the relevant and accurate financial statements as provided by the client (trainer/assessor role play) to determine tax obligations Tax requirements are checked and determined against Trust Tax Preparation Checklist Additional information is sourced/discussed with the client (trainer/assessor role play) Type of trust is correctly identified and applied Accurately calculated gross profit or loss based on the given financial statements All business income/revenue items are correctly identified and applied All expense items are correctly identified and applied Net non‐primary production distribution is accurately calculated and applied Eligible deductions relevant to the type of trust are identified and applied Overseas transactions and/or income, if any, are identified and reported Gross and net income or loss is accurately calculated Transferred relevant and accurate financial information from the financial statements to the tax return Transferred relevant and accurate business and professional items from the financial statements to the tax return Depreciation is accurately reported and justified (Summary of notes to the Financial Statement) A statement of distribution (fictitious) is prepared for distribution of trust income to the listed beneficiaries (used at least two) Trustee’s share of credit for tax is appropriately deducted (fictitious but realistic data) The tax return is prepared in entirety and resembles a real‐life tax return with accurate/realistic calculations and information Client has been advised of the agent’s tax assessment and communication kept for record (letter or email) ATO recommendations are reviewed and necessary amendments/enhancements applied based on the recommendations received A payment scheduled is developed in line with ATO’s due dates Submission Guidelines Submit: Completed Trust Tax Preparation Checklist Hard copy of the completed Trust Tax Return with a signed assignment cover sheet Copies of financial statements extracted from the annual report as attachments Electronic versions of the assessment task and email/electronic submission arrangements can be discussed with the trainer/assessor. FNS60215 | FNSACC603 Implement Tax Plans and Evaluate Tax Obligations Learner’s Guide | V 1.0 | June 2016 Pass Global Pty Ltd t/a Australian Learning, Training & Education Centre | RTO Code 22034 | CRICOS Code 02926D Approved by: Quality Manager | Next Review: Jun 2017 Page 24 of 28 Assessment Task 3: Assessment Task Develop and Evaluate a Tax Plan: MCG Trust Schedule TBA Outcomes Assessed Performance Criteria: 1.1, 1.4, 2.1, 2.2, 2.3, 2.4, 2.5, 3.1, 3.2, 3.3, 3.4, 3.5 Addresses some elements of required skills and knowledge as shown in the Assessment Matrix Description: Executing business strategies, projects and transactions in a tax‐effective manner is an ongoing challenge for businesses, particularly as the tax legislation is becoming more complex. A structured and focussed tax planning process may help businesses/entities maintain an effective cash flow, and fulfil their compliance responsibilities. In this task, you will be required to develop a tax plan for an entity based on their income and expense projections that includes strategies for maintaining; Tax compliance Interim tax liabilities (e.g. quarterly BAS/GST obligations), schedules, and their implication on entity’s cash flow Yearly tax liabilities, schedules, and their implication on entity’s cash flow Using the company/case organisation brief and financial data in the previous assessment task (MCG Trust or any other organisation used), develop a word‐processed tax plan that includes objectives, tax management strategies and actions to implement the plan. Future Projections You will require projected income and expenditure data to appropriately plan for the next financial year. Using the available data, assume that in the next financial year, the organisation is; Expecting its revenues to increase by approximately 8% per quarter Expecting new revenues totalling $283,000 from an increase in the membership fees Spending $560,000 for expansion of the stadium Purchasing and installing 6500 new chairs at $85 per chair Recover long term debts of approximately $128,000 from the members Allocate $8,500 per quarter for launching of a junior cricket academy Using this information and historical data; 1. Develop income and expenditure forecast for the next financial year. Once completed, use the forecast data in preparing a tax plan for the organisation. 2. Develop an operational budget covers revenues and expenses covering everyday operations 3. Drawing from your workings in Assessment Task 2, estimate tax obligations for both budgeted and forecasted income FNS60215 | FNSACC603 Implement Tax Plans and Evaluate Tax Obligations Learner’s Guide | V 1.0 | June 2016 Pass Global Pty Ltd t/a Australian Learning, Training & Education Centre | RTO Code 22034 | CRICOS Code 02926D Approved by: Quality Manager | Next Review: Jun 2017 Page 25 of 28 Tax Plan Next, prepare a tax plan that essentially includes (but is not limited to); Goals and objectives Key stakeholders Compliance environment and requirements (for the type of entity selected for this task) Strategies to achieve the intended objectives Summary of income and expenditure in the next financial year Strategies to maintain an effective cash flow Strategies to manage periodic and end‐of‐the‐year tax obligations Suggestions for addressing and meeting compliance requirements Supporting management process Data sources, verification and record‐keeping Processes for monitoring the tax plan Using the above as section guides/headings, write a tax plan for the organisation with reference to the relevant laws and regulations affecting the entity status and structure. The plan must be prepared as a formal business document with an appropriate structure and format (headings/subheadings). Once ready, provide a draft to your client (trainer/assessor role‐play) for feedback and evaluation. When received, implement the changes and finalise the plan. Assessment Criteria The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work; Completed the task within the given organisational and financial contexts Prepared budgeted operating expenses from the information provided Accurately categorised and listed fixed and variable costs Calculated net profit or loss for each quarter as well as the whole fiscal year Identified and quantified budgeted surplus or deficit for the company Forecast assumptions are based on realistic analysis of market data and trends Prepared a revenue/income forecast Prepared an expense forecast Forecast data is consistent with previous year data The forecasts are prepared based on all the considerations of the financial items The forecasts are balanced and covers all the expected income/funding sources and expenditures Forecasts are prepared using a spreadsheet template and commonly used format consistent with accounting principles Forecasts are based on realistic assumptions and parameters to ensure accuracy, relevance and compliance Budget includes all the required sections and information and used an appropriate format for budget reporting All business income/revenue items are correctly identified and applied All expense items are correctly identified and applied Gross and net income or loss is accurately calculated Developed a formal tax plan FNS60215 | FNSACC603 Implement Tax Plans and Evaluate Tax Obligations Learner’s Guide | V 1.0 | June 2016 Pass Global Pty Ltd t/a Australian Learning, Training & Education Centre | RTO Code 22034 | CRICOS Code 02926D Approved by: Quality Manager | Next Review: Jun 2017 Page 26 of 28 The tax plan is appropriately structured and maintains a logical presentation and flow of data/contents under respective sections/headings Plan goals and objectives are realistic and relevant to the organisation type and financial history Identified and articulated legal and compliance requirements with references to applicable legislative requirements and standards Appropriate strategies are devised to maintain compliance, including tax and reporting compliance Strategies are effective in aligning organisation’s cash flow with periodic and end‐of‐the‐year tax payment schedules Suggested/devised management processes to support the implementation of intended strategies Outlined plan monitoring and record‐keeping processes Obtained feedback and amended/improved the plan Demonstrated an understanding of effective tax management process and formulating a plan to implement within an organisation Submission Guidelines Submit: Projected operational budget Projected income and expenditure forecasts Calculation of tax obligations Hard copy of the tax plan with a signed assignment cover sheet Copies of financial statements extracted from the annual report as attachments Electronic versions of the assessment task and email/electronic submission arrangements can be discussed with the trainer/assessor. FNS60215 | FNSACC603 Implement Tax Plans and Evaluate Tax Obligations Learner’s Guide | V 1.0 | June 2016 Pass Global Pty Ltd t/a Australian Learning, Training & Education Centre | RTO Code 22034 | CRICOS Code 02926D Approved by: Quality Manager | Next Review: Jun 2017 Page 27 of 28 Assessment Task 4: Assessment Task Portfolio Schedule TBA Outcomes Assessed Performance Criteria: Underpinning knowledge Addresses some elements of required skills and knowledge as shown in the Assessment Matrix Description: You would have completed a number of activities and practical tasks during this unit. Most of those activities contribute towards assessment for this unit of competency. Submit your complete portfolio with copies of all activities and tasks completed, including any handwritten notes or copies of reference documents. All the documents contained within the portfolio must be relevant to the class activities and tasks completed during each learning session during the course of this unit. Assessment Criteria The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work; Attended relevant learning sessions and completed the required activities and practical tasks The portfolio contains evidences of all the activities and tasks conducted during the unit Portfolio is organised and orderly with evidences of own work Submission Guidelines Submit Complete portfolio Portfolio must be submitted in a folder with contents appropriately dated and/or labelled (e.g. activity name and date) Ensure that each activity and/or task contained within the folder has your name and student number on it. Unidentifiable and illegible evidences will not be considered for marking. TRUSTEES OF THE MCG TRUST Mr John M.R. Wylie AM (Chairman) The Honourable John Cain Ms Anne-Marie Corboy Mr Robert N. Herbert AM Mr Ross Inglis Mr Chris J Lovell (Retired November 2011) The Honourable Patrick J. McNamara Ms Kathryn (Kate) M Palmer Mr Anthony Stewart (Appointed April 2012) EXECUTIVE OFFICER Mr Graeme Sinclair 2011 was a highly significant year for the MCG Trust, being the 150th anniversary of the appointment of the initial MCG Trustees in 1861. The occasion was marked with a dinner that celebrated the amazing history of Melbourne’s sporting ground that has come to mean so much to so many. Sporting legends, Ron Barassi and John Landy among them, spoke movingly of what the ground means to them, while to mark the occasion, one of Australia’s greatest ever sporting champions, Cadel Evans, made the outstanding gesture of providing his Tour de France yellow championship bike as a permanent exhibition for the National Sports Museum at the MCG. The Melbourne Cricket Ground has for generations retained its status as Australia’s pre-eminent sports stadium in no small measure due to the commitment of successive MCG Trusts and MCC Committees to ensuring it remains that way. This remains as true today as it was when the Olympic Stand was built in 1956 for Melbourne’s Olympic Games, the Great Southern Stand in 1992 for Australia’s only cricket World Cup, and the new Northern Stand in 2006 for Melbourne’s Commonwealth Games. Today’s MCG Trust and MCC Committee are giving expression to this desire for excellence through two major projects now nearing finality. One is to refurbish and upgrade the Great Southern Stand, the other to improve and make Yarra Park self sufficient in non-potable water whilst reducing the MCG’s potable water by some 50m/l per year through a major new water recycling facility. These projects will provide outstanding long term assets for the ground. Patrons can already see for themselves the improvement in facilities and amenity in and around the Great Southern Stand. We have completed a new, large capacity AFL Members’ dining room; refurbished the Jack Ryder and Lindsay Hassett rooms and the Barassi cafe; launched a new AFL sports bar (replacing the old Bunton Bar) featuring multiple large video screens, which has quickly become very popular; and improved the stand entrance ways. Refurbished Tom Wills, Keith Miller and Legends rooms and additional improvements to ground entrances and exteriors are all due to be finished in time for the AFL finals this year. We thank our partners, the Victorian Government and the AFL in these important projects. The environment facing sporting stadiums everywhere is changing, perhaps the most rapidly during the MCG’s 150 year life. Technology and digital media now occupy a central role in our lives. Only a decade ago few could have conceived that we would now take for granted the ability to watch all AFL matches anywhere, anytime (especially live) and usually in high definition; that we could broadcast our thoughts real time to our (keenly awaiting!) fellow spectators at the ground via the MCG scoreboard; and that we could access enough live game data and information through our mobile telephones to keep any statistician happy. We at the MCG are determined to embrace this societal change and ensure that the MCG remains, as it has in prior generations, at the cutting edge of global stadium design and relevance. This means things like Wi-Fi systems that work for large crowds; larger and higher definition scoreboards; and hundreds if not thousands of video boards around the ground able to provide useful and real time information to patrons such as queue updates and match data relevant to patrons’ particular interests. These innovations and many others are under active consideration now by the MCG Trust and the MCC Committee through a detailed feasibility study on a high speed broadband-enabled MCG. In an era where stadium attendance is increasingly competing with the armchair at