FNS60217 | FNSACC601 Prepare and Administer Tax Documentation for Legal Entities Assessment Task | V 1.0 | April 2018 Page 1 of 6 Assessment Tasks You must submit soft copy of your answers in a word...

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Please do tasks 2 & 3 only.. Actually I have done this assignment from you guys before and I got tasks 2 & 3 failed. My order I.D was76343. The feedback of my lecturer also attached below for your reference....


FNS60217 | FNSACC601 Prepare and Administer Tax Documentation for Legal Entities Assessment Task | V 1.0 | April 2018 Page 1 of 6 Assessment Tasks You must submit soft copy of your answers in a word document. Upload the softcopy on the link provided in the eLearning site. Assessment Task 1: Assessment Task Review & Written report: ATO: Corporate Management Practice Statement Schedule Week 2 Outcomes Assessed Performance Criteria: 1.1, 1.2, 1.3, 2.3 Addresses some elements of required skills and knowledge as shown in the Assessment Matrix Description: ATOs Corporate Management Practice Statement is issued under the authority of the Commissioner of Taxation and serves a guide to ATO employees for dealing with taxation frauds. It promotes understanding of the Commonwealth Fraud Control Guidelines 2002, the Prosecution Policy of the Commonwealth and the Australian Government Investigation Standards documents its policy and attitude towards fraud. The document can be accessed at; http://www.ato.gov.au/content/downloads/snc00090701fraudcontrol.pdf Review the document, with the context of taxation fraud as a wider issue, and write a summary report covering the following aspects. You will also need to conduct online research on legal requirements related to taxation. 1. A brief overview of the Australian taxation law 2. Definitions of reporting and non-reporting entities 3. Documentation requirements for reporting entities 4. Documentation requirements for non-reporting entities 5. Typical taxation parameters for preparing a tax return 6. A summary of the purposes of the Corporate Management Practice Statement 7. Examples of internal frauds 8. Examples of external frauds 9. Explanation of ATO’s decision tree to deal with taxation fraud related matters 10. Penalties and prosecution provisions under relevant laws/statues There is no specific structure of the report. However, it is expected that a logical structure of introduction, body, conclusions/summary and citations/references will be used. All external sources must be cited using http://www.ato.gov.au/content/downloads/snc00090701fraudcontrol.pdf FNS60217 | FNSACC601 Prepare and Administer Tax Documentation for Legal Entities Assessment Task | V 1.0 | April 2018 Page 2 of 6 Harvard Referencing System. Additional information related to the report can be submitted as attachments/annexures. The summary report should be written in your own words. Straight cut-and-paste should be avoided; and analysis/comments should be supported by relevant legal facts or other supporting theories/concepts. Word Limit: 1000 words 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;  Introduction provides a concise and clear overview of the report contents  Analysis, legal references, and information sources are well integrated to provide sound context for the report  Identified all relevant factors/issues pertinent to the issues of taxation obligations for both reporting and non-reporting entities  Legal and regulatory information is appropriately referenced by respective legislations, status and/or standards  Overview of the Australian taxation law highlights key rules and principles of the law  Overview of the Australian taxation law reflects an understanding of the legal taxation environment in Australian and taxation and taxation parameters for typical entities  Aspects and mechanisms of tax returns, tax collection and withholding mechanisms, assessments, obligations, rulings, penalties and audits are summarised in own understanding  Taxation laws and rules addressing specific and general anti-tax avoidance are highlighted  Corporate Management Practice Statement summary provides a concise and structured overview of fraud prevention and management process at ATO  Relevant guidelines, laws and policy instruments are referred to and cited in relation to fraud and tax avoidance  Examples of internal fraud are identified and summarised  Examples of external fraud are identified and summarised  A detailed analysis of the decision making process from identification of fraud to referral for action is summarised in own words  Penalties and prosecution provisions under fraud control guidelines and relevant laws are highlighted  All relevant ideas, concepts, and theories covered with clear explanation, and with clear perspective and context  Used a range of relevant, current and credible sources used to explore the concepts and support the arguments  Evidence of synthesis and use of unifying concepts in own language and style throughout the report  Cited all external sources using an appropriate referencing system Submission Guidelines Submit:  Summary report with a signed assignment cover sheet  Reference documents as attachments/annexures Electronic versions of the assessment task and email/electronic submission arrangements are at further discretion of the trainer/assessor. FNS60217 | FNSACC601 Prepare and Administer Tax Documentation for Legal Entities Assessment Task | V 1.0 | April 2018 Page 3 of 6 Assessment Task 2: Assessment Task Prepare Tax Return Preparation Checklists (x4): Company, Trust, Non-complex Super Funds, Sole Trader Schedule Week 3 Outcomes Assessed Performance Criteria: 1.1, 1.2, 1.3, 2.1, 2.2, 2.3, 3.2 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. FNS60217 | FNSACC601 Prepare and Administer Tax Documentation for Legal Entities Assessment Task | V 1.0 | April 2018 Page 4 of 6 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. 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:  Soft 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 are at further discretion of the trainer/assessor. FNS60217 | FNSACC601 Prepare and Administer Tax Documentation for Legal Entities Assessment Task | V 1.0 | April 2018 Page 5 of 6 Assessment Task 3: Assessment Task Complete a Trust Tax Return: Melbourne Cricket Ground Trust Schedule Week 3 Outcomes Assessed Performance Criteria: 1.1, 1.2, 1.3, 2.1, 2.2,
Answered 15 days AfterOct 24, 2021

Answer To: FNS60217 | FNSACC601 Prepare and Administer Tax Documentation for Legal Entities Assessment Task | V...

Jyoti answered on Nov 09 2021
127 Votes
UNIT FNSACC603
Prepare and Administer Tax Documentation for legal entities
ASSESSMENT TASK 2
Tax Preparation Checklists: Company, Trust, Non-complex Super Funds, Sole Trader
Assessment Task 1
1.1 Role of Tax Agent
Tax assessments represent the final result of determining a taxpayer’s taxable income and calculation of tax payable on that income. Lodgement of return annually is initial step which is followed by an assessment conducted by tax authorities.
A tax agent is a third party professional who help citizens in complying the requirements of tax laws and represents them before Commissioner of Taxation (COT) in any dealings relating to taxation. Thus, many taxpayers takes assistance of tax agents in filing and lodging their tax returns. Mostly, tax agents are individuals qualified in accounting and are member of professional bodies like The Institute of Chartered Accountants of Australia, The Institute of CPA of Australia and The Inst
itute of Public Accountants.
Tax Agent Services Act, 2009 (TASA) was introduced with an objective to make sure that services of tax agents are provided to general public in proper manner. Three pillars of the Act are Tax Practitioner Board for registering tax agents, Code of professional conduct (CPC) for those agents and approval of discipline for those agents.
Applicants must satisfy conditions prescribed in Tax Agent Services Regulations 2009 (TASR) to get registered as tax agent. Part 2 of Schedule 2 of TASR contain items 201 to 205 prescribing detailed requirement regarding qualification and experience for becoming a registered tax agent.
TASA provides following obligations of tax agents:
(i) Meet ongoing eligibility criteria throughout service period;
(ii) Update changes including PI insurance, renewals and notify to TPB.
(iii) Follow professional conduct code and
(iv) Non-contravention of civil penalty provisions.
TASA provide for professional conduct code which list 14 standards to be followed by all tax agents in 5 categories namely –
· Honesty/Integrity: acting honestly, compliance with taxation laws in personal affairs and accountability towards client’s assets.
· Fairness (independence): act within spheres of law in the interest of client and manage conflict of interest if happens.
· Security (confidentiality): maintaining secrecy of client’s data and information and not disclosing it to others without consent of client.
· Capability (competence): maintain and keep up skilling himself/herself in relevant area, provide services competently and taking reasonable care in applying tax laws and state of affairs of client.
· Other responsibilities: maintaining professional indemnity insurance, responding to requests from Board, advising clients on material rights and obligations under tax laws and not to obstruct in administration of tax laws.
I, Sandu Samaditha, representing myself as a tax agent for clients in respect of filing of tax returns presents checklists for various types of entities which can be used in client meetings.
1.2 Tax Preparation Checklist for a Company
    Particulars
    Yes
    No
    NA
    1. Basic details
    
    
    
    · Provide company’s current name and its old name in case name of company has been changed during the financial year.
    
    
    
    · Provide Tax File Number (TFN) and Australian Business Number (ABN).
    
    
    
    · Provide current and old postal address of company.
    
    
    
    · Provide details of financial institution for refund viz Bank State Branch number (BSB), Account number and Account name.
    
    
    
    · Provide details of ultimate and immediate holding companies with ABN and country code.
    
    
    
    · Provide description of business activity with % of foreign shareholding.
    
    
    
    2. Status
    
    
    
    · Provide applicable status in the below mentioned types (Refer Company Tax Return Instruction 2021 for more details):
C – Residency – labels C1, C2 and C3
D – Entity type – labels D1 to D10
E – Activity indicator – labels E1 to E3
F – Business indicator – labels F1 and F2
G – Significant global entity – labels G1 and G2
Z – Consolidated indicator – labels Z1 and Z2
    
    
    
    · Whether the company had made an interposed entity election (IEE)?
    
    
    
    3. CbC Reporting
    
    
    
    · Has the company lodged or will be lodging a general purpose financial statement with ASIC in relation to this income year?
    
    
    
    4. Information Statement
    
    
    
    Overall
    
    
    
    · Whether lease and hire purchase arrangements are treated properly in income tax purpose?
    
    
    
    · Have expenses for non-deductible items been reviewed?
    
    
    
    · Are penalties paid to the ATO or as otherwise charged treated as non-deductible?
    
    
    
    · Whether interest received from the ATO brought to account as assessable?
    
    
    
    · Whether a company received exempt income or non-assessable income which is not exempted also?
    
    
    
    
    
    
    
    Depreciation (decline in value)
    
    
    
    · Whether current year’s opening balance matches with last year’s closing balance?
    
    
    
    · Whether new purchases of building and construction in progress have been reviewed to know that depreciation has been claimed on units of depreciable asset portion?
    
    
    
    · Are repairs capitalised for tax purposes and been treated as additions to tax fixed assets schedules and properly depreciated?
    
    
    
    · Whether any new asset used for business in Australia is eligible for additional tax deduction as per division 41?
    
    
    
    5. Capital Gain/Loss
    
    
    
    · Is there any CGT event happened during the year?
    
    
    
    · Did company applied any exemption or rollover during the year in respect of disposal of CGT asset?
    
    
    
    · Have all components of CGT cost base (incidental costs, cost of improvement, etc.) be considered in relation to CGT event occurred during the year?
    
    
    
    · Is any capital gain exempt?
    
    
    
    · Whether any small business CGT concessions are availed?
    
    
    
    · Whether adjustments are made to equate accounting gain/loss and capital gain/loss for tax purposes?
    
    
    
    6. Franking credit
    
    
    
    · Whether franking credit linked to dividend does not exceed maximum franking credit available?
    
    
    
    · Confirm whether dividend have been franked correctly considering an applicable tax rate?
    
    
    
    · Has ATO been notified in case of more than 20% variance of benchmarking franking percentage arising between franking periods?
    
    
    
    · Is there any franking deficit?
    
    
    
    · Whether dividend washing and integrity rule provisions are considered?
    
    
    
    7. Taxation of financial arrangements (TOFA)
· Check whether TOFA rules applies to your company?
    
    
    
    Point to be noted :
(a) an authorised deposit-taking institution (ADI), a securitisation vehicle or an entity in financial sector with an aggregated turnover of $20 million or more
(b) a superannuation entity, a managed investment scheme (MIS) or a similar scheme under a foreign law if the value of the entity's assets is $100 million or more
(c) any other entity (except an individual) that has either  (i) an aggregated turnover of $100 million or more; (ii) assets of $300 million or more and ; (c) financial assets of $100 million or more.
are subject to TOFA on compulsorily basis.
    
    
    
    Point to be noted :
TOFA rules cover following broad areas :
(a) debt and equity
(b) rules for taxing forex gain and loss, and
(c) tax timing and disposal rules for financial transactions involving debt, foreign currency, non-equity shares, commodities, synthetic and hybrid transactions.
    
    
    
    · Ensure that correct calculations of TOFA gain/loss or TOFA adjustments have been made.
    
    
    
    · Consider appropriate disclosures relating to TOFA at items 7 and 8.
    
    
    
    8. Financial and other information
    
    
    
    · Whether adequate disclosures regarding loans granted to shareholders and their associated /related parties are made?
    
    
    
    · Whether all related party payments like contract payments, salaries, contributions, etc. are disclosed properly?
    
    
    
    
    
    
    
    9. Capital allowances
    
    
    
    · Check whether proper disclosures regarding first time depreciating assets whether tangible or intangible are made.
    
    
    
    · Consider balancing adjustments and terminal value while calculating capital allowances.
    
    
    
    10. National Rental Affordability Scheme (NRAS)
    
    
    
    · Whether any new dwellings are made to moderate income households at 20% below market rates?
    
    
    
    · In case, new dwellings are made, claim for tax offset is made or not?
    
    
    
    · Check whether the secretary of the Department of Social Services has issued a certificate under the NRAS?
    
    
    
    11. Losses information
    
    
    
    · Confirm about ownership /same business continuity test to claim last year’s losses, capital loss or bad debts.
    
    
    
    · Whether normal losses and capital losses carried forward exceed $1, 00,000? In case of yes, complete losses schedule or consolidated group losses schedule for the year?
    
    
    
    12. Research and development (R & D ) tax incentive
    
    
    
    · Whether the company is eligible entity to claim refundable R&D tax incentive (43.5% or 38.5% depending upon aggregate turnover)?
    
    
    
    · Check whether R&D tax incentive schedule to be lodged with tax return is prepared and completed
    
    
    
    · Whether R & D tax incentive offset is claimed for feedstock expenditure. If yes, check whether feedstock adjustment amount is included in assessable income?
    
    
    
    13....
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