Saif T-1.8.1 Details of Assessment Term and Year T1 2018 Time allowed Week 1 - 7 Assessment No 1 Assessment Weighting 50% Assessment Type Portfolio of Activities Due Date Week 8 Room E: 611 / D: 609...

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Saif T-1.8.1 Details of Assessment Term and Year T1 2018 Time allowed Week 1 - 7 Assessment No 1 Assessment Weighting 50% Assessment Type Portfolio of Activities Due Date Week 8 Room E: 611 / D: 609 Details of Subject Qualification FNS60215 Advanced Diploma of Accounting Subject Name Tax Plans and Compliance Details of Unit(s) of competency Unit Code and Title FNSACC603 Implement Tax Plans & Evaluate Tax obligations Details of Student Student Name Student ID College Student Declaration: I declare that the work submitted is my own, and has not been copied or plagiarised from any person or source. Signature: ___________________________ Date: _______/________/_______________ Details of Assessor Assessor’s Name Saif Uddin Ahmed Assessment Outcome Results Satisfactory Not Satisfactory Marks / 50 FEEDBACK TO STUDENT Progressive feedback to students, identifying gaps in competency and comments on positive improvements: ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I also am aware of my appeal rights and reassessment procedure. Signature: ____________________________ Date: ____/_____/_____ Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback Student did not attend the feedback session. Feedback provided on assessment. Signature: ____________________________ Date: ____/_____/_____ Purpose of the Assessment The purpose of this assessment is to assess the student in the following learning elements and performance criteria of the unit : Assessment 1: Activity portfolio Competent (C) Not Yet Competent (NYC) Element 1: [Assess legal entity's tax obligations] 1.1 Quantify history and trends of legal entity's tax obligations arising from its historical taxable transactions, using standard accounting techniques Task 9 1.2 Analyse data from current transactions to resolve discrepancies and ambiguities and confirm suitability of legal entity Task 10 1.3 Conduct research to identify updates or additions to compliance requirements relevant to maximising client's benefit and establish recording and reporting requirements Task 12 1.4 Identify legal entity's tax obligations by analysing data on taxable transactions Task 4, Task 5c, Task 6d 1.5 Schedule payments of tax obligations by applying methods of determinations and tax bases Task 11 Element 2: [Develop tax plans] 2.1 Assess implications of schedule on tax entity's operations and structure 2.2 Develop financial management strategies to ensure alignment of cash flow with incidence and schedules of tax obligations 2.3 Develop management process and record-keeping systems to implement financial management strategies and ensure maintenance of audit trail Task 12 2.4 Document management processes that include application of compliance requirements 2.5 Estimate future taxation obligations from income and expenditure forecasts using standard accounting techniques Task 4, 5c, 6d Element 3: [Evaluate and advise on tax plan] 3.1 Prepare budgets in accordance with income and expenditure forecasts, and periodically review to ensure accuracy of tax obligation estimates 3.2 Analyse variances between actual tax obligations and tax plan to identify errors or adjustment required to financial management strategies or management process 3.3 Monitor and evaluate performance of tax plans and advise accordingly 3.4 Monitor and review tax documentation to ensure it complies with legislative and professional requirements 3.5 Analyse evidence of non-compliance to diagnose origin and develop resolution Assessment/evidence gathering conditions Each assessment component is recorded as either Satisfactory (S) or Not Satisfactory (NS). A student can only achieve competence when all assessment components listed under Purpose of the assessment section are Satisfactory. Your trainer will give you feedback after the completion of each assessment. A student who is assessed as NS (Not Satisfactory) is eligible for re-assessment. Resources required for this Assessment All documents must be created in Microsoft Word Upon completion, submit the assessment printed copy to your trainer along with assessment coversheet. Refer to the notes on eLearning to answer the tasks Any additional material will be provided by Trainer Instructions for Students Please read the following instructions carefully This assessment is to be completed according to the instructions given by your assessor. Students are not allowed to take this assessment home. Feedback on each task will be provided to enable you to determine how your work could be improved. You will be provided with feedback on your work within 2 weeks of the assessment due date. All other feedbacks will be provided by the end of the term. Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of competency. If you are not sure about any aspects of this assessment, please ask for clarification from your assessor. Please refer to the College re-assessment and re-sit policy for more information. Task 1: Ethics and Professional Responsibility 10 Marks Research Tax Practitioner Board (TPB) website (www.tpb.gov.au) to identify and explain ethical considerations and legislative requirements relevant to the preparation of tax documentation for legal entities which includes: Conflict of interest: A conflict of interest arises when you have a personal interest or a duty to another person which is in conflict with the duty owed to your client in your capacity as a registered tax practitioner.A conflict of interest may be an actual conflict or a potential conflict and it can arise before you accept an engagement or at any time during the engagement. You have a duty to manage both actual and potential conflicts of interest. Read the following case scenarios: Scenario 1 – Marital break-up: Situation: Terrence and Sandra have recently divorced. They have used the same registered tax agent, Craig, for the past seven years. In preparing their respective income tax returns for the current financial year, it becomes apparent to Craig that the claiming of a rebate or offset by Terrence would prevent the claiming of the rebate or offset by Sandra. Identify the conflict of interest. How can you manage conflicts of interest? Scenario 2 – Registered agent has a personal interest Situation Anthony is a long-time client of Lucia’s, a registered BAS agent. Anthony asks Lucia to assist him to identify an appropriately qualified tax agent to provide advice in relation to his self managed superannuation fund. Lucia is aware of a number of suitable registered tax agents but refers Anthony to Nathan Accounting Pty Ltd because she receives a commission for the referral from this firm. Identify the conflict of interest. How can you manage conflicts of interest? Scenario 3 – Clients in the same industry and registered agent with personal interest Situation Christina is a registered tax agent and has a number of long time clients, one of which is Cold Cream, a large ice-cream retailing franchise. Christina has a 15 percent ownership interest in Cold Cream. Christina is approached by Ice Cold, a rival ice-cream retailing franchise to provide tax agent services including tax planning work. Identify the conflict of interest. How can you manage conflicts of interest? Scenario 4 – Representing two clients involved in a merger transaction Situation Victor Lance Accounting, a large accounting firm and registered tax agent, is engaged by Caxton Pty Ltd and Devon Pty Ltd, two publicly listed companies, to provide confidential tax advice in relation to a potential merger transaction with one another. Identify the conflict of interest. How can you manage conflicts of interest? Code of Professional Conduct: The Code of Professional Conduct (Code) regulates the personal and professional conduct of all registered tax agents, BAS agents and tax (financial) advisers. Identify the principles that falls under 5 separate categories. Scenario: Michael works in the hospitality industry. He engages Rahul, a registered tax agent, to prepare and lodge his income tax return. He instructs Rahul to claim a deduction for work clothing for the black trousers he is required to wear. Although Michael might believe it is in his best interest to reduce his taxable income, Rahul is aware that Michael cannot claim the cost of his work clothing as an allowable deduction because the trousers are not protective or specific to his occupation. Required: What advise Rahul should provide to Michael? What category of the principles it satisfies? Charging of Fees: Better Accounting Service Pty Ltd planning to register as a tax agent and provides taxation service to its clients. Can Better Accounting Service Pty Ltd start charging fees if they provide any client service now? What section of TAS act this can be referred to? (REF: s.50-5TAS Act) Advertising: Scenario: Kate saw a leaflet advertising tax services. The leaflet was distributed by Bob who claimed that he could obtain deductions of up to $3,000 for clients. Kate used Bob to complete and lodge her tax return and paid him a fee for providing this service. Bob was not registered as a tax agent with the TPB. When reviewing Kate’s tax return, the ATO found a number of errors and issued Kate with an amended assessment. Kate ended up having to pay additional tax and administrative penalties. Required: Can Bob start advertising that they will provide a tax agent service? False representations: Refer to the above case study, the Tax Practitioners Board (TPB) commenced proceedings against Bob in the Federal Court for advertising and providing tax agent services for a fee while unregistered. Required: Do you think Bob did false representations? According to the Tax Agent Services Act 2009, What would be the possible penalty if TPB wins the case? Task 2: Key elements related to tax documentation for legal entities such as companies, trusts, and partnerships 3 Marks Trust: A trust is not a separate taxable entity. However, a trust is required to determine its net trust income and lodge an income tax return. Required: List the elements that are contained in a Statement of Distribution which shows fir each beneficiary. Companies: U Boat is established and located in Singapore. It supplies boating and camping materials in Australia. Required: How would you identify if U boat is resident and is subject to pay tax? Partnerships: s.995-1(1) defines a partnership as “an association or persons carrying on a business as partners or in receipt of income or statutory income jointly but does
Answered Same DayMar 08, 2020FNSACC603Training.Gov.Au

Answer To: Saif T-1.8.1 Details of Assessment Term and Year T1 2018 Time allowed Week 1 - 7 Assessment No 1...

Ckreta answered on Mar 13 2020
138 Votes
Corporate Governance
Task 1
(a)The budgets are made on the various estimates and assumptions. The management prepares budget for the six months and the outcomes of the budgets for the first six months are not very pleasing. The sales of the company decreases every month and the variances arise from the budgeted figures. The actual expenses also increased in the six months.
(b)No, the company fails to achieve its KPI. The company
set KPI for the sales that it will increase by 10% but it in actual it decreases every month. The advertising expenses do not remain same for the next 6 months. The wages and salaries do not decrease by 5% in all the months although it increases in the last three months. Online sales also decrease rather than increase.
(c) In starting two months, the cash flow is positive of the company but after that it becomes negative for the rest of period.
(d)The company has to make changes in the budget and has to change its KPI. The KPI will be reduced so it can be achieved by the company’s performance. The increase in total sales for the next 3 months will be 4% so it will be achieved with actual performance. The company has to introduce new methods for reducing the cost of the expenses. These changes will increases the cash flow for the upcoming period.
(e)The business is complying with ATO requirements and the reporting is made on the time manner. Fair accounts are prepared by the accountant and reporting is made to the ATO on time.
(f)The appropriate recommendations for meeting the ATO and other legal requirements are as follows:
· The tax implications related with your business structure
· Whether the company is registered for ABN
· Whether the business is registered under GST
· The records of the business needs to be keep for the next 5 years
· The deduction claim in the business is needs to be reported
(g)The management has to make changes in the internal control system to detect any material misstatement. The cost of the company increases and the sales of the company aredecreases in next 6 months. There may be frauds and errors in the sales and the cash as it decrease every month. The company has to implement new policies and procedures and starts to give training to the employees so the wastage in the material and overhead decreases. If proper training is given to the labor then labor cost will decrease. The company has to use new marketing strategies to increase its sales.
Task 2
(a)The budget of Fly Me High Travels is made for the six months. The budget contains the information of the sales, expenses, and cash. The actual sales are less than the budgeted sales and there are variances in the budget and the actual. The actual expenses are more than the budgeted expenses and because of that the cash balance for the last 5 month is negative. The negative cash balance shows that the company does not have sufficient funds for its day to day operations. Changes should be made in the policies and procedures for the better performance of the company.
(b)The requirements of the corporate governance and parameters are as follows:
· Monitoring and discipline by the board of directors
· Make provisions for the hostile takeovers made by the company
· Compensation plans should be made in the case of any type of injury
· The choices for capital structure is need to be made by the top management
· Accounting control systems are installed in the accounts department for the correct accounting of the accounts.
(c)Internal control system is the plans and procedures made by the management to detect and correct material misstatement in the business. If the management made strict controls on frauds and errors than the chances of misstatement will decrease and it will help in reducing the risk. If the internal control of a company is strong than the chances of defalcation in the fraud decreases and it will help in building a reliable estimate that will be included in the budget and the budget will look more reliable.
Task 3
The report is made on the performance of the budget in the past six months and the variances occur between the actual figures and the budgeted figures are discussed. When the budgeted data is compared with the actual data, many issues are raised and analysis for these issues is made. The cash flows of the company in budget is positive...
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