read instruction carefully and need to be on time
Exam Poultry and Game FNSACC502 Prepare tax documentation for individuals Assessment Qualification Code / Name: FNS60215-Advanced Diploma of Accounting Competency Code / Unit(s): FNSACC502 Prepare tax documentation for individuals Student’s full legal name: name name: Student ID: Assessor’s name: Structured Activities: Assessment Task 1 – Written Questions Assessors must explain the assessments to the students prior to the students commencing their assessment tasks. Assessment Instructions Prior to commencing the assessments your assessor will explain each assessment task and the terms and conditions relating to the submission of your assessment task. Please consult your assessor if you are unsure of any questions. It is important that you understand and adhere to the terms and conditions and address fully each assessment task. If any assessment task is not fully addressed, then your assessment task will be returned to you for re-submission. Your assessor will remain available to support you throughout the assessment process. Written work Assessment tasks are used to measure your understanding and underpinning skills and knowledge of the overall unit of competency. When undertaking any written assessment tasks, please ensure that you address the following criteria: · address each question including any sub-points · demonstrate that you have researched the topic thoroughly · cover the topic in a logical, structured manner · your assessment tasks are well presented, well referenced and word processed · your assessment tasks includes your full legal name on each and every page. Active Participation It is a condition of enrolment that you actively participate in your studies. Active participation is completing all the assessment tasks on time. If you do not participate in your studies, you will be required to report to the Student Services. Plagiarism: Plagiarism is taking and using someone else's thoughts, writings or inventions and representing them as your own. Plagiarism is a serious act and may result in a student’s exclusion from a course. When you have any doubts about including the work of other authors in your assessment, please consult your trainer/assessor. The following list outlines some of the activities for which a student can be accused of plagiarism: · Presenting any work by another individual as one's own unintentionally. · Handing in assessments markedly similar to or copied from another student. · Presenting the work of another individual or group as their own work. · Handing up assessments without the adequate acknowledgement of sources used, including assessments taken totally or in part from the internet. If it is identified that you have plagiarised within your assessment, then we will organise a meeting to discuss this with you. What about Copyright? You must be careful when copying the work of others. The owner of the material may take legal action against you if the owner's copyright has been infringed. You are allowed to do a certain amount of copying for research or study purposes. Generally, 10% or one chapter of a book is acceptable, where the participant is studying with, or employed by, an educational institution. Assessment Outcomes You must submit a project report to your assessor by the due date. Your assessor may not accept your work after the due date unless prior permission was granted to you by your assessor. Your submitted work will be assessed against the set performance indicators (Refer to performance indicators in marking guide section) your assessor will record your performance as “Satisfactory” or “Not Satisfactory” against each performance indicator. Your result for this assessment will be “Satisfactory” if your performance is satisfactory against all indicators Your result for this assessment will be “Not Satisfactory” if your performance is not satisfactory against any one or all indicators. If you are deemed “Not Satisfactory” you will be provided with feedback from your assessor and will be given another chance to resubmit your assessment task. Assessment Appeals process: If you feel that you have been unfairly treated during your assessment, and you are not happy with your assessment and you are unhappy about the outcome as a result of that treatment, you have the right to lodge an appeal. You must first discuss the issue with your trainer/assessor. If you would like to proceed further with the request after discussions with your trainer/assessor, you need to lodge your appeal to the Course Coordinator, in writing, outlining the reason(s) for the appeal. Resources: You are allowed to use Internet. Recommended websites; www.ato.gov.au, and books including: Australian Master Tax Guide 2014 - 54th Edition Text book – Income Tax Law Compliance and Planning (2013), 10th Edition-Peter Baker, Geoff Cliff & Sonia Deaner Handitax user manual Also, you are allowed to refer to journals, newspapers, books that are relevant to your course in the Library, which is situated in level 3, Room Number 308. Also, you might use information uploaded by your Trainer to the Moodle and “SmallPrint” information available through the Moodle if available. Your student ID care must be presented for verification. Application of the unit: This unit describes the skills and knowledge required to prepare non-complex income tax returns for individuals in accordance with statutory requirements, and encompasses gathering and verifying data, calculating taxable income and reviewing compliance requirements. It applies to individuals who use systematic approaches and follow specific guidelines to ensure compliance requirements are met. Context Purpose of this assessment is to assess skills and knowledge required to demonstrate and apply knowledge of Australian taxation law in the preparation of tax returns for individuals; access, interpret and comply with information on relevant legislation, statutes, regulation and ATO rulings; provide taxation advice having regard to the facts and relevant law; develop organisational procedures to meet compliance requirements; apply organisational policies and procedures and accounting principles and practices; gather and verify data to calculate taxable income and review for compliance; prepare tax returns for individuals. This assessment takes place in International Institute of Business and Information Technology (IIBIT) computer lab. The following factors must be observed during assessment – please follow WHS instructions given by your trainer and ones put on the wall. This assessment is due when you are instructed by your trainer. You need to demonstrate ability to: · research, critically evaluate and apply new or changed legislative requirements and apply where relevant to the preparation of the client's tax documentation · identify client data required to calculate taxable income · prepare tax documentation for an individual that complies with: · Australian taxation law and Australian Taxation Office (ATO) rulings · accounting principles and practices · organisational policy and procedures You need to demonstrate knowledge of: · identify and explain ethical considerations and legislative requirements relevant to the preparation of tax documentation for individual taxpayers, including: · conflict of interest · responsibilities of tax agents including Code of Professional Conduct obligations under the Tax Agent Services Act (TASA) and Tax Agent Services Regulations (TASR) · identify and explain the following key elements of Australian tax law as it relates to tax documentation for individual taxpayers: · the rules and principles of Australian tax law including an understanding of the legal environment in which these principles operate, basics of the legal system, constitutional considerations and separation of powers · key aspects of the income tax law covering concepts of: · residence and source · related elements of international tax · assessable income · deductions (including general, specific and decline in value) · tax rebates and offsets · tax accounting · income test definitions that include reportable superannuation and fringe benefits tax (FBT) · key aspects of relevant principles ad application of the capital gains tax (CGT), FBT and termination payment rules for individual taxpayers · basic concept of goods and services tax (GST) · administrative aspects of the taxes identified above including documentation, tax collection and withholding mechanisms, assessments, obligations, rulings, penalties and audits · describe the key sources of information and data required to calculate taxable income · describe the key features of organisational policy and procedures relating to the preparation of tax documentation for individual taxpayers · outline the key accounting principles and practices relevant to the preparation of tax documentation for individual taxpayers. Assessment Task 1 - Written Questions Instruction to students a) all questions must be answered, b) all answers must be given in Word Document, c) every page of your Word Document must include your name and your student ID, d) each answer should be given within 5 to 6 sentences, e) all reference should be shown in Footnote, f) once you finish, print out your work and attach to the project. 1. New clients indicate they are self-employed, are paid by one company but claim to work as a contractor. Services are provided from the client’s home office and the client wants to claim the benefits that accrue from that classification. Which questions would you ask to clarify the client’s employment status? 2. Define the following and give examples: a. Assessable Income b. Exempt Income c. Allowable Deduction d. Taxable Income 3 From where would you gather current data concerning assessable income and allowable deductions? 4. Which payments are classified as rental income? 5. Which type of lump sum payment is not an assessable amount? 6. If a taxpayer had a 60% interest in an asset that had a market value of $10,000, what is the asset value for the taxpayer? 7. Use the gross profit method to calculate the ending stock on hand for an organization which has: · An opening stock on hand at cost $250,000 · Purchase for the year total at cost $800,000 · Sales for the year $1,000,000 · Gross profit margin is 30% What is the closing stock on hand using gross profit margin 30%? 8. What are the responsibilities of the tax agent in regard to identifying and resolving discrepancies? 9. A taxpayer is an IT Consultant, he received $1,200 on 1 June 2016, as a retainer to provide IT consulting services that he will provide in the future, using the accrual accounting basis, prepare the journal entry for the financial year ended. 10. A taxpayer pays $1,800 for six months insurance. The premium is paid on January 31, 2016. Using the balance sheet approach prepare the account to reflect this transaction and prepare the journal entries for the end of the first month. 11. One of the approaches the ATO uses to ensure compliance is data matching. What is it and how does maintaining records assist the taxpayer in complying with the requirements of the ATO? 12. Tuan is a resident Taxpayer, he has a taxable income of $50,000 for the year ended 30 June 2016, calculate the tax liability for Tuan? 13. Peter is a non-resident Taxpayer. His taxable income from employment in Australia was $36,000 for the year ended 30 June 2016. PAYG tax withheld from Peter’s gross wages amounted to $11,900. 14. Sue, a resident taxpayer aged 35, derives business income as a hairdresser.