FNS40217 | FNSTPB401 Complete Business Activity and Instalment Activity Statement Tasks Assessment Tasks | V 2.0 | Apr 2018 Page 1 of 21 Assessment Task 1: Assessment Task Research and Present: BAS...

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Task 2 part B should to be done using MYOB.Not Excel


FNS40217 | FNSTPB401 Complete Business Activity and Instalment Activity Statement Tasks Assessment Tasks | V 2.0 | Apr 2018 Page 1 of 21 Assessment Task 1: Assessment Task Research and Present: BAS Legislation and Requirements Schedule TBA Outcomes Assessed Performance Criteria: 1.1, 1.2, 1.3, 1.4, 1.5, 1.6 Addresses some elements of required skills and knowledge as shown in the Assessment Matrix Description: Businesses use activity statements (BAS) to report and pay a number of tax obligations, including GST, pay as you go (PAYG) instalments, PAYG withholding, and fringe benefits tax. Individuals who need to pay quarterly PAYG instalments also use Activity statements (ATO, 2013). Activity statements are personalised to each business or individual to support reporting against identified obligations. In this assessment task you will be required to research and present legislative and regulatory requirements and organisational and industry requirements relating to Activity Statements for Bean’s Coffee. Assuming the role of an Accounts Officer working for Bean’s Coffee, complete the following tasks in accordance with company’s relevant policies and procedures as provided in the “Finance Policy and Procedure Manual”. For the purpose of this task, your trainer/assessor will play the role of the Accounts Manager. Ensure that you communicate and obtain necessary information, clarification, and approval as required. Tasks: This task has two parts. Before you start working on the tasks, arrange a meeting with your manager (trainer/assessor role play) according to a pre-arranged schedule (you trainer/assessor will discuss and organise in the class. Assume that you have been asked to research relevant taxation legislation and regulations and prepare a reference document to be added to the company’s Finance Policy and Procedures Manual” as an appendix. Discuss and confirm with your manger (trainer/assessor role pla) the following organisational requirements; 1. The task requirements 2. Required completion date/timeframe 3. Format and contents of the reference documents 4. Presentation requirements FNS40217 | FNSTPB401 Complete Business Activity and Instalment Activity Statement Tasks Assessment Tasks | V 2.0 | Apr 2018 Page 2 of 21 Ensure that as part of your reference document, you add information and technical requirements (including software) for accessing ATO’s online services through Business Portal. Part A: In this part you will be required to research and describe; 1. Briefly describe taxation legislations that covers provisions of GST and related services; in particular; o Tax Agent Services Act 2009 (TASA 2009) o Fringe Benefits Tax Assessment Act 1986 o Superannuation Guarantee (Administration) Act 1992 o Superannuation Guarantee Charge Act 1992 o A New Tax System (Goods and Services Tax) Act 1999 o Income Tax Assessment Act 1997 o Income Tax Assessment Act 1936 o Taxation Administration Act 1953 o Privacy Act 1988 2. Regulatory requirements for preparation and lodgement of BAS for (for comparison purpose); a) Sole traders b) Companies c) Not-for-Profit organisations d) Discretionary trusts 3. Sources on relevant information and links to the relevant ATO information sheets (e.g. NAT 7393 - PAYG instalments) 4. Suggested professional network contacts for sharing and obtaining information outside the company 5. Regulatory requirements for completion and signing of BAS 6. A glossary of key taxation and GST terminology (e.g. BAS – Business Activity Statement; essentially covering lexicons appearing on GST form and worksheet) 7. The obligations of a BAS agent under the Tax Agent Services Act 2009 (TASA 2009), including the Code of Professional Conduct and the Civil Penalty provisions 8. Requirements for registration as a BAS Agent under the Tax Practitioners Board (TPB) This document should be word-processed and written in a formal style appropriate for inclusion in the company’s manual. Legislations and regulations must be accurately listed and appropriate links should be provided to ATO and other sites. Part B: 1) Obtain a sample BAS calculation worksheet from ATO website (www.ato.gov.au) and; Describe each code used by ATO under Sales, Purchase, and GST Adjustment (Example: G3 – Tax Free Sales). List codes in a tabular format with a separate column for each of the above areas 2) Describe and provide examples of;  Taxable Sales  GST free Sales  Input Taxed Sales  Out of Scope Sales http://www.ato.gov.au/ FNS40217 | FNSTPB401 Complete Business Activity and Instalment Activity Statement Tasks Assessment Tasks | V 2.0 | Apr 2018 Page 3 of 21 Ensure that you provide examples of at least five (5) items under each of the above categories 3) Create a quick reference sheet on BAS and PAYG that you could give to your clients. Make sure to include information on their obligations, your role, and provide links to further resources. Once completed, present your reference document to the class assuming the class audience as a multi- cultural mix of organisational stakeholders. 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.  Referred to and used appropriate organisational manual/document for the task  Discussed and clarified the task with the manager (trainer/assessor role play)  Completed the task as per the instructions provided  Maintained organisational context and followed specific organisational requirements (role play) for completing the task  The complied information demonstrates the extent to research undertaken and resources used  Legislative and regulatory information is appropriately identified, referenced, and organised for the organisation’s manual  The reference document includes technical information and requirement for accessing and using ATO’s online services  Regulatory requirements for different types of entities is research and listed for comparison purposes  Additional information sources and networks are identified and suggested  A glossary of GST terminology is prepared for reference; and is consistent with BAS worksheet and report documents  Relevant legislative and regulatory requirements pertaining to services of a BAS agent are adequately researched and articulated for reference  Requirements for registration as a BAS Agent with TPB are researched and summarised for reference  Described and provided examples of a range of sales types as required on BAS form  Prepared a comprehensive and structured reference document with appropriate headings and consistent flow of contents  Presented the reference document to the class audience  Presented was appropriately styled and structured for a consistent user experience  Maintained a positive body language and engaged the audience  Allowed for questions and feedback and appropriately answered all the queries  Demonstrated the ability to present to and engage a diverse audience Submission Guidelines To be completed in the classroom in presence of a trainer/assessor. Submit;  Word-processed reference document  Related and attached documents as required in the task  Copies of legislative and regulatory information used (relevant parts)  Copies of presentation slides FNS40217 | FNSTPB401 Complete Business Activity and Instalment Activity Statement Tasks Assessment Tasks | V 2.0 | Apr 2018 Page 4 of 21 All assessment tasks must be submitted with an Assignment Cover Sheet with submission date and signature. FNS40217 | FNSTPB401 Complete Business Activity and Instalment Activity Statement Tasks Assessment Tasks | V 2.0 | Apr 2018 Page 5 of 21 Assessment Task 2: Part A: BAS and Instalment Exercises Assessment Task BAS and Instalment Exercises Schedule TBA Outcomes Assessed Performance Criteria: 1.4, 1.6, 1,7. 2.2, 2.3, 3.1, 3.2, 3.4 Addresses some elements of required skills and knowledge as shown in the Assessment Matrix Description: These tasks have been designed as in-class assessment tasks to be scheduled in accordance with respective learning sessions. These tasks provide the opportunity to apply the understanding of GST/BAS terminologies and practice transactions before undertaking the final assessment task. Complete the following tasks. 1. An organisation that is an accruals quarterly payer has completed the BAS for the third quarter in the tax year; a) By what date must this be reported and lodged? b) If the organisation had chosen to report monthly, by what date would the March BAS need to be lodged? 2. Complete the following table by placing a  to indicate reporting requirements. BAS and IAS reporting requirements Gross annual turnover of sales Quarterly reporting Monthly reporting Cash payer Accruals payer Less than $2 million More than $2 million FNS40217 | FNSTPB401 Complete Business Activity and Instalment Activity Statement Tasks Assessment Tasks | V 2.0 | Apr 2018 Page 6 of 21 Less than $20 million More than $20 million Annual PAYG withholdings Less than $25,000 More than $25,000 FBT liability greater than $3,000 3. In the second quarter of the tax year a quarterly paying firm makes taxable supplies (sales) of $122,000. They have tax invoices to the gross value of $55,000 all entitled to input tax credits. Calculate their entitlement to input tax credits and liability to output tax payable as well as the net GST owing to the ATO for the quarter. 4. What is the basic information required on a valid tax invoice for less than $1,000? FNS40217 | FNSTPB401 Complete Business Activity and Instalment Activity Statement Tasks Assessment Tasks | V
Answered Same DayNov 17, 2021FNSTPB401Training.Gov.Au

Answer To: FNS40217 | FNSTPB401 Complete Business Activity and Instalment Activity Statement Tasks Assessment...

Abhishek answered on Nov 27 2021
161 Votes
Assessment Task 1 Part A
Ques -1
Relevant Taxation Legislation and Regulations from:-
1. Tax Agent Services Act 2009 (TASA 2009) –
Background & Objective :-
Prior to the incorporation of this Act, Tax filing standards were suffering. People without having the sufficient know-how were filing returns which was causing hardship for the assesses as well as for the ATO. This lead to the emergence of this Act and it helped in regularising the Tax Filing Services by way of regulating the People who were to file returns or represent assesses before Authorities.
The Act tried to achieve its objective majorly through the following steps:-
-Tax agents, BAS agents and tax (financial) advisers are to be registered under a National Board constituted for this purpose ; and
-Code of Professional Conduct is to be introduced for tax agents, BAS agents and tax (financial) advisers who are registered
under boa; and
-Registered tax agents, BAS agents and tax (financial) advisers to be subjected to sanctions for the purpose of ensuring discipline.
Why we should a hire a Registered Tax Professional :-
· A registered Tax Professional is liable to adhere to “The Code of Professional Conduct” which safeguards the interest of the clients. The standard code requires a registered professional to abide to the following values :-
· Honesty & Integrity
· Independence
· Confidentiality
· Competence
· Other Responsibilities
Therefore, hiring a registered Tax Professional can ensure that assesses Taxation work abides to the Taxation Authority Standards. There are also some added benefits in hiring a registered Professional like extra time for lodging BAS, applicability of Safe Harbour Provisions which protects the assesse from fines or penalties due to errors in return filing, etc.
2. Fringe Benefits Tax Assessment Act 1986
An Act to impose a tax in respect of the value of certain fringe benefits provided in respect of the employment of employees.
Fringe Benefit Tax-
FBT is a tax that employers pay for benefits paid to an employee (or their associate, such as a family member) in addition to their salary or wages. FBT is calculated on the taxable value of the benefits you provide. This is separate to income tax.
Calculating Fringe Benefit Tax-
When working out your FBT liability you gross-up the taxable value of benefits you provide, to reflect the gross salary employees would have to earn at the highest marginal tax rate (including Medicare levy) to buy the benefits after paying tax.
First of all, taxable value of benefits is grossed up in the following manner :-
Taxaable Value of Fringe Benefits = (Fringe Benefits for which Input Tax credit can be claimed)*2.0802 + (Fringe Benefits for which Input Tax credit can not be claimed)*1.886
The above amount is multiplied by the FBT Rate i.e. 47% to get the Fringe Benefit Tax Liability.
3. Superannuation Guarantee (Administration) Act 1992
An act to ensure that employers provide superannuation support to most employees.
This legislation provides that employees must receive at least a set minimum amount of superannuation support from their employers.
An employer may be subjected to Superannuation Guarantee Charge to be paid to Australian Tax Office in case employer fails to pay minimum amount of Superannuation.
A fixed percentage of eligible salary is Superannuation Guarantee minimum. Superannuation guarantee minimum for the year 2019-20 has been set to 9.5%.
4. Superannuation Guarantee Charge Act 1992
An Act to impose a charge on any shortfall in the amount contributed by employers to RSAs or superannuation funds for the benefit of employees.
Employers are required to provide a prescribed minimum level of superannuation support for each of their employees, subject to limited exemptions in accordance with “The Superannuation Guarantee (SG) Scheme”, administered by the Australian Taxation Office (ATO)
A SG Charge equivalent to the amount of the superannuation not contributed (the 'shortfall') plus an interest component and an administrative charge may be levied on an employer who fails to provide the prescribed level of minimum support according to this act.
Tax Deduction is available for amount of Employer contributions towards a complying superannuation fund (or retirement savings account) for the benefit of employees but not for the SG Charge.
5. A New Tax System (Goods and Services Tax) Act 1999
An Act implementing and administering a goods and services tax. An entity registered under GST is required to comply with the provisions of this Act.
Some General provisions of the Act:-
When is GST payable and when can one claim Input Tax Credits?
1. When making taxable supplies and taxable importations, GST is payable by supplier.
2. Creditable acquisitions and creditable importations entitles the purchaser to Input Tax Credits.
Calculation of Net amounts
A net amount for a tax period (which may be altered to take account of adjustments) is produced by setting off amounts of GST and amounts of input tax credits against each other.
When the net amount is to be reported i.e. Tax periods?
Tax periods are applicable to all entities that are registered, or required to be registered and an entity is required to report the net amount for a tax period which is either owed by the entity to the ATO or vice-versa.
6. Income Tax Assessment Act 1997
An Act to consolidate and amend the law relating to the imposition assessment and collection of a tax upon incomes.
Specific provisions in Income Tax Assessment Act 1997 relating to GST.
Division 17
Effect of GST etc. on assessable income
Illustrations on GST effecting assessable income
GST and increasing adjustment
An amount is not assessable income, and is not exempt income, to the extent that it includes an amount relating to:
                     (a)  GST payable on a taxable supply; or
                     (b)  an increasing adjustment that relates to a supply; or
                     (c)  an increasing adjustment that:
                              (i)  relates to an acquisition; and
                             (ii)  arises in circumstances that also give rise to a *recoupment that is included in assessable income.
Certain decreasing adjustments
(1)  An amount of a decreasing adjustment that arises under Division 129 or 132 of the GST Act is assessable income, unless the entity that has the adjustment is an exempt entity.
             (2)  However, the amount is not assessable income to the extent that, because it becomes a component of a net input tax credit, a reduction is made under section 10330 (reduction of cost base etc. by net input tax credits).

7. Income Tax Assessment Act 1936
This Act came into force for consolidating and amending the law related to the imposition assessment and tax collection upon incomes. This act is a predecessor of the Income Tax Assessment Act 1997 to which all new matters are now generally added.
8. Taxation Administration Act 1953
This Act came into force for the administration of certain Tax Acts and for related purposes. This Act provides for administrative penalties, or penalty tax in cases of false or misleading income tax returns and goods and services tax returns, and false or misleading statements in tax-related documents that may be imposed by the ATO.
9. Privacy Act 1988
To protect the Privacy of the people of Australia was the main objective for this Act came into force.
The Act was constituted for achieve the following:
(a) Promotion for protecting the privacy of individuals; and
(b) Recognition of the objective that protection of the privacy of individuals must be balanced with the interests of entities in carrying out their functions or activities; and
(c) Provisioning for the nationally consistent regulation of privacy and for handling of personal information; and
(d) Promoting handling of personal information by entities in a responsible and transparent manner; and
(e) Facilitating an efficient credit reporting system while ensuring that individual’s privacy is respected; and
(f) Facilitating the free flow of information across national borders while ensuring respect for Individual’s Privacy.
(g) Developing a mechanism for providing means to individuals for complaining about an alleged interference with their privacy; and
(h) Implementing Australia’s international obligation in relation to privacy.
Q-2 Regulatory requirements for preparation and lodgement of BAS for (for comparison purpose);
Following are the regulatory requirements for preparation and lodgement of BAS for :-
a. Sole Traders
This is a simplest form of Business Structure. When an Individual carry on a business solely as the only owner then we call him/her as a sole trader.
He/ She is required to register for GST if the annual turnover is $75,000 or more. A sole trader is informed by the ATO about filing of Business Activity Statement. ATO’s online portal can be accessed by the sole trader through the help of MyGov...
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