Saif
T-1.8.1
Details of Assessment
Term and Yea
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 Assesso
Assessor’s Name
Saif Uddin Ahmed
Assessment Outcome
Results
XXXXXXXXXXSatisfactory XXXXXXXXXXNot 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
XXXXXXXXXXStudent did not attend the feedback session.
XXXXXXXXXXFeedback 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 cu
ent 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 e
ors 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 Traine
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 co
ectly, 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
eak-up:
Situation:
Te
ence 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 cu
ent financial year, it becomes apparent to Craig that the claiming of a rebate or offset by Te
ence 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 refe
al 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 refe
ed 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 e
ors 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 XXXXXXXXXXdefines a partnership as “an association or persons ca
ying on a business as partners or in receipt of income or statutory income jointly but does