ASSESSMENT 2
Course Name FNS60215 & FNS60217
Advanced Diploma of Accounting
Subject/module Tax Documentation
Assessment method Part A – Written or Questions
Part B – Case Study
Weighting 50%
Units of Competency FNSACC601
Prepare and administer tax documentation for legal entities
Instructions
1. Assessments should be completed as per your trainer’s instructions.
2. Assessments must be submitted by the due date to avoid a late submission penalty.
3. Plagiarism is copying someone else’s work and submitting it as your own. You must write your answers in your own words and include a reference list. A mark of zero will be given for any assessment or part of an assessment that has been plagiarised.
4. You may discuss your assessments with other students, but submitting identical answers to other students will result in a failing grade. Your answers must be yours alone.
5. Your trainer will advise whether the assessment should be digitally uploaded or submitted in hard copy. Assessments that are digitally uploaded should be saved in pdf format.
6. You must attempt all questions.
7. You must pass all assessments in order to pass the subject.
8. All assessments are to be completed in accordance with WHS regulatory requirements.
Assessment 2
Part A – Written or Oral Questions
1. On 1 May 2005 Brian purchased his main residence. On 1 June 2010, he was transferred overseas and rented out the dwelling. Brian did not elect any other dwelling as his main residence at any time. On 1 June 2014 he came back to Australia and moved in to the premises until 30 June 2015 when it was sold. How much will be subject to capital gain tax? Explain. (3 marks)
2. Li, who is not married, migrated from China to Australia on a permanent resident’s visa. Shortly after arriving in Sydney, he secured a job with an accounting firm. He intends to reside here permanently. In 2014-15, he received gross salary of $60,000, bank interest income from the savings in China of $2,000 and paid $1,250 for the accounting course that maintained or improved the skill and specific knowledge required for his current work activities. Assume that he did not pay any taxes on the interest income in China. He does not have a private health fund with hospital cover. Calculate how much tax Li is required to pay? (Show all your working and explanation)
(12 marks)
3. What is the difference between deduction and offset? (2 marks)
4. Describe the four main types of offsets. (8 marks)
5. Describe the three types of supplies under the GST legislation. (6 marks)
6. You are the owner of ABC Pty Ltd, and provide a company car with a cost of $42,000 from 1 April 2014 for the full 365 days to an employee for personal transportation. The employee made an after-tax contribution of $1,500. The car is not an in-house benefit. Besides the income tax, is there any tax obligation for the company? How much will the company be required to pay for the tax liability in the above transaction? How will this transaction affect the employee’s Payment Summary? (Show all your working and explanation)
(12 marks)
7. Under superannuation law, what are concessional contribution and non-
concessional contributions? (2 marks)
8. List FIVE possible tax documentation required for the company. (5 marks)
Part A total: 50 marks
Assessment 2
Part B – Case Study
Prepare and Administer Tax Documentation
Continued the case in Part B of Assessment 1, one week after you emailed Gary, he provided all the information needed for his 2015 tax return. You summarise all the information as below:
Personal Information
Surname: Smith Given name: Gary
TFN: 123 456 789 Sex: Male
Daytime contact: 9555 6666 Date of birth: 16 December 1981
Address: 189 Kent Street, Sydney, NSW 2000

Shares Purchase Date Purchase Cost Sell Date Proceeds
ABC 1 July 2012 $1,000 23 March 2015 $4,000
XYZ 1 August 2014 $2,000 25 June 2015 $6,000
PAYG Summary for the year ended 30 June 2015
Employer Details Tax Withheld Gross Payment
11 222 333 444 Telplus Pty Ltd $25,012 $95,000
Interest Income for year ended 30 June 2015
Banks Tax Withheld Gross Payment
Bank A $0 $100
Bank C $0 $500
Bank W $30 $300
Dividends Receiv ed
Company Payment Date Unfranked Franked Franking Credit
HOA 29/12/2014 $0 $1,000 $429
HOA 2/7/2015 $0 $1,000 $429

Item Invoice Date Amount
New Laptop 1 July 2015 $900
Uniform with logo Laundry with others Loads Written documents
Yes Yes 40 loads a year Not available

Item Invoice Date Amount
Course fee at APC 5 August 2014 $2,250
Investment Property 2015
Property Address: 123 Clarence Street, Sydney NSW 2000
Ownership: 100% First day for rent: 15 September 2013
Rental period this year: 1 July 2014 to 30
June 2015 Rental income: $400 per week
Council rate: $260 per quarter Strata levy: $500 per quarter
Water rate: $200 per quarter Interest on loan: $13,500
Pest control: $100 Insurance: $1,000 per year
Cleaning: $100 Property management fees: $500
Advertising: $200 Sundry expenses: $150
Required:
1. Prepare the tax documentation (i.e. tax return) for your client Gary;
2. Show all the workings for the preparation of tax documentation;
3. Calculate the income tax payable for Gary (Show all the workings);
4. Advise Gary the due date for the lodgement of the tax return;
5. After the preparation of the tax return, what will you do next before submitting to
ATO?
Notes to students:
f You can use the following template to answer Part 1, 2, 3 and 5; ? Your answers have to be directly connected with the scenario;
f You are required to seek the information from ATO website www.ato.gov.au for any areas you are not familiar with in order to provide the appropriate advice to your client.
Capital Gains Worksheet
Share ABC Share XYZ
Date of acquisition:
Date of CGT event:
Capital proceeds:
Cost base:
Total current year capital gains:
Less: Discount
Net capital gains:

Property Schedule
Property address:
Date of first rental income:
Number of weeks rented
Gross rental income:
Expenses:
Advertising for tenants:
Body Corporate fees:
Borrowing expenses:
Cleaning:
Council rates:
Capital Allowances (depreciation on plant):
Gardening/lawn mowing:
Insurance:
Interest on loans:
Land tax:
Legal fees:
Pest control:
Property agent fees/commission:
Repairs and maintenance:
Capital works (special building write-off)
Stationery, telephone and postage:
Travel expenses:
Water charges:
Sundry rental expenses:
Total expenses:
Net Rent:
Tax Return for an Individual 2015
01/07/2014 to 30/06/2015
Title: TFN:
Surname: Given name:
Sex: Daytime contact:
Date of birth:
Postal address:
Home address:
Taxpayer Declaration: I declare:
The information in this tax return is true and correct; and I authorise my registered Tax Agent to lodge this tax return.
Privacy:
The ATO is authorised by the Taxation Administration Act 1953 to request the provision of Tax File Numbers (TFNs). The ATO will use the TFNs to identify each taxpayer in the ATO’s records. It is not an offence not to provide the TFNs. However, if the TFNs are not provided, it could increase the chance of delay or error in the assessment(s) provided.
Taxpayer’s Signature:
Date:
Tax Agent Declaration: I, insert your name
declare that this tax return has been prepared in accordance with information supplied by my client. The client has signed the Electronic Lodgement Declaration and hereby authorised me to lodge the tax return.
Agent’s Signature:
Date:
Client Reference:
Tax Return for an Individual 2015
01/07/2014 to 30/06/2015
INCOME
Salary or Wages
Occupation:
Payer’s ABN and name Tax withheld Gross payment

Gross Interest
Banks Tax withheld Gross payment

Part B total: 102 marks
Assessment 2 total: 152 marks
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