Assessment Details
Qualification Code/Title FNS60217 Advanced Diploma of Accounting
Assessment Type Assessment -01 Time allowed
Due Date Location AHIC Term / Year
Unit of Competency
National Code/Title FNSACC603 Implement tax plans and evaluate tax obligations
Student Details
Student Name Student ID
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: _____/______/__________
Assessor Details
Assessor’s Name
RESULTS (Please Circle) SATISFACTORY NOT SATISFACTORY
Feedback to student:
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
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: ______/_______/___________
Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback.
Signature: _______________________________________
Date: ______/_______/___________
Instructions to the Candidates
? This assessment is to be completed according to the instructions given below in this document.
? Should you not answer the tasks correctly, you will be given feedback on the results and gaps in knowledge. You will be entitled to one (1) resubmit in showing your competence with this unit.
? If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
? Please refer to the College re-submission and re-sit policy for more information.
? If you have questions and other concerns that may affect your performance in the Assessment, please inform the assessor immediately.
? To be deemed competent for this unit you must achieve a satisfactory result with tasks of this Assessment along with a satisfactory result for another Assessment.
? This is an Open book assessment which you will do in your own time but complete in the time designated by your assessor. Remember, that it must be your own work and if you use other sources then you must reference these appropriately.
? This is Individual Assessments. Once you have completed the assessment, please upload the softcopy of the completed Assessments in the given submission link in AHIC Moodle.
? Submitted document must follow the given criteria. Font must be Times New Roman, Font Size needs to be 12, line spacing has to be Single line, and footer of submitted document must include student ID, Student name and the Page number.
? If any abbreviation/acronym is used, you must write full words in bracket.
? Plagiarism is copying someone else’s work and submitting it as your own. Any Plagiarism will result in a mark of Zero.
KNOWLEDGE ASSESSMENT
1. Consider conflict of interest in the context of preparing taxation documentation for legal entities.
Answer the questions below.
i. Identify one (1) relevant ethical consideration from the TPB Code of Conduct.
You can access the TPB Code of Conduct here.

ii. How is the ethical consideration applied when preparing tax documentation for legal entities? Your response must not go beyond 50 words.

iii. Identify one (1) relevant legislative requirement for representatives of Australian financial services (AFS) licensees.
AFS licensees are licensed businesses providing financial services.

iv. How is the above legislative requirement applied when preparing tax documentation for legal entities? Your response must not go beyond 50 words.

2. Consider the responsibilities of tax agents in preparing taxation documentation for legal entities.
Answer the questions below.
i. What is the obligation described by the 13th principle of the TPB Code of Conduct as outlined in the Tax Agent Services Act 2009 (TASA)?
You can access the TPB Code of Conduct here.

ii. How is this obligation applied when preparing tax documentation for legal entities? Your response must not go beyond 50 words.

iii. What is the obligation described by the 8th principle of the TPB Code of Conduct?
You can access the TPB Code of Conduct here.

iv. How is this obligation applied when preparing tax documentation for legal entities? Your response must not go beyond 50 words.

v. In relation to maintaining relevant knowledge and skills as a tax agent, identify one (1) qualification requirement and one (1) experience requirement under the Tax Agent Services Regulations 2009 (TASR).
Qualification requirement
Experience requirement

3. Access the Board of Taxation’s Tax Transparency Code (TTC) here.
Answer the questions below.
i. What legal entities are covered by the (TTC)?

What other two (2) legal entities may voluntarily adopt the TTC?

ii. The TTC sets out requirements for both large and medium businesses.
In no more than 50 words, explain what a large business is as defined by the TTC.

iii. What is the required minimum standard of information that large businesses are required to disclose?
iv. In no more than 50 words, explain what a medium business is as defined by the TTC.

v. What is the required minimum standard of information that medium businesses are required to disclose?
4. As part of the 2016-17 Budget, Australia’s Treasury has released several new tax policies designed to fight tax evasion and multinational tax avoidance.
Access the following fact sheet from the 2016-17 Budget:
A tax plan for small business
Answer the questions below.
i. What specific kind of tax rate was decreased in the Treasury’s 2016-17 Budget?

How much did the tax rate decrease?

When will this be implemented?

ii. Are other legal entities that qualify as small businesses covered by tax discounts in this document?

In no more than 100 words, explain the tax discount extended to these small businesses by the government.

5. Access the following tax policy review document released by the Board of Taxation:
Review of the Tax Treatment of Bare Trusts and Similar Arrangements
Answer the questions below.
i. In no more than 50 words, explain what a ‘bare trust’ is.

ii. In no more than 50 words, explain the common taxpayer practice for bare trusts and other trusts similarly limited in scope.

iii. What is the Board of Taxation’s preferred approach for the tax treatment of bare trusts?

iv. In no more than 100 words, explain the Board’s preferred approach identified above.

6. Below are explanatory materials related to tax legislation.
Answer the questions that follow.
Access the following Explanatory Memorandum:
Explanatory Memorandum for Corporations (Fees) Amendment (ASIC Fees) Act 2018
i. According to the explanatory memorandum, what is the term for the amendment to be made to ASIC’s costs for specific regulatory activities requested by an entity?
This can be found in Chapter 1 – ASIC Fees of the document.

ii. In no more than 100 words, explain the amendment identified above.

iii. Which specific type of legal entity is affected by the amendment above?

What specific ASIC activity/service provided to the above legal entity is affected by the amendment?

Give two (2) examples of documentation affected by the amendment.

Access the following Explanatory Memorandum:
Explanatory Memorandum on the Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Act 2018
iv. According to the explanatory memorandum, what is the amendment that small businesses can avail of?

v. In no more than 100 words, explain the amendment in the explanatory memorandum.

vi. Until when can small businesses access the amendment above?
vii. What is one (1) aspect of tax documentation in which small businesses can benefit from the amendment above?


7. Access the following article on the court decision on Rowntree v FCT [2018] FCA 182:
Recent Court Decision Emphasises The Importance Of Substantiating The Occurrence Of A Transaction
Answer the questions below.
i. The case above details a Federal Court decision on an appeal made to a previous Administrative Appeals Tribunal decision.
In no more than 100 words, explain in your own words the previous Administrative Appeals Tribunal decision regarding the case.

ii. In no more than 100 words, explain in your own words the Federal Court’s decision regarding the case.

iii. What is the implication of the Administrative Appeals Tribunal’s and Federal Court’s decisions on the preparation of tax documentation? Discuss in no more than 100 words.
You may relate your discussion to formal financial arrangements and the requirement to satisfy the onus of proof in tax matters.

8. Below are rulings from the Australian Taxation Office.
Answer the questions that follow.
Access the following taxation ruling on income tax record keeping and access:
TR 2018/2
i. In no more than 100 words, explain the Commissioner’s guidance regarding record keeping in electronic form for the purposes of section 262A of the Income Tax Assessment Act 1936 (ITAA 1936).

ii. What are the two (2) types of legal entities to which this ruling applies?

iii. What are the four (4) recordkeeping requirements for electronic records?

Access the following taxation ruling on income tax and residency:
TR 2018/5
iv. Which specific type of legal entity is affected by the ruling?

v. According to the taxation ruling above, what is the Commissioner’s guidance on defining what a resident is in the context of companies? Discuss in no more than 100 words.

vi. What is the implication of this ruling on the preparation of tax documentation for companies that qualify as Australian residents?


9. Below are determinations from the Australian Taxation Office.
Answer the questions that follow.
Access the following taxation determination on income tax and capital gains:
TD 2017/1
i. What is the question raised in the above determination?

ii. What is the Commissioner’s response to the above question?

iii. In no more than 100 words, explain the three (3) conditions that must be met in order for a capital improvement (that is not related to another capital improvement) to be considered as a separate CGT asset.

iv. What is the possible effect of the above on the preparation of tax documentation?

Access the following taxation determination on Fringe Benefits Tax (FBT):
TD 2018/5
v. What is the question raised in the above determination?

vi. What is the Commissioner’s response to the above question?

vii. In no more than 100 words, explain the two (2) conditions that must be satisfied for the record keeping exemption arrangements to apply to an employer for an FBT year.

viii. What is the possible effect of the above on the preparation of tax documentation?


10. Listed below are the tax principles implemented in Australian law as identified in the Henry Review. For each principle, discuss:
? what the principle is about
? its relevance to tax documentation for legal entities
Each discussion must be 70-100 words.
i. Equity
ii. Efficiency
iii. Simplicity
iv. Sustainability
v. Policy consistency
11. In 100-150 words, briefly explain the legal environment in which the principles of Australian tax law operate.
In your response, provide concrete examples of how two (2) principles operate in the legal environment.
You may refer to your responses in the previous question to guide you in your response.

12. Listed below are rules covered by taxation law. For each rule, discuss:
? how the rule is applied in Australian tax law?
? its relevance to tax documentation for legal entities.
Each discussion must be 70-100 words.
i. Incidence of tax
ii. Tax base
iii. Administration of the tax system
iv. Enforcement of the tax system
v. Collection of tax
vi. Recovery of tax

13. In 100-150 words, explain:
? the basics of the Australian legal system
You may include the following in your explanation:
o the foundation of the Australian legal system
o types of laws in Australia
? how it relates to tax documentation for legal entities


14. Answer the following questions about the Constitution of Australia.
i. What is the Constitution of Australia?

ii. Outline the eight (8) sections or chapters of the Constitution of Australia that discuss the legal procedures for the establishment of the Commonwealth.
Chapter I
Chapter II
Chapter III
Chapter IV
Chapter V
Chapter VI
Chapter VII
Chapter VIII

iii. The following are three (3) considerations outlined in the Constitution of Australia. Explain each in your own words and how they impact financial services.
a. The Federal Structure
What is this about?

How does this affect tax documentation for legal entities?

b. Separation of Powers
What is this about?

How does this affect tax documentation for legal entities?


c. The relationship between Commonwealth and State Powers
What is this about?

How does this affect tax documentation for legal entities?


15. Answer the following questions about the key aspects of income tax law.
i. For each item below, explain in no more than 50 words each, the concept of residence…
a. as applied to companies in the Income Tax Assessment Act 1936:

b. as applied to corporate limited partnerships.

c. as applied to trusts:


ii. In no more than 50 words, explain the concept of source of income as defined in the Income Tax Assessment Act 1997.

How does this affect tax documentation for legal entities?

iii. In 100-150 words, explain the concept of assessable income as defined in the Income Tax Assessment Act 1997.

How does this affect tax documentation for legal entities?

iv. Briefly explain the concept of tax offset as defined in the Income Tax Assessment Act 1936.

Give two (2) examples of tax offsets that a business can claim and briefly explain each. In your responses, clearly specify the legal entities eligible to apply for each tax offset.
Tax offset 1:

Tax offset 2:

v. What are tax rebates?

Give two (2) examples of tax rebates that a business can claim and briefly explain each. In your responses, clearly specify the legal entities eligible to apply for each tax offset.
Tax rebate 1:

Tax rebate 2:

vi. According to Part IVAAA of the Taxation Administration Act 1953, what are the two (2) methods of tax accounting used to determine assessable income? Briefly explain each method in no more than 100 words each.
Method 1:

Method 2:


16. Answer the following questions about the related elements of international tax as outlined in the Income Tax Assessment Act 1997.
i. In 100-150 words, explain the two (2) conditions that must be met for a foreign equity distribution to be considered non-assessable non-exempt income for Australian corporate tax entities.

ii. In no more than 100 words, explain how foreign income tax offsets are implemented through the above act.


17. Answer the following questions on deductions.
i. In 100-150 words, explain the deductions a business can claim for business travel expenses. Your response must include requirements for specific types of legal entities.

ii. In 100-150 words, explain the deductions a business can claim for motor vehicle expenses. Your response must include requirements for specific types of legal entities.

iii. In 100-150 words, explain the deductions a business can claim for salary and wages. Your response must include requirements for specific types of legal entities.


18. Answer the following questions on Capital Gains Tax (CGT).
i. Briefly explain net capital gain as defined in Income Tax Assessment Act 1997.

ii. Define capital gain and capital loss.
Capital gain:

Capital loss:

iii. Briefly discuss how CGT extends the ordinary income tax base of a business.

iv. Briefly discuss what CGT assets are.

v. In no more than 100 words, explain the principles followed in determining events that attract CGT.

vi. In no more than 100 words, explain how exceptions or exemptions are applied in relation to CGT.

vii. In 100-150 words, explain how capital gain or capital loss is determined in partnerships.
viii. In 100-150 words, explain how capital gain or capital loss is determined in trustees where there is an absolutely entitled beneficiary.

19. Answer the following questions on Fringe Benefits Tax (FBT).
i. Briefly explain what a fringe benefit is.

ii. Briefly discuss how FBT extends the ordinary income tax base of a business.

iii. Answer the following questions on rules for calculating the fringe benefits tax.
What is the FBT year?

What is the FBT rate of tax for the current FBT year?
Current FBT year:
Rate of tax:
How is the amount of tax determined?

iv. Is any type of legal entity exempt from paying FBT?

v. What tax documentation are not-for-profit organisations/companies required to submit in relation to FBT?


20. Answer the following questions on Goods and Services Tax (GST).
i. Briefly define what GST is.

ii. In 100-150 words, discuss the four (4) central provisions of A New Tax System (Goods and Services Tax) Act 1999.

iii. In 100-150 words, discuss who should register for GST.

iv. In 150-200 words, explain how the GST turnover of a business is worked out.

v. In no more than 50 words, explain how claiming GST credit works.

vi. In no more than 100 words, explain what a GST group is, and how it affects the lodgement and payment of GST.

vii. What type of tax documentation is a business registered for GST required to lodge?

What type of tax documentation is a business that is voluntarily registered for GST required to lodge?

What information related to GST is recorded in these tax documentation?


21. Answer the following questions on superannuation.
i. In no more than 50 words, explain what the super guarantee is.

In the spaces provided below, identify the current year and the super guarantee percentage that employers must pay for the current year.
Current year:
Super guarantee percentage:
When is the employer’s superannuation guarantee payment due?

To which two (2) fund options must an employer pay the superannuation guarantee for an employee?

ii. Under the Superannuation Guarantee (Administration) Act 1992, contractors are employees for SG purposes. Explain the three (3) conditions in which employers are required to make super contributions for these contractors.

iii. In no more than 50 words, explain the super guarantee charge (SGC).

What documentation must be lodged if an employer has to report and rectify missed, late, or underpaid SG contributions?

iv. How are the obligations under the Superannuation Guarantee (Administration) Act 1992 imposed on partnerships and who is allowed to discharge the obligation? Explain in no more than 50 words.

How are the obligations under this act imposed on unincorporated associations? Explain in no more than 50 words.

v. In 100-150 words, explain the record-keeping requirements relevant to superannuation for employers.


22. Below are questions related to the administrative aspects of taxes typically included in the tax documentation of legal entities.
Answer all the questions below.
i. For each type of legal entity listed below, identify two (2) types of documents that can be used as documentation for their income.
Sole Trader
Company
Partnership
ii. For each type of legal entity listed below, identify at least two (2) types of documents that can be used as supporting documentation of their eligibility for deduction/s.
Sole Trader
Company
Partnership
iii. How long must records relevant to the tax return being lodged be kept?

iv. For each legal entity below, identify the corresponding type of tax return that the entity must submit.
Legal Entity Tax Return
Sole Trader
Partnership
Trust
Company
What is the due date for the above returns?

v. Describe how tax practitioners can lodge returns for their clients.
Include in your response the type of confirmation your client will receive after their returns have been lodged.

vi. Briefly explain the withholding mechanisms which must be applied to payments made to workers, other businesses and other payees.

vii. Briefly explain what the notice of assessment should include.
Include in your response the waiting period for the notice of assessment.

viii. In 70-100 words, explain at least two (2) obligations under the Taxpayers’ Charter that legal entities have when it comes to taxation.

ix. Identify the seven (7) types of rulings that ATO provides.

Of the rulings listed above, choose two (2) and briefly explain how each type of ruling affects the administration of taxes that legal entities are liable to pay.
Ruling 1:


Ruling 2:

x. Explain the kind of conduct that will result in penalties being imposed on a legal entity.

Give two (2) examples of penalties that can be imposed on legal entities.

xi. Briefly explain what is involved when a legal entity is audited.

Briefly explain the two (2) audit processes listed below.
Risk review:

Audit:


23. Answer the following questions related to specific anti-avoidance tax rules for legal entities.
i. In 100-150 words, explain the specific anti-avoidance rules under the Income Tax Assessment Act 1936 for trustees with tax-exempt beneficiaries who are presently entitled to trust income.

ii. In 100-150 words, explain the specific anti-avoidance rules found in section 51AD and Division 16D of the Income Tax Assessment Act 1936.


24. Answer the following questions related to general anti-avoidance tax rules for legal entities.
i. In 100-150 words, explain the alienation of PSI.

ii. In 100-150 words, explain how the general anti-avoidance rules apply to PSI.

iii. What are the steps that each legal entity below should take to prevent GAAR applying to personal services businesses (PSB)?
Companies
Partnerships
Trusts


25. Identify and describe one (1) key source of information and one (1) key source of data for each of the following taxable transactions listed below.
In your description, include how each key source of information and data is used to calculate taxable income.
In this question, ‘information’ refers to general facts needed to calculate taxable income, e.g. relevant legislative requirements, relevant facts about the business, etc. ‘Data,’ on the other hand, refers to numbers and statistics needed to calculate taxable income, e.g. financial statements and reports, revenue and sales figures, etc.
Taxable transactions Key source of information Key source of data
Allowable deductions
Description:
Description:

Taxable transactions Key source of information Key source of data
Capital gains
Description:
Description:
Instant asset write-off
Description:
Description:

Taxable transactions Key source of information Key source of data
Debt write-offs
Description:
Description:
Revaluations
Description:
Description:

Taxable transactions Key source of information Key source of data
Income
Description:
Description:
Customer payments
Description:
Description:

Taxable transactions Key source of information Key source of data
Payments outside ordinary business activities
Description:
Description:
Purchases with GST
Description:
Description:

Taxable transactions Key source of information Key source of data
Fuel purchases
Description:
Description:
Superannuation payments
Description:
Description:
26. Access the policies and procedures for Emma’s Grocery through the link below:
FNSACC603: Emma’s Grocery Case Study
(username: ahiclearner password: Ahic@1234567890)
Answer the questions below.
i. Identify the legal entity type for Emma’s Grocery.

ii. What is the accounting system used by Emma’s Grocery?

In no more than 50 words, describe the accounting system used.

iii. Describe the business’s tax documentation procedures in relation to goods and services tax (GST).


27. Access the policies and procedures for Awesome Landscapes through the link below:
FNSACC603 Awesome Landscapes Case Study
(username: ahiclearner password: Ahic@1234567890)
Answer the questions below.
i. Identify the legal entity type for Awesome Landscapes.

ii. What is the accounting system used by Awesome Landscapes?

In no more than 50 words, describe the accounting system used.

iii. Describe the business’s tax documentation procedures in relation to errors in payments.


28. List two (2) key accounting principles relevant to the preparation of tax documentation.
For each key accounting principle, outline the application of the principle in the preparation of tax documentation for two (2) types of legal entities.
The four types of legal entities are sole trader, trust, partnership, and company.
Accounting Principle Application of principle in the preparation of tax documentation for legal entities
i.
Legal entity:
Application:
?
?
Legal entity:
Application:
?
?

ii.
Legal entity:
Application:
?
?
Legal entity:
Application:
?
?

29. List two (2) key accounting practices relevant to the preparation of tax documentation as outlined by the Australian Accounting Standards Board.
For each key accounting practice, outline the application of the practice in the preparation of tax documentation for two (2) types of legal entities.
The four types of legal entities are sole trader, trust, partnership, and company.
Accounting Practice Application of practice in the preparation of tax documentation for legal entities
i.
Legal entity:
Application:
?
?
Legal entity:
Application:
?
?

ii.
Legal entity:
Application:
?
?
Legal entity:
Application:
?
?

30. Access the Tax Practitioners Board Code of Professional Conduct for tax agents below:
Code of Professional Conduct
Answer the following questions on the ethical considerations outlined in the Code.
i. What is the TPB Code of Professional Conduct’s confidentiality requirement?

ii. In 70-100 words, discuss the Code of Professional Conduct’s confidentiality requirement.

How is this ethical consideration applied when preparing a client’s tax return?

iii. In 70-100 words, discuss when tax practitioners can disclose information relating to a client’s affairs as required in the Code of Professional Conduct.

How is this ethical consideration applied when preparing a client’s tax return?


31. In the spaces provided below, outline two (2) financial management strategies that can be used in tax planning.
Briefly explain how each strategy helps optimise a business’s tax position.
Financial Management Strategy How it optimises a business’s tax position
i.
ii.