Reference no: EM132394204
FNSACC502-Prepare tax documentation for individuals
Questions
1. What is assessable income and Taxable Income? (Approximate Word Count 20)
2. Define “deduction” and “tax offset” with examples. How are they different? (Approximate Word Count 20)
3. What legislation covers Income Tax? ( Approximate Word Count 20)
4. What constitutes conflict of interest? ( Approximate Word Count 20)
5. What is Debits Tax? Who does it affect? ( Approximate Word Count 20)
6. What sort of records should be kept according the Taxation Administration Act 2005? How long must these records be kept for? (Approximate Word Count 20)
7. List 5 possible prosecutable acts when lodging a tax return under the Taxation Administration Act 2005. (Approximate Word Count 20)
8. According to the TAA 2005, when is a taxpayer liable to pay penalty interest? When might the interest be increased? (Approximate Word Count 20)
9. Discuss the term ‘Confidentiality’. What legislation covers this? (Approximate Word Count 20)
10. What is a fringe benefit?( Approximate Word Count 20)
11. What is the code of professional conduct as per the Tax Agent Services Act 2009? ( Approximate Word Count 150)
12. What us the annual depreciation expense using straight-line depreciation, of a vehicle that depreciates over 5 years, was purchased at $17000, and will have a salvage value of $2000 – Students must show their working.
13. Complete the following Chart – using the Declining-Balance method for the same vehicle as in question 12
|
Year
|
Book Value (Start of Year)
|
Depreciation Expense
|
Accumulated Depreciation
|
Book Value - End of Year
|
|
1
|
$17,000 (Original Cost)
|
$3000
|
$3000
|
$14000
|
|
2
|
$14000
|
$2400
|
$5400
|
$11600
|
|
3
|
$11600
|
$1920
|
$7320
|
$9680
|
|
4
|
$9680
|
$1536
|
$8856
|
$8144
|
|
5
|
$8144
|
$1229
|
$10085
|
$6915
|
14. What is the Private Health Insurance Rebate, and how does it apply to tax obligations? ( Approximate Word Count 20)
15. Some items included in the G1 label at the GST section of a BAS statement are gross sales, interest earned and gross fees for services. What items SHOULD NOT be included? ( Approximate Word Count 20)
16. The T1 label at the PAYG income tax instalment section of your BAS statement includes items such as gross sales, gross fees for services and gross rent. What items SHOULD NOT be included?( Approximate Word Count 20)
17. What items should be included in the W1 label at the PAYG tax withheld section of you BAS statement? ( Approximate Word Count 20)
18. What information may be reported on an IAS Statement? ( Approximate Word Count 20)
19. Describe the key features of organisational policy and procedures relating to the preparation of tax documentation for individual taxpayers. ( Approximate Word Count 20)
20. Peter has come to your office to lodge his tax return. He is a new client and you have no information recorded in your office. what questions would you need to ask to elicit the information required to complete and lodge his tax return.( Approximate Word Count 20)
You also need to perform a role-play session with one of the classmates with the questions you have chosen.
21. Describe some of the potential consequences of failing to submit an income tax return on time. ( Approximate Word Count 20)