Reference no: EM132272082

For this assessment, you will need to perform the following tasks.

These tasks will need to be completed and submitted in a professional, word processed, format. Each task must be 1000 words minimum in length.

Task 1

This task will need to be completed in conjunction with and after the Observation Task.

Once you have completed your Observation Task, you are required to document and discuss the process you followed while preparing tax documentation for individuals. In your report, ensure you include information about:

1. Tax documentation preparation requirements

2. Any new or changed legislative requirements you researched

3. Sources from which you gathered data

4. The process you followed to determine assessable income and allowable deductions, to complete and record amounts, to identify discrepancies or any unusual features and identify accrued or prepaid income and expenditure, and record adjustments to value of assets and liabilities

5. How you calculated the client's tax obligations, in accordance with legislative requirements and what documentation you prepared

6. Any advice or guidance you sought from specialists

7. What you discussed with your client prior to submission to the ATO

8. Processes to submit the relevant documentation to Australian Taxation Office (ATO)

9. How you advised the client of any current tax obligations

Task 2

For this task you must research each of the following topics, and complete a detailed report on your findings. The research topics are:

1. Identify and explain ethical considerations and legislative requirements relevant to the preparation of tax documentation for individual taxpayers, including:

a. Conflict of interest
b. Responsibilities of tax agents including Code of Professional Conduct obligations under the Tax Agent Services Act (TASA) and Tax Agent Services Regulations (TASR)

2. Identify and explain the following key elements of Australian tax law as it relates to tax documentation for individual taxpayers:
a. The rules and principles of Australian tax law including an understanding of the legal environment in which these principles operate, basics of the legal system, constitutional considerations and separation of powers
b. Key aspects of the income tax law covering concepts of:
i. Residence and source
ii. Related elements of international tax
iii. Assessable income
iv. Deductions (including general, specific and decline in value)
v. Tax rebates and offsets
vi. Tax accounting
vii. Income test definitions that include reportable superannuation and fringe benefits tax (FBT)
c. Key aspects of relevant principles and application of the capital gains tax (CGT), FBT and termination payment rules for individual taxpayers
d. Basic concept of goods and services tax (GST)
e. Administrative aspects of the taxes identified above including documentation, tax collection and withholding mechanisms, assessments, obligations, rulings, penalties and audits
f. Specific and general anti-avoidance tax rules for individual

3. Describe the key features of organisational policy and procedures relating to the preparation of tax documentation for individual taxpayers.

4. Outline the key accounting principles and practices relevant to the preparation of tax documentation for individual taxpayers.

THIRD-PARTY ACTIVITY

This task will be completed in conjunction with Written Activity Task 1.

For this task you are required to prepare tax documentation for an individual Once you have completed all the steps, you are required to document and discuss in writing the process you followed in Written Activity Task 1.

During your activity, you must ensure that you

1. Identify all client data required to calculate taxable income

2. Research, critically evaluate and apply new or changed legislative requirements and apply where relevant to the preparation of the client's tax documentation

3. Prepare tax documentation for an individual that complies with:
a. Australian taxation law and Australian Taxation Office (ATO) rulings
b. Accounting principles and practices
c. Organisational policy and procedures

4. Provide advice to client on tax documentation presented and obtain verification and approval

5. Lodge the tax return
You will require access to the following for your activity:

6. Common office equipment

7. Technology

8. Software

9. Consumables

When you have successfully finished this assessment, you will need to submit the assignment that you have completed.

Answer the following questions and submit to your assessor in writing.

1. There are a range of sources of information regarding the personal income tax of a client. What are three of these?

2. What are the different types of changes that may apply tax year processing activities?

3. List four amounts that may need to be completed and recorded on an individual's tax return.

4. What might cause descrepencies in taxation documentation?

5. What is the process for determining the amount of income tax your client is required to pay?

6. What are some of the available benefits and allowances that can be claimed?

7. Where can you obtain specialist advice?

8. What is the process for making a statutory declaration?

9. Who can charge fees for preparing a tax return on behalf of another person?

10. What steps may the ATO take when errors are found?

Attachment:- PREPARE TAX DOCUMENTATION FOR INDIVIDUALS.rar