Prepare and administer tax documentation for legal entities
1. Essay written
For this task you must research each of the following topics, and complete a detailed report on your findings. Your report will need to be completed and submitted in a professional, word processed, format. The report must be 1000 words minimum in length. The research topics are:
1. Identify and explain ethical considerations and legislative requirements relevant to the preparation of tax documentation for legal entities, 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)
c. Government tax policy documents issued by reviews, treasury and board of taxation
d. Explanatory materials in relation to legislation
e. Statutes
f. Court and administrative appeals tribunal decisions
g. Commissioner of taxation's interpretive guidance in rulings and determinations
2. Explain critical and key elements of Australian tax law as it relates to tax documentation for legal entities such as companies, trusts, partnerships and sole traders including:
a. The rules and principles of Australian tax law, with an understanding of the legal environment in which these principles operate, basics of the legal system, constitutional considerations and separation of powers
b. The key aspects of income tax law covering concepts of residence and source, related elements of international tax, assessable income, deductions, tax rebates and offsets, and tax accounting
c. Goods and services tax (GST)
d. Taxation aspects of superannuation law
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
3. Describe the key sources of information and taxable transactions data required to calculate taxable income, including:
a. Allowable deductions
b. What are Capital gains and how are they calculated or identified?
c. Financial adjustments such as write-offs and revaluations
d. Income
e. Payments
f. Purchases
g. Superannuation payments
4. Describe the key features of organisational policy and procedures relating to the preparation of tax documentation for legal entities
5. Outline the key accounting principles and practices relevant to the preparation of tax documentation for two different types of legal entities.
2. Answer the following questions
2.1 What are four things you would need to identify prior to lodging tax documentation?
2.2 Define both cash and non-cash(accrual) accounting
2.3 Describe each of the following business structures and how the structure affects taxation.
a. Sole traders
b. Partnership
c. Trust
d. Company
e. Joint venture
f. Self-managed super fund
2.4 Describe a depreciation schedule and what it is used for. Provide an example
2.5 What is an allowable deduction? Describe in detail.
2.6 What are the 6 types of rulings for income tax purposes?
2.7 Australian residents must lodge a tax return if they meet certain criteria. What are they?
2.8 Describe what will happen when you lodge a tax return.
2.9 What is an amendment? Describe the process and why you would do it.