must be done till jan 21... sydney time

Assessment Cover Sheet

Assessment Week One Details

Term and Year

Term 1 2018

Assessment Type

Portfolio of activities

Due Date

Class Room

Student Name:

Student ID No:

Date:

Qualification :

FNS50215 Diploma of Accounting

Unit Code:

FNSACC502

Unit Title:

Prepare income tax returns for individuals

Assessor’s Name

Ada DU

Student Declaration: I declare that this work has been completed by me honestly and with integrity. I understand that the Elite Education Vocation Institute’s Student Assessment, Reassessment and Repeating Units of Competency Guidelines apply to these assessment tasks.

Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback.

Name:

Name:

Ada DU

Signature:

Signature:

Date:

Date:

Student was absent from the feedback session.

Assessment/evidence gathering conditions

Each assessment component is recorded as either Satisfactory (S) or Not Yet Satisfactory (NYS). A student can only achieve competence when all assessment components listed under procedures and specifications of the assessment section are Satisfactory. Your trainer will give you feedback after the completion of each assessment. A student who is assessed as NYS is eligible for re-assessment. Should the student fail to submit the assessment, a result outcome of Did Not Submit (DNS) will be recorded.

Principles of Assessment

Based on Clauses 1.8 – 1.12 from the Australian Standards Quality Assurance’s (ASQA) Standards for Registered Training Organizations (RTO) 2015, the learner would be assessed based on the following principles:

Fairness - (1) the individual learner’s needs are considered in the assessment process, (2) where appropriate, reasonable adjustments are applied by the RTO to take into account the individual leaner’s needs and, (3) the RTO informs the leaner about the assessment process, and provides the learner with the opportunity to challenge the result of the assessment and be reassessed if necessary.

Flexibility – assessment is flexible to the individual learner by; (1) reflecting the learner’s needs, (2) assessing competencies held by the learner no matter how or where they have been acquired and, (3) the unit of competency and associated assessment requirements, and the individual.

Validity – (1) requires that assessment against the unit/s of competency and the associated assessment requirements covers the broad range of skills and knowledge, (2) assessment of knowledge and skills is integrated with their practical application, (3) assessment to be based on evidence that demonstrates tat a leaner could demonstrate these skills and knowledge in other similar situations and, (4) judgement of competence is based on evidence of learner performance that is aligned to the unit/s of competency and associated assessment requirements.

Reliability – evidence presented for assessment is consistently interpreted and assessment results are comparable irrespective of the assessor conducting the assessment

Rules of Evidence

Validity – the assessor is assured that the learner has the skills, knowledge and attributes, as described in the module of unit of competency and associated assessment requirements.

Sufficiency – the assessor is assured that the quality, quantity and relevance of the assessment evidence enables a judgement to be made of a learner’s competency.

Authenticity – the assessor is assured that the evidence presented for assessment is the learner’s own work. This would mean that any form of plagiarism or copying of other’s work may not be permitted and would be deemed strictly as a ‘Not Yet Competent’ grading.

Currency – the assessor is assured that the assessment evidence demonstrates current competency. This requires the assessment evidence to be from the present or the very recent past.

Resources required for this Assessment

1. All documents must be created using Microsoft Office suites i.e., MS Word, Excel, PowerPoint

1. Upon completion, submit the assessment via the student learning management system to your trainer along with the completed assessment coversheet.

1. Refer the notes on eLearning to answer the tasks

1. Any additional material will be provided by Trainer

Instructions for Students

Please read the following instructions carefully

· This assessment is to be completed according to the instructions given by your assessor.

· Students are allowed to take this assessment home.

· Feedback on each task will be provided to enable you to determine how your work could be improved. You will be provided with feedback on your work within 2 weeks of the assessment due date.

· Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of competency.

· If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.

· Please refer to the College re-assessment and re-enrolment policy for more information.

Procedures and Specifications of the Assessment

To complete the unit requirements safely and effectively, the individual must:

· Define international marketing

· Identify international trade patterns

· Explain international trade policies and agreements

· Identify legislative requirements

Assessment 1

Question1. Define assessable income as per Income Tax Assessment Act 1997

Question2. Give two examples of ordinary income and statutory income

Question 3. ATO can carry out audits if they find any discrepancies in tax return. Mention the names of three such audits conducted by ATO with brief description for each

Question 4. What are the four key differences between residents and non-residents for tax purpose

Residents

Non-residents

Question 5. Section 6(1) of the ITAA 1936 provides 4 exhaustive tests of residence for individuals. Mention them in brief

Question 6. Part 3 of Tax Agent Services Act 2009 includes ‘The Code of Professional Conduct’. This code includes 14 core principles that apply to all registered tax agents and BAS agents. Go to Tax Practitioners Board website (http://www.tpb.gov.au) to research these core principles and mention principle number five below:

Question 7. Give two examples of “adequate and effective conflict management arrangements” that you as a “tax practitioner” can apply in your workplace

Question 8. John, a tax practitioner is requested by his client, Daniel to include some fictitious expenses in his tax return to reduce the tax liability. John knows that the expenses were not incurred by Daniel and if he includes them in the tax return, then Principle no. 1 (honesty and integrity) of ‘The Code of Professional Conduct’ will be violated. But at the same time John does not want to lose Daniel as client. How John can communicate his professional obligations to Daniel?

Question 9. For how long the taxpayers need to keep evidence/record for income tax purpose? Mention the relevant legal provision (name of act and section) for this rule.

Question 10. Mention the correct lodgment date for the following scenarios

Scenario

Lodgment date

Income tax return for all individuals and trusts where one or more prior year income tax returns were outstanding as at 30 June.

Taxpayers who lodge their own return using e-tax or TaxPack

Income tax return for individuals and trusts which were tax level 6 (tax payable of $20,000 or more on last tax assessment) as per latest year lodged

Business Activity Statement for first quarter

Business Activity Statement for second quarter

Business Activity Statement for third quarter

Business Activity Statement for fourth quarter

Question 11. Mention the name of five records/documents that can be kept by taxpayers as evidence.

Question 12. What information must be included in a Tax Invoice for taxable supplies of more than $1000?

Question 13. As per tax law, mention five types of taxpayers who must lodge their tax return.

Question 14 How much assessable income was derived by each of the following taxpayers?

Scenario

Assessable income

Kelly's net wages were $1 350. Her employer had deducted $380 tax.

Alan received net wages of $50 300 and bank interest of $400 over the year. His employer deducted $19 700 tax.

Karl received a net salary of $41 800 over the year plus $120 bank interest. He also was paid a gross salary of $2 000 for a part-time job he had during the year. The tax deducted from his full-time job was $13 600 and $600 was deducted from his part­ time wages.

Fiona runs a small business that had $36 000 in sales during the year. Her net profit was calculated by deducting $22 000 of expenses.

Question 15. Advise whether the following are assessable income, statutory income, exempt income or non-assessable income.

Scenario

Income type

A lotto win

Wages

A capital gain

A gift received from a friend

A car allowance from an employer

A tax refund cheque

Bank interest received

A family tax benefit

Question16 Identify each of the following business outgoings as either an expense or Capital

Description

Expense or Capital

Wages

Stationery

Forklift truck

Telephone bill

Fuel

Land

Photocopier

Question 17. Matthew incurred the following expenses during the year

Interest on home loan $16 200

Interest on credit card $276

Interest on investment property $14 360

Interest on personal loan $1 320

Insurance on home $630

Insurance on car $540

Insurance on investment property $570

Matthew occasionally takes work home on weekends. The personal loan was taken out two years earlier, half of it to finance a share portfolio and the other half to landscape the front yard of his home

How much of these amounts are tax deductible to Matthew? Quote the relevant legislation (sections of ITAA) to justify your answer.

Question 18. Medicare Levy and Medicare Levy Surcharge:

Calculate the amount of Medicare levy and Medicare levy surcharge for the following resident taxpayers:

Name

Taxable income of taxpayer

Taxable income of spouse

Hospital Insurance

Medicare Levy

Medicare Levy Surcharge

Bill

44 500

No spouse

No

Sally

35 000

60 000

No

John

76 600

72 400

Yes

Fred

69 300

110 000

No

Allie

78 844

No spouse

Yes

Question 19. Offset:

Calculate Low Income Tax Offset (LITO) for the following taxpayers:

Name

Taxable income

LITO

Bill

14 500

Sally

35 000

John

56 600

Fred

69 300

Allie

78 844

Question 20 Calculate Tax:

Using the table of income tax rates, calculate the primary tax for the following taxpayers:

Name

Taxable income

Residence status

Tax

Steven

34 000

Resident

Martin

65 400

Non-resident

Gary

65 400

Resident

Russell

17 500

Resident

June

17 200

Non-resident

Harry

19 750

Resident

Sharon

110 930

Resident

Hanna

90 320

Non-resident

Courtney

224 864

Resident

Question 21 Motor Vehicle expense:

From the following information calculate the motor vehicle expense for Mr. John Schofield with all available alternatives and select the most appropriate option for tax purpose:

He bought a Honda Accord for $28,000 on 25th July 2013. It has an engine capacity of 2.6 litres. In the current financial year he has travelled 22,000 km in total. He has kept a log book that shows 18,000 km is for work purpose. He has incurred the following expenditures for the motor vehicle:

• Petrol: $1600

• Depreciation: $2812

• Registration: $350

• Insurance: $600

• Tyres and Battery: $1075

• Servicing: $525

He has all the records for expenses

Question 22 Depreciation expense:

Prepare a depreciation asset schedule for the following (use the worksheet provided):

Asset

Original cost

Opening adjustable value

Depreciation rate

Electric guitar

$3600

$1289

20% DV

Drum set

$3000

$550

10% PC

Electric keyboard

$4000

$961

30% DV

Question 23 Prepaid expense:

Tasty Delicatessen is a small business entity. On 1 June 2013, it made a payment of $24,000 to cover the lease of its business premises for a 12-month period commencing on 1 July 2013 and ending on 30 June 2014. How much the business can claim as a deduction for the lease payment in 2012 -13 income year? Briefly explain with relevant rule.

Assessment Feedback One Evaluation

Student’s name:

Trainer/ Assessor’s name:

Ada DU

Date:

Unit name:

FNSACC502

Assessment Submission Checklist to be completed by the Trainer/Assessor

Did the student complete and provide evidence for the following:

Yes

No

1. Provide a discussion on the short questions?

2. Provide an analysis on taxable income?

3. Provide an understanding of residence under tax purposes?

4. Has the ability to calculate tax payable?

5. Submit within agreed timeframe?

Has the learner proven they can:

Yes

No

1.1. Determine client's tax documentation preparation requirements

1.2. Conduct research to identify updates or additions to compliance requirements relevant to client circumstances, and establish recording and reporting requirements

1.3 Gather current data from appropriate sources, and identify assessable income and allowable deductions

1.4 Complete and record amounts in accordance with organisational and legislative requirements

1.5 Identify discrepancies or any unusual features and conduct research to resolve, or refer to appropriate authority

1.6 Identify accrued or prepaid income and expenditure, and record adjustments to value of assets and liabilities

2.1 Calculate client's tax obligations, in accordance with legislative requirements and information gathering practices

2.2 Prepare relevant documentation within established timelines

2.3 Seek advice and guidance from specialist to evaluate and moderate decision processes

2.4 Discuss and confirm documentation with client to obtain client signature, authorisation and endorsement, ensuring legislative requirements are met

3.1 Submit relevant documentation to Australian Taxation Office (ATO) within established timelines

3.2 Advise client of current tax obligations and that advice from taxation authorities is to be followed

3.3 Respond to tax office enquiries and meet taxation audit requirements, when applicable, in timely manner

FEEDBACK TO STUDENT:

Assessment outcome

Satisfactory

Not Yet Satisfactory

Re-assessment required

Student Signature

The result of my performance in this unit has been discussed and explained to me.

____________________________ Date: ______________

Student signature

Trainer/ Assessor’s Signature

Trainer/ Assessor’s declaration:

I hereby certify that the above student has been assessed by myself and all assessments are carried out as required by the Principles of Assessments (Clause 1.8 of the Standards for RTO 2015).

____________________________ Date: ______________

Assessor signature