Assessment Summary Sheet for FNSACC601 - Prepare and administer tax documentation for legal entities

This assessment summary sheet is for FNSACC601 - Prepare and administer tax documentation for legal entities. It includes assessment details, student and assessor declarations, assessment/evidence gathering conditions, principles of assessment, rules of evidence, resources required for assessment, and procedures and specifications of the assessment.

Assessment Summary Sheet
 This form is to be completed by the assessor and used a final record of student competency.
 All student submissions including any associated checklists (outlined below) are to be attached to this cover sheet
before placing on the students file.
 Student results are not to be entered onto the Student Database unless all relevant paperwork is completed and
attached to this form.
Student Name:
Student ID No:
Final Completion Date:
Unit Code: FNSACC601
Unit Title: Prepare and administer tax documentation for legal entities
Please attach the following documentation to this form Result
Assessment Week 1 Case analysis and Written answers S / NYS / DNS
Final Assessment Result for this unit C / NYC
Feedback is given to the student on each Assessment task Yes / No
Feedback is given to the student on final outcome of the unit Yes / No
Student Declaration I have been assessed in a fair and
flexible manner. 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:
Signature: Signature:
Date: Date:
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

Assessment Cover Sheet
Assessment Week One Details
Term and Year Term 1 2018
Assessment Type Case analysis and Written answers
Due Date Class Room
Student Name:
Student ID No:
Date:
Qualification : FNS50215 Diploma of Accounting
Unit Code: FNSACC601
Unit Title: Prepare and administer tax documentation for legal entities
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:
Signature:
Signature:
Date: Date:
Student was absent from the feedback session.
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

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.
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

Resources required for this Assessment
 All documents must be created using Microsoft Office suites i.e., MS Word, Excel, PowerPoint
 Upon completion, submit the assessment via the student learning management system to your trainer along with the
completed assessment coversheet.
 Refer the notes on eLearning to answer the tasks
 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
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

Assessment 1
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
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

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.
Essay:
Answer question 1:
Answer A:
Conflict of Interest:
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

Regardless of the usual prohibition against the tax practitioner’s representation of the client in
respect of the conflict of interest, the tax practitioner might represent the client where the
conflict of interest is represented given;
a. It is the belief of the practitioner that they would be able to offer
adequate and competent representation of impacted client;
b. Every impacted client relinquishes the conflict of interest and provides
informed consent by writing regarding the prevalence of conflict of
interest.
Answer to B
Responsibilities of TASA and TASR:
Responsibilities of TASA are as follows;
a. Responding the request and directions issued by the board in a
judicious, responsible and sensible manner.
b. Advising the client of the rights of clients and obligations under the
taxation laws which is materially associated to the tax agent service
they provide.
Responsibilities of TASR:
a. Services provided by the responsible entity of the managed investment
scheme
b. Making the decision as quick as possible following the receipt of
submission by the board.
Answer to C:
The government tax policy document issued by reviews, treasury and board of taxation are as
follows;
a. Creative commercial licences
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

b. Methodology of the data sources
Answer to D:
Explanatory material represents the material that is prepared when the law is created to describe
the operations. The court might use the explanatory material and extrinsic material to determine
the meaning of law when it is not clear under section 15 AB of the Interpretation Act 1901. The
explanatory material comprises of explanatory memorandums, explanatory statements and some
of the regulatory impact statements.
Answer to E:
Statute is another term for law, legislation or the collection of the legislation. The statute book is
generally considered as the reference to the legislation which is in force at the particular point of
time. In force legislation is placed on the statute book having force of law. On the other hand, a
repeal is regarded as the elimination of the regulation or provision of regulation from the statute
book.
Answer to F:
The court and administrative appeal tribunal decisions makes decision by reviewing the exception
of few of the oral decisions with written statement relating to the decision and reason for ethical
considerations and legislative requirements necessary in the preparation of the tax document for
lawful entities. The member may undertake the decision of sending the applicant with written
reason relating to the oral decision.
Answer to G:
The commissioner of taxation interpretive guidance in ruling and determinations includes the
strategy of risk mitigation to recognize and clarify the technical issue by providing guidance to the
taxpayers that may involve drafting and issuing of the public ruling.
Answer to question 2:
Answer A:
The rules and principles of Australian taxation law relating to the tax documents for legal entities
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

are as follows;
a. Understanding the situations having income tax and implications of
goods and service tax under the Australian law
b. Understanding the principles and rules in respect of determination of
income tax and goods and service tax
Answer to B:
The key aspects of the income tax laws relating to the covering the theory of residence and
sources associated to the elements of overseas tax and taxable income and tax accounting.
Similarly, the key aspects of the taxes is applicable to the ordinary income tax base including the
relevant principles and implementation of the capital gains tax and fringe benefit taxation rules.
Answer C:
Tax invoice for the sales should include the following for GST that are as follows;
a. The document that is intended to be taxed
b. Identity of the seller
c. Date when the invoice was issued
d. The amount of GST that is payable can be distinctly shown on the Total
price including the GST amount.
Answer to D:
Taxation aspects of the superannuation law are as follows;
a. Contribution that is received in respect of the superannuation fund
b. Investment income derived under the superannuation fund
c. Benefits that is paid by the fund.
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

Answer to E:
The administrative aspects of the tax document are as follows;
a. Payments that is received by the individual
b. Expenditure associated to the payments received by the individual
c. Documents relating to the acquisition and disposal of the asset
d. Contributions made in gifts and donations
Answer to F:
The specific and anti-avoidance tax rules are;
a. Way through which the scheme was entered or executed
b. Both the form and substance of the scheme
c. Any form of changes in the financial scheme that was entered into by
the taxpayer
Answer to question 3:
Answer to A:
Allowable deductions: The vital sources of information and taxable transactions data necessary to
determine the taxation income and claiming the allowable deductions it is necessary that the
a. The taxpayer should have spent the money by themselves and were not
reimbursed
b. To calculate the deductions, the transactions should be directly
associated to deriving the income
c. The taxpayer is required to prove those expenditures to claim
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

deductions
Answer to B:
Capital Gains: Capital gain represent the rise in the value of the capital asset which provide higher
return than the purchase price. Capital gain represent the differences amid the capital gain
proceeds and the cost base of the asset. Capital gain is computed based on the discount method
and Indexation method. The discounted method is applicable for assets that are held for 12 or
more months before the relevant CGT event. Under this method the cost base of the asset is
subtracted from the capital proceeds. Under the indexation method the capital gains tax is
computed by increasing the cost base based on the consumer price index up to September 1999.
Answer to C:
Write-off and Revaluation: A write-off represents the reduction in the identified value of
something. In respect of the income tax statements, this represents the lowering of the income
tax along with the recognition of the certain forms of expenditure needed to produce the income.
In the determination of the income tax writing off is regarded as the deductions of the value of
item from the person’s taxable income. On the other hand, an organization is required to revalue
the asset for taxation purpose. Revaluation of asset for tax purpose is used to reduce the future
income tax since depreciation cost would be increased following revaluation.
Answer to D:
Income: In calculating the income an individual is required to include amount are
a. Foreign income
b. Personal service income
c. Income from government payment
d. Gratuities and compensation
Items that are not included in computing the income are as follows
a. Earnings derived from hobby
b. Gifts or inheritance
c. Prizes and awards that are not associated to business
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

d. Money borrowed by an individual
Answer to E:
Payments: An individual is required to report payments to the Australian taxation office relating
to
a. Payments related to assembly
b. Construction
c. Payments related to the excavation
Answer to F:
Purchase: For taxable purchase there must be a payment. They are generally in the form of
monetary but can be any other form;
a. Goods and services purchased instead of the money
b. Payments that is made in respect of refraining from doing anything
Answer to G:
Superannuation: The tax that is paid by the individual based on the superannuation contribution
is dependent upon the range of factors. The tax on the superannuation contribution is usually
depended on the type of contribution made every year. Superannuation contributions that are
allowed as the income tax deductions. Tax on superannuation is determined based on the
preservation age.
Answer to question 4:
Key features relating to the organizational policy and procedures associated to the preparation of
the tax documentation procedure for the legal entities are as follows;
a. Understanding the taxation obligations
b. Adequate process of decision making to meet the risks related to tax
c. Facilitating adequate systems and controls to maintain the integrity in
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

reporting.
d. Timeliness of the lodgement for tax.
e. Liabilities relating to tax and cash flow
Answer to question 5:
The key accounting principles and practices that are applicable in the preparation of the tax
documentation for the two different types of legal entities are as follows;
a. Making appropriate consultations with the clients
b. Using the service of tax expert and specialist advice whenever
necessary
c. Rules and principles relating to taxation law
d. Ethical issues that are applicable to the regulations and organizational
policies which is necessarily required to be complied with
e. Procedure and timeframes for completing, recording and submitting the
documentation.
2. Answer the following questions
2.1What are four things you would need to identify prior to
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

lodging tax documentation?
Answer to question 2.1
The four things that an individual is required to identify before lodging tax documentation are
as follows;
a. Details of the income summaries obtained from the employers, foreign
sources, supper funds and interest from the banks.
b. Work related expenditure
c. Information related to investments, managed funds and gains or losses
from the investment disposal of shares, units and rental properties.
d. Rental property details such as rental income, expenses relating to the
property and interest charged on the borrowed funds for rental property.
2.2 Define both cash and non-cash(accrual) accounting
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

Answer to 2.2:
Cash accounting can be defined as the method of accounting where the cash receipts are
recorded during the period of accounting when they are received and expenditure is recorded
during the period in which these expenditures are paid.
A non-cash accounting is an method of accounting where the expenditure is reported in the
income statement during the accounting period but there is no associated cash payment takes
place during the accounting period.
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
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

Answer to 2.3:
Sole trader: A sole trader is regarded as the simple form of business structure and they are
inexpensive to set up. A sole trader is legally accountable for all the business aspects. For a sole
trader having $75,000 is required to register for GST and pay it.
Partnership: Partnership can be defined as the business structure that are of specific type that is
formed by the agreement between the two or more individual to perform the business as the co-
owners. Under the partnership each partner are required to pay the tax based on the share of
profits based on the individual tax rate and might be eligible for small business tax offset.
Trust: A trust can be defined as the obligations that is imposed on the person or other company to
hold the property relating to the benefit of the beneficiaries. The trustee under the trust is
required to manage the tax affairs including the registration in the trust tax system, lodging trust
tax returns and paying some tax liabilities. The income of the trust estate labels requires the
details of the income for filing the tax for which the beneficiaries can be held accountable.
Company: Company can be defined as the legal entity that are made up of the association of
people. Company is generally natural, legal or mixture of both carrying on the commercial or
industrial enterprise. The income of the companies are generally taxed based on the applicable
tax rate of 27.5% or otherwise an applicable rate of 30% is applied on the profits derived.
Joint Venture: Joint venture can be defined as the commercial enterprise that are jointly held by
two or more people. They are generally characterised as the shared ownership and share
governance. In respect of section 51-50 of the GST Act requires the joint venture operator to
submit the GST return for each tax period.
Self-managed super fund: A self-managed super fund can be defined as the superannuation trust
structure, which provides benefits to the members upon the retirement. The self-managed super
funds is usually taxed at the concessional rate of 15%.
2.4 Describe a depreciation schedule and what it is used for. Provide an example
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

Answer to 2.4:
The depreciation schedule breaks down the depreciation of the organizations long term
assets. It computes the depreciation expenditure on the investment property. Depreciation
schedule is used to match the cost of productive asset with the revenues that is earned by using the
asset.
An example of depreciation schedule are as follows;
Depreciation Schedule
Particulars Original Cost Depreciation Rate Depreciation Claimed Adjusted Tax Value
Electric Band 5200 15% 375.00 2500
Piano Set 6500 12% 780.00 3500
Electric
Guitar 4500 20% 350.00 1750
Total 1505.00 7750
2.5 What is an allowable deduction? Describe in detail.
Answer to 2.5:
Allowable deductions can be defined as the deductions for expenses that is subtracted from the
gross income to lower the amount of income subjected to income tax. For instance, an individual
has an income of $35000 and claims an allowable deduction of $5000 therefore the taxable income
becomes $30,000.
2.6 What are the 6 types of rulings for income tax purposes?
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

Answer to 2.6:
The six types of rulings for income tax purpose are as follows;
a. Formal rulings
b. Public rulings
c. Product rulings
d. Class rulings
e. Private binding rulings
f. Oral rulings
2.7 Australian residents must lodge a tax return if they meet certain criteria. What are they?
Answer to 2.7:
The Australian resident should lodge tax return given that they meet the certain criteria are as
follows;
a. If an individual taxable income surpasses the threshold limit
b. If the individual were the partner in the partnership and made profit
c. If individual has received an income from the person services
d. Conducted any business activities that yielded profit
2.8 Describe what will happen when you lodge a tax return.
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

Answer to 2.8:
When an individual lodges tax returns the following event takes place that are as follows;
a. Eligibility is checked
b. The notice of assessment is issued
c. Changes can be made if an individual makes a mistake
d. The bills can be paid
e. An individual can see where their tax goes
2.9 What is an amendment? Describe the process and why you would do it.
Answer to 2.9:
An amendment can be defined as the formal or official change that is made to the law, contract
constitution or other legal document. Amendment is regarded as the minor change or the addition
to improve the piece of legislation.
The individual carries out the process of amendment when they submit the request for amendment
before the Australian taxation office has processed their tax return. The ATO might process them
together and the individual taxpayer receives the notice of assessment. The reason for undertaking
the amendment is to rectify or amend any mistake that is made in the tax return.
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

Assessment Feedback One Evaluation
Student’s name:
Trainer/ Assessor’s name: Date:
Unit name: FNSACC601 Prepare and administer tax documentation for legal entities
Assessment Submission Checklist to be completed by the Trainer/Assessor
Did the student complete and provide evidence for the following: Yes No
1. Create a checklist that would assist you to with identifying all the relevant details from your client.  
2. Provide an analysis on taxable income?  
3. Provide an understanding of legal requirement?  
4. Has the ability to prepare and present tax documentation?  
5. Submit within agreed timeframe?  
Has the learner proven they can: Yes No
6. Identify and confirm suitability of legal entities within client's organisational structure  
7. Conduct research to identify updates or additions to compliance requirements relevant to client's
circumstances, and establish recording and reporting requirements
 
8. Determine client's tax documentation preparation requirements  
9. Identify and collect client data relevant to tax documentation requirements  
10. Analyse data to extract relevant tax information and identify any discrepancies requiring verification
or research for resolution
 
11. Obtain advice and guidance from specialist to evaluate and moderate decision processes  
12. Calculate client's tax obligations, in accordance with legislative requirements and information
gathering practices
 
13. Prepare tax documentation to comply with relevant Australian Taxation Office (ATO), legislative
and organisational recording and reporting requirements
 
14. Present and confirm documentation with clients to obtain client signature, authorisation and
endorsement, ensuring legislative requirements are met
 
15. Submit relevant documentation to Australian Taxation Office (ATO) within established timelines  
16. Advise client of current tax obligations and that advice from taxation authorities is to be followed  
17. 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.
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool

____________________________ 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
V2018.T1. 1.0
FNS50215 Diploma of Accounting/ FNSACC601/ 2018/ T1/ Assessment Tool