FNSACC601: Tax Documentation for Legal Entities - Full Solution

This FNSACC601 assignment solution provides an overview of preparing and administering tax documentation for legal entities. It discusses the role of public and private rulings, court and tribunal decisions in interpreting tax legislation. It outlines methods specified by the TPB for tax agents in managing conflicts of interest, including avoidance, control, and disclosure. The solution details the support documentation required for verifying assessable income and deductions, covering aspects like salary slips, bank statements, car expenses, and travel expenses. It also addresses valid distributions in trusts, compliance with SMSF regulations, and the treatment of fringe benefits, providing examples related to car usage and mobile phones. The document concludes with a list of references used in compiling the solution.

FNSACC601 Prepare and
Administer Tax
Documentation for Legal
Entities Final Assessment

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................3
REFERENCES................................................................................................................................6

MAIN BODY
A
Public and private rulings and determination
The public and private ruling has a crucial role in interpreting and applying tax
legislation. The public ruling is being defined as the binding interpretations relating to tax law
and this assist in interpretation of statement and guidelines. On the other side, the private ruling
is the one which only applies to the certain taxpayers only but after the application is being
provided by taxpayer for ruling (Comans, Moretto and Byrnes, 2017). Both the public and
private ruling is assistive in interpreting the legislation as both these ruling involves the titles
being used in the tax law. For instance, TR in tax law interprets taxation ruling, LCR is law
companion ruling, GSTR is GST ruling and similar kind of rulings. Along with this the private
ruling assist in interpreting the fact that how a tax law is applied in respect to some specific
scheme.
Court and tribunal decisions
Court and tribunal are the regulatory bodies which provides justice and their final
judgement. This is essential for the reason that when any case is being handled by the case then
all the decision will be made by the related court and tribunal. Thus, it is very essential for the
court and tribunal to decide for the case to be solved in proper and justified manner. The reason
pertaining to the fact is that court and tribunal knows what needs to be done and how the case
will be solved. Thus, it plays an important role within the analysis and solving the case of the
people.
B
Methods specified by TPB for tax agent in managing conflict of interest
The three methods through which the TPB tax agent can manage the conflict of interest involves
the following-
 The first measure is to avoid that is the agent can try to avoid the situation and conflict.
This is the situation where the solution to the conflict of interest is not controllable.
 Along with this another method specified by the TPB for the management of conflict of
interest is the control of the situation. The reason pertaining to the fact is that when there
is conflict of interest then this will result in identifying and assessing of the reason for
conflict. Hence, it is essential for the agent to control the conflict. For instance,

depending on a specific situation there may be possibility of controlling conflict of
interest.
 Moreover, in addition to this disclosing is another way in which conflict can be managed
in proper and effective manner. This is particularly because when the sufficient
information is being provided then there will not be any situation of meeting conflict.
C
Support documentation for verifying assessable income
The support document which is necessary for the person to provide for the verification of
assessable income involves salary or wage slip including the employer name and address, contact
number and copies of original payment summary. In addition to this, it will also be required for
the person to present the original bank statement and original documents.
Support documentation for verifying deduction
For the deduction as well there are different support documents which need to be analysed and
evaluated. This involves work related car expense which includes all the details of the kilometre
per car worked, per year income, copy of purchase or lease document for the vehicles, car
registration certificate and other related documents (Fiedler, Minas and O'Keefe, 2021). Along
with this, in case there is any kind of travel expenses being undertook by the person then its
documents will be required for the effective management of the work.
Valid distribution
In case when recipient is beneficiary then in that case the net income of the trust will be
taxed depending on the fact that whether beneficiary is entitled to the income of trust or not. In
case the trust is having the derived capital gain or franked distribution then in that case trustee
has streamed the beneficiary
When the distribution is decided then the beneficiary will get the declared amount in the
intended manner.
Along with this the distribution or the settlement will take place in the intended manner.
This is necessary because of the reason that when the trustee has failed to provide the final
accounting then a petition can be found in order compel the trust to provide the share.
Complying SMSF
This is also very essential for the person to comply with SMSF that is self- managed
super fund. This is particularly because of the reason that SMSF is the Australian superannuation

fund during the income year and not have been issued the SMSF with the notice of non-
compliance. There are various documents which need to be presented at the time of taxation. All
the document need to be managed and listed in proper manner as this will outline all the details
of the person in proper and effective manner.
D
In case, Mark the salesperson is receiving the use of car then this will be included within
the fringe benefits. The reason pertaining to the fact is that when the person is using the car not
for the personal use then only they will receive the use of car and will be included in fringe
benefit.
This will not be included in the fringe benefit as Dianne is wife of Mark and she is not an
employee in Dealership. Hence, as a result of this she is not entitled to any of the fringe benefits.
In the case of Geoff the director of the company is being given the use of car in place of
receiving the directors fee will not be included in the fringe benefits (Sadiq and Sawyer, 2018).
The reason underlying this fact is that when the director is not being provided with the fees
which is against the work being done by them. Rather, fringe benefits are the one which are
provided other than the basic pay or the fees.
In case the mobile phone and computer is being provided to Anne then this will be a non-
taxable fringe benefit. The reason underlying this fact is that when the employee is being
provided with cell phone and laptop for the official use then this will be a non- taxable fringe
benefits.

REFERENCES
Books and Journals
Comans, T., Moretto, N. and Byrnes, J., 2017. Public preferences for the use of taxation and
labelling policy measures to combat obesity in young children in Australia. International
journal of environmental research and public health. 14(3). p.324.
Fiedler, T., Minas, J. and O'Keefe, P., 2021, July. Supporting the circular economy in Australia
through taxation reform. In Australian Tax Forum (Vol. 36, No. 3).
Sadiq, K. and Sawyer, A., 2018. New Zealand's Experience with Capital Gains Taxation and
Policy Choice Lessons from Australia. eJTR. 16. p.362.