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assessment
Qualification: FNS60215 Advanced Diploma of Accounting
Unit of Competency: FNSACC601 Prepare and administer tax documentation for legal entities
Student Name:  
Student ID:  
Assessment Due Date:  

FNSACC601 Prepare and administer tax documentation for legal entities

This unit describes the skills and knowledge required to identify taxation requirements for complex lodgements and returns for legal entities. It involves gathering, analysing and processing taxation related data to prepare tax documentation, and to review and apply compliance requirements.

Elements Performance Criteria
1.     Identify taxation requirements for complex lodgements and returns 1.1 Identify and confirm suitability of legal entities within client’s organisational structure
1.2 Conduct research to identify updates or additions to compliance requirements relevant to client’s circumstances, and establish recording and reporting requirements
1.3 Determine client’s tax documentation preparation requirements
2.     Gather and analyse data relevant to client’s tax position 2.1 Identify and collect client data relevant to tax documentation requirements
2.2 Analyse data to extract relevant tax information and identify any discrepancies requiring verification or research for resolution
2.3 Obtain advice and guidance from specialist to evaluate and moderate decision processes
3.     Prepare and present tax documentation 3.1 Calculate client’s tax obligations, in accordance with legislative requirements and information gathering practices
3.2 Prepare tax documentation to comply with relevant Australian Taxation Office (ATO), legislative and organisational recording and reporting requirements
3.3 Present and confirm documentation with clients to obtain client signature, authorisation and endorsement, ensuring legislative requirements are met
4.     Lodge tax documentation 4.1 Submit relevant tax documentation to the ATO within established timelines
4.2 Advise client of current tax obligations and that any advice from taxation authorities is to be followed
4.3 Respond to tax office enquiries and meet taxation audit requirements, when applicable, in timely manner
Performance Evidence
Evidence of the ability to:

·          research and critically evaluate new or changed legislative requirements and apply where relevant to the preparation of the client’s tax documentation

·          provide taxation advice to clients in line with individual requirements

·          identify legal entity tax data required to calculate taxable income

·          prepare tax documentation for legal entities that complies with:

o    Australian taxation law and Australian Taxation Office (ATO) rulings and lodgement schedules

o    accounting principles and practices

o    organisational policy and procedures

·          present tax documentation to the client for verification and approval

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

·          identify and explain ethical considerations and legislative requirements relevant to the preparation of tax documentation for legal entities, including:

o    conflict of interest

o    responsibilities of tax agents including Code of Professional Conduct obligations under the Tax Agent Services Act (TASA) and Tax Agent Services Regulations (TASR)

o    government tax policy documents issued by Reviews, Treasury and Board of Taxation

o    explanatory materials in relation to legislation

o    statutes

o    court and Administrative Appeals Tribunal decisions

o    Commissioner of Taxation’s interpretive guidance in Rulings and Determinations

·          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:

o    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

o    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

o    the key aspects of taxes that extend the ordinary income tax base, including relevant principles and application of the capital gains tax (CGT) and fringe benefits tax (FBT) rules

o    goods and services tax (GST)

o    taxation aspects of superannuation law

o    administrative aspects of the taxes identified above including documentation, tax collection and withholding mechanisms, assessments, obligations, rulings, penalties and audits

o    specific and general anti-avoidance tax rules

·          describe the key sources of information and taxable transactions data required to calculate taxable income, including:

o    allowable deductions

o    capital gains

o    financial adjustments such as write-offs and revaluations

o    income

o    payments

o    purchases

o    superannuation payments

·          describe the key features of organisational policy and procedures relating to the preparation of tax documentation for legal entities

·          outline the key accounting principles and practices relevant to the preparation of tax documentation for the different types of legal entities

Foundation Skills
Reading ·          Researches and critically analyses information from a range of sources to identify key aspects relevant to requirements
Writing ·          Prepares a range of written texts to specifications using clear language and correct terminology and conventions appropriate for the audience and purpose
Oral Communication ·          Effectively participates in verbal exchanges using active listening and questioning techniques to elicit, clarify and confirm information with a range of personnel
Numeracy ·          Performs calculations and uses a range of mathematical problem-solving techniques to analyse requirements and prepare reports
Navigate the world of work ·          Recognises and responds to relevant Acts, regulatory requirements, explicit and implicit protocols, policies and procedures, and meets expectations associated with own role

·          Ensures currency of knowledge relating to legislation, regulations and policies applicable to taxation legislation and requirements

Interact with others ·          Selects and uses appropriate conventions and protocols when communicating with others to achieve specific outcomes
Get the work done ·          Takes responsibility for planning, sequencing and prioritising complex tasks and own workload for efficiency and effective outcomes

·          Uses systematic analytical problem-solving processes in complex, routine and non-routine situations, gathering information and identifying and evaluating options against criteria

·          Considers whether others should be involved in making decisions, using collaborative processes as part of the decision-making process, where appropriate

·          Evaluates effectiveness of systems and processes to inform decisions on how to implement improvements

·          Recognises and anticipates a range of problems, implementing contingency plans when appropriate

·          Uses digitally based technologies and systems to assist in achieving required outcomes

 

 

 

Assessment Information:

To be deemed competent for this unit of competency, you are required to satisfactorily complete two (2) assessments:

  • Assessment 1: Written Questions
  • Assessment 2: Skills Assessment

Assessment Instructions

Your assessment will be required to be typed in Arial font size 12 only. You will provide your completed assessment for all of questions in one document and MUST be uploaded into MOODLE (No other method of submission will be accepted).

You are required to professionally format your document including spell-check and indicating each Task answer [e.g. Task 1 (a.) then the answer, Task 1 (b.) then the answer etc.] according to this Assignment requirement. You may lose marks if you have not spell-checked your document (as this is a professional formatting requirement, a business skill).

This assessment can be completed in one of several ways. Assessment candidates may identify unit requirement within their own work environment or organisation, or with reference to a scenario provided by the trainer/assessor.

Be sure to properly reference your sources of information using the Harvard referencing system. For more information go to:-

  • Student Handbook – latest version
  • Ask your Trainer/Assessor to provide you with this information

In order to determine if you are addressing this assignment adequately in terms of competency/comprehension (prior to due date) a draft copy of your assessment should be discussed during class time in consultation with your Trainer/Assessor. For this feedback/ support from your Trainer/Assessor, you will need to bring to class your “draft copy” with any evidence of the research you have conducted to produce the assessment.

If, as a student you feel you have special needs that require your Trainer/Assessor to apply a reasonable adjustment – please discuss this with your Trainer/Assessor at the beginning of the subject studies.

Your Assignment must:

  1. Be of a professional standard (spelling, grammar, punctuation)
  2. Size 12, Arial Font
  3. 1.5 Spacing
  4. All pages must have a Header/Footer with the following details:
    • Name
    • Student ID
    • The course & unit of competency
    • Date
    • Page numbering
  5. Title page
  6. Index page
  7. Body of work
  8. Referencing

 

How to upload your answered assessment into MOODLE

To upload your assignment into Moodle, follow these steps.

  1. Log-in to Moodle and access the subject that you will be submitting the assignment in.
  2. Locate the assessment you will be uploading into by scrolling down to the week that the assessment is due in and then click on the assessment submission link.
  3. Click on the name of the assignment.
  4. Click the Browse button.
  5. Select the file and click Open.
  6. Click the Upload this file button.
  7. If you have more than one file, repeat the process (steps 4-6) to attach additional files up to the assignment’s limit.
  8. Once happy with your submission click the Send for marking button. The files are locked and the student can no longer delete, or upload more, files.

Note: The date and time of the submission is recorded when the files are sent for marking, not when they are first uploaded.

Assessment 2: Skills Assessment

Task 1 – Company Tax Return

For a company that you have access to (for example a company you work for or a simulated business set up as a company), you are required to prepare a company tax return ready for submission to the Australian Taxation Office.

This includes:

  • researching and critically evaluating new or changed legislative requirements and apply where relevant to the preparation of the client’s tax documentation
  • providing taxation advice to clients in line with individual requirements
  • identifying legal entity tax data required to calculate taxable income
  • preparing tax documentation for legal entities that complies with:
  • Australian taxation law and Australian Taxation Office (ATO) rulings and lodgement schedules
  • accounting principles and practices
  • organisational policy and procedures
  • presenting tax documentation to the client for verification and approval.

Note: You must seek specialist advice where required.

In order to adequately prepare for the document production, you must complete the attached checklist and collect all relevant data such that the form, and all associated schedules, can be adequately completed.

 


 

Company Tax Preparation Checklist

This checklist should be completed in conjunction with the preparation of tax reconciliation return workpapers. The checklist provides a general list of major issues that should be addressed. (The checklist is not designed to be an exhaustive list of all issues that may warrant consideration)

 

Entity’s Name  

 

Prior Year Tax Return Considerations Yes No N/A
Has last year’s tax return been checked for reversing time differences (e.g. accruals and provisions)?
Has last year’s tax return been checked for recurring time differences that may need considering in the current year (e.g. amortisation of computer software and black-hole expenditure deductible in accordance with section 40-880 of the Income Tax Assessment Act 1997)?
Has last year’s tax return been checked for tax losses and capital losses carried forward to the current income year?
Have you checked the prior year action sheet for prior year carry forward issues?
Comments:

 

 

 

 

 


Statement of Financial Position (Balance Sheet)
Yes No N/A
General
Have all balance sheet items been reviewed (e.g. deductibility of consumable stores, write-offs, assessability of deferred income, tax treatment of bills of exchange etc.)?
Have all movements in provisions been adjusted for (e.g. provision for annual leave, provision for long service leave, provision for obsolete stock, provision for doubtful debts etc.)?
Have sundry creditors been reviewed for accruals / provisions which have not been legally incurred by year end and for non-deductible accrued expenditure (e.g. accrued audit expenditure and accrued superannuation expenditure)?
Have sundry debtors been reviewed for prepayments and accrued income (e.g. interest receivable)?
Does accrued FBT represent the FBT instalment payable by the company in the month preceding year end (which is therefore deductible as per Taxation Ruling TR 95/24)?
Division 7A
For private companies, have loans, payments and debt forgiveness to shareholders or their associates been considered in the light of section 109 and Division 7A (deemed dividend)? If Division 7A applies, please refer to CPA Australia’s 2015 Division 7A checklist for further information.
Prepayments
Have all prepayments of less than $1,000 been claimed as an immediate tax deduction?
Have all prepayments required to be made by law or under an order of a court (e.g. prepaid workcover expenditure) been claimed as an immediate tax deduction?

 


Statement of Financial Position (Balance Sheet)
Yes No N/A
Prepayments (continued)
Have all prepayments of more than $1,000 which were not required to be made under a law or a court order been capitalised and apportioned over the eligible service period to which the prepayment relates?
Trading Stock
Does the company have trading stock?
Does the opening balance of trading stock for tax purposes agree with the closing balance of trading stock in last year’s income tax return?
Is the closing stock valuation method adopted by the company acceptable for both accounting and tax purposes?

If not, can the tax valuation be justified and is it adequately documented?

Has the company disposed of any trading stock outside the normal course of business? If so, has the market value of the trading stock on the day of the disposal been included in the company’s assessable income in accordance with section 70-90 of the Income Tax Assessment Act 1997 (the ITAA 1997)?
Where stock is valued at cost price, is a full absorption costing basis being used?
Has the treatment of goods-in transit and consignment stock been considered in the valuation of trading stock?
Has a deduction been claimed for consumable stores on hand at balance date?
Intellectual Property
Have you considered the depreciation rules for intellectual property under Division 40 of the ITAA 1997?
Debt / Equity
Have the application of the Debt / Equity rules been considered for all related party loan interests and hybrid securities issued by the company?

Note: the transition period for at-call loans expired on 1 July 2005 but a carve-out from these rules applies to small businesses with an annual turnover of less than $20m. A company must satisfy this turnover test each year.

 

Statement of Comprehensive Income (Profit and Loss) Yes No N/A
General
Have you considered whether accounting profit/loss before tax (Item 6 label T) reconciles to the profit and loss statement? If these do not reconcile, determine nature of the difference.
Have expenses been reviewed generally for non-deductible items (e.g. for non-deductible entertainment, private expenses, donations made to entities who are not deductible gift recipients, subscriptions to private publications, capital legal expenses etc.)?
Have operating and / or finance leases and hire purchase agreements been properly treated for tax purposes?
For interest claimed, has the deductibility of the interest been considered in the light of the use of borrowed funds?
If the ATO notified you of a SIC or GIC liability, has this been claimed as a deduction?
Have penalties paid (excluding GIC or SIC) to the ATO or as otherwise charged under an Australian or foreign law been treated as non-deductible and interest received from the ATO brought to account as assessable?
Has the treatment of discounts on short-term securities (e.g. bills of exchange, promissory notes) been considered?
Has interest received been grossed up for any TFN withholding tax deducted and a claim made for the amount of tax deducted?
Has the entity derived income that is exempt from tax or which is non-assessable non-exempt income (e.g. non-portfolio dividends received or exempt foreign branch income)?
Statement of Comprehensive Income (Profit and Loss) Yes No N/A
General (continued)
Have you considered if any of the income recorded in the accounts could be regarded as unearned income in accordance with the principle in Arthur Murray and therefore should not be included in income for the current year?
For travel expenses, have travel diaries been kept (where applicable) along with other supporting documentation?
Has the timing of income and expenditure been considered for long-term construction contracts?
Has the potential deductibility of expenditure which has been capitalised for accounting purposes
(e.g. capitalised interest) been considered?
Are management fees / consultancy fees paid to related entities commercially realistic and supported by appropriate documentation?
Decline in Value (Depreciation)
Have you ensured this year’s tax opening balance agrees to last year’s closing balance?
Has the effective life of new acquisitions been reviewed?
Has the balancing adjustment for disposed or scrapped assets been reviewed?
Have repairs expensed for accounting purposes, but capitalised for tax purposes, been treated as additions to the tax fixed assets schedule and depreciated?
Have additions to buildings and construction-in-progress been reviewed to ensure depreciation has been claimed on units of depreciable plant?
For construction of new income-producing buildings or for extensions, alterations or structural improvements, is a capital works deduction available under Division 43?
Has scrapped plant and equipment (for which a deduction has been claimed) been physically scrapped or set aside for scrapping, during the year?
Has the motor vehicle depreciation cost limit of $57,466 been applied when calculating depreciation?
Has a profit on the sale of previously leased motor vehicles been brought into account?
Have plant conversion and relocation costs been capitalised and depreciated?
For companies that are small business entity taxpayers, have assets acquired  prior to 12 May 2015 and costing less than $1,000 been written off  immediately. Have any assets acquired on or after 12 May 2015 and costing less than $20,000 been written off immediately?
For taxpayers that are not small business entities, have assets costing less than $1,000 been included in a low-value depreciation pool?
Have the black hole expenditure rules in Subdivision 40-I of the Income Tax Assessment Act 1997 (e.g. section 40-880) been considered for black hole capital expenditure?
Note: disclosures are required to be made at Item 9 and 10 in relation to depreciating assets and depreciation claimed in relation to small business entities.
Non-Resident Companies
Has income from only Australian sources / permanent establishments been included in assessable income?
Have applicable double tax treaties been considered, particularly the articles dealing with business profits and permanent establishment?
For companies that do not have a permanent establishment in Australia – have dividends, interest and amounts attributed to MIT fund payments (that are franked or subject to withholding tax) been excluded from the calculation of taxable income?
For companies that have a permanent establishment in Australia – have interest, amounts attributed to MIT fund payments, dividends and their franking credits (that are not subject to withholding tax) been included in the calculation of taxable income?
Have the capital gains tax implications of a sale of taxable Australian real property been considered?

 

Statement of Comprehensive Income (Profit and Loss) Yes No N/A
Superannuation
Have all superannuation contributions claimed for the year been paid to the fund before year end? If not, have accrued superannuation contributions been added back?
Has the entity provided the prescribed level of superannuation for each employee pursuant to the Superannuation Guarantee Scheme?
Has a Superannuation Guarantee charge amount been paid by the entity? If so, has the amount been added back as non-deductible? If a late superannuation contribution was offset against the superannuation guarantee charge, the offset amount is not deductible.

Note: from 1 July 2012 directors of a company can be held personally liable for unpaid employee superannuation amounts.

Capital Gains
Have any capital gains calculations been reviewed for their correctness?
Have the necessary adjustments been made where the accounting gain / loss does not equal the capital gain / loss for tax purposes?
Have you considered the unrealised loss rules in Subdivision 165-CC of the ITAA 1997 in relation to the disposal of CGT assets that were held at a change over time (i.e. change in the ownership or control of the company)?
Have you considered whether capital gains may be able to be reduced / eliminated in accordance with the small business CGT concessions?
Have you considered whether capital gains made in relation to shares in foreign companies can be reduced / eliminated under subdivision 768-G of the ITAA 1997?
Repairs and Maintenance
Have repairs and maintenance claims been reviewed to ensure they are of a revenue nature and contain no capital items?
Taxation of Financial Arrangements
Have you considered the application of TOFA rules to the company?
Has the disclosure at item 6K and 6L been reconciled to the financial and other income disclosures at item 8T and 8U?
Bad Debts
Have bad debts written off during the year been claimed as a tax deduction?
For bad debts claimed as deductions during the year has:

·         the debt been physically written off prior to balance date, or is there a Board minute authorising the writing-off of the debt prior to year end?

·         the debt either previously been returned as assessable income by the company or does it represent a loan made in the ordinary course of a money lending business?

·         the company satisfied the Continuity of Ownership Test or, alternatively, the Same Business Test (SBT) during the period from when the debt was created to when the debt is proposed to be written off as bad?

Comments:

 

 

 

 

 

 

 

 

Tax Return Form Completion Yes No N/A
Status of Company (Item 3)
Has the relevant disclosure been completed for a consolidated head company or a subsidiary member thereof where the subsidiary member is completing a part year return?

(Refer to the ATO’s income tax returns and consolidation instructions)

Comments:

 

 

 

Interposed Entity Selection Status (Item 4)
Has the company made an interposed entity election (IEE)?

Note: a company may be required to make an IEE to be included in the family group of a trust that has made a family trust election. Where a trust that has made a family trust election distributes income or capital to a company that has not made an IEE, the distribution may be subject to family trust distributions tax (FDT), a tax of 49% levied on the trustee of the family trust. Note that distributions by a company that has made an IEE of income to entities outside the family group may also attract FDT.

Comments:

 

 

 

Taxation of Financial Arrangements (TOFA) (Item 5)
Has the company correctly calculated its TOFA gains, TOFA losses or TOFA transitional balancing adjustments (if applicable)?

Assuming yes, please consider the TOFA disclosures to be made at items 6 and 8 and the international dealing schedule (if applicable).

Note: the TOFA rules apply to the following entities:

authorised deposit-taking institutions, securitisation vehicles, and financial sector entities with an aggregated turnover of $20 million or more

managed investment schemes or entities with a similar status under foreign law relating to corporate regulations with assets of $100 million or more

any other entity (excluding individuals) which satisfies one or more of the following:

§  an aggregated turnover of $100 million or more

§  assets of $300 million or more or

§  financial assets of $100 million or more.

The aggregated turnover test includes the annual turnover of any entity a company is connected with, or any affiliate of the company (including foreign resident companies and trusts).

Financial and Other Information (Item 8)
Have all the appropriate disclosures been made at Item 8?      
Where applicable, has the company disclosed debit loans provided during the year to shareholders or associates of shareholders who are natural persons, partnerships or trusts? (Item 8 label N)      
Has the company disclosed all payments made during the year (including salaries, wages, commissions, superannuation contributions and allowances) to related persons? (Item 8 label Q)      
Have total salary and wages expenditure been disclosed and reconciled to Label W1 on the BAS?      
Has the gains and losses from financial arrangements (that are subject to TOFA) been disclosed at item 8T and 8U been reconciled to items 6K + 7E and 6L +7W?      
Capital Allowance (Item 9)
Did the company hold any depreciating assets (tangible or intangible) during the year? If so, have the appropriate disclosures been made in relation to the company’s capital allowances?      

 

Tax Return Form Completion Yes No N/A
Small Business Entity Simplified Depreciation (Item 10)
Is the company a small business entity?  If so, have the appropriate small business entity depreciating assets and small business depreciation claim been disclosed?
Consolidation Deductions Relating to Rights to Future Income, Consumable Stores and Work in Progress (Item 11)
For consolidated groups, have there been any deductions claimed for the 2014 income year relating to rights to future income, consumable stores and work in progress?

The categories for the above deductions should be classified and disclosed as follows:

pre rules deductions (arising before 12 May 2010)

interim rules deduction (arising between 12 May 2010 and 30 March 2011)

prospective rule deductions (arising after 31 March 2011)

National Rental Affordability Scheme (Item 12)
Has the entity derived rent in respect of dwelling from renting it on an affordable housing basis under the NRAS for the income year?
Has the entity been issued with a certificate by the Housing Secretary under the NRAS?

Note: only entities who have obtained this certificate are entitled to the refundable tax offsets.

Losses Information (Item 13)
Have the continuity of ownership and / or same business test of the company been reviewed to ensure the deductibility of a bad debt or a prior year tax loss / capital loss claimed by the company?
Does the company have tax losses and net capital losses in excess of $100,000? If so, has a losses schedule or consolidated group losses schedule been completed?
Does the head company of a consolidated group or multiple entry consolidated group have transferred tax losses carried forward to 2014/2015 greater than $100,000 and more than $100,000 of those losses were contributed by a single entity? If so, has a consolidated groups transferred tax losses schedule been completed?
Does the company have any transitional foreign losses that can be deducted? (i.e. foreign losses incurred prior to 1 July 2009 can be deducted over five years)
Personal Services Income (Item 14)
Does the income of the company include income which is an individual’s personal services income (PSI)?  If yes the company must complete the personal service income disclosures at item 14.

Note: PSI is included in the individual’s personal income tax return. PSI is income that is mainly a reward for an individual’s personal efforts or skills. Please refer to CPA Australia’s 2015 PSI / PSB self-assessment checklist for further information.

Foreign Income Tax Offset (Item 20)
Have you worked out the amount of foreign income tax offset if applicable?
Research and Development Tax Incentive (Item 21)
Have you considered whether the company is an R&D entity which is eligible for a 45% refundable R&D tax offset (i.e. applicable to entities with an aggregated annual turnover of less than $20million) or a 40% non-refundable R&D tax offset?
Has a Research and Development Tax Incentive Schedule 2015 been prepared? This is required when Item 21 labels A or U are completed.

Note:

·         if a R&D claim is made in relation to notional deductions ensure these amount are added back at label 7D in the reconciliation to taxable income or loss

·         to be eligible for the incentive, the company must be an R&D entity engaging in eligible R&D activities and have a notional R&D deduction of at least $20,000

·         prior to claiming the offset, check that the company has appropriately registered its R&D activities with AusIndustry.

Where applicable, the company should disclose the feedstock adjustment amount that is included in its assessable income and included in item 7B.
Reportable Tax Position (Item 23)
Has the company been advised by the ATO that it is required to lodge a Reportable Tax Position (RTP) Schedule 2015?
Tax Return Form Completion Yes No N/A
Overseas Transactions or Interests / Thin Capitalisation / Foreign Source Income (Items 24-28)
Have the transfer pricing provisions in Part III Division 13 of the Income Tax Assessment Act 1936 and 815-A of the ITAA 1997 (and the need for commercial arm’s length principles been applied to transactions with offshore related parties) been considered?      
a.     Was the aggregate amount of your transactions or dealings with international related parties greater than $2,000,000?      
b.     Does the entity need to work out its maximum allowable debt (e.g. the safe harbour debt amount or the arm’s length debt tests) under thin capitalisation provisions in Division 820 of the ITAA 1997?

Note: the following entities are subject to the thin capitalisation provisions:

Australian entities with certain overseas operations, and their associate entities (outward investors)

Australian entities that are foreign controlled (inward investors)

Foreign entities with operations or investments in Australia that are claiming debt deductions (inward investors).

     
Has the entity paid any interest to overseas entities?      
Has the entity paid any royalties to overseas entities?      
If the answer to (a), (b), (c) or (d) is yes, has an international dealings schedule (IDS) been prepared?      
Comments:

 

 

 

 

 

Calculation Statement
Have all the applicable non-refundable non-carry forward tax offsets been included (e.g. foreign income tax offset)? (Label C)
Have all the applicable non-refundable carry forward tax offsets been included (e.g. R&D tax offset)? (Label D)
Have all refundable tax offsets been included? (e.g. loss carry back) (Label E and I)
Have all eligible credits been included (e.g. imputation credits)? (Label H)
Have all PAYG instalments paid during the year been included? (Label K)
Other ATO Forms / Elections Yes No N/A
Tax Consolidation
Is the company a member of a wholly-owned group of companies which has not consolidated? If yes, have the benefits of entering the tax consolidation regime been considered?
Have any members of the consolidated group left during the year and, if so, has the ATO been appropriately notified? (Note that the ATO is required to be notified within 28 days of an entity leaving the group)
Notices and Elections
Have all the relevant notices and / or elections relied on by the entity been properly prepared?
Where applicable have you completed the following elections / notices?

Dividend and Interest schedules

Capital Allowances Schedule.

Have all notices and / or elections, where lodgement is not required, been appropriately sighted and retained on record?
Other ATO Forms / Elections Yes No N/A
Dividend Imputation / Franking Account
Has the franking account been prepared in accordance with the simplified imputation rules?
Has the franking percentage applied to the first distribution been applied to all other distributions made during the period?
If there is greater than 20% variance of the benchmark franking percentage between franking periods has the ATO been notified?
Is there a franking deficit at year end? If so, is the company aware that a franking account return must be lodged together with franking deficit tax payable within a month of the end of the franking year?
Has the 45/90 day rule been considered in relation to dividends received by the company?
International Dealings Schedule
Has all assessable foreign sourced income been identified and returned as assessable income? If so, has foreign income been grossed up for the appropriate taxes?
Has withholding tax been deducted from interest, royalties and unfranked dividends paid to non-residents or offshore / foreign ‘branches’ of resident companies during the year?
Have management fees, software licence fees etc. paid to overseas entities been examined to determine whether they are within the definition of royalties?
Have insurance premiums been paid by the entity to non-resident insurers? If so, has the appropriate amount been deducted and a return been furnished in respect of the foreign premiums as required under Division 15 of the Income Tax Assessment Act 1936?
Have you considered the CFC rules in relation to the attribution of income?
Have you considered the ‘transferor trust’ rules in relation to the attribution of income?
General Value Shifting Regime
Have the value shifting rules been considered in respect of:

·         any acquisitions or disposals of equity or debt interests in the company (or the company’s subsidiaries, if appropriate)

·         creation of rights in non-depreciating assets

·         non-arm’s length dealings with related parties?

Other Tax Issues
Do the totals in the BAS’s of the company correspond to the accounts of the company?
Has the carry forward action sheet (attached to this checklist) been completed?

 

 

Entity’s Name   Initial Date
Preparer
Reviewer
Partner

 

Year ended 30 June 2015

Carry Forward Action Sheet
Date Item Carried Forward $ Working Paper Ref Checked By
Net revenue losses carried forward
Net capital losses carried forward
CGT small business rollover amount
Other CGT rollover
Other assessable income amount
Other deductible expenses (i.e. prepayments)
Franking amount balance

 

Points for Partner Review
Date Review Point Checked By

 

 


 

Overall Assessment Record

Student Name:
Student Number:
Unit of Competency: FNSACC601 Prepare and administer tax documentation for legal entities
Assessor Name: Gazi
Assessment Date
Assessment 1:

Did student satisfactorily answer the following questions? (tick if yes; cross if no)

1 2 3 4 5 6 7 8 9 10 11 12
Assessment 1 Outcome:  Satisfactory  Not Satisfactory
Assessment 2:

Assessment 2 Outcome:  Satisfactory  Not Satisfactory
Assessor Feedback:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment Outcome:  Competent  Not Yet Competent

 

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