ACC00717 Taxation Law And Practice

Task:

Required:

1.Using the EXCEL template provided, prepare a set of work papers – separate sheets within you EXCEL document as indicated. Include detailed explanations about whether each item is assessable income or gives rise to an allowable deduction. Show all workings, explain why you have treated items as you have, and provide appropriate authority for your decisions by referencing sections of the legislation, case law and/or income tax rulings. Your work papers need to be complete so that they can be reviewed by your supervisor and relied upon in the event of any future audit. They should also be reconciled and cross-referenced to reporting labels on the income tax return.

2.The TEMPLATE includes separate sheets for:

a.Salary & Wages Income

b.Other Income (e.g., interest and dividends)

c.Capital Gains

d.Rental Property

e.Deductions

f.Tax calculation

g.Letter of advice

3.Tax Payable, Offsets, & Levies: Include all levies and offsets considered (Medicare, Medicare surcharge, franking credits, tax paid, low income rebate, private health rebate) and explain why they are or are not applicable and reconcile to the tax return calculation).

4.Organise your work papers so that amounts are directly transferrable to items on the Income Tax Return and provide cross references to the tax return label where the amount is reported. Make sure that all calculation steps are visible in your workpapers to ensure your full work is markable and marked.

5.Depreciation calculations can be done using Handitax with the total transferred back to the rental property section of your workpapers for reconciliation purposes.

6.Use Handitax to prepare the income tax return, including any relevant schedules, for the year ended 30 June 2019. Use your own name, and the Dummy TFN from the client set up sheet. All other details are to come from the assignment instructions.

7.Write a professional letter of advice to your client summarising their tax situation and explaining the important aspects of the items that are included in their tax return and those that have been disregarded. You should include advice to the client about potential improvements to their record keeping and other information that is relevant for future tax planning. It is recommended that you seek help from Student Learning Support to ensure that you have used professional language and your letter is error free. Your letter should be about 2 pages long – comprehensive but concise. If it is too long your client won’t bother reading it (and it will NOT be marked). It should be written in language and pitched at a level your client will understand. It should not be too technical; your client is unlikely to be interested in which sections of the legislation form the basis of your decisions. Do you need to provide your client with any instructions?