Prepare Tax Documentation for Individuals

Assignment Brief:

You are required to prepare a written income tax return addressing both the client's needs and the statutory requirements. See assignment

This assessment will address the student's competency to:

(i) Gather and Verify Data- all performance criteria 1.1,1.2,1.3,1.4,1.5,1.6
(ii) Calculate Taxable Income - all performance criteria 2.1,2.2,2.3,2.4,2.5,2.6
(iii) Review Compliance- all performance criteria 3.1,3.2,3.3,3.4

Tax Assignment

Personal details:
TFN 345765233
Name Lou Tide
Title Mr
Sex Male
D.O.B. 8.8.61 (aged 57)

Current residential address: 5 Five Ave Feaumaris Vic 3160

Postal address use your tax agent's address

Previous postal address 211 Glenferrie Rd Hawthorn Vic

Residency status Australian

Marital status married (to Heidi Tide (DOB 6.6.59) whose TFN is 567899010, and has adjusted taxable income of $1,200; and taxable income of $2,000 including interest, they were married the whole year and have no dependent children)

First return or final return? No to each

EFT used or not? Used: BSB is 535140, account number is 92837465 and account name is Lou Tide

Tax agent details: Use your own name , tax practitioner's number 27510 006.

Background information about Lou:

Last year he prepared his own return but this year he comes to you.

He took early retirement package from his job at Bottlemart as a project manager, aged 56 on 1.1.18(he had worked there for 25 years). He received that $44,000 as part of that package.

In January this year he began an eco touring business called "Environment Tours", which organises two trips per year to United States. He accompanies the customers as tour guide.

In addition he does casual tutoring at university (using a room/study at home dedicated to preparing lessons & correction) from 1.7.2017 to 30.6.2018.

YOU ARE REQUIRED TO:

(a) Discuss whether the four deposits are assessable income or otherwise, using Sectional references from the I.T.A.A. or other references

(b) Complete the I tax return for Lou Tide for 2017/18 including any worksheets necessary(you are required to use the 2015 tax return stationary provided)

(c) Prepare a letter to Lou Tide on your tax agent's letterhead, with advice and full workings of his net tax payable/refund for 2017/18

Note: parts (a) and (c) are to be word processed not handwritten

Task instructions

You are required to complete this assignment, which is like a case study. It is essential that you pass it, to be competent in this subject as a whole.

You need to complete a tax return of Mr Lou Tide, including all relevant schedules.

You need to do some research into the derivation of his business income.

You need to write him a letter explaining his tax obligations, tax payable and record-keeping requirements, in a proper business letter format.

Conditions for assessment

You need to access proper tax return stationary namely the 2015 tax return.

You need the tax rates for 2017/18.

You need to use things like Master Tax Guide, available in library, teacher notes and your textbook plus the Instructions to the I return, available from the ATO website.

Criteria for assessment
We look at absolute accuracy. You need to fill out the front cover completely and accurately, including the correct addresses. Page 2 and 3 requires accurate information about assessable income, all relevant labels need to be complete and accurate. The work related expenses section and other normal deductions (down to D10) need to be correctly recorded. Even putting information in when none is required will be considered an error. Totals do not count against you. Where an label requires more than one amount to be added up, these should be shown on the Workings Proforma otherwise you lose competency.

1) Accuracy: of the amounts recorded

2) Completeness: of the labels required

3) Validity: whereby the label does not contain an entry unless it is warranted

4) In the research: that you have used sources that are not just from the course materials or the textbook, and that you give reasons for your decision.

5) Your letter to the taxpayer conforms to the usual style of business letter; including information about record retention, no liability clause, your fee to charge, and the estimate of Net Tax Payable.

Attachment:- Assessment-Information.rar