Assessment Task 3: Prepare an individual tax return
This assessment task requires you, in the role of a professional Accountant, to meet with a client, Janice Delaney, and prepare an individual tax return for her.
This assessment is to be completed in the simulated work environment in the RTO.
Your assessor will advise you of the due date of these submissions.
For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.
Assessment Task 3 Instructions
Carefully read the following:
My name is Janice Anne Delaney. I am a single, 28-year-old Australian with no dependents. I work as a maintenance supervisor at Central Hotel. I have begun to fill my own tax return, but I realise that I will need some professional help to do this. Your services have been recommended to me by a friend, and I would like to meet with you to start the process. So that I can prepare for our meeting properly, please tell me what documents I should bring with me. I also have a few questions about requirements for the lodging of an individual tax return. Like, what is the latest date of lodgement for an individual tax return? By what date must any tax payments due be paid? And where would I go to find out how to calculate low income offset details? Please let me know if you have time to meet me this week to meet.
Regards Janice Delaney
Complete the following activities:
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
The purpose of the email to arrange a meeting, leaving the timing of the meeting up to her. The meeting should take no longer than 15 minutes.
Include your answers to the above questions and a list of what documents she should bring to the meeting, and answer her questions about the lodging of an individual tax return.
At the meeting, you will be required to explain the process for developing and lodging a tax return with the ATO.
You should also make sure that Janice knows what your fee is for preparing the tax return.
At the meeting, you will need to demonstrate your ability to communicate effectively, including:
Janice will ask you a number of questions, which you will need to answer.
At the meeting, Janice provides you with the documents and receipts as requested, and you take down the following information.
Address: 4 Walkaway Close, Jacana NSW 2282
Mobile: 0400 000 000
|04/0816||Work and Wear||Uniform||$580.000|
|10/10/16||Leadership Training||Professional development workshop||$650.00|
|10/10/16||City Hotel||Overnight accommodation related to professional development workshop||$280.00|
|11,12/10/16||Sunset Hotel||Two nights’ accommodation after workshop as part of holiday||$280.00|
|07/01/17||CBD Travel||Annual public transport pass for use to travel to and from work||$1,850.00|
|20/06/17||Super Duper Super||Superannuation contribution||$2,400.00|
Advise Janice that you will review all of her details and get back to her shortly.
Establish the date and time that Janice can expect your response.
Conduct research to find out:
Use your research to assist in calculating Janice’s taxable income and whether tax is payable or refundable.
Use the following template to document your calculations.
|Details of income and deductions||Comments (whether a deduction is allowable)||Amounts||Total|
|Professional development workshop|
|Overnight accommodation related to professional development workshop|
|Two nights’ accommodation after workshop as part of holiday|
|Annual public transport pass for use to travel to and from work|
|Total tax payable|
|PAYG tax withheld|
|Tax refundable/tax payable|
You have received a further email from Janice as follows:
I have heard that the government is introducing new superannuation laws and that I might be eligible for a low-income tax offset.
Can you please advise?
The answer should be at least a paragraph long.
Assume that you need to seek specialist advice on Janice’s question.
Identify the appropriate source of information and respond to Janice with your decision, and give her the source of information you used to come to your decision. Give a short interpretation of the relevant information so Janice can easily understand it.
To complete the tax return process, you are required to enter all of the information from Janice’s tax return into the latest version of the Tax return for individual web site which can be found on the ATO web site.
For example, for the tax year 2015 to 2016, the form can be found at https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/Tax-return-for-individuals-2016.pdf).
The text of your email should include:
Ask Janice to advise you by return email that the record is true and accurate, and that she gives you permission to lodge the return.
Ensure that this email is sent within the time frame given to you by Janice at the meeting.
Hand the hard copy of the tax return to your assessor within the time frame given in the email. Assume that it is some months later and, as Janice’s accountant, you receive a communication from the ATO advising that Janice will be subject to an ATO review and audit. Specifically, the ATO has also asked you to provide receipts prior to the review and audit regarding the amount spent on Janice’s uniform, which is unusually high as uniform costs are generally $100.
Janice also calls you to discuss the communication from the ATO which she has also received. She is quite stressed and wants to know more about the audit and review process. Janice also explains to you that the uniform costs were high because she purchased three uniforms at the same time, as she likes to be able to have a clean uniform at least once every 2 days.
The letter must advise Janice about the ATO auditing process.
Research the ATO web site and find out about:
Explain the issue to mitigate any concerns and potentially to avoid a review or audit.
Assume that you are attaching the receipt for the uniforms to the email.
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