Assessor Resource

FNSACC601B
Prepare and administer compliant tax returns for legal entities

Assessment tool

Version 1.0
Issue Date: May 2024


This unit applies to accountants and tax specialists who prepare complex tax returns.

This unit describes the performance outcomes, skills and knowledge required to identify taxation requirements for complex lodgements and returns, gather, analyse and process taxation related data to prepare taxation returns and lodgements, and review compliance.

Note: to provide tax practitioners services in Australia, tax agents must meet the requirements of and be registered with the Tax Practitioner’s Board.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Prerequisites

FNSACC502B Prepare legally compliant income tax returns for individuals

Employability Skills

This unit contains employability skills.



Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

demonstrate knowledge and understanding of Australian taxation law such that it can be applied to taxation affairs

access interpret and comply with information on relevant legislation, statutes, regulation and ATO rulings

provide taxation advice having regard to the facts and relevant law

develop organisational procedures to meet compliance requirements

gather and verify data to calculate taxable income and review for compliance

apply organisational policies and procedures and accounting principles and practices

prepare tax returns for business entities

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to an integrated financial software system and data

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

assessment requirements set by the Tax Practitioner’s Board

verbal or written questioning on underpinning knowledge and skills

setting and reviewing business taxation simulations

evaluating samples of work

conducting a summative assessment

Guidance information for assessment

Where assessment of this unit is designed to meet regulatory requirements, users should refer to the appropriate regulator or current guidelines published on the IBSA website www.ibsa.org.au (under training packages/financial services)

Note: The identification of the unit FNSACC502B Prepare legally compliant income tax returns for individuals as a pre-requisite does not require that it be certificated prior to this unit. This unit and its pre-requisite may be delivered and assessed together.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

Required skills

communication skills to:

determine and confirm taxation preparation requirements and deal with clients

liaise with others, share information and provide advice and guidance

use language and concepts appropriate to cultural differences

research skills to:

access and manage financial services information

access and interpret taxation legislation, regulation and precedent

identify any taxation related matters that have the potential to impact on client services

identify client related transactions that are relevant to taxation matters

literacy skills to analyse information needs and prepare clear written advice, for clients and taxation lodgement documentation

numeracy skills to perform financial calculations and analysis

IT skills to develop and use integrated financial systems, spreadsheets and databases and internet information

learning skills to maintain knowledge of changes to taxation legislation and requirements

problem solving skills to:

apply statute, regulation and precedent to a client’s circumstances

develop options to resolve client related taxation matters when they arise

organisational skills, including the ability to plan and sequence work and correctly schedule taxation lodgements.

Required knowledge

ethical considerations for the handling of returns such as:

conflict of interest

confidentiality

disclosure requirements

key elements of Australian taxation law, as it relates to taxation returns for companies, trusts, partnerships and sole traders including:

the rules and principles of Australian tax law including an understanding of the legal environment in which these principles operate

key aspects of the income tax law covering concepts of residence and source, related elements of international tax, assessable income, deductions, tax rebates/offsets and tax accounting

key aspects of taxes that extend the ordinary income tax base including relevant principles and application of the capital gains tax and fringe benefits tax rules

goods and services tax

taxation of individuals and basic entities including partnerships, trusts and companies

taxation aspects of superannuation law

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

rules addressing specific and general anti tax avoidance

ethical and professional responsibilities of tax agents including obligations under the Tax Agent Services Act (TASA) and Tax Agent Services Regulations (TASR).

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Organisational structures include:

companies

non-complex superannuation funds

partnerships

sole traders

trusts

Taxation parameters may include:

cash or non-cash accounting

lodgement schedules

tables, calculations and schedules

tax rates

Legislation includes:

Australian commercial law

Australian taxation law

consumer credit legislation

Financial Transactions Reports Act

Privacy Act

Sale of Goods Acts

Stamp Duties Act

other commercial and taxation legislation relevant to the service being delivered

Lodgement schedules may include:

Fringe Benefits Tax (FBT)

fuel tax credits

Goods and Services Tax (GST) instalments

Luxury Car Tax

Pay-As-You-Go (PAYG) tax withheld

PAYG income tax instalments

payroll tax

wine equalisation tax

withholdings

Accounting reports relevant to taxation requirements include:

capital expenditure

cash flow statements

depreciation schedules

financial expenses

payroll

statement of financial performance

statement of financial position

other reports that relate to assessable income and allowable deductions

Returns and lodgements may include:

annual returns

Business Activity Statement (BAS)

Fringe Benefits Tax (FBT)

payroll tax

Taxation preparation procedures include but are not limited to:

accessing information related to:

allowable deductions

annuities

assessable income

capital allowances

capital gains tax

capital works

compliance and penalties

eligible termination payments (ETPs)

exempt income

foreign income

inventory valuation

levies and surcharges

offsets/rebates

small business entities

superannuation

taxable income

tax payables and refunds

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Client taxation preparation requirements are determined 
Organisational structure of the taxation entity is identified 
Taxation parameters of the organisation are determined in accordance with legislation, regulation and Australian Taxation Office (ATO) rulings 
Lodgement schedule requirements are established 
Accounting reports relevant to taxation requirements are identified and collected 
Accounting information is analysed to determine relevant taxation elements 
Advice and guidance is sought to evaluate and moderate decision processes 
Determinations are confirmed with client 
Data is processed to comply with the relevant taxation format 
Returns and lodgements are prepared in accordance with ATO requirements 
Returns are discussed and agreed with clients and statutory requirements are confirmed 
Returns and lodgements are submitted for authorisation by an approved person within the stated deadlines 
Taxation preparation procedures are reviewed to determine their efficiency and effectiveness 
Recommendations arising from the taxation lodgement review are made to enable more efficient organisational structures and procedures for taxation purposes 
Tax office enquiries are responded to and taxation audit requirements met 

Forms

Assessment Cover Sheet

FNSACC601B - Prepare and administer compliant tax returns for legal entities
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSACC601B - Prepare and administer compliant tax returns for legal entities

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: