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.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Assess legal entity's tax obligations | 1.1 Quantify history and trends of legal entity's tax obligations arising from its historical taxable transactions, using standard accounting techniques 1.2 Analyse data from current transactions to resolve discrepancies and ambiguities and confirm suitability of legal entity 1.3 Conduct research to identify updates or additions to compliance requirements relevant to maximising client's benefit and establish recording and reporting requirements 1.4 Identify legal entity's tax obligations by analysing data on taxable transactions 1.5 Schedule payments of tax obligations by applying methods of determinations and tax bases |
2. Develop tax plans | 2.1 Assess implications of schedule on tax entity's operations and structure 2.2 Develop financial management strategies to ensure alignment of cash flow with incidence and schedules of tax obligations 2.3 Develop management process and record-keeping systems to implement financial management strategies and ensure maintenance of audit trail 2.4 Document management processes that include application of compliance requirements 2.5 Estimate future taxation obligations from income and expenditure forecasts using standard accounting techniques |
3. Evaluate and advise on tax plan | 3.1 Prepare budgets in accordance with income and expenditure forecasts, and periodically review to ensure accuracy of tax obligation estimates 3.2 Analyse variances between actual tax obligations and tax plan to identify errors or adjustment required to financial management strategies or management process 3.3 Monitor and evaluate performance of tax plans and advise accordingly 3.4 Monitor and review tax documentation to ensure it complies with legislative and professional requirements 3.5 Analyse evidence of non-compliance to diagnose origin and develop resolution |
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
identify legal entity's tax data required to calculate taxable income
provide taxation advice to clients in line with individual requirements
prepare tax documentation and tax plans for legal entities that comply with:
Australian taxation law and Australian Taxation Office (ATO) rulings and lodgement schedules
accounting principles and practices
tax entity's organisational policy and procedures
evaluate tax plan for compliance with legislative requirements.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
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:
conflict of interest
responsibilities of tax agents including Code of Professional Conduct obligations under the Tax Agent Services Act (TASA) and Tax Agent Services Regulations (TASR)
government tax policy documents issued by Reviews, Treasury and Board of Taxation
explanatory materials in relation to legislation
statutes
court and Administrative Appeals Tribunal decisions
Commissioner of Taxation's interpretive guidance in Rulings and Determinations
explain critical and key elements of Australian taxation law as it relates to tax documentation for legal entities such as companies, trusts, partnerships and sole traders including:
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
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
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
goods and services tax (GST)
taxation aspects of superannuation law
administrative aspects of the taxes identified above including documentation, tax collection and withholding mechanisms, assessments, obligations, rulings, penalties and audits
specific and general anti-avoidance tax rules
describe the key sources of information and taxable transactions data required to calculate taxable income, including:
allowable deductions
capital gains
financial adjustments such as write-offs and revaluations
income
payments
purchases
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 preparation of tax documentation for the different types of legal entities
discuss ethical considerations for the preparation of returns, including the Code of Professional Conduct's disclosure and confidentiality requirements
outline financial management strategies used to optimise tax position.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:
common office equipment, technology, software and consumables
an integrated financial software system and data.
Assessors must satisfy NVR/AQTF assessor requirements.
Note: The identification of the unit FNSACC502 Prepare tax documentation for individuals as a prerequisite does not require that it be certificated prior to this unit. This unit and its prerequisite may be delivered and assessed together.
This unit is designed to meet regulatory requirements of the Tax Practitioner Board (TPB). Where registration with the TPB is sought, assessment must reflect the conditions described by the regulator, which stipulate that a significant amount (at least 40%) must be completed under some form of independent supervision. Where recognition of prior learning (RPL) is used, it must also meet the requirements of the Board’s policy on RPL.
Details of requirements can be accessed on the TPB website at: http://www.tpb.gov.au