Application
This unit describes the skills and knowledge required to identify taxation requirements for complex lodgements and returns for legal entities. It involves gathering, analysing and processing taxation related data to prepare tax documentation, and to review and apply compliance requirements.
It applies to individuals who use specialised knowledge and systematic approaches and who follow specific guidelines to ensure compliance requirements are met.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. This unit is designed to meet educational requirements of the Tax Practitioner Board (TPB). Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Identify taxation requirements for complex lodgements and returns | 1.1 Identify and confirm suitability of legal entities within client's organisational structure 1.2 Conduct research to identify updates or additions to compliance requirements relevant to client's circumstances, and establish recording and reporting requirements 1.3 Determine client's tax documentation preparation requirements |
2. Gather and analyse data relevant to client’s tax position | 2.1 Identify and collect client data relevant to tax documentation requirements 2.2 Analyse data to extract relevant tax information and identify any discrepancies requiring verification or research for resolution 2.3 Obtain advice and guidance from specialist to evaluate and moderate decision processes |
3. Prepare and present tax documentation | 3.1 Calculate client's tax obligations, in accordance with legislative requirements and information gathering practices 3.2 Prepare tax documentation to comply with relevant Australian Taxation Office (ATO), legislative and organisational recording and reporting requirements 3.3 Present and confirm documentation with clients to obtain client signature, authorisation and endorsement, ensuring legislative requirements are met |
4. Lodge tax documentation | 4.1 Submit relevant tax documentation to the ATO within established timelines 4.2 Advise client of current tax obligations and that any advice from taxation authorities is to be followed 4.3 Respond to tax office enquiries and meet taxation audit requirements, when applicable, in timely manner |
Evidence of Performance
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
provide taxation advice to clients in line with individual requirements
identify legal entity tax data required to calculate taxable income
prepare tax documentation for legal entities that complies with:
Australian taxation law and Australian Taxation Office (ATO) rulings and lodgement schedules
accounting principles and practices
organisational policy and procedures
present tax documentation to the client for verification and approval.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
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 tax 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 the preparation of tax documentation for the different types of legal entities.
Assessment Conditions
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
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1-1-3, 2.1, 2.2 | Researches and critically analyses information from a range of sources to identify key aspects relevant to requirements |
Writing | 3.2, 3.3, 4.2, 4.3 | Prepares a range of written texts to specifications using clear language and correct terminology and conventions appropriate for the audience and purpose |
Oral Communication | 2.3, 3.3, 4.2 | Effectively participates in verbal exchanges using active listening and questioning techniques to elicit, clarify and confirm information with a range of personnel |
Numeracy | 3.1, 3.2 | Performs calculations and uses a range of mathematical problem-solving techniques to analyse requirements and prepare reports |
Navigate the world of work | 1.2, 3.2, 3.3, 4.1, 4.3 | Recognises and responds to relevant Acts, regulatory requirements, explicit and implicit protocols, policies and procedures, and meets expectations associated with own role Ensures currency of knowledge relating to legislation, regulations and policies applicable to taxation legislation and requirements |
Interact with others | 2.3, 3.3, 4.2 | Selects and uses appropriate conventions and protocols when communicating with others to achieve specific outcomes |
Get the work done | 3.2, 4.1, 4.3 | Takes responsibility for planning, sequencing and prioritising complex tasks and own workload for efficiency and effective outcomes Uses systematic analytical problem-solving processes in complex, routine and non-routine situations, gathering information and identifying and evaluating options against criteria Considers whether others should be involved in making decisions, using collaborative processes as part of the decision-making process, where appropriate Evaluates effectiveness of systems and processes to inform decisions on how to implement improvements Recognises and anticipates a range of problems, implementing contingency plans when appropriate Uses digitally based technologies and systems to assist in achieving required outcomes |
Sectors
Accounting