Application
This unit applies to accountants and tax specialists who prepare complex tax returns.
Prerequisites
FNSACC502B Prepare legally compliant income tax returns for individuals
Elements and Performance Criteria
1. Identify taxation requirements for complex lodgements and returns | 1.1 Client taxation preparation requirements are determined 1.2 Organisational structure of the taxation entity is identified 1.3 Taxation parameters of the organisation are determined in accordance with legislation, regulation and Australian Taxation Office (ATO) rulings 1.4 Lodgement schedule requirements are established |
2. Gather and analyse taxation related data | 2.1 Accounting reports relevant to taxation requirements are identified and collected 2.2 Accounting information is analysed to determine relevant taxation elements 2.3 Advice and guidance is sought to evaluate and moderate decision processes 2.4 Determinations are confirmed with client |
3. Process data and prepare tax returns and lodgements | 3.1 Data is processed to comply with the relevant taxation format 3.2 Returns and lodgements are prepared in accordance with ATO requirements 3.3 Returns are discussed and agreed with clients and statutory requirements are confirmed |
4. Review taxation lodgement compliance | 4.1 Returns and lodgements are submitted for authorisation by an approved person within the stated deadlines 4.2 Taxation preparation procedures are reviewed to determine their efficiency and effectiveness 4.3 Recommendations arising from the taxation lodgement review are made to enable more efficient organisational structures and procedures for taxation purposes 4.4 Tax office enquiries are responded to and taxation audit requirements met |
Required Skills
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).
Evidence Required
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. |
Range Statement
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 |
Sectors
Accounting
Employability Skills
This unit contains employability skills.
Licensing Information
To provide tax practitioners services in Australia, tax agents must meet the requirements of and be registered with the Tax Practitioner’s Board.