Professional Documents
Culture Documents
1
T-1.8.1
Details of Assessment
Term and Year T3 2016 Time allowed Week 8
Assessment No 2 Assessment 50%
Weighting
Assessment Assignment
Type
Due Date Week 8 Room E: 711 / D: 609
Details of Subject
Qualification FNS60215 Advanced Diploma of Accounting
Subject Name Tax Plans and Compliance
Details of Unit(s) of competency
Unit Code and FNSACC603 Implement Tax Plans & Evaluate Tax obligations
Title
Details of Student
Student Name
Student ID College
Details of Assessor
Assessors Name Saif Uddin Ahmed / Ashraful Minhaz
Assessment Outcome
Satisfactory Not
Results Marks / 50
Satisfactory
FEEDBACK TO STUDENT
Progressive feedback to students, identifying gaps in competency and comments on positive
improvements:
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________
Student Declaration: I declare that I have Assessor Declaration: I declare that I have
been assessed in this unit, and I have been conducted a fair, valid, reliable and flexible
advised of my result. I also am aware of my assessment with this student, and I have
appeal rights and reassessment procedure. provided appropriate feedback
Case Study:
Part a:
(25 marks)
You are working as a tax accountant in a chartered accounting firm. One of
your clients Clear View Pty Ltd (a resident private company) sent you the data
file generated from the integrated financial software. You have now run the
data file in your integrated financial software and generated the P & L
statement and Balance sheet.
Required:
i. Please use the P & L Statement, Balance Sheet and other notes to the
accountant to:
a) Calculate Taxable Income (5 mark)
b) Calculate Tax Payable/Refund (5 mark)
General information
Tax File number 987654321
ABN 123456789101
Postal Address 20 Pitt Street, Sydney NSW 2000
Main business Computer specialists
Tax agent Mr Harry Johns of Harry Johns & Associates
100 George Street, Sydney NSW 2000
Phone 9788-6549
Tax agent number 45678 001
Public Officer Mr John North
Phone 9657-1234
P & L Statement
Income $ $
Gross sales 1,300,000
Less COGS
Purchases 500,000
Plus opening stock 40,000
540,000
Less closing stock 50,000
490,000 490,000
Gross Profit 810,000 810,000
Fully franked dividend 70,000
Interest received 120,000
Expenses 1,000,000
Wages 300,000
PAYG Instalments 50,000
Accounting depreciation 110,000
General expenses 78,000
Bad debts 4,000
Doubtful debts 17,000
Legal expense (note 2) 40,000
Rent paid 90,000 689,000
Net Profit 311,000
Notes to accounts
(1) Decline in value for taxation purposes is $130,000.
Equity 550,000
Share capital 100,000
Retained earnings 450,000
ii) Advise the financial management strategies the business followed that
assisted optimum tax position. (2 mark)
iv) What is the payment due date of Clear View Pty Ltd? (1 mark)
vi) Based on your finding above what is the BAS lodgement due dates of
Clear View Pty Ltd? (2 mark)
vii) Clear View Pty Ltd has provided an extract of their forecasted cash flow
and you have prepared the BAS for the September quarter. (2 mark)
Required:
Clear View Pty Ltd reports and pays GST quarterly. From the above information
what would you bring to the attention of your client regarding the tax (GST)
obligations?
Why is it important for Clear View Pty Ltd to maintain a good record-
keeping systems? (2 mark)
ix) As a tax planner your ethical responsibility is to advise Clear View Pty Ltd
about the business records they need to keep as it ensure a sound audit
trail. List the business records that you would advise Clear View Pty Ltd to
keep. (2 mark)
Name Elements
Part b:
(20 marks)
i) You are an external accountant working for your client Authentic Pty Ltd.
The company has provided you the following cash flow budget. (10
marks)
Instruction:
Double click on the spreadsheet below to make the spreadsheet active
and then apply formula to complete the Cash Flow Statement.
You , as the accountant, in consultation with management of Authentic Pty Ltd, has
made the following forecasts to assist the group to plan for the coming quarter:
Sales (product 1) is $200,000 in June. This sales is expected to be increased by 10%
each month.
Sales (product 2) is $150,000 in June. This sale is expected to be increased by 5% in
next two months and 10% in the third month
Interest income is in June $1,500. This expected to be increased by 1% each month in
the September quarter.
Accounting and legal fees is $1,000 in June and expected to be increased by 1% in the
each following month.
Advertising and promotion is 20% of each months total sales
Business loan payment is $10,000 each month as the loan was taken on 3 years fixed
rate
Interest and bank charge is $120 each month
Printing, postage, stationary and packaging cost was $800 in June. Due to following
Green Environment policy, the business is expected to reduce this cost by 1% each
month from July.
Rent of business premise is $2000 each month. This is expected to be increased by 1%
in the third month of the budgeted quarter (Jul-Aug-Sept).
Telephone bill is 2% of each months advertising and promotion expense.
Utility bill is 0.3% of total sales
Wages and salaries are 2% of each month for the first two months of the quarter. But
due to forecasted increased commission in the last month of the quarter, the wages
and salaries are expected to be 3% of that months sales.
Opening cash for the month of July is $120,000.
Requirements:
a) Based on the given information above complete the forecasted Cash Flow
Statement. (8 marks)
b) Review the periodic closingcash balance. Do you think the company can be able
to pay the estimated tax obligations? Justify your answer. (2 marks)
ii) The following data (Next Page) of an actual and budgeted P & L has been
generated from an integrated financial software system of Authentic Pty
Ltd. You continued to work as a tax accountant and tax planner for
Authentic Pty Ltd. (8 marks)
Required:
d) What tax plans you can advise accordingly after evaluating the variance
analysis? (1 mark)
Part c:
(10 marks)
Case Study:
The QTO quickly identified his claims as suspect. Before GST refunds are
issued, all claims are automatically checked against a set of criteria to detect
incorrect or fraudulent statements.
In this case, the GST Identity Fraud Model picked up some very clear fraud
characteristics in the series of activity statements lodged. Once detected, the
ATO undertook a detailed investigation where it became evident that a serious
offence had occurred.
His home and business premises ere raided and documents and his laptop
computer seized. Computer forensics easily detected the fraudulent drivers
licences, passports and birth certificates used to register the bogus companies
and create bank accounts for the GST refunds.
The judge said that fraud on the Commonwealth revenue was a serious offence
which must be dealt with by way of custodial sentence. He pointed out that it
was not just fraud on the ATO but fraud on the community as a whole.
Requirements:
What review techniques ATO may have applied to analyse evidence of non-
compliance to
diagnose origin of fraudulent and dishonest business operations of Graham? (5
marks)