Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- FNSBKG404 –V2.0 Page 1 of 2 Assessment Cover Sheet Course Certificate IV in Accounting FNS40615 Term/Block Unit Code FNSBKG404 Unit Name Carry out business activity and instalment activity statement tasks Assessment Type Assessment Task 1 – Assignment Time allowed Date Room Instructions for completing this form • Complete Sections A and B • Attach this two-page cover sheet to your assessment submission • Submit your assessment to your trainer/assessor • Retain Section B as proof of submission • Please refer to the Plagiarism Policy and Assessment Appeal and Reassessment Policy in the Student Handbook for more information. Section A – Student Details (student to complete) Student Name Student ID Student Declaration • I declare that the work submitted is my own, and has not been copied or plagiarised from any person or source. • I have read the Assessment and Student Handbook and I understand all the rules and guidelines for undertaking assessments. • I give permission for my assessment material to be used for continuous improvement purposes. Signature: ____________________________ Date submitted: ____/_____/_____ Section B – Receipt (student to keep a signed copy of this section as proof of submission) (Student to complete) (Assessment receiver to complete) Student name: Date received: ____/_____/_____ Student no: Received by: Task No.: Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- FNSBKG404 –V2.0 Page 2 of 2 Section C – Assessment Result (Assessor to complete) Assessment Completion Status (Please Circle) Satisfactory Not Satisfactory Assessor name: Assessor signature: Date assessed: ____/_____/_____ Comments (Assessor to complete) Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- FNSBKG404 –V2.0 Page 3 of 2 Task 1 Assessment Instructions This is an individual assessment. You are required to answer a series of questions in writing with the most suitable answer. You must answer all of the questions below, and include examples where appropriate. Please ensure that you have answered each question with an appropriate level of detail. If you need help understanding any questions, ask your assessor to explain. To be deemed competent you will need to successfully demonstrate the following: • You must complete and successfully answer all questions. Question 1 Gary is starting an advertising business and expects the business to have a GST turnover of $450,000 annually. Gary wants to employ three staff members Peter, David and Amy. Peter will have private use of a company vehicle that has a FBT value of $8,000 and Amy will have private accommodation provided which has a FBT value of $20,000. What responsibilities does Gary have? Question 2 Why did the government introduce the Superannuation Guarantee charge? What is the current rate and how is it worked out? Question 3 a. What are the key features of the Tax Agent Services Act 2009? b. What is the process to register as a BAS agent using the standard application? c. What criteria must be met? Question 4 Sam’s interior design business provides you with the following current information. What is Sam’s GST turnover? What are the reporting requirements for Sam? Sales(net) $250,000 GST on Sales 25,000 Rent received from commercial property(net) 15,000 GST on Rent from commercial property 1,500 Wages 80,000 Purchases 100,000 GST on Purchases 10,000 Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- FNSBKG404 –V2.0 Page 4 of 2 Question 5 World mining Manufacturing Limited produces heavy machinery for mining companies. With the imposition of the Federal Government’s Carbon Tax, World mining expects manufacturing costs to increase but due to competition from overseas manufacturers it must absorb the cost of the tax, reducing profit margins and the amount of income tax it pays as a percentage of sales. World mining has elected to use Option 2 for paying PAYG instalments, and has provided the following information for the quarter ending 30 September 2012: Quarterly PAYG Instalment Income $4,850,000 Estimated Annual PAYG Instalment Income 22,120,000 Estimated Annual PAYG Tax 663,600 Current Instalment Rate 5% World mining paid salary and wages of $685,000 from which $205,000 was withheld and received an invoice for $5,400 with no ABN. World mining also has a pre-printed FBT instalment amount of $12,300 on its activity statement and does not need to vary this amount. You are required to complete the Instalment Activity Statement for World mining Manufacturing Limited (Show all working). Question 6 1. Lee Motors sells a luxury car (which is not a fuel-efficient car) to Bruce for an “all-up-price” of $95,019, including GST and LCT. This price does not include stamp duty, registration or compulsory third part insurance. Calculate the LCT payable. 2. Tom conducts business growing bananas in Queensland and is registered for GST. For the 2016 income year, his total fuel use in operating his agricultural machinery was 8,500 litres of petrol and diesel (fuel acquired from 1 Jul 2015). Calculate his FTC entitlement. 3. Alco is a wholesaler of beer, wines and spirits. In the December quarter 2015 he derived $350,000 total sales (GST inclusive), of which $170,500 was from sale of wine. What amount of WET is payable? (Show all working) Question 7 How can you update your knowledge of professional and legislative requirements relating to activity statements? Question 8 What action can the ATO take if a taxpayer fails to correctly report or pay by the due dates? Educating for Excellence Australian Ideal College Registered as Australian Ideal College Pty. Ltd. ABN: 15 126 592 756 RTO No.: 91679 CRICOS Provider Code: 03053G Campus: Level 8, 75 King St, Sydney NSW 2000 Australia Tel: +61-2-9262 2968 Fax: +61-2-9262 2938 Email: [email protected] Website: www.idealcollege.com.au AIC-UP- FNSBKG404 –V2.0 Page 5 of 2 Question 9 What does PAYG tax withheld involve? Question 10 How does the Electronic Commerce Interface (ECI) assist a taxpayer to comply with reporting requirements? Discuss in 50-80 words. Question 11 What is a recipient created tax invoice (RCTI) and why are they necessary? Discuss in 80-100 words. Question 12 One of the principles for the Code of Professional Conduct for agents, states: 'You must take reasonable care in ascertaining a client's state of affairs, to the extent that ascertaining the state of those affairs is relevant to a statement you are making or an activity you are undertaking on behalf of the client.' What does this mean to you in terms of the manner in which you need to act, in explaining the impact of taxation on the individual and who is likely to be held responsible if an agent wilfully included false information, of which the client had no knowledge, in a tax return? Prepare a report (2 pages) discussing your response.