FNSACC601 — Prepare and administer tax documentation for legal entities

Elements & performance criteria

Performance evidence

• 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

Knowledge evidence

• 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

Foundation skills

• Reading: Researches and critically analyses information from a range of sources to identify key aspects relevant to requirements
• Writing: Prepares a range of written texts to specifications using clear language and correct terminology and conventions appropriate for the audience and purpose
• Oral Communication: Effectively participates in verbal exchanges using active listening and questioning techniques to elicit, clarify and confirm information with a range of personnel
• Numeracy: Performs calculations and uses a range of mathematical problem-solving techniques to analyse requirements and prepare reports
• Navigate the world of work: 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: Selects and uses appropriate conventions and protocols when communicating with others to achieve specific outcomes
• Get the work done: 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

Unit content sourced from training.gov.au — © Commonwealth of Australia, licensed under CC BY 4.0. Auditori is not affiliated with the Department of Employment and Workplace Relations.

Questions about assessing FNSACC601