FNSACC603 — Implement tax plans and evaluate tax obligations

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
• identify legal entity’s tax data required to calculate taxable income
• provide taxation advice to clients in line with individual requirements
• prepare tax documentation and tax plans for legal entities that comply with: • Australian taxation law and Australian Taxation Office (ATO) rulings and lodgement schedules • accounting principles and practices • tax entity’s organisational policy and procedures
• evaluate tax plan for compliance with legislative requirements.
• Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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 taxation 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 preparation of tax documentation for the different types of legal entities
• discuss ethical considerations for the preparation of returns, including the Code of Professional Conduct’s disclosure and confidentiality requirements
• outline financial management strategies used to optimise tax position.

Foundation skills

• Reading: • Accesses and critically analyses complex information from a range of sources to identify key aspects relevant to requirements • Carefully checks data and information for accuracy, completeness and reliability
• Writing: • Prepares logically structured written documentation for a range of purposes and audiences using clear language and correct terminology and conventions
• Oral communication: • Effectively participates in verbal exchanges using active listening and questioning techniques to elicit, clarify and confirm information
• Numeracy: • Performs complex calculations and uses a range of mathematical problem-solving techniques to analyse trends, benchmarks and performance indicators
• 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 professional requirements
• 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 • 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 a range of digitally based technologies to access, extract and share relevant information to achieve 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 FNSACC603