a) Identify and analyse the tax treatment of various types of income and deductions.
b) Effectively apply taxation law in determining tax outcomes in various scenarios and sole trader structure
c) Apply the legislation to determine the assessable income and availability and amount of the tax deduction associated with employment and business structure on an accrual basis including GST application.
d) Calculate the specific deduction associated with trading stock balances
e) Calculate depreciation using the prime cost and diminishing value method and calculate an associated balancing adjustment following the disposal of a depreciating asset
f) Preparation and calculation of individual income tax return on various income and deductions using current tax return form.
This assessment assesses your research skills, your ability to synthesise an original piece of work to specific content requirements and your ability to produce a comprehensible piece of advice which addressing the client’s needs.
It also assesses your written communication skills. The ability to deliver to a brief is an essential skill in the workplace. Clients may well approach advisors seeking a combination of specific information needs and advice on the tax implications of a particular arrangement in the Australian tax jurisdiction. It is therefore important to be able to identify all the issues presented by an arrangement and to think about the potential consequences of different approaches to addressing the client’s needs.
• Your case study needs to identify and discuss the tax implications of the various issues raised.
• In the case study, the taxpayer’s assessable income, allowable deductions must be identified and recorded in the excel sheets (2019 individual tax return form) where applicable (only blue coloured cells in the excel sheet are required to fill) as per the information provided in the case study.
• In addition, a report (word document, approx. 2,000 words) must be submitted for the calculations of the assessable income; allowable deductions and taxable income of the taxpayer including identifying and discussing them. E.g., how the amounts of income & deductions have been derived. If any receipts and payments are not assessable or deductible, the reasoning for non-inclusion of these in assessable income or deductions as per relevant legislation or cases.
• Critically analyse the following case study.
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