Part 1 - Tasks
Part 1 - Tasks
Task 1 BAS Registration and TASA
When registered with the Tax Practitioners Board (TPB) you must comply with the Tax Agent Services Act 2009 (TASA). Go to the TPB Website at http://www.tpb.gov.au/.
Browse to Publications & Legislation> Legislation> Tax Agent Services Act 2009 (TASA). Select the latest Tax Agent Services Act 2009 from the list and answer the following questions:
Which subdivision of the Tax Agent Services Act 2009 (TASA) describes the Eligibility for registration as a registered BAS agent?
Your answer should be between 3 and 6 words.
As per TASA 2009 subdivision that you found in part a, an individual, aged 18 years or more, is eligible for registration as a registered BAS agent if the Board is satisfied with four criteria. Write those four criteria for registering as an individual tax agent, BAS agent or tax (financial) adviser?
Your answer should be between 100 and 140 words.
Professional associations may be accredited by TPB as a recognised tax agent, BAS agent or tax (financial) adviser association if they meet certain requirements in the Tax Agent Services Regulations 2009 (TASR). To maintain its recognition, an association must ensure it continues to satisfy these requirements on an ongoing basis. List two recognised professional BAS Agent associations.
Your answer should be between 6 and 20 words.
Task 2 Code of Professional Conduct
The Code of Professional Conduct (Code) is a legislated code that sets out the professional and ethical standards required of Registered Tax Agents and BAS Agents. It outlines the duties that agents owe to their clients, the Tax Practitioners Board (TPB) and other agents. The Code includes a number of Core Principles organised into five categories.
List the first four categories.
Your answer should be between 6 and 10 words.
Brian is a long-time client of Lucias, a registered BAS agent. Brian asks Lucia to assist him to identify an appropriately qualified tax agent to provide advice in relation to his self-managed superannuation fund. Lucia is aware of a number of suitable registered tax agents but refers Brian to XYZ Accounting Pty Ltd because she receives a fee for the referral from this firm. You are required to review and interpret this scenario and apply the relevant codes of conduct.
Your answer should be between 100 and 120 words.
Task 3 Privacy Act 1988
The Privacy Act (1988) only applies to 'personal information'. Jenny creates a Yahoo account for herself and chooses a meaningless nickname as her username. She signs up to a fashion retailer's email newsletter but does not give them any other information about herself. Has Jenny disclosed personal information to the retailer? Please provide reasons for your answer.
Your answer should be between 100 and 120 words.
Task 4 Scope of BAS Agent Services
Refer to http://tpb.gov.au to answer the following questions:
Define BAS Services as per the Tax Agent Services Act 2009 (TASA).
Your answer should be between 70 and 90 words.
Define the term BAS provision as per the Income Tax Assessment Act 1997.
Your answer should be between 90 and 110 words.
Explain the consequences for an entity contravening a civil penalty provision under the TASA.
Your answer should be between 100 and 120 words.
The legislative instrument allows BAS agents to provide certain services that extend beyond the legislative definition of BAS provision without the requirement to be a registered tax agent. What are these additional services? Write any three.
Your answer should be between 70 and 120 words.
Task 5 Sign-off and Lodgement of Activity Statement
You are the assistant accountant and it is your role to prepare the BAS for the business. You are not an authorised person to lodge the BAS. However, your immediate manager is the financial controller who is also the public officer of the company. You have prepared the BAS statement and it is ready for lodgement.
Can you sign off the BAS? Give a reason(s) to support your answer.
Your answer should be between 20 and 30 words.
Assume today is 26 February. You have been informed that your manager will be leaving for overseas on 27 February and BAS for the second quarter is due on 28 February. What will be your advice about signing off the due Business Activity Statements? Give a reason for your answer.
Your answer should be between 40 and 60 words.
Assume that the business has a GST turnover of $15million. Identify and document the lodgement schedule requirements for the business by listing the required reporting periods and due dates for lodgement for the financial year 2019-2020.
Your answer should be between 10 and 20 words.
Task 6 GST Calculations
Glens Manufacturing Pty Ltd, a panel beating business, reports and pays GST quarterly. The tables provided summarise sales and purchases for the business.
Complete the tables in the appendix.
Using the information provided above, determine the quarterly BAS period in which each of the transactions would be reported if the business is using:
Accrual method of reporting for GST
Cash method of reporting for GST
Sales:
Invoice date Payment received Customer Amount (GST Inclusive)
13 May 2022 16 July 2022 P Malcolm $3,300
23 June 2022 30 June 2022 J Taylor $8,800
30 June 2022 14 July 2022 D Jay $9,900
Purchases:
Invoice date Payment date Supplier Amount (GST inclusive)
12 Nov 2021 10 Jan 2022 White Metal P/L $3,300
23 Mar 2022 11 April 2022 Oxy Supplies Pty Ltd $5,500
25 June 2022 30 June 2022 Tools Pty Ltd $6,600
Calculate the net GST payable / (refundable) for the quarter ending 30 June 2022 if the business reports GST on:
Accrual basis.
Cash basis.
Task 8 GST Adjustments
Assume the business in this scenario has a current GST turnover of less than $20 million pa.
The ATO allows Debit and Credit errors on lodged BAS to be corrected on later activity statements but there is a time limit.
Complete the table in the appendix with the correct time limit.
Debit/Credit error
What is the time limit to correct a Debit error on an activity statement that has been lodged?
What is the time limit to correct a Credit error on an activity statement that has been lodged?
In the table below, you are given some unrelated examples of errors/ omissions that were made on prior BAS reports. You need to advise on whether they require an increasing adjustment or decreasing adjustment when lodging the next BAS.
Select the appropriate adjustment from the following options for each of the errors/omissions listed. Complete the table in the appendix:
Increasing Adjustment (Debit error)
Decreasing Adjustment (Credit error)
Error / Omission
You have failed to claim input tax credits on an invoice of $4,400 in the last quarterly BAS
A purchase of $8,500 (including GST) included in the previous BAS has been cancelled
In the previous BAS, a journal entry was made to purchase a motor vehicle by debiting Motor Vehicle ($9,000), debiting GST Paid ($900) and crediting Cash at Bank ($9,900).
In reviewing the paperwork, it was realised that the vehicle was purchased for private use and not for the business.
A taxable sale of $3,500 from the last quarterly BAS has now been cancelled
From the following information, calculate Net GST Payable/Refundable for Toys Play Store P/L. All figures include GST. Complete the table in the appendix.
Tax invoices issued$9,350
Tax invoices received $4,840
Goods returned from customers$990
Goods returned to suppliers$2,090
Task 12 Cash Flow Management
Apollo Sales P/L is registered for GST as a cash payer and has chosen the option to report and calculate GST every quarter. The following is the Summary of the Business Activity Statement for the Quarter ended 31 December.
Summary of the Business Activity Statement 1 October to 31 December
Summary Amounts you owe the ATO
GST on sales or GST instalment 1A 50,300
PAYG tax withheld 4 12,600
PAYG income tax instalment 5A 4,007
8A 66,907
Amounts the ATO owes you GST on purchases 1B 30,280
Fuel tax credits 7D 11,654
8B 41,934
Payment due 9 24,973
A Cash Budget of Apollo Sales P/L has been prepared for the period 1 January to 30 April. This Cash Budget does not include any GST/BAS payments for the December or March Business Activity Statements.
CASH BUDGET January February March April
Opening Cash Balance $16,000 $18,600 $37,250 $47,850
Cash receipts $57,200 $59,200 $63,000 $42,000
Cash Payments -$54,600 -$40,550 -$52,400 -$67,550
CLOSING CASH BALANCE $18,600 $37,250 $47,850 $22,300
Analyse Apollo Sales P/L cash budget for the period 1 January to 30 April and the December Business Activity Statement. Discuss these documents and the payment schedule of Business Activity Statements if Apollo Sales will have any cash flow issues during this period. Your answer should be between 80 and 120 words.
As the accountant, construct an email addressed to the Manager of the company initiating discussions and providing recommendations to ensure sufficient funds are available to meet statutory requirements e.g. BAS due dates, records retention, valid invoices, ABN checking, cash management. Your answer should be between 100 and 130 words.
Task 13 Organisational policies and procedures
Scenario: You are a BAS Agent, registered with the Tax Practitioners Board. You are required to apply the Code of Professional Conduct for BAS Agents in the course of your work as well as your organisational policies and procedures. Your organisation has a policy that states:
Communication with third parties
Information about a clients affairs may only be shared with the business owner(s), director(s), public officer(s) or persons who have Power of Attorney By Company. These individuals must all be listed on the Approved Contacts form in the clients file.
You receive the email below from the spouse of one of your clients:
You look up your clients file and find that the clients spouse is not listed in the Approved Contacts form.
Write your reply email to your clients spouse, applying your organisations policy to the situation, and ensuring that the relevant principle from the Code of Professional Conduct for BAS Agents is complied with. Make sure you identify and document the relevant policy and Code of Conduct principle(s) in your reply.
Your answer should be between 50 and 100 words.
Task 14 Competency Development
Scenario: You are a registered BAS agent working for a large accounting firm NSW Tax Specialists P/L
Identify and list three continuing professional education (CPE) activities that you could undertake in the year ahead to ensure you stay up to date with any changes in legislation.
Your answer should be between 50 and 100 words.
You are preparing to renew your registration with the Tax Practitioners Board and you are required to submit a log of your continuing professional education. You have undertaken the following professional development activities over 2021:
A partner at your firm who specialises in FBT gave a one-hour presentation on 13 April to staff regarding the changes to FBT legislation, followed by a one-hour interactive discussion and consideration of a complex hypothetical case study. This session was advertised internally on your PD calendar and you received a certificate of attendance.
A two-hour online webinar delivered by the Australian Bookkeepers Association Ltd on Tax Assistance for North Queensland floods, including fringe benefits tax (FBT) exemptions apply to employers who assist their employees in emergencies, such as natural disasters. You have a receipt for the payment and a certificate of completion. You completed the course over two days 15-16 July.
The NSW Annual Tax Forum, a two-day event hosted by The Tax Institute on September 20-21 which provides 14 structured CPD hours. You have a receipt for the payment, a registration ticket and a certificate of attendance. You attended the keynotes on Superannuation and Estate Planning, Property Investments and Uncommon Transactions in SMSFs, CGT Concessions, and Potential Changes to Tax Laws with a Change of Government.
Update your CPE Log to document these activities.
Your answer should be between 50 and 100 words.
Task 15 Luxury Car Tax (LCT)
Extravagance Limos Pty Ltd is in the business of selling motor vehicles. A luxury motor vehicle is made available for sale and is priced initially at $99,000 (GST Inclusive).
Based on the 2020/2021 luxury car tax threshold of $67,525 and LCT rate of 33% calculate the Luxury Car Tax (LCT) amount.
Task 16 Wine Equalisation Tax (WET)
Vintage Wine Wholesalers is a wholesaler of wine. For the 4th quarter of 2020/2021 financial year, Vintage Wine Wholesalers assessable dealings from the sale of its taxable wine supplies was $100,835 (Including GST and WET).
Calculate the WET payable for the quarter (no cents).
Task 17 Fuel Tax Credit (FTC)
Eastern Landscaping Supplies Pty Ltd mines sand and have a GST turnover of more than 20 million dollars. They must report and pay GST monthly.
Eastern Landscapings records show that they used $512,005 of diesel at $1.30 per litre for the month of June 2021. The diesel they use in their excavators is eligible for fuel tax credits. The relevant Fuel Tax Credit rate for the mining industry is 42.70 cents per litre.
Calculate the Fuel Tax Credit for Eastern Landscaping Supplies Pty Ltd. Show all calculations.
Task 18 FBT and TPAR annual reporting
Part III Fringe benefits from the Fringe Benefits Tax Assessment Act 1986 describes the different types of FBT from divisions 1 to 14.
List any two types of FBT.
Your answer should be between 10 to 15 words.
Taxable payments annual reporting (TPAR)
For the 2021 tax year, identify one business in which industry is required to complete a taxable payments annual report?
Your answer should be between 2 to 8 words
By which date is this report to be lodged with the ATO?
Your answer should be between 2 to 5 words.
Task 20 Lodging Activity Statement
Explain what a registered BAS agent must obtain from their client each time they lodge an activity statement on behalf of a client? Your answer should be between 10 and 20 words.
What authority does the primary contact have? Your answer should be between 30 and 40 words.
List 4 methods of lodgement of activity statements with the ATO. Your answer should be between 10 and 30 words.
