Assessment Task 2 Instructions
Carefully read the following:
Burleigh Accountants is a small company operating out of Burleigh Heads, Queensland. It is August 2018, you have recently commenced in the position of Junior Accountant, and have been assigned to complete the tax return for a client, DCB Consulting Pty Ltd.
Your manager has asked you to first write a short report on the company’s tax obligations. When they are confident that you have understood these, you will be sent a document with DCB Consulting’s figures. From that data, you will calculate the company’s tax obligations. After sending these to your manager for confirmation, you will meet with the client, whom you will explain the figures to, and ask to sign the Tax Return.
Complete the following activities:
1. Write a briefing report on client tax obligations
Review the information provided to you for the client and conduct research to confirm up-to-date taxation requirements to ensure that the company tax return is correctly prepared.
You are required to document this information in a short briefing report to be provided to your assessor to demonstrate that you have correctly identified the taxation requirements for the client.
Use the Briefing Report Template to guide your work.
Your briefing report must address each of the following for each client:
• The name of the client and the client’s company structure
• Annual income tax return requirements relevant to the business entity type (you must specify the documentation that must be used by the client for the tax return)
https://www.ato.gov.au/Business/Reports-and-returns/Income-tax-return/
• Due dates for lodging and paying, as well as ways of lodging:
https://www.ato.gov.au/Business/Reports-and-returns/Due-dates-for-lodging-and-paying/
• Up to date income and deduction information relevant to the client
https://www.ato.gov.au/Business/Income-and-deductions-for-business/
• Information required from the client in order to complete the tax return. You will be assessed on your ability to identify which company documents you will need for this.
Your report should include links to show the sources of the information that you have used.
Save the document as Briefing Report.

2. Send an email to your Manager (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachment.
Attach your briefing report to the email.
Your assessor will review your work. If you have not identified all of the requirements correctly, you will need to resubmit your work before you can move onto the next part of the assessment.
Your assessor will respond by providing you with the necessary client information documented in your report.
3. Write a company tax analysis
The next part of the assessment requires you to review the Customer Information, analyse the client’s data and calculate their tax obligations.
Perform the calculations for all he figures that will be entered into the company tax return form.
You should show all of your workings and ensure that all of your calculations are clearly attributed to each part of the tax return e.g. Income = XX, Expenses = XX.
Use the Company Tax Analysis Template to guide your work.
Note that there will be at least one discrepancy within the figures. You will need to clarify this with the client via email in the next activity.
For all the calculations, you should also provide notes on the assumptions that you have made based on up-to-date ATO information/rulings that you researched in activity 1.
You will have the chance to modify this document following an exchange of emails with your client, so save this document as Draft Company Tax Analysis.

Before you get the opportunity to contact the client to clarify the discrepancy that you found, you receive the following email from them:
Dear City Accountants
In the upcoming tax year, we will be undertaking significant research and development into new cutting-edge software and we expect Australia to become a world leader in this field. We have already expended approximately $5,000 in the tax year 2017/2018 as preliminary spending. This amount was essentially a staff member’s time.
As we expect this to be a significant expenditure, can you advise of any tax concessions we may be eligible for 2017/2018 or future tax years and what we would need to do to be eligible for these?
Thanks
David
4. Send an email to the client (your assessor).
You will need to conduct further research to identify ATO requirements/rulings with regard to the client enquiry.
The text of the email should give the client relevant information about the development tax incentive.
The text should also ask for clarification on the discrepancy within the figures you received.
The email should be in grammatically correct English, written in a polite, business-like style.
Your assessor, in the role of your client, will respond to your email with the requested information.
5. Send an email to your Manager (your assessor).
When you have received a response from the client, incorporate their response into your Draft Company Tax Analysis, and save this version of the document as Company Tax Analysis in the same folder.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachment and ask for their feedback.
As this is the first client that you will be handling for Burleigh Accountants, company policy requires you to discuss the client’s documentation with your Manager prior to filling out the client’s tax return. The email text should ask the Manager for the place, date and time when it would be convenient to meet.
Attach your Draft Company Tax Analysis and your Company Tax Analysis to this to the email.

6. Meet with your Manager (your assessor).
In this case study scenario, your Manager is considered to be an expert on such clients. This meeting gives you the opportunity to demonstrate how you would seek advice and guidance, not only on what you have written in your documents, but also on the decision-making processes you have made in relation to your calculations.
Also, during the meeting, you are to be mindful that you are meeting with your manager, and this is your first client. In contrast to your meeting with the client, your Manager knows more about accounting than you do, and the way that you conduct the meeting should reflect this. You are, therefore, to be respectful and business-like during the meeting. Ensure that you use conventions and protocols that are appropriate when communicating with a new manager.
During the meeting, you are required to demonstrate active listening and questioning techniques to elicit, clarify and confirm information including:
During the meeting, you are required to demonstrate active listening and questioning techniques to elicit, clarify and confirm information including:
• Speaking clearly and concisely
• Using non-verbal communication to assist with understanding
• Asking questions to identify required information
• Responding to questions as required
• Using active listening techniques to confirm understanding
7. Fill out the Company Tax Return.
You are required to download a company tax return that you have sourced from:
www.ato.gov.au
Then, when you have received a positive response from your client, use the data that you now have to fill out the Company Tax Return, leaving the space for the client’s signature empty.

8. Participate in a meeting with the Client.
The next part of this assessment requires you to participate in a roleplay meeting with your assessor playing the role of the client. Keep in mind that this meeting is with the client, who knows less about accounting than you do, but is interested in learning about it. In this meeting, you should use conventions and protocols that are appropriate when communicating with a new client.
• Begin the meeting by introducing yourself and what you will be speaking about.
• You will then explain the data entered into the tax return, including the basis on which the calculations have been made.
• Explain the client’s taxable income payable and the relevant lodgement date.
• Advise the client of their current tax obligations, and that any advice that they may receive from taxation authorities is to be followed.
• Before you conclude the meeting, ensure that the client, following confirmation of the documentation, signs the tax return form.
During the meeting, you are required to demonstrate active listening and questioning techniques to elicit, clarify and confirm information including:
• Use of appropriate style (formal), tone (encouraging, respectful) and vocabulary (professional, business language
• Speaking clearly and concisely
• Using non-verbal communication to assist with understanding
• Asking questions to identify required information
• Responding to questions as required
• Using active listening techniques to confirm understanding
9. Lodge tax return.
When you have completed the meeting and the company tax return form has been signed, scan the document, and save it as Company Tax Return Scan.
You must find out the address for postal lodgement of the tax return, place the hard copy in an envelope and give this to your assessor.
10. Take a screen shot of your folder and files.
This activity requires you to demonstrate that you can file all of your records in a logical structure.
Ensure that you have an overall, appropriately named folder for your work, as well as sub folders if necessary.
All of the documents you have submitted for this assessment task should be correctly named and filed.
The screen shot should show all the folders and documents.
11. Send an email to your Manager (your assessor).
The text of the email should be in grammatically correct English, written in a polite and business-like style.
The email text should give a summary of the meeting and your lodgement of the Tax Return.
Attach your Company Tax Return Scan and screen shot to the email.

Assessment Task 2 Checklist
Student’s name:
Did the student: Completed successfully Comments
Yes No
Correctly identify the organisational structure of the client in the briefing report?
Correctly identify up to date income taxation requirements relevant to the client’s company structure in the briefing report?
Research and report on assessable income inclusions, as well as deductions relevant to the business?
Correctly identify reporting and lodgement requirements in the briefing report?
Identify information required for preparation of tax return and request from client?
Analyse client data provided and complete required workings for preparation of figures for inclusion in the company tax return?
Identify discrepancies and conduct research to identify and report on discrepancy?
Use advice and guidance from specialist to evaluate and moderate decision processes?
Prepare company tax return using a Company Tax Return sourced from the ATO?
Present tax documentation to client and clearly explain information included and calculations to ensure tax obligations are understood?
Gain client’s authorization through signing of documentation?

During the meeting, demonstrate effective communication skills including:
• Speaking clearly and concisely
• Using non-verbal communication to assist with understanding
• Asking questions to identify required information
• Responding to questions as required
• Using active listening techniques to confirm understanding
Explain tax obligations related to R&D incentives and procedures to be followed based on research conducted?
Task Outcome: Satisfactory • Not Satisfactory •
Assessor signature
Assessor name
Date

Assessment Task 3 Cover Sheet
Student Declaration
To be filled out and submitted with assessment responses
• I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded with any other student(s).
• I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken against me according to the process explained to me.
• I have correctly referenced all resources and reference texts throughout these assessment tasks.
Student name
Student ID number
Student signature
Date
Assessor declaration
• I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.
Assessor name
Assessor signature
Date
Assessment outcome S NS DNS Resubmission Y N
Feedback
Student result response
• My performance in this assessment task has been discussed and explained to me.
• I would like to appeal this assessment decision.
Student signature
Date
A copy of this page must be supplied to the office and kept in the student’s file with the evidence.
Assessment Task 3: Case studies
Task summary
This assessment task requires you calculate taxable income and tax payable for two legal entities, a family trust and a partnership.
The case study questions and your responses should be copied and pasted into a new Word document. Answers must be word-processed, not handwritten. Show all of your calculations.
This assessment is to be completed in the simulated work environment in the RTO.
Required
• Computer and Microsoft Office
• Access to the internet
Timing
Your assessor will advise you of the due date of these submissions.
Submit
• Answers to case study questions
Assessment criteria
For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.
Re-submission opportunities
You will be provided feedback on their performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.
You are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.

Assessment Task 3 Instructions
Carefully read the following:
Case study 1
XYZ Trust is an inter vivos trust established by Darren Simms for his business hiring out earthmoving equipment. The trust deed stipulates the following arrangements:
• 40% to Darren’s wife Sarah
• 25% to daughter Karen (age 22, full-time professional)
• 25% to daughter Kate (aged 16, at school)
The trust deed also states that that balance is to be retained but can also be distributed according to the trustee’s wishes.
Assessable income for the trust during 2017/2018 was $450,000 with net expenses as $350,000.
Answer the following questions:
1. Explain the concept of an inter vivos trust.
2. Calculate the net trust income for the 2017/2018 tax year.
3. Who is assessed on the distribution to Kate?
4. What is the tax payable on Kate’s distribution from the trust?
5. What is the tax payable on net income retained by the trust?

Carefully read the following:
Case study 2
S&J Catering is a small catering business operating in Western Sydney. Business partners, Jack and Simon, established the business a year ago. To start up the business, the partners contributed $30,000 each. Simon is employed full-time as a chef and Jack manages the business. Simon and Jack have a written agreement that states that they will share profits or losses equally.
Income
Fees received $235,000
Capital contributed by partners $60,000
Expenses
Food supplies $60,000
Salary and wages – Jack $75,000
Superannuation $7,125
Equipment maintenance $12,000
Casual contractor payments $30,000
Office supplies $5,000
Answer the following questions:
6. Explain why the above business arrangement would be considered to be a partnership arrangement.
7. Calculate the net partnership income for the year.
8. Calculate the distribution of partnership net income based on the partnership agreement.

Some months later you receive a communication from the ATO advising that S&J Catering will be subject to an ATO review and audit.
The ATO states that newly established businesses in the hospitality industry have being singled out for closer examination, and an automatic check found that the amount of money claimed to have been used to establish S&J Catering is much lower than comparative businesses,
Jack calls you to discuss the communication from the ATO, which he has also received. He is quite stressed and wants to know more about the audit and review process. Jack explains to you that S&J Catering’s establishment costs were so low because he was given all of the necessary equipment by a friend, Adam Jones, so they had to pay for almost no equipment.
9. Write a short (half a page) letter to Jack.
The letter must advise Jack about the ATO auditing process.
Research the ATO web site and find out about:
• What is involved in a review or audit
• The difference between a review and an audit
• ATO expectation of tax payers in relation to reviews and audits
• Overview of the process for a review and audit
• Penalties, interest charges and offences
10. Write an email to the ATO on S&J Catering’s behalf.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should explain the issue to mitigate any concerns and potentially to avoid a review or audit.
The email text should also introduce and summarise the contents of the attachments
Write the email as if original invoices for the equipment and a statutory declaration covering the gift from Adam are attached to it.
Attach the Word document with your answers to activities one to nine of this assessment task to this email.

Assessment Task 3 Checklist
Student’s name:
Did the student provide a sufficient and clear answer that addresses the suggested answer for: Completed successfully Comments
Yes No
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
Task Outcome: Satisfactory • Not Satisfactory •
Assessor signature
Assessor name
Date