Tax documentation for individuals

Tax documentation for individuals

Part A – Presentation

Jeff Jones is a new client to your firm and you are meeting him for the first time to discuss taxation issues and the preparation of the required income tax returns for the current tax year. You will need to provide an audio or video recording of no more than 5 minutes in length. For this assessment, you will require two people, one to be the client and another to be the senior tax agent. These two people can be drawn from colleagues, family or friends. You will be interacting with both people in this presentation, so they will be working from Briefing notes. Each of the participants must ask the questions that have been allocated to them (i.e. Participant 1 or Participant 2).
Ask the participants to take notes and Complete the feedback form (Appendix A) and the consent form (Appendix B).
Before you commence your presentation, review the briefing questions below to ensure you will have the appropriate information to provide in your verbal responses.

Part B Written report

Read the case study below and answer the following question.
You are working as a tax agent and one of your clients (Julie Palmer) has come to you for assistance. Julie is self employed as a web designer and due to her heavy work load and unpredictable working hours has not yet sorted out her tax matters. Julie spends a lot of time sorting out her business expense for tax however she has lost a few receipts and tax invoices in the last quarter of the financial year. She is unable to provide exact dollar amounts for expenses as listed in the table below. You as a tax agent have already lodged the tax return based on the details provided in Table.okay

Part C Written report

You have been employed by an accounting firm for just over twelve months. On reviewing the firms policies and procedures, you have identified some weaknesses and have been asked to prepare a report for senior management on the following key organisational issues:
1. Training of new tax agents has been raised as an issue by stakeholders. You have decided that in order to assist with this issue you will create a client details checklist, tax preparation checklist and a sample of an individual tax return and relevant schedules And a procedure for applying personal services income rules and how they affect taxable income (Appendixes A, B, C F)
2. Advice on responding to clients with upcoming audits. In your report outline the steps you would take after a client calls to discuss an audit letter they have received. Identify some preliminary actions staff should take (Appendix D).
3. Outline the requirements of Part IVA and the penalties imposed on clients. Provide a recommendation on how to respond to clients who have seen recent advertising by a competitor which claims that they can offer clients a way to pay no tax anymore.
4. Recently one of the tax agents in your firm had a new client referred to them and they discovered that they are a part owner in the building that the client was renting for her business. Referring to the Tax Practitioners Board website ( consider the Code of professional conduct and how it may impact the tax agent in practice. Outline the ethical issues that the tax agent would need to take into consideration in this case and possible ways to manage the issues (Note: consider the three key concepts in your response). Outline the importance of a code of conduct for the organisation and how this could assist employees in managing these types of ethical issues (Appendix E)
5. Research two recent changes to legislative requirements and outline how these are applied to the preparation of clients tax documentation. Your response could consider issues such as the change in Medicare Levy or rebate thresholds (Appendix see F)