Course Title: Prepare legally compliant tax returns for individuals

Part B: Course Detail

Teaching Period: Term2 2014

Course Code: ACCT5354C

Course Title: Prepare legally compliant tax returns for individuals

School: 650T TAFE Business

Campus: City Campus

Program: C5260 - Diploma of Accounting

Course Contact : Bruce Phillips

Course Contact Phone: +61 3 99255735

Course Contact Email:bruce.phillips@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Mr Claude Marasco 
Email claude.marasco@rmit.edu.au

Nominal Hours: 80

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites

None

Course Description

This unit is about preparing income tax returns for individuals. It helps you to understand the principles, without having to deal with complicated legal jargon. This is includes gathering and verifying data, such as payment summaries.It also involves calculating taxable income and tax payable.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSACC502B Prepare legally compliant tax returns for individuals

Element:

1. Gather and Verify Data

Performance Criteria:

1.1 Client taxation preparation requirements are determined
1.2 Current data on assessable income and allowable deductions are gathered from appropriate sources
1.3 Valuations are made, recorded and disclosed in accordance with business policies and procedures and legislation
1.4 Discrepancies, unusual features or queries are identified, resolved or referred to the appropriate authority
1.5 Accrued or prepaid income and expenditure is identified and adjustments to the value of assets and liabilities are recorded
1.6 Records and compliance requirements are identified and adhered to

Element:

2. Calculate Taxable Income

Performance Criteria:

2.1 Liabilities for tax are calculated in accordance with current legislation and revenue gathering practices
2.2 Relevant source documentation and revenue documentation is identified and correctly interpreted
2.3 Tax returns, statements and claims take full advantage of available benefits and allowances in accordance with legislation, regulation and ATO rulings
2.4 Returns are prepared within established timelines
2.5 Advice and guidance is sought to evaluate and moderate decision processes
2.6 Returns are discussed and agreed with clients and statutory requirements are confirmed

Element:

3. Review Compliance

Performance Criteria:

3.1 Relevant returns are submitted to the Australian Taxation Office (ATO) within stated deadlines and in accordance with legislation
3.2 Current obligations are fulfilled and advice from taxation authorities followed and reported in accordance with statutory requirements
3.3 Statements give a clear indication of impact of taxation on the client
3.4 Tax office enquiries are responded to and income tax audit requirements met
 


Learning Outcomes


This unit is about preparing income tax returns for individuals. It helps you to understand the principles, without having to deal with complicated legal jargon. This includes gathering and verifying data, such as payment summaries. It also involves calculating taxable income and tax payable.


Details of Learning Activities

A range of learning activities are planned for this course including self paced and collaborative classroom-based activities.
The unit builds up week by week as the students can progressively undertake the major assignment by doing parts of it as we progress through the topics.
The assignment has the students exposed to real life documents, and they are encouraged to work in teams, although the submission is on an individual basis.
This assignment gives students ample opportunity to practice their skills in a simulated/real workplace environment.
The other classroom activities stimulate discussion, and frequent questioning is used to tease out the understanding of each student.
Of great importance is the set exercises from the textbook, which we expect you to participate in and contribute to.
The Parttime (flexible delivery) students can expect at least two collaborate sessions to magnify the learning experience.


Teaching Schedule

WeekBegins MonTOPIC       FULL-TIME TIMETABLEAssessmentPart time/flexible delivery (see below)
1 July 7

Introduction to course and familiarisation with University Policy and assess-
ment requirements for course(incl. grading, plagiarism, appeals, extensions, feedback, privacy). Liability to income tax.

  
2     14 Assessable & exempt income Assign out 
3     21 Income from property (dividend imputation system)  
4     28 Capital gains tax (CGT)  
5 Aug 4 Lump sums on termination (accrued leave payments)  
6      11 Revision  
7      18 Test 1 Test 1 
 8      25Deductions general, substantiation, car exps  
 Sept 1 MID SEMESTER BREAK  
 9      8Expenses on car expenses  
 10 15          Deductions: specific deductions (self education, clothing , borrowing exps etc)  
11     22 Depreciation part 1  
12     29 Depreciation part 2  
13Oct 6 Depreciation exercises Assign in 
14      13 Revision  
15      20 Test 2 Test 2 
16      27 Resits, resubmissions, feedback  
     
  PART-TIME(flexible delivery) TIMETABLE   Suggest the following exercises be done over the two weeks following the class
1 Intro to tax, assessable income,Assign out 1.1,2,3,4,5,8,9,11,12,13,15
2.1,2,3
1.16.17.18.19.20,22,24,25,26
3 Income from property, Inro to capital gains tax  5.1,2,3,4,5
14.1,2,3,4,6,7,10,12,13
5 Capital Gains, lump sums on termination  10.1,2,3 & 15.2,3 
7  Test 1 Test 1 
9 Introduction to deductions, car exps  12.1,2; 9.3,4,5,6,7,8,9,10(a), (b),11,12
11  Specific deductions(self-ed exps),  12.3,4,5,6,8,10,12,13abc, 13hijklmn, 13rs,
13 Decline in value (Depreciation), offsets Assign in 8.1,2,3,4,5,6,7,8,10,11,12,13,14
19.5,6,7,8,9; 8.17,15,16;12.15; 19.11
15  Revision,  Test 2Test 2 
16  Resits, resubmissions, feedback  


Learning Resources

Prescribed Texts

Australian Income Tax Question Book, by Alan Kirby and Garry Kirby - 2014 Edition

9780980738520


References

Australian Income Tax Answer Book  by Alan Kirby and Garry Kirby, 2014 edition, self published


Other Resources

Resources (handouts and powerpoints) loaded up on blackboard

FOR ONLINE COLLABORATE SESSION, PLEASE ENSURE YOU HAVE JAVE INSTALLED ON YOUR COMPUTER https://java.com/en/download/index.jsp AND A HEADSET AND MICROPHONE


Overview of Assessment

Assessment may incorporate a variety of methods including technical requirements documentation, homework, assignments, group and/or individual projects, in class exercises, written tests, problem solving exercises, direct observation of actual and simulated work practice, presentation of a portfolio of evidence which may comprise documents, and/or photographs and/or video and audio files.

You are advised that you will be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met. You will be provided with feedback throughout the course to check your progress.
Task 1 is a closed book test covering the rules on assessable income weeks 1-6.
Task 2 you are to produce a tax return and accompanying estimates of tax payable for the current year tax return of a fictional character Lou Tide
Task 3 is a closed book testcovering the rules on deductions and decline in value(depreciation).

You must successfully complete all 3 tasks to be deemed competent in this unit.


Assessment Tasks

Overview of Assessment:
Students must demonstrate an understanding of all elements of competency to be deemed competent.

A range of assessment methods are used to assess practical skills and knowledge, for example:
• written tests covering how well the candidate has grasped the skills and knowledge 
• assignment covering the skills involved in preparing individual’s tax returns 
• demonstration of skills

Critical Aspects of Evidence:
Evidence of the ability to:
• • Demonstrate and apply knowledge of Australian taxation law in the preparation of tax returns for individuals
• Access, interpret and comply with information on relevant legislation, statutes, regulation and ATO rulings
• Provide taxation advice having regard to the facts and relevant law
• Develop organisational procedures to meet compliance requirements
• Apply organisational policies and procedures and accounting principles and practices
• Gather and verify data to calculate taxable income and review for compliance
• Prepare tax returns for individuals

Assessment Tasks
:
You are required to complete 3 tasks. You must successfully complete all 3 tasks to be deemed competent in this unit.

TASK 1 (Due end of week 7)
For this assessment task you have a closed book test, however students are allowed to take in a copy of the tax legislation provided it is not marked in any way except for highlighting and external tagging. The rules on assessable income weeks 1 to 6 will be covered by the test.

The test will be of 2 hours duration and the seven or eight questions will be predominantly of the calculation and problem solving type.
A rates sheet comprising individual tax rates, medicare levy, and low income will be provided. Also a lump sums rules sheet will be provided.
Students are permitted to use pencil or pen to write with.

TASK 2 (Due end of week 13)
For this assessment task you are to produce a tax return and accompanying estimates of tax payable for the current year tax return of Lou Tide .
The return form used will include Individual return form, supplementary section of form, and the business and professional items schedule.
The scenario assumes you are the tax agent doing Lou’s return for the first time, therefore having to input all the personal details as well as the dollar income /deduction amounts. His income includes some important types of data , for example payment summaries, dividend statements, capital gains, lump sums on termination, business related income and expenditure, and work related claims for deductions.
There is also the requirement to judge whether income meets the assessability criteria, by doing some research using sources apart from the prescribed textbook.

TASK 3  (Due end of week 16)
For this assessment task you have a closed book test, however students are allowed to take in a copy of the tax legislation provided it is not marked in any way except for highlighting and external tagging. The rules on deductions, decline in value, and tax offsets weeks 9 to 14 will be covered by the test.

The test will be of 2 hours duration and the seven or eight questions will be predominantly of the calculation and problem solving type.
A rates sheet comprising individual tax rates, medicare levy, and low income will be provided. Also additional information on dependent rebates and medical expenses offset, motor vehicle cost limit, and cents per kilometre, and summary of pooled assets decline-in-value rates will be provided.
Students are permitted to use pencil or pen to write with.
 


Assessment Matrix

Submission Requirements

Assessment task 2 needs to be submitted via the Blackboard with a assignment cover sheet attached.

The two test will be presented and submitted during your normal weekly scheduled classes.

You should:
• Ensure that you submit assessments on or before the due date. If your performance in the assessment is affected by unexpected circumstances, you should consider applying for Special Consideration. Information on the process and application forms is available at http://rmit.edu.au/browse;ID=ls0ydfokry9rz website.
• Always retain a copy of your assessment tasks. (hard copy and soft copy)
• When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of work for assessment is available on blackboard.
• Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers. For example, Julie Macpherson, 324567, Task 2, assignment Lou Tide, Page 1 of 10.

Marking Guide (competency)
Vocational Education and Training (VET) is based on current industry needs and the focus on preparing you for the workplace. Because VET courses are informed by practical application of knowledge and skills, they are based on a system known as ‘competency based training’ (CBT). So when you are assessed in VET it is about whether you are competent to do the job, as well as having a firm grasp on the knowledge and skills required to do that job, as opposed to traditional curriculum based education settings that are often based on knowledge retention.

You need to demonstrate you are competent in each element of the unit of competency you are studying(this is taken to mean each assessment task must be passed..

You will receive feedback on each assessment task that will inform you whether you are competent or not and how well you are performing. This is called an assessment evidence sheet.  Once competent in all elements of the unit you receive a competency grading.
Please refer to the final Grades table below.

Marking Guide (Grading)
After achieving competency we then grade your performance in the unit; this gives you the opportunity to have the level of your performance formally recognized against industry standards and employability skills.


The grading is according to the following criteria:

1.LEVEL OF INDEPENDENCE, INITIATIVE, ENTERPRISE AND PERFORMANCE OF WORK TASK
We are looking for a high level of ability to complete all tasks independently as per the specifications as well as demonstrating a high level of initiative in your approach to preparing an individual tax return.
2.DEMONSTRATED BREADTH OF UNDERPINNING KNOWLEDGE AND A WILLINGNESS TO CONTINUE LEARNING
We are looking for depth of understanding of the key concepts and knowledge required in preparing tax returns. You should be able to demonstrate a thorough understanding of all applicable tax legislative requirements in all the assessment tasks.
3. TECHNIQUES AND PROCESSES, TECHNOLOGY SKILLS AND PROBLEM SOLVING
We are looking for appropriate use of technology to assist in presenting all tasks clearly and suitable for the intended audience. You also need to show an understanding of the kinds of problems that can arise in preparing tax returns and how these might be addressed.
4. WORK ORGANISATION, PLANNING AND SELF MANAGEMENT
We expect to see all students working together effectively and efficiently as if this were the workplace, including attending meetings outside of the teaching hours. We also expect timely completion of and submission of all required assessment tasks.
5.COMMUNICATION, PEOPLE NETWORKING, LANGUAGE AND INTERPERSONAL SKILLS AND TEAMWORK
We expect to see contributions to relevant discussions and participation in  Collaborative sessions. In addition your tasks should demonstrate a very good understanding of strategies for a team approach to tax return preparation in the workplace.

Your results will be progressively uploaded to the gradebook, and if you have an NYC appearing it is your responsibility to find out when the due date for the resit or resubmission takes place. You get ONE opportunity to resit/resubmit up to a competent level. 

Final Grades table:


CHD = Competent with High Distinction
CDI  =  Competent with Distinction
CC  =   Competent with Credit
CAG =  Competency Achieved – Graded
NYC = Not Yet Competent
DNS = Did Not Submit for assessment

Further information regarding the application of the grading criteria will be provided by your teacher.

Other Information

Late Submission Procedures
You are required to submit assessment items and/or ensure performance based assessment is completed by the due dates.
If you are prevented from submitting an assessment item on time, by circumstances outside your control, you may apply in advance to your teacher for an extension to the due date of up to seven calendar days.
More Information: http://www.rmit.edu.au/students/assessment/extension
Form to use: http://mams.rmit.edu.au/seca86tti4g4z.pdf
Where an extension of greater than seven days is needed, you must apply for special consideration. Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination.
More Information: http://www.rmit.edu.au/browse;ID=g43abm17hc9w
Form to use: http://mams.rmit.edu.au/8a5dgcaqvaes1.pdf

Resubmissions (VET Programs):
If you are found to be Not Yet Competent in a Course Assessment Task you will be allowed one resubmission only. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission. The highest grade you will receive if your resubmission is successful is “CAG”.
If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.

Adjustments to Assessment
In certain circumstances students may be eligible for an assessment adjustment. For more information about the circumstances under which the assessment arrangements might be granted please access the following website:
More Information: http://rmit.edu.au/browse;ID=7usdbki1fjf31
 

Course Overview: Access Course Overview