assess your competency to apply the associated tax rules to individuals and companie 320846

Aug 29, 2021 | Uncategorized

  1. Using spreadsheet software, prepare a statement of adjusted taxable profit, and a tax computation statement for EFL, for the year ended 31 March 2013. Your tax computation statement should show the total tax payable, the residual income tax, and the terminal tax payable/(refundable) for the year. You should also determine the provisional tax payable for 2014, if any.
  1. Using spreadsheet software, prepare a tax computation, for Jennifer Williams for the year ended 31 March 2013. Your computation should show the total tax payable, the residual income tax, and the terminal tax payable/(refundable) for the year. You should also determine the amount of provisional tax that Jennifer is obliged to pay for 2014, if any, as well as the due date for each installment.
  1. Write a letter to Jennifer advising the reason why it is desirable, for tax purposes, for her to hold the parcel of Australian shares using a trust structure. What can she do to minimize the tax liability on income from the trust?
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Objective The objective of the assignment is to assess your competency to apply the associated tax rules to individuals and companies and to prepare the IR3 and IR4 tax returns. Instructions This assignment is based on a simulated scenario. You should read the scenario carefully before planning your response to the requirements that follow. You should decide on how much time you could reasonably allocate to the preparation of the assignment. Then divide this up so that you allow time for thinking about the topic, planning your response, completing the required tax returns, preparing and writing your answers and check the final version to hand in by the due date. Ignore GST for this assignment SCENARIO You have been working for a chartered accounting firm for five years after your graduation. Due to a personality clash with your supervisor, you decided to leave the firm, and to set up your own taxation practice. Being a registered tax agent, your core services are to prepare tax returns and provide tax advice to clients. Jennifer Williams, a new client of yours, is the owner manager of Elite Flowers Limited (EFL). EFL provides floral arrangements for both individuals and corporate clients for weddings and functions. Jennifer holds 80% of the shares in EFL and her partner, Bill Woods, holds the remaining equity interest in the company. Jennifer has provided you with the following information for the year ended 31 March 2013: An income statement for EFL (Appendix 1) Summary of tax payments for EFL (Appendix 2) Summary of income for Jennifer Williams (Appendix 3) Statutory information for EFL (Appendix 4) Personal information for Jennifer Williams (Appendix 5) You determine that the fees for your services, based on the estimated time cost, will be $1,500 for the company and $800 for Jennifer. Fee notes for both will be issued upon completion of the jobs. Jennifer’s father who lives in Australia, would like to give a parcel of…

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