Q12. Tax collection and obligations

What is SIC and GIC? Which rate is higher?

Q13. Withholding

Explain the two methods, PAYG instalments and PAYG withholding that the ATO uses to collect tax. 

Q14. Tax Assessment

What is the general date for lodgement of tax returns and what is the time limit for amendments on tax returns for most individual & small business taxpayers.

Q15. Objections

If a taxpayer is dissatisfied with their assessment or other taxation decision, how can they object?

Q16. Tax Administration

What is a public ruling?

Q17. Penalties

What is the current value of a penalty unit and what are the types of penalties that may apply?

Q18. Tax Audit

The tax office has queried a net rental loss submitted by a client. How would you respond to the ATO on behalf of the client and what documents would you ask your client to provide?

Q19. Personal Services Income and Anti Avoidance Rules

Helen is a sole trader and runs a cleaning business. The business provides cleaning services for residential and commercial properties. Duties include dusting, vacuuming, mopping, emptying bins, cleaning mirrors, kitchens and bathrooms. Helen's clients provide her with a vacuum, mop and their preferred cleaning products. She quotes clients based on the time it will take for her to complete the job. She runs on a strict schedule and if she looks like she may run overtime she will rush mopping the floor so she finishes on time. She has 25 clients and has recently hired her sister full time to help her out. Her main client makes up 15% of the income. Helen conducts all administrative tasks relating to the business from home at the end of the day. Her business has a Facebook page which is publicly available. She encourages her clients to join the Facebook page and share with their friends and colleagues.

Is the income that Helen earns from the cleaning business considered to be PSI? Briefly explain what test she passes. Would Helen be treated as a Personal Services Business?

Q20. Anti-Avoidance

If a taxpayer entered into a financial arrangement with the sole purpose of obtaining a tax advantage, would this trigger Part IVa Anti Avoidance rules? Explain. Hint: see Master Tax Guide 30-120.

Q21. Deductions and Compliance

During 2015 tax year your client used the 12% original value method to calculate motor vehicle deductions. This year (2018 tax year) you have had to use cents per kilometre method. Explain to the client what methods they could use in the 2018 tax year and how they are both applicable to the client. Only explain the methods that are available in the current tax year.

Q22. Policy, Procedures and Accounting Principles

Outline in an email to a client, the process for preparing and lodging an individual income tax return as required by the ATO (after you have calculate the Tax payable/refundable. (Policy, procedures & accounting principles).