Assignment Task

1. Jim receives a salary which is paid to him as a principal worker of his company Jones Pty Ltd. His salary is not equal to the value of the services he provides and the remaining income is distributed to his wife. What tax rule may apply in this circumstance? Select one:

a. Specific anti-avoidance rules

b. General anti-avoidance rules in relation to personal services income

c. Tax avoidance schemes

d. None of the above

2. What is the possible consequence for an individual taxpayer for not paying their tax liability on time?

a. General interest charge

b. Penalties Generally more than just penalties

c. General interest charge plus penalties

d. None of the above

3. Select the correct answer

a. Australian residents are generally taxed on their worldwide income from all sources. Temporary and foreign residents are generally taxed only on their Australian-sourced income

b. Australian, temporary and foreign residents are all generally taxed on their Australian income from all sources Tax methods are different between Australian residents with temporary and foreign residents

c. Australian, temporary and foreign residents are all generally taxed on their worldwide income from all sources

d. None of the above statements are correct

4. Which of the following is not considered to be an Australian Resident for tax purposes? :

a. Jan leaves Australia temporarily and does not set up a permanent home in another country

b. John is an overseas student enrolled in a course that is more than six months long at an Australian institution

c. Ellen is visiting Australia and for most of that time she will be travelling and working in various locations around Australia

d. Cameron migrates to Australia and intend to reside here permanently

5. Which of the following is not available to tax agents to lodge client tax returns with the ATO? 

a. Tax return for individuals form Check Tax return for individuals form under Important information section.

b. myTax

c. Tax Agent Portal

d. All of the above are acceptable lodgment methods for tax agents

6. If you are lodging your own individual tax return for the 2019/2020 year, it is due to be submitted to the ATO by? 

a. 31 October 2020

b. 31 December 2020

c. 31 May 2021 d. None of the above

7. ax returns for the year 2019/2020 year submitted through a registered tax agent are due to be submitted to the ATO by? 

a. 31 October 2020 Please refer to ATO website - Lodge with a registered tax agent

b. 31 December 2020

c. 31 May 2021

d. The due date will depend on your personal situation

8. Which of the following does not form part of the Tax Practitioner’s Board Code of Professional Conduct for Tax Agents? 

a. Honesty and integrity

b. Independence

c. Effectiveness

d. Confidentiality

e. Competence

9. What is the TPB`s position on conflict of interest for tax agents?

a. The Code of Professional Conduct prohibits tax agents from having conflicts of interest

b. Tax agents must ensure they have adequate arrangements in place to manage any conflicts of interest that may arise

c. Conflicts of interest are not relevant to the TPB’s Code of Professional Conduct

10. There are a number of civil penalty provisions in the TASA relating to the conduct of registered tax practitioners, and certain activities of those who are acting as unregistered tax practitioners. What penalty amount does the Federal Court have the power to impose penalties for individual Tax Agents per breach? 

a. $20,000

b. $22,500

c. $55,500

d. $262,500

11. If an audit commences without a review happening first, the taxpayer will generally be given an opportunity to make a voluntary disclosure Select one:

a. True

b. False

12. Clients must register for GST if their business or enterprise has an annual GST turnover of more than Select one:

a. $50,000

b. $75,000

c. $100,000

d. $125,000

13. Select which of the following may be required to be reported on Business Activity Statements: 

a. GST Paid and Collected

b. Fringe Benefits Tax Instalment

c. Capital Gains Tax

d. PAYG Instalments

e. PAYG Withholding

f. All of the above 

14. If your client receives a data-matching letter from the ATO, and you and your client agree with the findings, you are not required to respond. 

a. True

b. False

15. If your client receives a data-matching letter from the ATO, what is the timeframe for sending a response 

a. 14 days from the date of the letter

b. 30 days from the date of the letter

c. 30 days from the date you receive the letter

d. The timeframe for responding will be included in the letter

16. Which of the following trips are eligible for a tax deduction, may be more than one answer? Select one or more: a. North Sydney College to home

b. Home to North Sydney College

c. North Sydney College to Mowbank College

d. Mowbank College to Home

e. Other Private travel f. Travel to Computer Conference 

17. What is the car limit used to calculate motor vehicle depreciation for 2019/2020? 

a. $57 581

b. $66 331

c. $75 526

d. Could be any of the above 

18. Using the log book method, what are the operating costs (including decline in value) for the 2019/20 financial year? 

a. $1 790

b. $2 644 Recalculate 

c. $2 812 d. $3 002

19. How often would Kaye be required to determine the business use percentage of her car expenses? Select one:

a. Every year Please refer to Chapter 8.10 Motor Vehicle Expenses - Log book Method

b. Every 2 years

c. Every 5 years d. Once is enough

20. What is the cents per kilometer rate for the 2019/2020 financial year?

a. 66 cents

b. 68 cents

c. It depends on the engine size of your car

d. None of the above

21. What are Kaye`s annualised business kilometers? 

a. 460 Recalculate

b. 1 993 c. 2 680 d. 11 613

22. Using the cents per km method what is the motor vehicle deduction for the year? 

a. $1 355

b. $1 315

c. $3 013

d. None of the above

23. Which method would you advise Kaye to use, to give her the greatest tax deduction Select one:

a. Cents per Km method Recalculate

b. Log Book method

c. Neither of the above

24. Which of the following is assessable income? 

a. Winnings from casino b. Maintenance payments from ex-spouse

c. Fringe benefits

d. Age pension

e. All of the above

f. None of the above

25. Kim purchased a rare painting for $400 on 1 July 2010 and sold it for $4,800 on 1 July 2019. What is the minimum assessable capital gain on the painting to be included in her tax return for 2019/2020? Select one:

a. $0

b. $2200

c. $4400 Please refer to Chapter

4 Capital Gains

d. None of the above