FNSACC512 Prepare tax documentation for individuals - Tax Assessment Tasks

Task 1 – Interview a Client

You are a registered tax agent. Your client Lucy has attended your office to have her 2018-year tax return prepared. Lucy is 42 years old single resident taxpayer employed by Burwood Council as a clerk. Lucy is also a friend of yours.

She has the following documentation and admits that she is not good at keeping her receipts and invoices:

Payment Summary for the period 1 July 2017 to 30 June 2018 from Burwood Council

Gross Wages $56,000
Allowances – Clothing $400
Tax Instalments Deducted $12,000

Required

1. As the Tax Agent, what advice would you provide for the best outcomes in relation to depreciation, CGT method, car expenses method and general deductions for Lucy within the income tax law?
2. As the Tax Agent, how would you handle the stance your client has taken in points 2, 3 and 4 above, refer to the Code of Conduct, include the Principle involved and the action to take in each situation?
3. Briefly describe the steps you would go through as a tax agent from initially engaging a client through to lodging their return. Refer to the online learning resources on the OLS website.
4. Advise Lucy on the due date for submitting her individual tax documentation to the ATO and explain to her the benefits of the ATO’s app for record keeping that would allow her to keep track of her deductions.