FNSACC401A Process business tax requirements (PBTR)
Assessment Task 2: Assignment 75%
Pre Requirements for this task
Student must review
|Question 1 ( 25 Marks)|
Planning advice for Lyall
Lyall is considering setting up a training business where he provides training services to various pharmacies and retail outlets in Western Australia. While Lyall is a very capable trainer and consultant, he has very little knowledge and experience in the area of taxation and accounting. He wants to ensure that everything is set up correctly in his business and that he maintains adequate records for taxation purposes.
Lyall has given some thought and planning into his new venture and has determined that he will need at least two staff and will therefore have a wages bill of approximately $12 000 per month. His anticipated projected turnover will be approximately $300 000 for the first year of operations. Lyall will provide a company vehicle to at least one of his employees. There will also be some fringe benefits paid to his staff during the year. Lyall is planning to operate from his home office for the first year of business.
Assist Lyall by making him aware of his responsibilities in the following cases:
1. What choice of accounting methods is available to Lyall?
2. Is he required to obtain an ABN and does he need to register for GST?
3. What are the advantages and disadvantages of registering for GST?
4. For FBT purposes, what records are required for the company car provided to the staff? In addition, how will this entitlement and tax impact on the employee?
5. What is the employer obligated to do as part of employing staff?
6. Is he required to register for payroll tax?
7. What are his responsibilities concerning PAYG?
8. Lyall is confused between the business activity statement and the instalment activity statement and thinks he will be required to complete both of these each month. Explain to him the difference between these two statements and which return he is likely to use.
|Name of employee||Gabrielle Daylight|
|Date of birth||24/9/1991|
|Tax File no||286 660 544|
|Address||45 Sun Street, Seabreeze WA 6777|
|Tax free threshold||Yes|
|Type of employment||Casual|
|Anticipated mthly income||$600|
Retail Employees Superannuation Fund
PO Box 350
Parramatta NSW 2124
|Super fund membership number||222 555 666|
|Month||Week ending||Gross wages||Tax||Net wages||Super contribution|
|Total for month||1008|
|Total for month||1275|
|Total for month||1159|
|Question 4 (30 Marks)|
The following GST-inclusive information/data has been recorded by Prime Constructions Pty Ltd. Prime constructions Pty Ltd has opted to report and calculate their GST on a quarterly basis. There are no credit transactions. Their owner has approached you to assist him in sorting out the information using the Business Activity Statement worksheet for the period 1 January 2013 to 31 March 2014.
• Purchased a new laser printer for $1100 cash.
• Sold the old printer for $220 cash.
• For use in the delivery of building materials, the company acquired a motor vehicle from the owner with a market value of $17 950 (no GST)
• PAYG withholdings for the month were $12 650.
• Fringe benefits for the quarter were $3200.
1. Using the information above, complete the Business Activity Statement calculation worksheet NAT 4203.
2. What is the net GST payable or refundable?
3. What penalties may apply if the BAS is not lodged on time?