ACOBA - The Australian College of Business and …€¦ · Web viewAll non-monetary benefits employees receive are reportable fringe benefits. Fringe benefits tax (FBT) must be paid

FNSTPB401

Complete Business Activity and Instalment Activity Statements

Student Assessment Workbook Part B

Part

B: C

ase

Stud

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Knowledge Questions: BAS and IAS

ASSESSMENT WORKBOOK COVER SHEETTo the candidate: Print this coversheet and complete it by filling in all the required information and affixing your signature in the space provided. Your signature must be handwritten. Scan the completed cover sheet and submit it along with your evidence submissions. Use the filename: FNSTPB401 Part B Cover Sheet Part B

WORKBOOK: FNSTPB401

TITLE:Complete Business Activity and

Instalment Activity Statements Part B

WORKBOOK:Part B: Knowledge Questions – BAS and

IAS

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FNSTPB401 Student Workbook – Part B Knowledge Questions – BAS & IAS Version No. 1Australian College of Business and Accounting Page 2

Part

B: C

ase

Stud

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Name: Signature: Date:

KNOWLEDGE ASSESSMENT: BAS AND IAS

Question 1

From the statements below, select the two (2) responses that correctly describe the requirements for GST groups in relation to the preparation of activity statements under the New Tax System (Goods and Services) Tax Act.

☐i. A GST group is two or more associated business

entities that operate as a single business for GST purposes.

☐ ii. Any member of the GST may complete the GST component of an activity statement.

☐ iii. When preparing an activity statement, only one entity, known as the representative member, must manage the group's GST affairs and complete activity statements and accounts on behalf of the group.

☐ iv. Transactions between group members must be ignored for GST purposes.

☐ v. A requirement for GST is that members of a GST group are considered separate entities.


Assessor Use Only – Question 1

Choose an item. Click or tap to enter a date.

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Question 2

Describe the following GST terminology found in the A New Tax System (Goods and Services Tax) Act.

GST Terminology Code Description

i. Taxable supplies

GST

ii. GST-free supplies

FRE

iii. Input taxed supplies

ITS .

iv. Out of scope supplies

N-T

v. Export EXP


What GST codes should be applied to the following items? Identify the appropriate GST classification by typing the correct code in the space provided.

GST – Taxable supplies

FRE – GST-free supplies

ITS – Input taxed supplies

EXP – Exported supplies

CAP – Purchase of capital assets

N-T – Out of scope supplies

Use capital letters in your answers.

GST Classification

Subject to 10% GST

tax

Rent received from tenants in rental property

Sale of a farm which carries on the same business

Purchase of a brand-new vehicle

Paid superannuation owing to Spectrum

Steel capped boots purchased by an employee to meet Health and Safety requirements

Paid doctor’s bill – injuries to an employee on the job

Sale of flowers to local florist


Goods manufactured in Australia and sold in Japan

Money withdrawn to reimburse petty cash

Acquisition of a building to set up a factory

Stamp Duty



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Question 4

Discuss two (2) key requirements relating to activity statements which must be applied specific to taxable payments annual reporting. Each discussion must be 40-80 words.

i.

ii.



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Question 5

The following are reporting options under the New Tax System (Goods and Services) Tax Act:

Option 1 (calculate, report and pay GST monthly),

Option 2 (calculate, report and pay GST quarterly), or

Option 3 (calculate, report and pay GST annually).

Below are statements that describe these reporting options. Match each statement with the option it describes. Write down the option number only in the space provided.

Option Number Description

i. This option is for business with a GST turnover of $20 million or more.

ii. You can only use this method if you are voluntarily

registered for GST. That is, you are registered for GST and your turnover is under $75,000 (or $150,000 for not-for-profit bodies).

iii. This option is available to all businesses with a turnover of less than $20 million who have not been told to report GST monthly.

iv. This option is available to all businesses with a GST turnover of less than $10 million. The full reporting and instalment methods are not available.

v. If your GST turnover is $10 million or more, you need to use the full reporting method - calculate, report and pay your GST amounts quarterly.




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Question 6

Answer the following questions about activity statements.

a. What does BAS stand for?

b. What tax obligations are reported on the BAS?

c. What kind of business is required to lodge the BAS?

d. What does IAS stand for?

e. What are the only tax obligations reported on the IAS?

f. What tax obligation is not reported on the IAS?

g. Give the two (2) lodgement schedules for the IAS.

h. What kind of business is required to lodge the IAS?




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Question 7

Answer the following questions about BAS labels.

a. At which label on the BAS is the pre-determined quarterly fringe benefits tax instalment shown?

b. At which label on the BAS is PAYG withholding reported if one is a large withholder?

c. Are superannuation contributions included in this label?

☐ Yes ☐ No

d. How much is the amount that must be withheld in a previous financial year, excluding the last two months, to be considered a large withholder?

$

e. For those paying GST, at what label on the GST section of the BAS is the total sales reported if GST is calculated and reported quarterly?

f. For those calculating and reporting GST quarterly and completing the GST section on the BAS, the amounts that are reported at the label G3 should have also been reported at G1.

☐ True ☐ False


g. Purchase or acquisition of which of the following falls under the G10 label on the BAS for those calculating and reporting GST quarterly? Select all that apply.

☐ Toyota Hilux ☐ Scholarship ☐ Farmland

☐ Imported wine ☐ Laptop ☐ Health insurance

☐ Salary ☐ Photocopier ☐ A defunct factory

h. For those paying GST instalment quarterly and paying annually, on what label on the BAS is the pre-determined instalment amount shown?



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Question 8

According to ATO, after activity statements have been prepared, obtained or the transactions completed (whichever is later), a sole trader is required to keep a copy of their general records. For how long must these records be kept? Select the correct answer.

☐ i. All records must be kept for 3 months.

☐ ii. Activity statements must be kept for 3 months, but payroll records must be kept for 12 months.

☐ iii. All records must be kept for 5 years.

☐ iv. Activity statements and payroll records must be kept for 5 years.

☐ v. All records must be kept for 7 years.



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Question 9

Complete the following table by setting out the lodgment schedule and payment requirements for the final financial quarter (April to June), according to ATO requirements.

Type of Payment Month Reported on which

document?

Lodgement and Payment

Date

PAYG Withholding

April

May

June

GST Collected and Paid

April

May

June


PAYG Instalment

April

May

June

Fuel Tax Credit Claimable

April

May

June



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Question 10

In accordance with the Fringe Benefits Tax Assessment Act, select the three (3) statements that are true about reporting fringe benefits tax when preparing activity statements.

☐ i. All non-monetary benefits employees receive are reportable fringe benefits.

☐ ii. Fringe benefits tax (FBT) must be paid by employers for certain benefits provided to their employees.

☐ iii. If a car ‘held’ by the company is used by an employee for private use, the costs incurred for the use of the car is subject to FBT and must be reported in the activity statement.

☐ iv. Photographs are acceptable documentation to substantiate fringe benefits for travel diaries.

☐ v. The lodgement of the annual FBT return must be submitted to the ATO by the 21st May.

☐ vi. The fringe benefits tax year is from 1 July to 30 June.



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Question 11

1. List four (4) benefits which are exempt from FBT under the Fringe Benefits Tax Assessment Act.

i.

ii.

iii.

iv.



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Question 12

In 100-150 words, explain the measures enforced by the government to recover unpaid taxes under Part VII of the Fringe Benefits Tax Assessment Act.



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Question 13

Under the Taxation Administration Act, there are specific requirements which must be met when completing business activity and instalment activity statements.

Answer the following five (5) questions regarding information on reportable items.

a. Give five (5) examples of withholding payments an organisation is required to pay.

i.

ii.

iii.

iv.

v.

b. According to the act, an entity need not withhold an amount if the whole of the payment is exempt income of the entity receiving the payment. Give five (5) sections to which this exception applies.

i.

ii.

iii.

iv.

c. According to the act, an entity need not withhold an amount if the whole of the payment is not assessable income and is not exempt income of the entity receiving the payment. Which two (2) sections does this exception apply to?

v.

vi.



d. For sections 12-35, 12-40, 12-45, 12-47, 12-115, 12-120, 12-315 or 12-317, what three (3) benefits can be disregarded in the computation of withholding payment?

i.

ii.

iii.

e. If more than one provision in the exceptions division covers a payment, how many amounts are to be withheld from the payment?

f. According to Section 388-50 (1) of the Act, what are the four (4) conditions that must be met in order for an activity statement to be considered an approved form?

vii.

viii.

ix.

x.



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Question 14

Answer the following questions about key requirements relating to preparing activity statements under the New Tax System (Wine Equalisation Tax) Act 1999.

a. What is the label of WET payable on your BAS?

b. What is the label of WET refundable on your BAS?

c. What is the percentage of WET on the taxable value of assessable dealings?

d. What ethyl alcohol percentage must products like grape wine and fruit wines exceed to be subject to WET?



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Question 15

Answer the following questions which are specific to the reporting requirements under the A New Tax System (Luxury Car Tax) Act 1999, for the Luxury Car Tax (LCT) and the preparation of the BAS and IAS

a. What is the general luxury car tax threshold for the 2018-19 financial year?

b. What is the luxury car tax threshold for fuel-efficient cars for the 208-19 financial year?

c. At what rate above the luxury car threshold is LCT computed?

d. What is the label of LCT payable on your BAS?

e. What is the label of LCT refundable on your BAS?



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Question 16

Answer the following questions which are specific to the reporting requirements for fuel tax under the Fuel Tax Act 2006.

a. To claim fuel tax credit, what label must be completed on the BAS?

b. What label must be completed on the BAS to make any adjustments that will decrease fuel tax credit entitlement?

c. What tax must businesses be registered for to be entitled to fuel tax credit at the time they acquire, manufacture, or import fuel?

☐ Automotive tax registered

☐ Goods and services tax registered

☐ Luxury tax registered

d. What are the two (2) situations in which a business can claim fuel tax credits?

i.

ii.



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Question 17

If the lodgment day of a required BAS or IAS falls on a Saturday, Sunday, or public holiday, when must the statement be lodged instead?

☐ i. Within one week prior to the set lodgement day

☐ ii. The business day immediately prior to the set lodgement day

☐ iii. The first business day immediately after the set lodgement day

☐ iv. Within one week after the set lodgement day



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Question 18

Explain the three (3) GST principles listed . Each explanation must be 60-100 words.

GST principle Explanation

i. GST Collected

ii. GST Inputs Tax Credits

iii. Net GST Payable



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Question 19

Describe how you can verify or obtain the required information in order to calculate PAYGI for new client you have recently taken on to do BAS work for. Your response should be 50-100 words.



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Question 20

Complete the following table using the space provided for the headings below.

1. Answer – Explain the meaning of the acronym in 20-50 words 2. Reportable – Yes or No or Both answers are required, is the

term reportable on a BAS IAS or both forms.3. Label – What label (section) of the BAS or IAS is each term

reported at

Term Answer (include

full name of

acronym)

Reportable

BAS or IAS or both

Label

TAA

ITAA

PAYG-I (Instalment

)

Including Option 1

and 2

PAYG-W

FBT Instalment

GST Act

FTC



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Question 21

Complete the following table of mistakes/omissions/errors below by;

1. Identifying the “Type” – By indicating if the scenario is an Error, Increasing or Decreasing adjustment

2. What label of the BAS Calculation worksheet is affected? (where would you record the alteration

3. Identify what label is affected on the Activity statements.




Case Type (Error, Increasing

or Decreasing Adjustment

Item Label – BAS

Calculation Worksheet

Item Label effected

on Activity

Statement

Purchase of $4500

included in the

previous quarter's BAS has

been cancelled

Failure to claim input tax credits

on an invoice of $9900 on

last months

BAS

Supply of $880 from

the last quarterly BAS has now been cancelled

sale of $3300 reported in

a prior BAS has become taxable.

Discovered that 1.5

years ago you

omitted $12000 of

taxable supplies from the

BAS.


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Question 22

Locate the following Tax Ruling GSTR2005/D9 select the correct two (2) responses that best explains what this ruling is about.

☐That GST is not applicable because section 9-5 of the GST Act states new employees become subject to an obligation and a supply.

☐That GST is not applicable because section 9-5 states new employers have an obligation and thus no taxable supply has occurred as it was transferred.

☐That GST is applicable because section 9-5 of the GST Act states new employer become subject to an obligation and a supply.

☐That GST is not applicable because section 9-5 states new employers have an obligation and thus no taxable supply has occurred as it was transferred, thus no new supply is provided by the new employer.



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Question 23

Describe the process for claiming GST credits in a subsequent period (you didn’t include it before) referring to either the accounts methods of calculation sheet method.

Ensure you include in your response;

The calculations you would need to complete (ie the overstated or understated GST, Sales, or Purchase) and subsequent labels that would be affected.



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Question 24

List 2 options you can use to lodge the Activity statement to the ATO provide your response in the space provided below.

For the 2 listed optioned you selected at question 1 describe how you lodge them to the ATO.

List 2 options for lodging the activity statements

Describe how you lodge them to the ATO



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Question 25

Calculate the WET applicable for Drinks R On Us Tavern, who had $450,000 including GST in total sales of which $285,000 was from direct wine sales.

Select (tick box) the correct amount of WET payable for your calculation

☐ $58,245.24

☐ $85,255.24

☐ $82,650.00

☐ $130,500.00



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Question 26

Green Tree Bonsai Pty Ltd is a GST registered company who reports quarterly for BAS. It has come to the attention that the FBT liabilities will increase from 12,000 to 15,000 in the coming year because of more staff and the Fridge benefits the company provides. On the IAS, $3,000 is pre-printed at F1.

Calculate the varied FBT instalment amount payable on the March activity statement and select using the tick box below the correct value.

☐ $2,000

☐ $6,000

☐ $12,000

☐ $5,000



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Question 27

Paula is completing her IAS and is working on the PAYG Instalment section due to changes in economic circumstances is having to vary his instalment payments. She calculates using option 2 and gets a rate of 9%, the pre-printed amount given by the ATO on the IAS is 5 % which rate must she use?

Select from the below using the tick box the correct response to this situation.

☐ She can’t vary the rate

☐ She must use the ATO rate of 5%

☐ She must use the 9% percent as the varied rate is higher than the pre-printed amount

☐ She must contact the ATO to get a decision on this matter



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OVERALL MARKING RESULT FORM (For the Assessor’s Use Only)

Assessment Details

Student’s Name:

Student ID:

Assessor’s Name:

Unit of Competency FNSTPB401 Complete Business Activity and Instalment Activity Statements

Workbook Part B – BAS and IAS Questions

Overall Assessors Decision Choose an item.

FNSTPB401 Complete Business Activity and Instalment Activity Statements

Knowledge Assessment Result Date

Question 1 Choose an item. Click or tap to enter a date.





























Documents

ACOBA - The Australian College of Business and …€¦ · Web viewAll non-monetary benefits employees receive are reportable fringe benefits. Fringe benefits tax (FBT) must be paid