Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to assess taxation liabilities, optimise tax positions, establish processes and plans, evaluate tax policies and review tax compliance. This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements. The Tax Practitioner's Board has set specific educational and experience requirements for registration of tax agents that must be met. |
Application of the Unit
Application of the unit |
The unit can be applied across the financial services industry, and is appropriate for a person with suitable qualifications and experience such as an accountant and taxation specialist. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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FNSACC502A |
Prepare income tax returns for individuals |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Assess tax liabilities |
1.1. Organisational and operational tax liabilities are identified by analysis of external and internal taxable transactions 1.2. History and trends in obligations arising from organisational transactions are quantified using standard accounting techniques 1.3. Data from transactions are analysed to resolve ambiguities and determine the nature of taxation options 1.4. Effects of taxes are analysed and scheduled by assessing methods of determination , tax bases and timing of incidence |
2. Optimise tax positions |
2.1. Implications of obligations on operations and structures are assessed to develop a range of treatments and responses 2.2. Financial management strategies are developed to ensure the alignment of cash flow with incidence and schedules of tax payments 2.3. Trends in tax liabilities are analysed and monitored to develop a history of obligations and compliance |
3. Establish processes and plans |
3.1. Management plans and record keeping systems are developed to implement financial management strategies and ensure the maintenance of an audit trail 3.2. Management processes are documented to ensure they promote standard application of compliance requirements 3.3. Taxation liabilities are derived from income and expenditure estimates using standard accounting techniques 3.4. Budgets are prepared in accordance with estimates and reviewed to ensure ongoing relevance of liability estimates |
4. Evaluate tax policies |
4.1. Variances between liabilities and taxation plans are analysed to identify errors in tax strategies 4.2. Performance of tax liabilities in similar or related organisations and operations are monitored and evaluated to measure tax effectiveness and prepare benchmarks and standards 4.3. Data is reviewed for accuracy, completeness and reliability of assumptions in liability projections |
5. Review tax compliance |
5.1. The achievement of performance indicators is assessed and reviewed against key result areas 5.2. Taxation preparation processes are monitored and reviewed in line with professional taxation and accounting standards requirements 5.3. Failures in compliance are analysed to diagnose shortcomings and to remedy processes in line with taxation authorities' requirements |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
work within organisational policies and procedures
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Context of and specific resources for assessment |
Assessment must ensure:
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Method of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
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Guidance information for assessment |
Range Statement
RANGE STATEMENT |
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The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. |
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Tax liabilities may include: |
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Taxable transactions may include: |
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Obligations may include: |
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Standard accounting techniques may include: |
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Data may include: |
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Methods of determination may include: |
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Tax bases may include: |
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Financial management strategies may include: |
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Record keeping systems may include: |
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Management processes may include: |
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Variances may include: |
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Assumptions may include: |
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Unit Sector(s)
Unit sector |
Accounting |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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