Question

In: Accounting

Describe the distinction between legislative requirements and professional standards (including ethical standards). 180–200 words( In context...

Describe the distinction between legislative requirements and professional standards (including ethical standards). 180–200 words( In context of Australia )

What part of the legislation provides details of how much income tax must be paid and what does it state? 100–120 words

Describe some of the potential consequences of failing to submit an income tax return on time. 80–100 words

How do tax offsets differ from tax deductions and why are they used? 180–200 words

Solutions

Expert Solution

1.​​​​​Distinguish between legislative requirements and professional standards:

Legislative requirements are some set of rules regulations framed by the public authorities and are mandatory for the execution. To implement and enforce legislation these requirements are used. Professional standards are the standards which are framed to maintain quality of services provided by the professionals. Professional standards serve as guidelines which explains how to carry out the duties performed by the professionals. Ethical standards are the code of ethics which are to be maintained mandatorily while performing the duties. These includes the do's and don'ts of duties performed by the professionals.

When legislative requirements are not followed it refers to outbreak of rules and regulations and are punishable. In the same way when ethical standards are not maintained, it is a punishable offence.

2. Income Tax Act of the legislation provides details of how much income tax must be paid and it states that every person whose total taxable income is more than the specified limit prescribed by in the act must pay tax to the government. It is the responsibility of every person whose total taxable income is more than the specified limit to pay tax to the government.

If any person fails to pay tax or paying less tax by showing lower income, it is not justifiable because it is loss to the government. Government generates revenue in the form of taxes being paid to them. Therefore the amount of tax to be paid will be determined by the Income tax act.

3. Some of the potential consequences of failing to submit an income tax return on time:

  • Penalty will be charged for filing the returns after the due date.
  • Unable to set off losses. The losses incurred are not allowed to be carry forward to the subsequent years.
  • Interest for delaying to file the return on time. Apart from penalty interest will be charged till the date of making the payment. It is important to know that income tax return cannot be filed unless taxes are paid.
  • Refunds from government, if any, will get delayed if the income tax returns are not filed within the due dates.

4 . Tax offsets differ from tax deductions in the following manner explained

Tax offsets are not as same as tax deductions. Tax offsets directly reduces the tax amount irrespective of the taxable income. While tax deductions reduces the amount of taxable income to some extent with respect to the sections of the income tax act. Therefore Tax offset is different from tax deduction.

Tax offsets are used to reduce tax amount of the current year with the losses carry forward from the previous years. Tax deductions are used to reduce the amount of taxable income in some ways for instance medical expenses paid during the year, medical insurance, making deposits, school fees paid for the children, etc.  

The tax offsets and tax deductions are used to reduce the amount of tax payable for the current year because nobody wants to pay more tax out of their pockets. To reduce the amount of tax in the current year these two tax offsets and tax deductions are helpful in minimising the tax.


Related Solutions

5: Understanding of legal and ethical professional responsibilities and standards (max. 300 words?
5: Understanding of legal and ethical professional responsibilities and standards (max. 300 words?
Describe the distinction between Balloon Framing & Platform. 250 words, please.
Describe the distinction between Balloon Framing & Platform. 250 words, please.
explain ethical considerations and legislative requirements relevant to the preparation of tax documentation for individual taxpayers,...
explain ethical considerations and legislative requirements relevant to the preparation of tax documentation for individual taxpayers, including conflict of interest
Describe evidence requirements of auditing standards
Describe evidence requirements of auditing standards
important rules and regulation of gymnasium usage (180-200) words
important rules and regulation of gymnasium usage (180-200) words
sum1Q1: What research methods might you use to update your knowledge of professional and legislative requirements...
sum1Q1: What research methods might you use to update your knowledge of professional and legislative requirements relating to accounting activity statements? (300–400 words)
What research methods might you use to update your knowledge of professional and legislative requirements relating...
What research methods might you use to update your knowledge of professional and legislative requirements relating to activity statements (In Australian Accounting Envrionment) (Please type your answer)? (300–400 words)
Clearly show the distinction between “Negotiation” and “Bargaining” within the context of Collective Bargaining.
Clearly show the distinction between “Negotiation” and “Bargaining” within the context of Collective Bargaining.
The IMA Statement of Ethical Professional Practice identifies four ethical standards, three of which are competence,...
The IMA Statement of Ethical Professional Practice identifies four ethical standards, three of which are competence, confidentiality, and integrity (see "Ethics Center" on IMA website). Relying on those three ethical standards, evaluate the conduct of Avon's internal audit staff during the company's initial investigation of the questionable payments made by APC.
Describe in 200+ words the nature and the differences between "for" and "from" AGI deductions. Describe...
Describe in 200+ words the nature and the differences between "for" and "from" AGI deductions. Describe and explain in 200+ words the specific types of deductions listed on the front of the 1040 Form and on the Schedule A.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT