Question

explain ethical considerations and legislative requirements relevant to the preparation of tax documentation for individual taxpayers, including conflict of interest

Answer 1

Ethical considerations relevant to the preparation of tax documentation for individual taxpayers, including conflict of interest:

Ethical behaviour in the tax profession is critical. The work carried out by a member needs to be trusted bysociety at large as well as by clients and other stakeholders. What a member does reflects not just onthemselves but on the profession as a whole.

Important considerations:

Integrity
To be straightforward and honest in all professional and business relationships.

Objectivity
To not allow bias, conflict of interest or undue influence of others to override
professional or business judgements.

Professional competence and due care
To maintain professional knowledge and skill at the level required to ensure that a client
or employer receives competent professional service based on current developments in
practice, legislation and techniques and act diligently and in accordance with applicable
technical and professional standards.

Confidentiality
To respect the confidentiality of information acquired as a result of professional and
business relationships and, therefore, not disclose any such information to third parties
without proper and specific authority, unless there is a legal or professional right or duty
to disclose, nor use the information for the personal advantage of the member or third
parties.

Professional behaviour
To comply with relevant laws and regulations and avoid any action that discredits the
profession.

Legislative requirement's relevant to the preparation of tax documentation for individual taxpayers, including conflict of interest:

• Identify and explain the following key elements of tax law as it relates to tax documentation for individual taxpayers:

• the rules and principles of tax law including an understanding of the legal environment in which these principles operate, basics of the legal system, constitutional considerations and separation of powers
• key aspects of the income tax law covering concepts of:

• residence and source
• related elements of international tax
• assessable income
• deductions (including general, specific and decline in value)
• tax rebates and offsets
• tax accounting
• income test definitions that include reportable superannuation and fringe benefits tax (FBT)

• key aspects of relevant principles ad application of the capital gains tax (CGT), FBT and termination payment rules for individual taxpayers
• basic concept of goods and services tax (GST)
• administrative aspects of the taxes identified above including documentation, tax collection and withholding mechanisms, assessments, obligations, rulings, penalties and audits
• specific and general anti-avoidance tax rules for individuals

• describe the key sources of information and data required to calculate taxable income
• describe the key features of organisational policy and procedures relating to the preparation of tax documentation for individual taxpayers
• outline the key accounting principles and practices relevant to the preparation of tax documentation for individual taxpayers.