Accouting Theory and Tax Rules

1. After preparing the tax return, if the client comes and shows that the deduction for overseas trip made for business purpose he has taken and shows the family photographs of that trip. Then more inquiry should be done from him and on what basis he wants to treat the business trip as business expense (Tpbgovau, 2017). If no proof shown then the tax return must not be proceeded as the client is trying to manipulate the actual income. 2. Taking reasonable care means that the tax prepare must know what exactly the client’s business is. Tax rules changes with business to business. For example, shares may be an investment for one person and trade for another. It will be treated differently. Therefore, there should be enough knowledge about the client’s state of affairs to know the impact of taxation on it and can be explained to the taxpayer (Tpbgovau, 2017). 3. Section 4.10 of the Income Tax Assessment Act 1997 states about how much income tax is to be paid and it states that the tax is to be paid for each financial year of income earned on the basis of taxable income calculated for that tax year (Austliieduau, 2017). 4. Current tax table and the details about the fees and the charges can be found on the Australian Taxation Office’s website under the heading â€Å"Tax rates and Codes† (ATOgovau, 2017). 7. The five legislations or the compliance requirements which can affect the recording of the transaction in the as per Australia Tax laws are as follows: 8. General Journal is the journal used for recording the transactions which are not fitting the criteria of specific journals such as purchase, sales, cash, etc. A correcting entry is recorded in the books of accounts in two ways. One is to reverse the Previous journal entry made and to enter the correct entry. Second method is to make a Single entry which when combines with the original corrects the actual entry. General principle to reconcile balance outstanding is to check which balances are recorded in cash Book and in pass book. Next, is to check which balances are not reflected in the cash Book or the pass book and accordingly the same is to be added or subtracted from the Pass book or cash book respectively. Any event or transaction which decreases the balance of the bank is to be debited as the Payment is being made or any amount is decreasing the bank balance. Tpbgovau. (2017). Tpbgovau. Retrieved 12 March, 2017, from https://www.tpb.gov.au/explanatory-paper-tpb-012010-code-professional-conduct Austliieduau. (2017). Austliieduau. Retrieved 12 March, 2017, from https://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s4.10.html Atogovau. (2017). Atogovau. Retrieved 12 March, 2017, from https://www.ato.gov.au/About-ATO/About-us/In-detail/Tenders-and-procurement/Contracting-in-the-ATO/Record-keeping-standard-for-ATO-contractors/?page=1 Iedunotecom. (2015). IEduNotecom. Retrieved 12 March, 2017, from https://iedunote.com/types-of-accounting-journal  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Accounting-simplifiedcom. (2017). Accounting-simplifiedcom. Retrieved 12 March, 2017, from https://accounting-simplified.com/accounting-for-bad-debts.html Atogovau. (2017). Atogovau. Retrieved 12 March, 2017, from https://www.ato.gov.au/Rates/?sorttype=SortByTopic Tpbgovau.(2017).Tpbgovau.Retrieved12March,2017,fromhttps://www.tpb.gov.au/sites/g/files/net1481/f/code_of_professional_conduct_aeu_reasonable_care_to_ascertain_a_clients_state_of_affairs.pdf?v=1469170810