You are a tax agent for Royal Watch Ltd and you have been engaged by this company to prepare their 20XX/XY Income Tax Return. You are required to download the spreadsheet via the link below and complete all Income Tax Return worksheets consecutively as per the steps listed.
https://www.aamctraining.edu.au/Admin/LMS/Files/TPB601TA - RWL Income Tax Return.xlsx
Task 1: Income Tax Return and working schedules
Step 1: Review the letter Royal Watch Ltd, attached Appendix A (Tab 1 of the spreadsheet).
Step 2: Review the RWL Income Tax Return Appendix B-D attached.
Step 3: In the Depreciation Schedule worksheet (Tab 3) calculate and enter the depreciation and balancing adjustments for the tax year 20XX/XY.
Step 4: In the Franking Account schedule worksheet (Tab 4) complete the franking account for the tax year 20XX/XY.
Step 5: In the Tax Computation schedule worksheet (Tab 5) prepare the tax computations for the tax year 20XX/XY.
Step 6: In the ITR Profit and Loss worksheet (Tab 6) complete the financial data for the tax year 20XX/XY, by using the information from the Income Statement.
Step 7: In the ITR Reconciliation worksheet (Tab 7) prepare the reconciliation to taxable income or loss for the tax year 20XX/XY, by using the information from the Tax Computation worksheet.
Step 8: In the ITR Financial Information worksheet (Tab 8) enter the financial data for the tax year 20XX/XY, by using the information from other schedules.
Step 9: In the ITR Calculation Statement worksheet (Tab 9) calculate the tax amount due or refundable for the tax year 20XX/XY, by using the information from other schedules.
Upload the spreadsheet in addition to the rest of the requirements.
This link may be helpful: https://www.ato.gov.au/Forms/company-tax-return-instructions-2019/?page=1#About_these_instructions
Task 2 –Income Tax Return Cover Letter
You have completed the preparation of the 20XY Income Tax Return for your client, Royal Watch Ltd. You are now required to prepare a Client Income Tax Return Cover Letter.
Step 1: Review the template letter Tax-return-cover-letter, provided below (Appendix E).
Step 2: Edit the letter to include Client details including requiring the public officer to review and approve the Income Tax Return.
Step 3: Provide explanations for the add-back and disallowed items in the Tax Reconciliation
Step 4: Enter the estimate of Tax payable or Refundable