Problem
Assuming you are a tax agent and need an assistance with preparing and filling a tax return.
Sarah is employed as a Business Manager by a large IT firm also works from home for the company two days a week. Due to her heavy work commitments has not organised her tax documents and matters. She currently earns $85 500 per annum and has had $18 250 PAYG withheld from her gross income. Rebecca also received an unfranked dividend from her personal BHP shares of $7500.
After sorting through Sarah's paperwork, you have uncovered the following receipts and expenses:
Professional association membership $480
Phones used for business purposes $650
PR and client relationship $900
Home office expenses (stationery, electricity, $2,800
internet, printer consumables)
Bank interest earned from deposits $1,200
A. Sarah also advised that she had additional self-education expenses of $2,800 but could not locate the receipts.
B. Sarah had private health insurance for three months during the assessment period.
C. Sarah is single and has no dependents.
D. Sarah often works from her home office and she is also required to travel on a daily basis to various work clients to service their computer systems. Sarah has not kept a log book with her kilometres. She drives a Toyota Corolla which has a 1300-cc engine.
E. Among her papers, you find a daily work log which details her client appointments, times and locations.
Task
A. What are ATO's logdement process and deadlines?
B. In this case, what are Sarah's lodgement options?
C. What is her self-assessment process?
D. What range of powers does ATO have for auditing and reviewing in a taxpayer's tax affairs?
E. What is her future tax preparation and legal information?