Exam 14: Ethics, Tax Avoidance and Evasion

Manni is the sole shareholder of his private company and instead of paying himself a wage for his work in the company, Manni has decided to take out a loan from the company for $100,000. If his private company had a distributable surplus of $200,000, how would this loan to Manni be treated under tax legislation?

What is a significant global entity? Select all that apply.

Beatrice is considering whether to act for both the seller and buyer of the same business. If she accepts both appointments, which main attribute of the Code of Professional Conduct in the Tax Agent Services Act 2009 is Beatrice most likely to be in breach of?

How does Division 7A treat a payment to a shareholder or associate?

Abe is a self employed plumber. He records his invoiced jobs but the private jobs he does on weekends for cash are not reported. How would non-reporting of cash income behaviour by Abe be best described for tax purposes?

Dave is a tax advisor who has been in public practice for many years. While looking through his files of one of his clients, he discovers that he made an error in calculating a client's tax payable resulting in the client paying too much tax by $10,000. The client is not likely to notice this error and Dave is reluctant to admit he made it since he is concerned that he might appear incompetent or careless, but time is running out for the client to make an amendment to their tax return which could remedy the situation for the client. After some reflection, Dave decides to tell the client and make amends for his error by arranging for the client's tax return to be amended free of charge before time runs out. What ethical theory or theories did Dave act in accordance with? Briefly explain. Would your answer change if Dave had no regard for the outcome of his actions and simply thought that honesty was the best policy.

Egoism is an ethical principle which aims to promote what value more than any other?

As Peter does not like paying tax he has decided to contribute $24,000 into his superannuation fund account on the 29^th of June. His contribution is within the concessional contributions limit. He has advised his fund (which is a complying fund) of his intent to claim a tax deduction for this contribution. How will this donation be treated for tax purposes?

What is an alternate hypothesis?

How are law and ethics similar?

Determining a taxpayer's purpose requires a consideration of ?.

Which of the following are indicators of tax avoidance? Select all that apply

What type of minor is subject to division 6AA rates? Select the best answer.

Dianne has donated $10,000 to a registered charity and deductible gift recipient. She will save $4,500 in tax as a result of this donation. How will this donation be treated for tax purposes?

What is ethics concerned with?

Which is true for the effects of the Tax Agent Services Act 2009 and its Code of Professional Conduct on all registered tax agents?

What type of purpose is required for the Multinational avoidance rule to apply?

What are deontological ethical theories concerned with?

Simon has been a tax agent for the last 14 years. In the last 2 years he has not been keeping up with his professional development training and this has led him to make numerous errors in preparing his clients' tax returns. The Tax Practitioners' Board is investigating Simon, due to numerous complaints from Simon's clients, under the Tax Agent Services Act 2009. Which is the main attribute of the Code of Professional Conduct that Simon is likely to have breached?

What is Utilitarianism?