Question

Provide a brief description of each of the three main returns and lodgements that might be required by reporting entities. 30–50 words each

(must be related to Australian Taxation)

Answer 1

Solution. Under Australian Taxation, the main objective of raising revenue in form of taxes is to again invest them for the people in accordance with government policies for development and growth.The commission of taxation publishes the due date and list of consideration for lodging on annual basis.

Below are three main returns and lodgements required by reporting entities:

a.Annual income tax return- Under this every individual requires to prepare financial statements in order to check whether he/she is required to lodge for income tax deduction or not. Government has setup various boards and online help desk to access information for computing of the same. For taxpayers lodging it is important to abide by timely administrative policies and procedures.There holds a range of obligations and entitlements such as family tax benefits, child education, etcetera. Such an amount is lodged to a bank account in form of paying in slip. The commission also holds the authority of penalising such taxpayer failing to lodge a return on time or found opposing taxation laws.

b.Preparation of financial statements referred to as GPFS(General Purpose Financial Statements)- Under this a company or organization tax entity prepares for a financial year statement where multiple taxpayers within one accounting group is affected and needs to lodge GPFS with the ATO(Australian Tax Office). Here accounting period refers to income year.It must be prepared following the accounting standards set up by the Corporations Act and the Australian Accounting Standards Board.Tax penalties can be levied for late or non lodgement of the GPFS.

c.Preparation and linking of financial reports with ATO(Australian Tax Office)- Under this operating departments or organizations prepare financial statements according to the guidelines and regulations. Statement of profit and loss,balance sheet,statement of changes in equity and footnotes are prepared. They are all linked to ATO and are under observance by the officials and timely recommendations are provided for the same. This will help a taxpayer to understand the regulations better and help him/her in lodging returns on time.