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Mike Curtains, a Registered Tax Agent, attends to the tax affairs of Frodo West. In preparing Frodo s 2 0 2 2 / 2 3
Mike Curtains, a Registered Tax Agent, attends to the tax affairs of Frodo West. In preparing
Frodos income tax return, the following occurred:
Frodo attended a meeting with Mike in August where he instructed Mike to complete
his return and handed over records that related to the tax return
Mike Lodged the retun in July resulting in a late lodgement penalty of $
Subsequent audit activity showed that Mike had incorrectly not included $ of interest
income in Frodos return Frodo had provided Mike with all of his interest details
The audit also revealed that net rental income of $ had not been included Frodo had
forgotten to mention his rental property to Mike
These two adjustments had resulted in a tax shortfall of $ and penalties totalling $
An attempt to audit Frodos previous three years of tax returns revealed that Mike had
thrown out all of Frodos tax returns, vouchers, and records. A penalty of $ was issued
for incorrectly keeping rcords.
of
FNSACC Assessment v
Applied Education
REQUIRED:
Using the template provided:
a How much will Frodo be required to pay for these adjustments and penalties?
b Which amounts will Mike be liable to pay?
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