TAX$327$ Project $2024$

Scenario:

You have been approached by your current employer to assist them with automating their fixed asset register as well as the calculation of tax related effects of the assets which the company owns.

Your boss believes it is time to move forward and knows that you have experience in both Taxation and Microsoft Excel, as such he has asked you to begin the process of upgrading the fixed asset register, which has always been maintained manually.

He requires an excel document from you which has the following functionality:

$$ An overall approach of calculating the total effect of the fixed assets on Taxable income, which includes the calculation of Allowances, Recoupments and CGT$.$

$$ The required input and outputs of the process need to be as follows:

Input Fields

Name of Field Format of Field

Name of Asset Text

Date of Purchase Date $($YYYY$/$MM$/$DD$)$

Purchase Cost Value $($No decimals$)$

New or Used Choice $($New or Used$)$

Sold during year Choice $($Yes or No$)$

Date of Sale$($if applicable$)$ Date $($YYYY$/$MM$/$DD$)$

Selling Price $($if applicable$)$ Value $($No decimals$)$

Asset would qualify for s$11($o$)$ when sold if applicable Choice $($Yes or No$)$

Type of Tax Allowance Choice $(12$C or $13(1)$ or $11($E$)$ or none$)$

$$ The user of the document must only input the items in the list above and every other output must be calculated automatically.

$$ The sheet needs to calculate and display the correct effect on taxable Income for each Item with values increasing taxable income shown as a positive figure and values decreasing taxable income shown as a negative figure. The figures for allowances, recoupments$/$s$11($o$)$ and CGT should be displayed separately along with a figure for total effect.

Key Requirements:

$$ You must submit a single excel file on Ikamva. The file name and the document itself must contain your name and student number.

$$ You are calculating tax effects for the company$$s year of assessment ending $31$ December $2023.$

$$ As excel allows for accurate calculations, if you need to apportion, you need to work based on days and not on months.

$$ You may assume that the date of purchase is the same as date brought into use, and that all s$11($e$)$ allowances are over $5$ years.

$$ You may also assume that there are enough other capital gains so that capital losses will always have the effect of reducing taxable income.

$$ You do not need to deal with the effect of any rollovers or deferred recoupments$/$CGT$.$

$$ Please make the sheet as user friendly as possible, and make the entry of the data points as clear as possible. $$Easier to use$$ is more important than $$great to look at$.$

$$ Pleas also ensure that all work is in a single sheet, and not multiple sheets.

$$ Do not lock any formulas, as I need to be able to access them to assess the approach taken.

$$ This is not a group work assignment, and you must submit your own work. The good thing with excel is that it is in effect basic coding, and as such it is possible to compare the approach taken across students. So do not just hand in the same file as your friend. You will both receive a zero.

$$ The Project is due on Monday $6$ May at $08$:$30,8$;$30$AM

$$ This time frame will allow those that might not have access to excel to attempt to arrange access.

Marking Guidelines:

$$ When marking the project, marks will be allocated as follows:

o $70\%$ Functionality $$ i$.$e$.,$ can it do all of the tax requirements

o $15\%$ Format and layout i$.$e$.,$ is it clear and easy to follow

o $15\%$ Following of instructions i$.$e$.,$ is the file name correct, does it address all requirements

$$ I will test the functionality by inputting a set of $10$ pre$-$selected transactions, which should result in the correct output based on that data.

$$ The project will be marked on a rubric.

Good luck and all the best