Which statement is untrue?

a. The ATO operates in a self assessment system, and accepts face value statements made by individual taxpayers in their tax returns, which is used to issue a notice of assessment

b. The ATO's audit program identifies high risk taxpayers and specially selected groups of taxpayers, audited to detect breaches of the tax law.

c. The ATO promotes certainty for taxpayers by issuing Public Rulings and Private Rulings

. d. The ATO legislates GST, administers GST, and collects GST

e. The period of review after a tax return has been assessed, promotes integrity in the tax system, whereby the ATO has some time to investigate taxpayers tax returns that have been simply accepted at face value under the self assessment system

Which statement is incorrect?

a. Private rulings are 'taxation decisions' and rulees dissatisfied with private rulings may object against them

b. Taxpayers cannot object against an oral ruling, but the Commissioner must include a registration identifier for the ruling

c. Private Rulings set out the ATO's view on how the tax law applies to the applicant's specific situation set out in the application.

d. Public Rulings set out the Commissioner's opinion as to the way certain tax provisions would apply to particular facts, providing binding advice on the ATO on matters affecting large numbers of taxpayers or which is of significant public interest.

e. Rulings play an important role in providing reasonable levels of certainty to taxpayers self-assessing their tax position as the ATO and taxpayers are bound to apply and follow them.

A taxpayer is an employed accountant and has several depreciating assets. Some are depreciated under Div 40 general provisions and some are depreciated under the Div 40 low value pool provisions. The taxpayer had purchased a lap top for $2,000 with an effective life of 4 years in 2018, and the taxpayer had depreciated it using the prime cost method, whereby its adjustable value was $1,200 as at 30 June 2020. Based on the above facts, advise from the choices below, which method would provide the maximum value of depreciation the taxpayer can claim. Select one:

a. Change to the diminishing value method and double the depreciation

b. Write off the asset entirely

c. Continue to use the prime cost rate

d. Add the asset to the low value pool and use the higher depreciation rate

Which one of the following expenses would be denied as entertainment and would not be deductible? Select one: a. Sandwiches and coke were served during

a 3 hour meeting that went from 11am - 2pm

b. Taxpayer paid entertainment allowances to his staff

c. The taxpayer employed a tea lady to serve staff hot drinks and biscuits, costing $18,000 in wages and $5,000 for food and drink.

d. The manager took clients to lunches at a restaurant costing $5,800