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TITLE: Determine what is taxable income. Range: within context, excluding specialist areas covered by current tax legislation.
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UNIT STANDARD NUMBER: LEVEL ON THE NQF: CREDITS: FIELD: Sub Field: ISSUE DATE: REVIEW DATE: PURPOSE: People credited with this unit standard are able to establish what is gross income, determine which income is exempt from tax and calculate deductions and allowances in order to determine the portion of taxable income. 6 16 Business, Commerce and Management Studies Finance, Economics and Accounting
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LEARNING ASSUMED TO BE IN PLACE:
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Unit standards in accounting at NQF level 4.
SPECIFIC OUTCOMES AND ASSESSMENT CRITERIA: Specific Outcome 1: Determine what is gross income.
Assessment Criteria 1.1 Receipts and accruals in cash or otherwise are identified as defined in the relevant tax legislation Both the true and deemed source of an amount is identified per Section 9 of the Income Tax Act The income or capital nature of receipts and accruals is determined in accordance with the relevant legislation Receipts and accruals of amounts specifically included in gross income are identified per gross income special inclusions. The deemed accruals of certain amounts are identified per the relevant tax legislation Determine and advise on which income is exempt from tax.
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Specific Outcome 2:
Assessment Criteria
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Certain interest accruing to non-residents is identified per the relevant section of the Income Tax Act The taxation of lump sums on retirement or retrenchment is determined in accordance with the relevant tax legislation Interest from certain investments that is exempt from normal tax is identified per regulations in the Income Tax Act Dividends received or accrued that are exempt from normal tax are identified according to current tax legislation The exemptions relative to employment are identified and calculated per the relevant sections of tax legislation Other exemptions from normal tax are identified as according to tax regulations The taxation of purchased annuities is determined in line with the relevant tax laws Identify and calculate deductions and allowances
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Specific Outcome 3:
Assessment Criteria 3.1 The various aspects of the general deduction formula are identified and applied to expenses and losses incurred as per the relevant sections of the Income Tax Act The particular deductions and allowances are identified and calculated where necessary.
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ACCREDITATION AND MODERATION: Accreditation for this unit standard shall be obtained from the relevant Education and Training Quality Assurance Body, through summative assessment by a registered assessor Moderation activity comments by SGB's, organisations and individuals may be forwarded to NSB03
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RANGE STATEMENT: Within context, excluding specialist areas covered by current tax legislation.
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NOTES:
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EMBEDDED KNOWLEDGE A demonstrated understanding of:
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Taxable income: gross income, exempt income, deductions and allowances Current case law
Legal requirements The Income Tax Act
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CRITICAL CROSS-FIELD AND DEVELOPMENTAL OUTCOMES
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The ability to:
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Solve problems Work effectively with others as a member of a team/group Organise and manage oneself and one's activities responsibly and effectively Collect, organise and critically evaluate information Communicate effectively using visual, mathematics and language skills in the modes of oral and written presentations Use science and technology effectively and critically
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