FPC006 Tax and Commercial Law for Financial Planning

This subject focuses on the key principles from commercial and taxation law, in particular the application of the relevant law to commonly encountered taxation scenarios and financial planning techniques. The subject is designed to build advice capability in personal and business tax affairs.

Students will cement the key principles of commercial and taxation law, by responding to a series of short fictitious scenarios for both personal and business clients.

This subject has been approved as a Board approved course in Australian taxation law for tax (financial) advisers. This will automatically apply to your enrolment. For a full list of Kaplan Professional’s TPB Approved Courses For Tax Advisers, click here.

For more information, please refer to the subject outline.

  • Learning outcomes
    • On successful completion of this subject, individuals should be able to:

      1. Classify concepts of income and expenses as to their assessability and deductibility respectively (as required under taxation law). This includes tax treatment of income protection/replacement strategies. Determine whether an amount incurred is deductible under the general or specific provisions. Apply the taxation law as it relates to the treatment of credits, rebates and offsets in the calculation of tax payable.
      2. Compare and contrast the tax treatment of individuals, partnerships, companies and trusts including treatment of capital distributions, imputation credits, deferred and tax free trust distributions.
      3. Calculate and evaluate employee remuneration options including fringe benefits tax, salary packaging, termination payments and redundancy payments.
      4. Calculate and explain the application of the capital gains tax (CGT) provisions. Define a CGT event and how the law applies to disposal of assets.
      5. Differentiate between taxing superannuation fund contributions, fund earnings and benefits.
      6. Recognise the situations which may lead to the application of various integrity measures, particularly the promoter penalty provisions and identify the circumstances triggering the administrative penalty provisions.
      7. Understand the central role ethical and professional responsibilities play for tax (financial) advisers including obligations under the TASA and TASR.
      8. Explain the goods and services tax (GST) mechanism for Input taxed, GST free and taxable supplies and their interaction with provision of financial advice.
      9. Identify the stakeholders in the taxation system and explain the role of the Australian Tax Office (ATO), the Inspector General of Taxation (IGOT) and the Tax Practitioners Board (TPB) and demonstrate an understanding of tax administration including assessments, amendments and objections, but not preparation of returns or communications on behalf of clients with the Australian Taxation Office.
      10. Recognise and evaluate the role contract law plays in the application of tax law provisions, particularly in the disposal of CGT assets.
      11. Demonstrate an understanding of the fundamental legal concepts defining and differentiating sole traders, partnerships, corporations and trusts and the underlying regulation.
      12. Recognise and evaluate the risk of exposure to the misleading and deceptive conduct provisions of the Competition and Consumer Act 2010, and/or the negligence and negligent misstatement elements of the law of torts.
  • Subject content
    • Topic Title
      Topic 1 Business structures, contract law and agency
      Topic 2 Consumer legislation and torts
      Topic 3 Taxation basics
      Topic 4 Ordinary and statutory income
      Topic 5 Capital gains tax
      Topic 6 General and specific deductions
      Topic 7 Tax offsets and personal income tax
      Topic 8 Taxation of business entities
      Topic 9 Remuneration packaging and superannuation essentials
      Topic 10 Integrity measures and administrative penalties
      Topic 11 Introduction to GST and its implications in giving financial advice
      Topic 12 Tax administration overview

  • CPD
    • Kaplan Professional has assessed this subject. Click here for the following CPD hours applicable from 1 January 2019 on successful completion of this course. For subjects or courses completed prior to this date, please contact Kaplan Professional’s CPD Support team on 1300 527 526 or pdmail@kaplan.edu.au.

  • Duration
    • The duration of this subject is one study period (12 weeks).

  • Assessment
  • Prerequisites
    • There are no prerequisites for this subject.

      However, individuals should review the ‘Assumed Knowledge’ tab to understand the prior knowledge Kaplan advises they should hold before enrolling in this subject.

  • Assumed knowledge
    • Whilst there are no prerequisites for this subject, Kaplan assumes that individuals have completed FPC001B Economic and Legal Context for Financial Planning, FPC002B Ethics and Professionalism in Financial Advice, FPC003 Superannuation and Retirement Advice and FPC004 Insurance Advice, or understand the content covered in those subjects, prior to undertaking FPC006 Tax and Commercial Law for Financial Planning.

  • Course transition subject equivalence
    • Individuals may not be required to complete this subject if they have transitioned from a SIA/Finsia/Kaplan course and have completed the following subjects:

      • there are no equivalences for this subject.
  • Reading list
    • There is no prescribed text for this subject.

      Individuals are provided with key readings and access to Kaplan’s online databases. Individuals are encouraged to research and read widely on the topic.