TAXATION FORMATION 2 EXAMINATION - AUGUST 2010

Size: px
Start display at page:

Download "TAXATION FORMATION 2 EXAMINATION - AUGUST 2010"

Transcription

1 TAXATION FORMATION 2 EXAMINATION - AUGUST 2010 NOTES: You are required to answer a total of five questions. Questions 1, 2, 3 and 4 are compulsory. You are also required to answer either Question 5 or 6. (If you provide answers to both Questions 5 and 6, you must draw a clearly distinguishable line through the answer not to be marked. Otherwise, only the first answer to hand for Questions 5 or 6 will be marked.) TAXATION TABLES ARE PROVIDED TIME ALLOWED: 3 hours, plus 10 minutes to read the paper. INSTRUCTIONS: During the reading time you may write notes on the examination paper but you may not commence writing in your answer book. Please read each Question carefully. Marks for each question are shown. The pass mark required is 50% in total over the whole paper. Start your answer to each question on a new page. You are reminded that candidates are expected to pay particular attention to their communication skills and care must be taken regarding the format and literacy of the solutions. The marking system will take into account the content of the candidates' answers and the extent to which answers are supported with relevant legislation, case law or examples where appropriate. List on the cover of each answer booklet, in the space provided, the number of each question(s) attempted. The Institute of Certified Public Accountants in Ireland, 17 Harcourt Street, Dublin 2.

2 THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS IN IRELAND TAXATION FORMATION 2 EXAMINATION - AUGUST 2010 Time Allowed: 3 hours, plus 10 minutes to read the paper. Answer Questions 1 to 4 and Question 5 OR 6. (Five questions in total to be attempted). 1. Barton Ltd. is a private Irish incorporated and resident company engaged in retailing of gearbox components at its factory in Sligo. The following information has been extracted from the financial statements of the company for the year ended 31 December Notes Turnover 21,850,000 Direct costs (1) (13,110,000) 8,740,000 Overheads (2) (5,462,500) Profit from operations 3,277,500 Financial costs (3) (465,000) Other income (4) 508,406 Net profit before taxation 3,320,906 The following additional information is available: 1. Direct costs are made up as follows: Materials 7,003,083 Labour 4,370,000 Light, heat and power 1,092,500 Consumables 364,167 Depreciation 280,250 13,110, Overheads include the following: Office salaries and wages 125,000 Director s remuneration (i) 305,000 Depreciation 12,060 Travel and entertainment (ii) 27,500 Legal expenses (iii) 16,000 Lease expenses (iv) 17,000 (i) (ii) This figure includes a sum of 30,000 accrued in relation to contributions to a Revenue approved pension scheme which was paid in March Travel and entertainment Airline and train fares together with hotel costs for attending household exhibitions 10,000 Entertaining suppliers 4,500 Entertaining customers 8,000 Staff Christmas party 2,500 Travelling to meet suppliers and customers 2,500 27,500 (iii) Legal expenses Pursuing bad debts 2,000 Renewal of leasehold interest on a retail shop 1,500 Defending product liability claim by a customer 3,500 Purchase of a new retail unit 9,000 16,000 (iv) Lease payments for financial controller s car 4,000 acquired for 21,500 on February 2007 Lease payments for managing director s car 7,500 acquired for 26,000 on May 2008 Van - acquired for 24,000 on 1 March ,500 17,000 Page 1

3 3. Financial costs comprise the following: Interest on loan to finance factory extension 320,000 Interest in working capital term loan 60,000 Interest on overdraft 20,000 Insurance premiums 65, , Other income is made up as follows: (i) Bank interest on temporary cash surpluses (note (a)) 8,406 Rental income 25,000 (ii) Dividend income (note (b)) 75,000 (iii) Gain on disposals of land (note (c)) 400, ,406 Notes: (a) DIRT was not withheld on the bank interest. (b) (c) The dividend was received from Barton Sales Ltd. a wholly owned subsidiary company. The capital gain arose from a fortuitous sale of a plot of land, which the company had acquired some years ago with the intention of building a new factory. In the event, an extremely attractive offer for the land was received and accepted. The proceeds where then used to extend the existing factory. The gain is made up as follows: Proceeds (May 2009) 550,000 Less: Costs of disposal (5,000) 545,000 Cost (December 1995) 135,000 Legal fees, stamp duty etc. 10,000 (145,000) Gain 400,000 The current use value of the property is estimated to have been 25,000 in both December 1995 and May The written down values at 1 Jan 2009 were as follows:- Vans 120,000 (Original cost 160,000 15/4/07) Factory equipment 216,000 (Original cost 288,000 1/2/07) Factory buildings 400,000 All other Plant and Machinery is the subject of finance leases. The factory building was constructed in 2004 at a cost of 750,000. A grant of 250,000 was received from the IDA in respect of it. On 1 April 2009, the company purchased a building for 1,260,000 which was in use as an industrial building. The previous owner had claimed capital allowances on this building with effect from 1 April The claim was by reference to the construction expenditure incurred by him ( 960,000). On 1 February 2009, the company purchased a new cutting machine for 75,000 which was only put into use on 1 December The company has Case 1 losses carried forward from 2008 of 186, The company also seeks advice in how much VAT may be reclaimed on the following future expenditure in 2010: (i) Purchase of a two new company cars with CO2 emissions of 200kg/m (category F) costing 25,000 each including 21%. (ii) Purchase of a new van for 30,000 including 21%. (iii) Diesel for van costing 55,000 including 21%. (iv) The staff Christmas party will be held in December 2010 and the total bill is budgeted at 25,000 inclusive of 21%. (v) During 2010 the company will have a major share issue to raise equity for the company and will incur legal fees totalling 100,000 plus VAT of 21%. (vi) In 2010 the company will build a new staff canteen costing 120,000 plus VAT of 13.5%. Page 2

4 REQUIRED: (a) Compute the corporation tax and capital gains tax liability of Barton Ltd. for the year ended 31 December (17 marks) (b) State the due dates for the payment of all tax liabilities computed. (2 marks) (c) Advise the company on the amount of VAT (if any) that can be reclaimed on each of the above future transactions 6 (i) to (vi) in (6 marks) [Total: 25 marks] Page 3

5 2. (a) Adams and Burke have been in partnership for several years in the firm Adams, Burke & Co. trading as general merchants and funeral directors. Accounts have been made up to 31 December each year and profits have been shared equally after charging partners salaries. Results of the firm in recent years have been as follows: Accounts for Year Ended 31 December 2008 are as follows: Case I adjusted profit 86,000 After charging partners salaries: Adams 24,000 Burke 20,000 Charles was admitted as a partner with effect from 1 October 2009 and the profit sharing ratio after partners salaries was changed to: Adams 35% Burke 35% Charles 30% Accounts for the year ended 31 December 2009 are as follows: Case I adjusted profit 120,000 After charging partner salaries: Adams 52,000 Burke 50,000 Charles 12,000 In addition the firm had the following capital allowances: , ,000 Charles is aged 25 and single. Prior to becoming a partner in Adams Burke & Co. he had been employed as a manager with the firm. His P45 at 30 September 2009 shows gross salary of 37,700 and PAYE deducted of 3,000. He pays interest of 2,500 per annum on a loan used to purchase his share in the partnership and 3,000 per annum to a Revenue approved self-employed pension scheme. REQUIRED: (i) Show the amounts of the final Schedule D Case II assessments on each partner for the years of assessment 2008 and (8 marks) (ii) Show the capital allowances available to each partner for the years of assessment 2008 and (3 marks) (iii) Compute the income tax payable by Charles for (Ignore PRSI/Levies). (4 marks) (b) The partnership had the following transactions for the four months ended 31 December 2009: Retail sales at standard rate 192,500 Food sales at zero rate 70,000 Funeral exempt sales 78,000 Retail purchases at standard rate 133,650 Food purchases at zero rate 17,200 Funeral purchases at standard rate 48,500 Purchased new motor car (CO2 emissions - category G) 20,000 Purchased second hand car 14,500 Rent of trade premises at standard rate 24,300 Light & heat at standard rate 12,150 All of the above amounts are inclusive of VAT where this is applicable. REQUIRED: Calculate the amount of VAT to be accounted for the Revenue for the four months ended 31 December Outline any assumptions made in the computation. (5 marks) [Total: 20 marks] Page 4

6 3. John O Connor who is aged 58 decided to retire and take things easy. As a result he entered into the following transactions during 2009: (a) John owned 100% of O Connor Retail Ltd. The company operates a large retail business in the centre of Athlone. John was offered 795,000 for his business by Michael Aherne who is no relation to John. After some consideration John accepted the offer on 20 September The company has operated since June 1984 and John had worked full time for the company since that date. The market value of the business on the 20 September 2009 was as follows: Building 450,000 (cost 50,000 June 1984). Goodwill 140,000 (cost nil June 1984). Plant & machinery 55,000 (cost March ,000) Debtors 70,000 Stock 140,000 Creditors (60,000) Total Market value 795,000 When establishing the company John subscribed 20,000 for the shares in June (b) John purchased 50 acres of farmland on 22 December 1989 for 150,000. During the months June to September 1992 he spent 50,000 on land improvements. On 3 September 2009 he sold 15 acres for 200,000. The market value of the remaining land was 450,000. Legal and auctioneer s fees on disposal were 12,000. The farm was leased to a local farmer since purchase as John has no interest in farming. He has 25,000 losses carried forward from 2004 which are derived from the sale of development land. REQUIRED: (c) John sold an antique armchair for 900 in August 2009 which cost 3,500 in December (a) Outline the conditions to be satisfied for a shareholder to qualify for retirement relief on disposals of shares to persons other than a child. (6 marks) (b) Compute the capital gains tax payable by John on the disposal of his shares in September (4 marks) (c) Compute John s gain on the disposal of part of the farm land. (4 marks) (d) Compute the allowable loss on the disposal of the armchair. (2 marks) (e) Compute the total capital gains tax payable by John in 2009 and state the date of payment and date of submission of the return to Revenue. (4 marks) [Total: 20 marks] Page 5

7 4. Jim Power, single, aged 42, has been employed by Bradley Ltd. for 16 years and 9 months. He was made redundant on the 1 September You are given the following information. 1. Jim received as part of his redundancy package Pay in lieu of notice 4,065 Company car market value 15,000 Ex gratia payment 37,000 Statutory redundancy 5, Jim s salary for the period 1 January 2009 to 31 August 2009 was 30,000 and benefit in kind of 4,000. PAYE paid on this income amounted to 4, On the 1 November 2009 Jim obtained new employment and received a salary of 7,000 with PAYE deducted of 1, Jim s salary was pensionable under a Revenue approved pension scheme. Jim contributed 3,000 to the pension fund in The actuarial value of this lump sum entitlement on the 1 September 2009 was 20, Jim s salary and benefit in kind for the tax years 2006 to 2008 was as follows: Salary BIK Tax payable ,000 3,000 4, ,000 2,800 4, ,000 2,800 2, On 1 May 2009, Jim bought an apartment to rent out to tenants. He borrowed most of the money at a fixed rate of 5%. The interest from 1 May to 31 December 2009 was 8,000. The apartment needed some painting which was completed in June 2009 at a cost of 850. On the 1 July 2009, he advertised for a tenant, which costed 125. The apartment was rented out from 1 August 2009 at a monthly rent of 600. He registered the property with the PRTB on the 15 August REQUIRED: (a) Explain how the pay in lieu of notice is treated for tax purposes, stating any assumptions you think necessary. (2 marks) (b) Compute the tax free element of the termination payment paid to Jim. (5 marks) (c) Compute Mr. Power s Case V income (if any) for (4 marks) (d) Compute Jim s final income tax liability for the tax year 2009 (Ignore PRSI/Levies). (9 marks) [Total: 20 marks] Page 6

8 Answer either Question 5 OR Question (a) The Managing Director of Richmond Ltd. is looking at the possibility of the company diversifying into other activities and has asked as to whether expenditure on the following would be classified as plant for tax purposes; (i) (ii) (iii) (iv) (v) Swimming pool in a caravan park; Building in which a retail trade is carried on; Deep pit poultry house; Coat racks used in a drapery shop; Movable office partitions which are not permanently fixed to the premises. REQUIRED: In the case of any four of the specific items mentioned in (i) to (v) above, state, giving reasons, whether the expenditure would be regarded as having been incurred on plant for tax purposes. (8 marks) (b) Richmond Ltd. has recently engaged Larry Farrelly, a Computer Specialist, to improve its computer operations. Larry graduated from Trinity College in May 2009 and was immediately offered a job by Richmond Ltd. He is paid 700 per week and the terms of his contract obliges him to be available at the premises of Richmond Ltd. between 9am-5pm each day. He does a small amount of work at home but must ask the company s permission to take on any other duties. REQUIRED: The company is concerned that it may have a PAYE/PRSI exposure on payments to Larry. Set out the tests for determining if an individual is employed or self-employed and give your opinion on the status of Larry in this regards. (7 marks). [Total: 15 marks] 6. Zac Quinn has called to your office for advice in relation to the following: (a) In relation to the rights issues of shares, explain how the purchase of rights issues and the sale of rights are treated for CGT purposes. (4 marks) (b) Outline briefly the two thirds rule as applied to VAT. (4 marks) (c) Explain qualifying voluntary disclosure as it applies to a Revenue audit. (4 marks) (d) Outline how trading losses incurred by a company are utilised. (3 marks) REQUIRED: Write a letter to Zac explaining briefly the above issues. [Total: 15 Marks] END OF PAPER Page 7

9 SUGGESTED SOLUTIONS BARTON LTD. THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS IN IRELAND TAXATION FORMATION 2 EXAMINATION - AUGUST 2010 (a) Corporation Tax Computation for year ended 31 December 2009 Net profit per accounts 3,320,906 Add: Deprecation 292,310 Pension contributions (i) 30,000 Travel and entertainment (ii) 12,500 Legal expenses (iii) 9,000 Lease payments (iv) ,387 Deduct: Other income 508,406 Capital allowances (v) 145,375 (653,781) Schedule D Case 1 income 3,011,512 Less: Case I losses C/F (186,700) 2,824,812 Schedule D Case 111 income 8,406 Schedule D Case V income 25,000 Total income 2,858,218 Corporation tax Case I 2,824,812 x 12.5% 353,101 Case III, V 33,406 x 25% 8,352 Total Corporation tax 361,453 Capital Gains Tax 2009 Net Proceeds (2009) 545,000 Cost - Current use value (95/96) 25,000 Portion of cost: 10,000 x 25,000 1, ,000 26,852 Indexation (34,290) Development value 110,000 Portion of cost (10,000-1,852) 8,148 (118,148) Chargeable gain 392,562 Capital gains 25% 98,140 (b) Payment dates (i) Corporation Tax At least 45% of the liability must be paid on the 21 June 2009 and 45% on the 21 November 2009 by way of preliminary tax. Alternatively the company may opt to pay 50% on each of the above dates of the tax liability of the preceding accounting period. The balance is due within one month of the issue of the notice of assessment. (ii) Capital Gains Tax At least 100% of the liability must be paid on or before 15 December Page 8

10 (c) VAT issues (i) Purchase of company cars VAT is not reclaimed on motor cars where CO2 emissions exceed 195kg/m. (ii) Purchase of van VAT of 5,309 may be reclaimed (iii) Diesel for van VAT of 9,733 may be reclaimed (iv) Staff Christmas party VAT disallowed entertainment expense (v) Legal fees on share issue VAT of 21,500 reclaimable as the share issue is for the raising of capital (vi) New Staff canteen VAT of 16,200 reclaimable Notes (i) Pension contributions As the sum of 30,000 was not paid in the accounting period it is not an allowable deduction for this accounting period. (ii) Travel and entertainment - entertaining suppliers 4,500 - entertaining customers 8,000 12,500 (vii) Legal expenses Purchase of new retail unit 9,000 (iv) (v) Lease payments Finance director s car no addback Managing director s car 7,500 x 26,000 24,000 = ,000 Van no addback Capital allowances Factory Factory Vans Equipment Equipment Total 12.5% 12.5% 12.5% Cost 160, , ,000 TWDV 01/01/09 120, , ,000 Additions ,000 75,000 Wear and Tear (20,000) (36,000) ( 9,375) (65,375) 100, ,000 65, ,625 Factory buildings: Building purchased 2004: (i) Cost 750,000 Less: IDA grant ( 250,000) 500,000 IBAA - 500,000 at 4% 20,000 (ii) Building purchased on 1 April 2009 Restrict to original construction expenditure 960,000 Annual allowance - 960,000 (25 9) 60,000 Total IBAA = 20, ,000 = 80,000 Summary Wear and tear 65,375 IBAA 80, ,375 Page 9

11 SOLUTION 2 ADAMS, BURKE & CHARLES This question tested knowledge of partnership income tax. It involved the admission of a new partner and it required a computation of the final income tax liability of one of the partners. (a) (i) Schedule D Case II assessment Year Ended 31 December Profit per accounts (to be shared) 86, ,000 Add: Partners salaries - Adams 24,000 52,000 - Burke 20,000 50,000 - Charles - 12,000 Schedule D Case II Income 130, ,000 Assessable as follows: Year ended 31 December 2008 Adams Burke Total Salaries 24,000 20,000 44,000 Share of Balance Profit 43,000 43,000 86,000 67,000 63, , Year ended 31 December 2009 Adams Burke Total Salaries 1/1/09 31/12/09 1/1/09 30/9/09 52,000 50, ,000 Share of Profit 120,000 x 9/12 x 50% each 45,000 45,000 90,000 1/10/09 31/12/09 Share of profit 120,000 x 3/12 x 35% each 10,500 10,500 21, , , ,000 The assessment on Charles is based on his share of the profits for the period 1 October 2009 to 31 December Period 1/10/09 to 31/12/09 Share of profits 3/12 x 120,000 x 30% 9,000 Period 1/10/09 to 31/12/09 Salary 3/12 x 48,000 12,000 21,000 (ii) Allocation of capital allowances This is based on the profit sharing ratio in the year of assessment rather than that in the basis period Adams 7,500 Burke 7,500 15, Adams Burke Charles Total 1/1/09 to 30/9/09 9/12 x 24,000 9,000 9,000-18,000 1/10/09 to 31/12/09 3/12 x 24,000 2,100 2,100 1,800 6,000 11,100 11,100 1,800 24,000 Page 10

12 (iii) Charles Income Tax 2009 Schedule D Case II Share of Partnership Profits 21,000 Capital Allowances (1,800) 19,200 Schedule E Salary 37,700 56,900 Charges: Interest relief (2,500) Retirement annuity premium (W1) (3,000) Statutory/Taxable income 51,400 Income Tax: 7,280 20% 6,150 41% 13,430 Less Tax Credits: Personal (1,830) PAYE (1,830) Less PAYE paid (3,000) Net Tax Payable: 6,770 W1 Pension contribution Relevant earnings 54,900 15% (max) 8,235 Restrict to amount paid 3,000 (b) Gross VAT Net SALES: Retail standard rate (21.5%) 192,500 34, ,436 Zero rate 70, ,000 Exempt 78, ,000 PURCHASES: Retail standard rate (21.5%) 133,650 (23,650) 110,000 Zero rate 17, ,200 Funeral exempt purchases (note 1) 48, ,500 New car (note 2) 20, ,000 Second hand car (note 2) 14, ,500 Rent (note 3 ) 24,300 (2,223) Light & heat (note 4) 12,150 (1,112) VAT due for year 7,079 Notes: 1 Purchases for an exempt activity are not reclaimable. 2 Input credit is not available for cars where emissions exceed 195kg/m. 3. VAT on rent 24,300 x 21.5/121.5 = 4,300 Allocated on Sales basis 4,300 x 158,436 = 2, , VAT on light & heat 12,150 x 21.5 /121.5 = 2,150 Allocated on sales basis 2, ,436 = 1, ,436 Page 11

13 SOLUTION 3 JOHN O CONNOR (a) Retirement relief To qualify for retirement relief a shareholder must be aged 55 years and have owned the shares and be a working director for 10 years ending on date of disposal. Five of those years must be working on a full-time basis. The company must be unquoted, trading and qualify as a family company i.e. the shareholder must own 75% of the shares. While called retirement relief there is no necessity for the individual to retire. There is no annual exemption in the year the relief is claimed. Where the disposals are to persons other than a child there is no capital gains tax where the proceeds do not exceed 750,000. Where the proceeds exceed 750,000 marginal relief restricts the tax payable to 50% of the excess. (b) Sale of O Connor Retail Ltd Proceeds 795,000 Cost 20,000 x ( 36,380) Gain 758,620 Capital gains tax at 25% 189,655 Less: Marginal relief (w1) (167,155) Capital gains tax payable 22,500 W1 Marginal relief restrict CGT to (795, ,000) x 50% = 22,500 (c) Compute gain on part disposal of farm Proceeds (2009) 200,000 Less: Costs of sale (12,000) Net Proceeds 188,000 Cost 150,000 x 200,000 46, , ,000 Index (89/90) (69,369) Enhancement 50,000 x 200,000 15, , ,000 Index (91/92) (21,631) Gain 97,000 (d) Allowable loss on armchair is calculated as follows: Deemed proceeds 2,540 Cost (3,500) Allowable loss (960) (e) Summary Gain on sale of land 97,000 Loss on development land C/F (20,000) Loss on armchair (960) Gain 76,040 No annual exemption retirement relief claimed 0 Capital gains tax at 25% 19,010 Add: capital gains tax on shares 22,500 CGT payable 41,510 The capital gains tax return forms part of the income tax return for 2009 and must be filed by 31 October Capital gains tax for 2009 must be paid as follows: Disposals between 1 January 2009 to 30 November 2009 payable by 15 December Disposals between 1 December 2009 to 31 December 2009 payable by 31 January 2010 To avoid interest on late payment the tax must amount to 100% of the final liability. Page 12

14 SOLUTION 4 JIM POWER (a) It is assumed that the pay in lieu of notice is not provided for in the employee s employment contract. Where it is not provided for in the employee s employment contract, it will not be treated as part of the termination payment and is taxable under normal Schedule E rules. (An alternative assumption is acceptable) (b) Tax-free termination payment (i) Basic exemption 10,160 + (765 x 16) 22,400 (ii) (iii) Increased basic exemption 10,160 + (765 x 16) + [(10,000 20,000)*] 22,400 * No increase due to pension lump sum exceeding 10,000 Standard Capital Superannuation Benefit 34, , ,800 + (23,800 x 4/12) = 34, ,578 x 15-20,000 = 14, Maximum tax free payment is 22,400 The taxable element of the lump sum is as follows: Pay in lieu of notice* 4,065 Company car market value 15,000 Ex gratia payment 37,000 56,065 Exempt (22,400) Taxable 33,665 (c) Rental income Rental income 1,000 x 5 3,000 Less: Interest relief 6,000 x 5/8 x 75% (3,750) Advertising for tenant (125) Painting 0 Case V loss (875) Page 13

15 (d) Income Tax Computation Tax Year 2009 Schedule E salary Bradley Ltd. 30,000 - BIK - Bradley Ltd. 4,000 - salary new employment 7,000 - termination payment 33,665 Total income 74,665 Less: Pension contribution (3,000) Taxable income 71,665 Income tax Tax credits Tax paid 36,400 x 20% 7,280 35,265 x 41% 14,459 21,739 Single 1,830 PAYE 1,830 (3,660) PAYE Bradley Ltd. 4,000 - new employment 1,800 (5,800) Top slicing relief (w1) (9,226) Tax payable 3,053 W1 Top slicing relief A (P x T) I A = 33,665 x 41% = 13,802 P = 33,665 T = (4, , ,720) = 11,636 I = (32, , ,800) = 85,600 33,665 x 11,636 = 4,576 85,600 Relief = (13,802 4,576) = 9,226 Page 14

16 SOLUTION 5 - RICHMOND LTD (a) The term plant includes whatever apparatus is used by the businessman for carrying on his business, not stock-in-trade which he buys or makes for sale, but all goods and chattels, fixed or moveable, live or dead, which he keeps for permanent employment in the business. (i) (ii) (iii) (iv) (v) Swimming pool in a caravan park In this case, the amenities of a caravan park included a swimming pool provided with an elaborate system for filtering and chlorinating the water. The cost incurred for excavating, concreting lining the pool and the surrounding terracing was held to be expenditure incurred on plant. The swimming pool was an apparatus used for the purpose of the trade. Building in which a retail trade is carried on. As the only function of this building/structure is the provision of shelter and the setting in which the trade is carried on the expenditure is not regarded as having been incurred on plant. Deep pit poultry house The provision of shelter provides a setting in which the trade was carried on, it was also the means by which the trade was carried on. The whole structure played an active part in carrying on the relevant trade. Coat racks in a drapery store Clearly these items are apparatuses used for the carrying on of the trade and therefore should be regarded as plant for corporation tax purposes. Moveable office partitions Moveable partitioning in an office building was plant as its function was not just merely confined to providing setting for the business. (b) Employed v. Self employed Revenue normally applies the following tests in determining if an individual is an employee. 1. Master servant relationship - Is a person told what to do and how to do it? Is the person s work and performance supervised closely. If so this points towards an employment. 2. Power of Delegation - If this exists it point towards an individual being regarded as self employed 3. Use of own office or tools - This points towards self employment 4. Capital at Risk - Points towards self employment 5. Ability to benefit from sound practice -Can the individual vary his/her charge out rate or take on other work when he/she requires. If so, it points towards self employment. 6. Integration - Close identity with one firm indicates an employment 7. Sundry: Holiday pay/sick pay/ member of a union or pension scheme - As Larry must ask for permission in order to take on other work, as he is paid a fixed rate of pay and works mainly in the offices of Apollo I would regard him, on balance, as being an employee. Page 15

17 SOLUTION 6 ZAC QUINN (a) Rights issues of shares Shares purchased under a rights issue are deemed to be enhancement expenditure in relation to the shares to which the rights attached. For the purposes of the FIFO rule, rights shares are deemed to be acquired at the same time as the shares to which they attach but for indexation purposes are treated as enhancement expenditure and indexed from the date acquired. A shareholder may not always take up the rights issue and may sell those shares to another individual. Such a disposal is deemed to be a part-disposal of the shares to which the rights attach. The part-disposal formula is: Original Cost x A A + B A = The proceeds is the cash received for the shares; B = The market value of the part remaining is the ex-rights price of the shares (b) (c) Two thirds rule Where a taxable supply involves the provision of a service and the supply of goods the rate of VAT applicable to the supply is based on whether the cost of the material supplied is greater or less than two-thirds of the total VAT exclusive cost. If the VAT exclusive cost for the parts is less than 2/3 of the total VAT exclusive cost, the 13.5% rate applies to the total cost and if greater than 2/3 the 21% rate applies to the entire cost. This rule has particular relevance to repair services and installations in buildings. Qualifying voluntary disclosure A qualifying voluntary disclosure is described under the Revenue s Code of Practice as a full disclosure accompanied by payment of taxes due. This entitles the taxpayer to significant mitigation of penalties. The disclosure may be unprompted i.e. made prior to audit notification or prompted i.e. made after receipt of audit notification. The benefits of qualifying disclosures are as follows: No publication. No prosecution will be initiated by Revenue. Penalties are reduced. A qualifying disclosure is made in writing prior to the audit commencing and must be accompanied by a signed statement to the effect that this is a full and true disclosure. A cheque covering the tax, interest and penalties must also be included. (d) Corporate trading losses Trade losses incurred by a company are offset against: Case 1 income of another trade of the current accounting period (if applicable) Case I income of the previous accounting period of the same length; Total profits in the current accounting period on a value basis Total profits in the previous accounting period of the same length as that in which the loss was incurred on a value basis Carried forward against future Case I income of the same trade. Page 16

18 Marking System Solution 1 Barton Ltd (a) Addbacks - 1 mark each 5marks Compute capital allowances - vans & factory equipment 1 mark - new factory 1 mark - purchase of factory 2 marks Offset Case I losses C/F 2 marks Compute corporation tax 2 marks Capital gains tax - Net proceeds 1 mark - current use value - 1 mark - Indexation - 1 mark - Calculate CGT - 1 mark (17 marks) (b) Payment dates CT - 1 mark - CGT - 1 mark (2 marks) (c) VAT issues (1 mark each) - 6 marks (6 marks) [Total: 25 marks] Solution 2 Adams, Burke & Charles (i) Assessment Adams & Burke (2 marks each) - 4 marks - Charles - 2 marks (6 marks) (ii) Capital allowances (1 mark each) - 3 marks (3 marks) (iii) Income tax computation - Share of partnership profits - 1 mark - Capital allowances - 1 mark - Interest relief - 1 mark - RAP - 1 mark - Compute income tax - 1 mark - Application of tax credits - 1 mark (6 marks) (b) VAT sales - 1 mark VAT purchases - 1 mark Disallow exempt purchases - 1 mark Light & heat apportion - 1 mark Assumptions listed - 1 mark (5 marks) [Total: 20 marks] Page 1

19 Solution 3 John O Connor (a) Retirement relief conditions - age 55-1 mark - no need to retire - 1 mark - Company family, trading, unquoted - 1 mark - 3rd party limit - 1 mark - Marginal relief - 1 mark - Explain marginal relief - 1 mark (6 marks) (b) (c) CGT computation Part disposal of farm - Proceeds - ½ mark - Indexed cost - 1 mark - No annual exemption - 1 mark - Apply marginal relief - 1marks - CGT payable - ½ mark (4 marks) - Net proceeds - 1 mark - Apply part disposal rules to cost - 1½ marks - Apply part disposal rules to enhancement 1½ marks (4 marks) (d) (e) Compute gain on armchair - Deemed proceeds - 1 mark - allowable loss - 1 mark 2 marks Compute total CGT summary - Deduct development losses C/F - 1 mark - Compute CGT on above - 1 mark - Date of payment - 1 mark - Date of submission - 1 mark 4 marks [Total: 20 marks] Solution 4 Jim Power (a) Depending on assumptions made - Not part of employment contract - 1 mark - Not part of termination payment - 1 mark OR - Part of employment contract - 1 mark - Part of termination income - 1 mark (2 marks) (b) - Basic exemption - 1 mark - Increased basic exemption - 1 mark - SCSB - 2 marks - Compute taxable element - 1 mark (5 marks) (c) - Rent income - 1 mark - Restrict interest relief - 1 mark - Deduct advertising expense - 1 mark - Disallow painting - 1 mark (4 marks) (d) - Salary & BIK Bradley Ltd - 1 mark - Salary new employment - 1 mark - Termination payment - 1 mark - Case V - 1 mark - Interest relief - 1 mark - Apply tax credits - 1 mark - Pension contribution - 1 mark - Compute top slicing relief - 2 marks (9 marks) Page 1 [Total: 20 marks]

20 Solution 5 (a) Qualify as plant (½ mark each) - 2 marks Reasons (1½ marks each) - 6 marks (8 marks) (b) Self employed v. employee (1 mark each point) - 5 marks (max) State employee and give reasons - 2 marks (7 marks) [Total: 15 marks] Solution 6 (a) Rights issues of shares - Treat as enhancement - 1 mark - Attach to purchased shares - 1 mark - Sale of rights part disposal - 1 mark - Part disposal formula or explanation - 1 mark (4 marks) (b) (c) (d) Operation of the VAT system - Applies to supply of goods & services - 1 mark - Applies to VAT exclusive cost - 1 mark - material greater than 2/3 standard rate - 1 mark - material less than 2/3 service rate - 1 mark (4 marks) Qualifying voluntary disclosure - Prompted or unprompted - 1 mark - Full disclosure + payment - 1 mark - Prosecution / publication / penalties - 1 mark - Writing with signed declaration - 1 mark (4 marks) Corporate trading losses - Current year other Case 1 value basis - 1 mark - Previous year Case 1 value basis - 1 mark - C/F Case I same trade - 1 mark (3 marks) [Total: 15 marks] Page 1

21 Page 1

TAXATION FORMATION 2 EXAMINATION - AUGUST 2012

TAXATION FORMATION 2 EXAMINATION - AUGUST 2012 TAXATION FORMATION 2 EXAMINATION - AUGUST 2012 NOTES: You are required to answer a total of five questions. Questions 1, 2, 3 and 4 are compulsory. You are also required to answer either Question 5 or

More information

TAXATION FORMATION 2 EXAMINATION - APRIL 2009

TAXATION FORMATION 2 EXAMINATION - APRIL 2009 TAXATION FORMATION 2 EXAMINATION - APRIL 2009 NOTES: You are required to answer a total of five questions. Questions 1, 2, 3 and 4 are compulsory. You are also required to answer either Question 5 or 6.

More information

FoRMaTioN 2 ExaMiNaTioN - april 2018

FoRMaTioN 2 ExaMiNaTioN - april 2018 TaxaTioN FoRMaTioN 2 ExaMiNaTioN - april 2018 NoTES: Section a - You are required to answer Questions 1, 2 and 3. Section B - You are required to answer any two out of Questions 4, 5 and 6. Should you

More information

TAXATION FORMATION 2 EXAMINATION - AUGUST 2008

TAXATION FORMATION 2 EXAMINATION - AUGUST 2008 TAXATION FORMATION 2 EXAMINATION - AUGUST 2008 NOTES: You are required to answer a total of five questions. Questions 1, 2, 3 and 4 are compulsory. You are also required to answer either Question 5 or

More information

Advanced Taxation Republic of Ireland. Sample Paper 1 Questions & Suggested Solutions

Advanced Taxation Republic of Ireland. Sample Paper 1 Questions & Suggested Solutions Advanced Taxation Republic of Ireland Sample Paper 1 Questions & Suggested Solutions NOTES TO USERS ABOUT SAMPLE PAPERS Sample papers are published by Accounting Technicians Ireland. They are intended

More information

Advanced Taxation Republic of Ireland. Sample Paper 1 Questions & Suggested Solutions

Advanced Taxation Republic of Ireland. Sample Paper 1 Questions & Suggested Solutions Advanced Taxation Republic of Ireland Questions & Suggested Solutions NOTES TO USERS ABOUT SAMPLE PAPERS Sample papers are published by Accounting Technicians Ireland. They are intended to provide guidance

More information

TAXATION FORMATION 2 EXAMINATION - APRIL 2017

TAXATION FORMATION 2 EXAMINATION - APRIL 2017 TAXATION FORMATION 2 EXAMINATION - APRIL 2017 NOTES: Section A - You are required to answer Questions 1, 2 and 3. Section B - You are required to answer any two out of Questions 4, 5 and 6. Should you

More information

Advanced Taxation Republic of Ireland

Advanced Taxation Republic of Ireland Advanced Taxation Republic of Ireland 2 nd Year Examination May 2015 Exam Paper, Solutions & Examiner s Comments Page 1 of 16 NOTES TO USERS ABOUT THESE SOLUTIONS The solutions in this document are published

More information

Fundamentals Level Skills Module, Paper F6 (IRL)

Fundamentals Level Skills Module, Paper F6 (IRL) Answers Fundamentals Level Skills Module, Paper F6 (IRL) Taxation (Irish) December 2008 Answers 1 (a) Tom Dunne s Case 1 assessments: Applying the normal commencement rules, Tom s income assessable would

More information

Summary: Property A net income 20,400 Property B net loss (3,575)

Summary: Property A net income 20,400 Property B net loss (3,575) Answers Fundamentals Level Skills Module, Paper F6 (IRL) Taxation (Ireland) June 2009 Answers 1 Dan Ryan (a) Case V income for the tax year 2008 Property A: Income Rent from 1 May to 31 December 2008,

More information

Fundamentals Level Skills Module, Paper F6 (IRL)

Fundamentals Level Skills Module, Paper F6 (IRL) Answers Fundamentals Level Skills Module, Paper F6 (IRL) Taxation (Irish) 1 Marie and Sean December 2014 Answers and Marking Scheme Marks (a) Marie s taxable lump sum on the termination of her employment

More information

Paper F6 (IRL) Taxation (Irish) Thursday 7 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants F6 IRL ACCA

Paper F6 (IRL) Taxation (Irish) Thursday 7 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants F6 IRL ACCA Fundamentals Level Skills Module Taxation (Irish) Thursday 7 June 2018 F6 IRL ACCA Time allowed: 3 hours 15 minutes This question paper is divided into two sections: Section A ALL 15 questions are compulsory

More information

Advanced Taxation Republic of Ireland. Sample Paper / 2018 Questions & Suggested Solutions

Advanced Taxation Republic of Ireland. Sample Paper / 2018 Questions & Suggested Solutions Advanced Taxation Republic of Ireland Sample Paper 2 2017 / 2018 Questions & Suggested Solutions NOTES TO USERS ABOUT SAMPLE PAPERS Sample papers are published by Accounting Technicians Ireland. They are

More information

Foundations in Taxation (Ireland)

Foundations in Taxation (Ireland) FOUNDATIONS IN ACCOUNTANCY Foundations in Taxation (Ireland) Pilot Paper Time allowed: Writing: 2 hours This paper is divided into two sections: Section A ALL TEN questions are compulsory and MUST be attempted

More information

Paper F6 (IRL) Taxation (Irish) Specimen questions for June Fundamentals Level Skills Module

Paper F6 (IRL) Taxation (Irish) Specimen questions for June Fundamentals Level Skills Module Fundamentals Level Skills Module Taxation (Irish) Specimen questions for June 2015 Time allowed This Reading is and not planning: a full specimen 15 minutes paper, it is a selection of specimen Writing:

More information

Paper F6 (IRL) Taxation (Irish) Monday 1 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (IRL) Taxation (Irish) Monday 1 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (Irish) Monday 1 December 2008 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Tax rates

More information

Paper F6 (IRL) Taxation (Irish) Thursday 7 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (IRL) Taxation (Irish) Thursday 7 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (Irish) Thursday 7 December 2017 Time allowed: 3 hours 15 minutes This question paper is divided into two sections: Section A ALL 15 questions are compulsory and

More information

Bachelor of Business in Accounting Stage 2. Summer 2008 SECTION A

Bachelor of Business in Accounting Stage 2. Summer 2008 SECTION A Cork Institute of Technology Bachelor of Business in Accounting Stage 2 (BACCT_7_Y2) Summer 2008 Taxation (Time: 3 Hours) Instructions: Answer ALL questions from Section A and ONE question from Section

More information

Fundamentals Level Skills Module, Paper F6 (IRL)

Fundamentals Level Skills Module, Paper F6 (IRL) Answers Fundamentals Level Skills Module, Paper F6 (IRL) Taxation (Irish) 1 James and Audrey December 2013 Answers and Marking Scheme Marks (a) (i) Audrey s Schedule D Case II income for 2012 Net profit

More information

Accounting Technicians Ireland. Paper: ADVANCED TAXATION (Northern Ireland) Thursday 17 August p.m. to 5.30 p.m.

Accounting Technicians Ireland. Paper: ADVANCED TAXATION (Northern Ireland) Thursday 17 August p.m. to 5.30 p.m. Accounting Technicians Ireland 2 nd Year Examination: August 2017 Paper: ADVANCED TAXATION (Northern Ireland) Thursday 17 August 2017 2.30 p.m. to 5.30 p.m. INSTRUCTIONS TO CANDIDATES PLEASE READ CAREFULLY

More information

Fundamentals Level Skills Module, Paper F6 (IRL)

Fundamentals Level Skills Module, Paper F6 (IRL) Answers Fundamentals Level Skills Module, Paper F6 (IRL) Taxation (Irish) June 215 Answers and Marking Scheme Section A 1 C 33, Current year basis for 214 is 36, less the revision downwards caused by the

More information

Paper F6 (IRL) Taxation (Irish) Tuesday 2 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (IRL) Taxation (Irish) Tuesday 2 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (Irish) Tuesday 2 December 2014 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Tax rates

More information

Paper F6 (IRL) Taxation (Irish) Thursday 8 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (IRL) Taxation (Irish) Thursday 8 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (Irish) Thursday 8 June 2017 Time allowed: 3 hours 15 minutes This question paper is divided into two sections: Section A ALL 15 questions are compulsory and MUST

More information

1 (a) Chris Value added tax (VAT) liability for September/October 2015 Value VAT VAT

1 (a) Chris Value added tax (VAT) liability for September/October 2015 Value VAT VAT Answers Section B 1 (a) Chris Value added tax (VAT) liability for September/October 215 Value VAT VAT rate amount Output VAT Irish customers (19, + 15,) 25, 23% 47,15 UK customers 3, % Purchases from Germany

More information

Taxation Northern Ireland. Sample Paper 3 Questions & Suggested Solutions

Taxation Northern Ireland. Sample Paper 3 Questions & Suggested Solutions Taxation Northern Ireland Sample Paper 3 Questions & Suggested Solutions INSTRUCTIONS TO CANDIDATES PLEASE READ CAREFULLY For candidates answering in accordance with the law and practice of the Northern

More information

TX CYP. Taxation Cyprus (TX CYP) Applied Skills. Tuesday 4 December 2018 TX CYP ICPAC. Time allowed: 3 hours 15 minutes

TX CYP. Taxation Cyprus (TX CYP) Applied Skills. Tuesday 4 December 2018 TX CYP ICPAC. Time allowed: 3 hours 15 minutes Applied Skills Taxation Cyprus (TX CYP) Tuesday 4 December 2018 TX CYP ICPAC Time allowed: 3 hours 15 minutes This question paper is divided into two sections: Section A ALL 15 questions are compulsory

More information

Advanced Taxation ROI 2 nd Year Examination

Advanced Taxation ROI 2 nd Year Examination Advanced Taxation ROI 2 nd Year Examination May 2017 Solutions, Examiners Comments & Marking Scheme NOTES TO USERS ABOUT THESE SOLUTIONS The solutions in this document are published by Accounting Technicians

More information

Fundamentals Level Skills Module, Paper F6 (IRL)

Fundamentals Level Skills Module, Paper F6 (IRL) Answers Fundamentals Level Skills Module, Paper F6 (IRL) Taxation (Irish) Section B June 2018 Answers and Marking Scheme 1 (a) Tony Capital gains tax (CGT) liability for 2017 (1) Share disposal Index Sales

More information

Paper P6 (IRL) Advanced Taxation (Irish) Friday 5 June Professional Level Options Module. The Association of Chartered Certified Accountants

Paper P6 (IRL) Advanced Taxation (Irish) Friday 5 June Professional Level Options Module. The Association of Chartered Certified Accountants Professional Level Options Module Advanced Taxation (Irish) Friday 5 June 2015 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections: Section A BOTH questions

More information

TAX TABLES. Professional 2 Examination 2017

TAX TABLES. Professional 2 Examination 2017 TAX TABLES Professional 2 Examination 2017 The following rates, formulae and allowances are based on the Finance Act 2015 and are to be used for all questions on this paper. Rates of Income Tax Single

More information

Paper F6 (IRL) Taxation (Irish) Monday 7 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants.

Paper F6 (IRL) Taxation (Irish) Monday 7 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants. Fundamentals Level Skills Module Taxation (Irish) Monday 7 June 2010 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Tax rates and

More information

Accounting Technicians Ireland

Accounting Technicians Ireland Accounting Technicians Ireland 2 nd Year Examination: August 2017 Paper: ADVANCED TAXATION (Republic of Ireland) Thursday 17 August 2017 2.30 p.m. to 5.30 p.m. INSTRUCTIONS TO CANDIDATES PLEASE READ CAREFULLY

More information

Fundamentals Level Skills Module, Paper F6 (ZWE)

Fundamentals Level Skills Module, Paper F6 (ZWE) Answers Fundamentals Level Skills Module, Paper F6 (ZWE) Taxation (Zimbabwe) John Kyle June 03 Answers and Marking Scheme (a) (b) Factors which determine whether an engagement is treated as employment

More information

Taxation Republic of Ireland

Taxation Republic of Ireland Taxation Republic of Ireland Sample Paper 3 Questions and Suggested Solutions Updated for the Summer and Autumn 2015 Examinations Finance (No. 2) Act 2013 NOTES TO USERS ABOUT SAMPLE PAPERS Sample papers

More information

Chapter 11 Tax System

Chapter 11 Tax System Chapter 11 Tax System www.pwc.com/mt/doingbusiness Doing Business in Malta Principal taxes The principal taxes under Maltese law are: Income tax, which includes tax on income and on capital gains of individuals,

More information

Accounting Technicians Ireland 1 st Year: August 2017 Paper: TAXATION (Republic of Ireland) Monday 21 August a.m. to p.m.

Accounting Technicians Ireland 1 st Year: August 2017 Paper: TAXATION (Republic of Ireland) Monday 21 August a.m. to p.m. Accounting Technicians Ireland 1 st Year: August 2017 Paper: TAXATION (Republic of Ireland) Monday 21 August 2017 09.30 a.m. to 12.30 p.m. INSTRUCTIONS TO CANDIDATES PLEASE READ CAREFULLY For candidates

More information

TAXATION FORMATION 2 EXAMINATION - APRIL 2010

TAXATION FORMATION 2 EXAMINATION - APRIL 2010 TAXATION FORMATION 2 EXAMINATION - APRIL 2010 NOTES: You are required to answer a total of five questions. Questions 1, 2, 3 and 4 are compulsory. You are also required to answer either Question 5 or 6.

More information

Fundamentals Level Skills Module, Paper F6 (IRL)

Fundamentals Level Skills Module, Paper F6 (IRL) Answers Fundamentals Level Skills Module, Paper F6 (IRL) Taxation (Irish) 1 Martin and Breda June 2014 Answers and Marking Scheme (a) Schedule D Case II income for 2012 and 2013 2012 Original assessment

More information

ACCA Certified Accounting Technician Examination Paper T9 (IRL) Preparing Taxation Computations (Irish)

ACCA Certified Accounting Technician Examination Paper T9 (IRL) Preparing Taxation Computations (Irish) Answers ACCA Certified Accounting Technician Examination Paper T9 (IRL) Preparing Taxation Computations (Irish) December 29 Answers and Marking Scheme Section A 1 C As the employee travels less than 15,

More information

Paper F6 (MLA) Taxation (Malta) Monday 2 June Fundamentals Level Skills Module. Time allowed

Paper F6 (MLA) Taxation (Malta) Monday 2 June Fundamentals Level Skills Module. Time allowed Fundamentals Level Skills Module Taxation (Malta) Monday 2 June 2008 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Tax rates and

More information

Billy Income Tax Computation 2014/15 Non-savings income Savings income Total

Billy Income Tax Computation 2014/15 Non-savings income Savings income Total December 2015 Examinations 165 ANSWERS TO EXAMPLES Chapter 1 (a) (b) (c) (d) (e) (f) Income Tax and NIC - both direct taxes Corporation tax on profits and NIC in respect of employees - both direct taxes.

More information

Advanced Taxation Republic of Ireland

Advanced Taxation Republic of Ireland Advanced Taxation Republic of Ireland nd Year Examination August 04 Exam Paper, Solutions & Examiner s Report Advanced Taxation (ROI) August 04 nd Year Paper NOTES TO USERS ABOUT THESE SOLUTIONS The solutions

More information

ADVANCED TAXATION PROFESSIONAL 2 EXAMINATION - APRIL 2017

ADVANCED TAXATION PROFESSIONAL 2 EXAMINATION - APRIL 2017 ADVANCED TAXATION PROFESSIONAL 2 EXAMINATION - APRIL 2017 NOTES: You are required to answer Question 1 and any three from Questions 2,3,4 and 5. Should you provide answers to all questions, you must draw

More information

Advanced Taxation Republic of Ireland

Advanced Taxation Republic of Ireland Advanced Taxation Republic of Ireland nd Year Examination May 04 Exam Paper, Solutions & Examiner s Report Advanced Taxation (ROI) May 04 nd Year Paper NOTES TO USERS ABOUT THESE SOLUTIONS The solutions

More information

Paper F6 (CYP) Taxation (Cyprus) Tuesday 2 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (CYP) Taxation (Cyprus) Tuesday 2 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (Cyprus) Tuesday 2 June 2015 Time allowed Reading and planning: 15 minutes Writing: 3 hours This paper is divided into two sections: Section A ALL 15 questions

More information

Advanced Taxation. Northern Ireland. 2 nd Year Examination. August Exam Paper, Solutions & Examiner s Report

Advanced Taxation. Northern Ireland. 2 nd Year Examination. August Exam Paper, Solutions & Examiner s Report Advanced Taxation Northern Ireland nd Year Examination August 04 Exam Paper, Solutions & Examiner s Report Advanced Taxation (NI) August 04 nd Year Paper NOTES TO USERS ABOUT THESE SOLUTIONS The solutions

More information

TAXS H2303: Taxation 1

TAXS H2303: Taxation 1 Module Title: Language of Instruction: Taxation 1 in Accounting Degree English Credits: 10 NFQ Level: 7 Module Delivered In 2 programme(s) Teaching & Learning Strategies: Lectures - communication of knowledge

More information

Advanced Taxation Republic of Ireland

Advanced Taxation Republic of Ireland Advanced Taxation Republic of Ireland 2 nd Year Examination May 2016 Exam Paper, Solutions & Examiner s Comments Page 1 of 30 NOTES TO USERS ABOUT THESE SOLUTIONS The solutions in this document are published

More information

Taxation Northern Ireland. Sample Paper 1 Questions & Suggested Solutions

Taxation Northern Ireland. Sample Paper 1 Questions & Suggested Solutions Taxation Northern Ireland Sample Paper 1 Questions & Suggested Solutions INSTRUCTIONS TO CANDIDATES PLEASE READ CAREFULLY For candidates answering in accordance with the law and practice of the Northern

More information

Paper F6 (CYP) Taxation (Cyprus) Thursday 7 December Fundamentals Level Skills Module. Time allowed: 3 hours 15 minutes

Paper F6 (CYP) Taxation (Cyprus) Thursday 7 December Fundamentals Level Skills Module. Time allowed: 3 hours 15 minutes Fundamentals Level Skills Module Taxation (Cyprus) Thursday 7 December 2017 Time allowed: 3 hours 15 minutes This question paper is divided into two sections: Section A ALL 15 questions are compulsory

More information

Guide to Rental Income

Guide to Rental Income IT 70 Guide to Rental Income RPC005763_EN_WB_L_1 Contents Introduction 3 Types of Rental Income 4 What Expenditure can be Deducted? 4 Interest on Borrowings 5 Wear and Tear 6 Tax Incentive Schemes 6 What

More information

Taxation Republic of Ireland 1st Year Examination

Taxation Republic of Ireland 1st Year Examination Taxation Republic of Ireland 1st Year Examination August 2016 Exam Paper, Solutions & Examiner s Report Page 1 of 23 NOTES TO USERS ABOUT THESE SOLUTIONS The solutions in this document are published by

More information

[ ] Payments on Termination of an Office or Employment or removal from office or employment.

[ ] Payments on Termination of an Office or Employment or removal from office or employment. [05.05.19] Payments on Termination of an Office or Employment or removal from office or employment. Sections 123 and 201, and Schedule 3 of the Taxes Consolidation Act, 1997 Updated March 2016 Contents

More information

Paper F6 (CYP) Taxation (Cyprus) Thursday 10 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (CYP) Taxation (Cyprus) Thursday 10 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (Cyprus) Thursday 10 December 2015 Time allowed Reading and planning: 15 minutes Writing: 3 hours This question paper is divided into two sections: Section A ALL

More information

Examiner s report F6 (IRL) Taxation December 2017

Examiner s report F6 (IRL) Taxation December 2017 Examiner s report F6 (IRL) Taxation December 2017 General Comments There were two sections to the examination paper and all questions were compulsory. Section A consisted of 15 multiple choice questions

More information

Paper P6 (ZAF) Advanced Taxation (South Africa) Friday 15 June Professional Level Options Module

Paper P6 (ZAF) Advanced Taxation (South Africa) Friday 15 June Professional Level Options Module Professional Level Options Module Advanced Taxation (South Africa) Friday 15 June 2012 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections: Section A

More information

ADVANCED TAXATION PROFESSIONAL 2 EXAMINATION - AUGUST 2008

ADVANCED TAXATION PROFESSIONAL 2 EXAMINATION - AUGUST 2008 ADVANCED TAXATION PROFESSIONAL 2 EXAMINATION - AUGUST 2008 NOTES: You are required to answer any 5 Questions. (If you provide answers to all questions, you must draw a clearly distinguishable line through

More information

2017 EXAMINATIONS ACCOUNTING TECHNICIAN PROGRAMME PAPER TC 10(B): TAXATION

2017 EXAMINATIONS ACCOUNTING TECHNICIAN PROGRAMME PAPER TC 10(B): TAXATION EXAMINATION NO. 2017 EXAMINATIONS ACCOUNTING TECHNICIAN PROGRAMME PAPER TC 10(B): TAXATION TUESDAY 6 JUNE 2017 INSTRUCTIONS: TIME ALLOWED: 3 HOURS 9.00 AM - 12.00 NOON 1. You are allowed 15 minutes reading

More information

Professional Level Options Module, Paper P6 (IRL) 1 Briefing notes for meeting with Neil Crosby and Kate Harris

Professional Level Options Module, Paper P6 (IRL) 1 Briefing notes for meeting with Neil Crosby and Kate Harris Answers Professional Level Options Module, Paper P6 (IRL) Advanced Taxation (Irish) June 2017 Answers 1 Briefing notes for meeting with Neil Crosby and Kate Harris Prepared for: Tax manager By: Tax senior

More information

Taxation Republic of Ireland

Taxation Republic of Ireland Taxation Republic of Ireland Sample Paper 2 Questions and Suggested Solutions Updated for the Summer and Autumn 2015 Examinations Finance (No. 2) Act 2013 NOTES TO USERS ABOUT SAMPLE PAPERS Sample papers

More information

Taxation I Republic of Ireland 1 st Year Examination

Taxation I Republic of Ireland 1 st Year Examination Taxation I Republic of Ireland 1 st Year Examination August 2010 Paper, Solutions & Examiner s Report NOTES TO USERS ABOUT THESE SOLUTIONS The solutions in this document are published by Accounting Technicians

More information

Advanced Taxation Northern Ireland. Sample Paper 2 Questions & Suggested Solutions

Advanced Taxation Northern Ireland. Sample Paper 2 Questions & Suggested Solutions Advanced Taxation Northern Ireland Sample Paper 2 Questions & Suggested Solutions NOTES TO USERS ABOUT SAMPLE PAPERS Sample papers are published by Accounting Technicians Ireland. They are intended to

More information

BSc (Hons) Banking and International Finance BSc (Hons) Financial Services with Law. Examinations for Academic Year Semester II /

BSc (Hons) Banking and International Finance BSc (Hons) Financial Services with Law. Examinations for Academic Year Semester II / Programme BSc (Hons) Banking and International Finance BSc (Hons) Financial Services with Law COHORT BBIF/11B/12A /14B/FT/PT BFSL/13B/FT Examinations for Academic Year 2016 2017 Semester II / Academic

More information

Paper P6 (UK) Advanced Taxation (United Kingdom) March/June 2017 Sample Questions. Professional Level Options Module

Paper P6 (UK) Advanced Taxation (United Kingdom) March/June 2017 Sample Questions. Professional Level Options Module Professional Level Options Module Advanced Taxation (United Kingdom) March/June 2017 Sample Questions Time allowed: 3 hours and 15 minutes This question paper is divided into two sections: Section A BOTH

More information

Paper F6 (MWI) Taxation (Malawi) Thursday 10 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (MWI) Taxation (Malawi) Thursday 10 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (Malawi) Thursday 10 December 2015 Time allowed Reading and planning: 15 minutes Writing: 3 hours This question paper is divided into two sections: Section A ALL

More information

Paper F6 (ZWE) Taxation (Zimbabwe) Thursday 10 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (ZWE) Taxation (Zimbabwe) Thursday 10 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (Zimbabwe) Thursday 10 December 2015 Time allowed Reading and planning: 15 minutes Writing: 3 hours This question paper is divided into two sections: Section A

More information

Fundamentals Level Skills Module, Paper F6 (CYP)

Fundamentals Level Skills Module, Paper F6 (CYP) Answers Fundamentals Level Skills Module, Paper F6 (CYP) Taxation (Cyprus) Alexis and Maria Pambos June 203 Answers and Marking Scheme Marks Capital/(net worth) statement for the period January 2007 to

More information

Advanced Taxation Northern Ireland. Sample Paper 1 Questions & Suggested Solutions

Advanced Taxation Northern Ireland. Sample Paper 1 Questions & Suggested Solutions Advanced Taxation Northern Ireland Sample Paper 1 Questions & Suggested Solutions NOTES TO USERS ABOUT SAMPLE PAPERS Sample papers are published by Accounting Technicians Ireland. They are intended to

More information

CONTRACT SI2.ICNPROCE

CONTRACT SI2.ICNPROCE CONTRACT SI2.ICNPROCE009493100 IMPLEMENTED BY FOR DEMOLIN, BRULARD, BARTHELEMY COMMISSION EUROPEENNE - HOCHE - - DG ENTREPRISE AND INDUSTRY - Study on Effects of Tax Systems on the Retention of Earnings

More information

ACCA P6 UK Mock Exam Tuesday 15th August 2017 Finance ACT 2016

ACCA P6 UK Mock Exam Tuesday 15th August 2017 Finance ACT 2016 ACCA P6 UK Mock Exam Tuesday 15th August 2017 Finance ACT 2016 Please attempt this mock exam under exam conditions in 3 hours and 15 minutes and send scanned answers to admin@accountancytube.com by deadline

More information

A Revenue Guide to Rental Income

A Revenue Guide to Rental Income A Revenue Guide to Rental Income Contents Introduction 2 What types of rental income are there? 2 What expenses can be claimed? 3 What is the position with regard to interest paid on borrowings? 4 What

More information

RELEVANT TO ACCA QUALIFICATION PAPER F6 (IRL) Studying Paper F6? Performance objectives 19 and 20 are relevant to this exam

RELEVANT TO ACCA QUALIFICATION PAPER F6 (IRL) Studying Paper F6? Performance objectives 19 and 20 are relevant to this exam RELEVANT TO ACCA QUALIFICATION PAPER F6 (IRL) Studying Paper F6? Performance objectives 19 and 20 are relevant to this exam Taxation of termination payments From 2011, termination payments will be examinable

More information

Taxation Republic of Ireland 1 st Year Examination

Taxation Republic of Ireland 1 st Year Examination Taxation Republic of Ireland 1 st Year Examination May 2016 Solutions, Examiners Comments & Marking Scheme NOTES TO USERS ABOUT THESE SOLUTIONS The solutions in this document are published by Accounting

More information

Paper F6 (ZWE) Taxation (Zimbabwe) Monday 6 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (ZWE) Taxation (Zimbabwe) Monday 6 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (Zimbabwe) Monday 6 June 2011 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Tax rates

More information

Advanced Taxation. Republic of Ireland (ROI) Suggested Solutions to Practice Questions. Professional, Practical, Proven

Advanced Taxation. Republic of Ireland (ROI) Suggested Solutions to Practice Questions. Professional, Practical, Proven Advanced Taxation Republic of Ireland (ROI) Suggested Solutions to Practice Questions Professional, Practical, Proven www.accountingtechniciansireland.ie Table of Contents Part A:... 2 Part B:... 7 Part

More information

Paper P6 (IRL) Advanced Taxation (Irish) Monday 3 December Professional Level Options Module. The Association of Chartered Certified Accountants

Paper P6 (IRL) Advanced Taxation (Irish) Monday 3 December Professional Level Options Module. The Association of Chartered Certified Accountants Professional Level Options Module Advanced Taxation (Irish) Monday 3 December 2007 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections: Section A BOTH

More information

Paper F6 (ZWE) Taxation (Zimbabwe) Thursday 8 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (ZWE) Taxation (Zimbabwe) Thursday 8 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (Zimbabwe) Thursday 8 June 2017 Time allowed: 3 hours 15 minutes This question paper is divided into two sections: Section A ALL 15 questions are compulsory and

More information

TAX PROFESSIONAL OCCUPATIONAL CERTIFICATE: Initial Test of Competency RPL Assessment SAQA ID: July Paper 1: Questions 1 and 2 SOLUTIONS

TAX PROFESSIONAL OCCUPATIONAL CERTIFICATE: Initial Test of Competency RPL Assessment SAQA ID: July Paper 1: Questions 1 and 2 SOLUTIONS OCCUPATIONAL CERTIFICATE: TAX PROFESSIONAL SAQA ID: 93624 Initial Test of Competency RPL Assessment July 207 Paper : Questions and 2 SOLUTIONS CANDIDATE NUMBER Instructions to Candidates. This competency

More information

Paper F6 (MWI) Taxation (Malawi) Tuesday 4 December Fundamentals Level Skills Module. Time allowed

Paper F6 (MWI) Taxation (Malawi) Tuesday 4 December Fundamentals Level Skills Module. Time allowed Fundamentals Level Skills Module Taxation (Malawi) Tuesday 4 December 2012 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Tax rates

More information

Taxation II Republic of Ireland 2 nd Year Examination

Taxation II Republic of Ireland 2 nd Year Examination Taxation II Republic of Ireland 2 nd Year Examination August 2011 Paper, Solutions & Examiner s Report 1 NOTES TO USERS ABOUT THESE SOLUTIONS The solutions in this document are published by Accounting

More information

IPCC MAY 2015 QUESTION PAPER PAPER 1 ACCOUNTING

IPCC MAY 2015 QUESTION PAPER PAPER 1 ACCOUNTING IPCC MAY 2015 QUESTION PAPER PAPER 1 ACCOUNTING Questions No. 1 is compulsory. Candidates are also required to answer any five questions from the remaining six questions. Working notes should form part

More information

The Chartered Tax Adviser Examination

The Chartered Tax Adviser Examination The Chartered Tax Adviser Examination July 2015 Taxation of Major Corporates An Advisory paper developed as part of the Joint Programme with the ICAEW leading to the ACA and CTA TIME ALLOWED 3 ¼ HOURS

More information

Fundamentals Level Skills Module, Paper F6 (CYP) Capital (net worth) statement 1 January 31 December

Fundamentals Level Skills Module, Paper F6 (CYP) Capital (net worth) statement 1 January 31 December Answers Fundamentals Level Skills Module, Paper F6 (CYP) Taxation (Cyprus) Mr Ourin December 00 Answers and Marking Scheme Marks (a) (b) Capital (net worth) statement January 3 December 004 009 Assets

More information

Paper FTX (UK) Foundations in Taxation (United Kingdom) FOUNDATIONS IN ACCOUNTANCY. Pilot Paper. The Association of Chartered Certified Accountants

Paper FTX (UK) Foundations in Taxation (United Kingdom) FOUNDATIONS IN ACCOUNTANCY. Pilot Paper. The Association of Chartered Certified Accountants FOUNDATIONS IN ACCOUNTANCY Foundations in Taxation (United Kingdom) Pilot Paper Time allowed: Writing: 2 hours This paper is divided into two sections: Section A ALL TEN questions are compulsory and MUST

More information

2014 EXAMINATIONS ACCOUNTING TECHNICIAN PROGRAMME PAPER TC 10(B): TAXATION

2014 EXAMINATIONS ACCOUNTING TECHNICIAN PROGRAMME PAPER TC 10(B): TAXATION EXAMINATION NO. 2014 EXAMINATIONS ACCOUNTING TECHNICIAN PROGRAMME PAPER TC 10(B): TAXATION THURSDAY 4 DECEMBER 2014 TIME ALLOWED: 3 HOURS 9.00 AM - 12.00 NOON INSTRUCTIONS: 1. You are allowed 15 minutes

More information

Section A. 1 D All other statements are FALSE about tax evasion 2 B 21,400 (20, ,000) 3 A 49,050 (50, ) 4 B 31,250

Section A. 1 D All other statements are FALSE about tax evasion 2 B 21,400 (20, ,000) 3 A 49,050 (50, ) 4 B 31,250 Answers Applied Skills, TX CYP Taxation Cyprus (TX CYP) December 208 Answers and Marking Scheme Section A D All other statements are FALSE about tax evasion 2 B 2,400 (20,400 +,000) 3 A 49,050 (50,000

More information

Advanced Taxation Northern Ireland

Advanced Taxation Northern Ireland Advanced Taxation Northern Ireland 2 nd Year Examination May 2012 Exam Paper, Solutions & Examiner s Report NOTES TO USERS ABOUT THESE SOLUTIONS The solutions in this document are published by Accounting

More information

Paper F6 (UK) Taxation (United Kingdom) Monday 7 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (UK) Taxation (United Kingdom) Monday 7 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (United Kingdom) Monday 7 June 2010 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Rates

More information

Answers Solution 1 Walter Osborne

Answers Solution 1 Walter Osborne Answers Solution 1 Walter Osborne Mr Walter Osborne Any street Any town Chartered Certified Accountants Any street Any town 8 November 2016 Re: Disposal of your businesses Dear Walter, I refer to our recent

More information

THE CHARTERED INSURANCE INSTITUTE. Advanced Diploma in Financial Planning SPECIAL NOTICES

THE CHARTERED INSURANCE INSTITUTE. Advanced Diploma in Financial Planning SPECIAL NOTICES THE CHARTERED INSURANCE INSTITUTE AF1 Advanced Diploma in Financial Planning Unit AF1 Personal tax and trust planning April 2015 examination SPECIAL NOTICES All questions in this paper are based on English

More information

Coimisiún na Scrúduithe Stáit State Examinations Commission

Coimisiún na Scrúduithe Stáit State Examinations Commission 2014. M55 Coimisiún na Scrúduithe Stáit State Examinations Commission LEAVING CERTIFICATE EXAMINATION 2014 A C C O U N T I N G - H I G H E R L E V E L (400 marks) This paper is divided into 3 Sections:

More information

Paper F6 (ZAF) Taxation (South Africa) Tuesday 3 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (ZAF) Taxation (South Africa) Tuesday 3 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (South Africa) Tuesday 3 June 2014 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Tax

More information

Paper F6 (ZAF) Taxation (South Africa) Tuesday 4 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F6 (ZAF) Taxation (South Africa) Tuesday 4 June Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Taxation (South Africa) Tuesday 4 June 2013 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Tax

More information

5 IBTX. Business Taxation. Intermediate Level. 25 May 2004 Tuesday afternoon INSTRUCTIONS TO CANDIDATES

5 IBTX. Business Taxation. Intermediate Level. 25 May 2004 Tuesday afternoon INSTRUCTIONS TO CANDIDATES Intermediate Level Business Taxation 5 IBTX INSTRUCTIONS TO CANDIDATES 25 Tuesday afternoon Read this page before you look at the questions You are allowed three hours to answer this question paper. Answer

More information

Paper F6 (CYP) Taxation (Cyprus) Tuesday 3 December Fundamentals Level Skills Module. Time allowed

Paper F6 (CYP) Taxation (Cyprus) Tuesday 3 December Fundamentals Level Skills Module. Time allowed Fundamentals Level Skills Module Taxation (Cyprus) Tuesday 3 December 2013 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Tax rates

More information

Paper F6 (PKN) Taxation (Pakistan) Specimen questions for June Fundamentals Level Skills Module

Paper F6 (PKN) Taxation (Pakistan) Specimen questions for June Fundamentals Level Skills Module Fundamentals Level Skills Module Taxation (Pakistan) Specimen questions for June 2015 Time allowed This Reading is and not planning: a full specimen 15 minutes paper, it is a selection of specimen Writing:

More information

NOTIFICATION NO. 94/2009, Dated: December 18, 2009

NOTIFICATION NO. 94/2009, Dated: December 18, 2009 NOTIFICATION NO 94/2009, Dated: December 18, 2009 In exercise of the powers conferred by section 295 read with sub-section (2) of section 17 of the Income-tax Act, 1961 (43 of 1961), the Central Board

More information

Professional Level Options Module, Paper P6 (IRL) 1 Walter Osborne

Professional Level Options Module, Paper P6 (IRL) 1 Walter Osborne Answers Professional Level Options Module, Paper P6 (IRL) Advanced Taxation (Irish) December 2016 Answers 1 Walter Osborne Chartered Certified Accountants Any street Any town 8 November 2015 Mr Walter

More information

INTRODUCTION. Situations should be viewed separately based on specific facts of each scenario.

INTRODUCTION. Situations should be viewed separately based on specific facts of each scenario. TAX FACTS 2018 CONTENTS INTRODUCTION... 3 PERSONAL INCOME TAX... 4 CORPORATION TAX... 8 SOCIAL INSURANCE... 12 SPECIAL CONTRIBUTION FOR DEFENCE... 13 INTELLECTUAL PROPERTY... 16 VALUE ADDED TAX... 18 CAPITAL

More information

Fundamentals Level Skills Module, Paper F6 (UK) 1 (a) (i) Vanessa Serve Income tax computation

Fundamentals Level Skills Module, Paper F6 (UK) 1 (a) (i) Vanessa Serve Income tax computation Answers Fundamentals Level Skills Module, Paper F6 (UK) Taxation (United Kingdom) December 2007 Answers 1 (a) (i) Vanessa Serve Income tax computation 200607 Trading profit 52,400 Capital allowances (10,400

More information