(b) A summary of the information needed to satisfy our obligations under the money laundering legislation andany action that should be taken before agreeing to become tax advisers to the Saturn Ltd group. (5 marks)

题目

(b) A summary of the information needed to satisfy our obligations under the money laundering legislation and

any action that should be taken before agreeing to become tax advisers to the Saturn Ltd group. (5 marks)


相似考题
更多“(b) A summary of the information needed to satisfy our obligations under the money laundering legislation andany action that should be taken before agreeing to become tax advisers to the Saturn Ltd group. (5 marks)”相关问题
  • 第1题:

    (b) Advise the management of SCC Ltd of THREE strategies that should be considered in order to improve the

    future performance of SCC Ltd. (6 marks)


    正确答案:
    (b) The four quadrants of the Boston-growth share matrix summarise expected profits and resultant cash flows and recommends
    an outline strategy to follow which rather simplistically may be summarised as invest in stars, scrutinise the problem children,
    milk the cows and divest the dogs.
    Value Chain Analysis
    It is vital that the management of SCC Ltd undertake a value chain analysis of each of its divisions in order to identify and
    eliminate all non-value added activities, thereby improving profitability and cash flow without necessarily increasing turnover
    or market share.
    Divestment of the Footwear division
    Serious consideration should be given to the divestment of the Footwear division. This will enable resources to be redirected
    to divisions categorised as problem children i.e. the Industrial and Children’s divisions.
    Support the Stars
    As far as the Fashion division is concerned, it is obviously in a growth market and currently performing well. It is vital, given
    the forecast performance of the other subsidiaries that the management of SCC Ltd do not concentrate on the poor performers
    to the detriment of its only star.

  • 第2题:

    (ii) Illustrate the benefit of revising the corporate structure by calculating the corporation tax (CT) payable

    for the year ended 31 March 2006, on the assumptions that:

    (1) no action is taken; and

    (2) an amended structure as recommended in (i) above is implemented from 1 June 2005. (3 marks)


    正确答案:

     

  • 第3题:

    (c) Advise Alan on the proposed disposal of the shares in Mobile Ltd. Your answer should include calculations

    of the potential capital gain, and explain any options available to Alan to reduce this tax liability. (7 marks)


    正确答案:

     

    However, an exemption from corporation tax exists for any gain arising when a trading company (or member of a trading
    group) sells the whole or any part of a substantial shareholding in another trading company.
    A substantial shareholding is one where the investing company holds 10% of the ordinary share capital and is beneficially
    entitled to at least 10% of the
    (i) profits available for distribution to equity holders and
    (ii) assets of the company available for distribution to equity holders on a winding up.
    In meeting the 10% test, shares owned by a chargeable gains group may be amalgamated. The 10% test must have been
    met for a continuous 12 month period during the 2 years preceding the disposal.
    The companies making the disposals must have been trading companies (or members of a trading group) throughout the
    12 month period, as well as at the date of disposal. In addition, they must also be trading companies (or members of a trading
    group) immediately after the disposal.
    The exemption is given automatically, and acts to deny losses as well as eliminate gains.
    While Alantech Ltd has owned its holding in Mobile Ltd for 33 months, its ownership of the Boron holding has only lasted
    for 10 months (at 1 June 2005) since Boron was acquired on 1 July 2004. Selling the shares in June 2005 will fail the
    12 month test, and the gain will become chargeable.
    It would be better for the companies to wait for a further month until July 2005 before selling the amalgamated shareholding.
    By doing so, they will both be able to take advantage of the substantial shareholdings relief, thereby saving tax of £29,625
    assuming a corporation tax rate of 19%.

  • 第4题:

    (c) Calculate the expected corporation tax liability of Dovedale Ltd for the year ending 31 March 2007 on the

    assumption that all available reliefs are claimed by Dovedale Ltd but that Hira Ltd will not claim any capital

    allowances in that year. (4 marks)


    正确答案:

     

  • 第5题:

    (b) (i) Compute the corporation tax liability of Speak Write Ltd for its first trading period on the assumption

    that the IR 35 legislation applies to all of its income. (2 marks)


    正确答案:

     

  • 第6题:

    (b) (i) Advise Andrew of the income tax (IT) and capital gains tax (CGT) reliefs available on his investment in

    the ordinary share capital of Scalar Limited, together with any conditions which need to be satisfied.

    Your answer should clearly identify any steps that should be taken by Andrew and the other investors

    to obtain the maximum relief. (13 marks)


    正确答案:
    (b) (i) Andrew may be able to take advantage of tax reliefs under the enterprise investment scheme (EIS) provided the
    necessary conditions are met. The conditions that have to be satisfied before full relief is available fall into three areas,
    and broadly require that a ‘qualifying individual’ subscribes for ‘eligible shares’ in a ‘qualifying company’.
    ‘Qualifying Individual’
    To be a qualifying individual, Andrew must not be connected with the EIS company. This means that he should not be
    an employee (or, at the time the shares are issued, a director) or have an interest in (i.e. control) 30% or more of the
    capital of the company. These conditions need to be satisfied throughout the period beginning two years before the share
    issue and three years after the ‘relevant date’. Where the relevant date is defined as the later of the date the shares were
    issued and the date on which the company commenced trading.
    Andrew does not intend to become an employee (or director) of Scalar Limited, but he needs to exercise caution as to
    how many shares he subscribes for. If only three investors subscribe for 100% of the shares, each will hold 33% of the
    share capital. This exceeds the 30% limit and will mean that EIS relief (other than deferral relief) will not be available.
    Therefore, Andrew and the other two investors should ensure not only that the potential fourth investor is recruited, but
    that s/he subscribes for sufficient shares, such that none of them will hold 30% or more of the issued share capital, as
    only then will they all attain qualifying individual status.
    ‘Eligible shares’
    Qualifying shares need to be new ordinary shares which are subscribed for in cash and fully paid up at the time of issue.
    The shares must not be redeemable for at least three years from the relevant date, and not carry any preferential rights
    to dividends. On the basis of the information provided, the shares of Scalar Limited would qualify as eligible shares.
    ‘Qualifying Company’
    The company must be unquoted, not controlled by another company, and engaged in qualifying business activities. The
    latter requires that the company engage in a trading activity, which is carried on wholly or mainly in the UK, throughout
    the three years following the relevant date. While certain trading activities, such as dealing in shares or trading in land,
    are excluded, the manufacturing trade Scalar Limited proposes to carry on will qualify.
    However, it is also necessary for at least 80% of the money raised to be used for the qualifying business activity within
    12 months of the relevant date and the remaining 20% to be so used within the following 12 months. Andrew and the
    other investors will thus have to ensure that Scalar Limited has not raised more funds than it is able to employ in the
    business within the appropriate time periods.
    Reliefs available:
    Andrew can claim income tax relief at 20% income tax relief on the amount invested up to a maximum of £200,000
    in any one tax year. The relief is given in the form. of a tax reducing allowance, which can reduce the investor’s income
    tax liability to nil, but cannot be used to generate a tax refund. If the investment is made prior to 6 October in the tax
    year, then 50% of the amount invested (up to a maximum of £25,000) can be treated as having been made in the
    previous tax year.
    Any capital gains arising on the sale of EIS shares will be fully exempt from capital gains tax provided that income tax
    relief was given on the investment when made and has not been withdrawn. If the EIS shares are disposed of at a loss,
    capital losses are still allowable, but reduced by the amount of any EIS relief attributable to the shares disposed of.
    In addition, gains from the disposal of other assets can be deferred against the base cost of EIS shares acquired within
    one year before and three years after their disposal. Such gains will, thus, not normally become chargeable until the EIS
    shares themselves are disposed of. Further, for deferral relief to be available, it is not necessary for the investment to
    qualify for EIS income tax relief, i.e. deferral is available even where the investor is not a qualifying individual. Thus,
    Andrew could still defer the gain arising on the disposal of the residential property lease made in order to raise part of
    the funds for his EIS investment, even if no fourth investor were to be found and his shareholding were to exceed 30%
    of the issued share capital of Scalar Limited. Does not require the existence of income tax relief in order to be claimed.
    Withdrawal of relief:
    Any EIS relief claimed by Andrew will be withdrawn (partially or fully) if, within three year of the relevant date:
    (1) he disposes of the shares;
    (2) he receives value from the company;
    (3) he ceases to be a qualifying individual; or
    (4) Scalar Limited ceases to be a qualifying company.
    With regard to receiving value from the company, the definition excludes dividends which do not exceed a normal rate
    of return, but does include the repayment of any loans made to the company before the shares were issued, the provision
    of benefits and the purchase of assets from the company at an undervalue. In this regard, Andrew and the other
    subscribers should ensure that the £50,000 they are to invest in Scalar Limited as loan capital is appropriately timed
    and structured relative to the issue of the EIS shares.

  • 第7题:

    (b) Explain the corporation tax and value added tax (VAT) implications of the following aspects of the proposed

    restructuring of the Rapier Ltd group.

    (i) The immediate tax implications of the restructuring. (6 marks)


    正确答案:
    (b) The tax implications of the proposed restructuring of the Rapier Ltd group
    (i) Immediate implications
    Corporation tax
    Rapier Ltd and its subsidiaries are in a capital gains group as Rapier Ltd owns at least 75% of the ordinary share capital
    of each of the subsidiary companies. Any non-exempt items of plant and machinery owned by the subsidiaries will
    therefore be transferred to Rapier Ltd at no gain, no loss.
    No taxable credit or allowable debit will arise on the transfer of the subsidiaries’ goodwill to Rapier Ltd because the
    companies are in a capital gains group.
    The trading losses brought forward in Dirk Ltd will be transferred with the trade to Rapier Ltd as the effective ownership
    of the three trades will not change (Rapier Ltd owns the subsidiaries which own the trades and, following the
    restructuring, will own the three trades directly). The losses will be restricted to being offset against the future trading
    profits of the Dirk trade only.
    There will be no balancing adjustments in respect of the plant and machinery transferred to Rapier Ltd. Writing down
    allowances will be claimed by the subsidiaries in respect of the year ending 30 June 2007 and by Rapier Ltd in respect
    of future periods.
    Value added tax (VAT)
    No VAT should be charged on the sales of the businesses to Rapier Ltd as they are outside the scope of VAT. This is
    because the trades are to be transferred as going concerns to a VAT registered person with no significant break in trading.
    Switch Ltd must notify HM Revenue and Customs by 30 July 2007 that it has ceased to make taxable supplies.

  • 第8题:

    (c) Explanatory notes, together with relevant supporting calculations, in connection with the loan. (8 marks)

    Additional marks will be awarded for the appropriateness of the format and presentation of the schedules, the

    effectiveness with which the information is communicated and the extent to which the schedules are structured in

    a logical manner. (3 marks)

    Notes: – you should assume that the tax rates and allowances for the tax year 2006/07 and for the financial year

    to 31 March 2007 apply throughout the question.

    – you should ignore value added tax (VAT).


    正确答案:
    (c) Tax implications of there being a loan from Flores Ltd to Banda
    Flores Ltd should have paid tax to HMRC equal to 25% of the loan, i.e. £5,250. The tax should have been paid on the
    company’s normal due date for corporation tax in respect of the accounting period in which the loan was made, i.e. 1 April
    following the end of the accounting period.
    The tax is due because Flores Ltd is a close company that has made a loan to a participator and that loan is not in the ordinary
    course of the company’s business.
    HMRC will repay the tax when the loan is either repaid or written off.
    Flores Ltd should have included the loan on Banda’s Form. P11D in order to report it to HMRC.
    Banda should have paid income tax on an annual benefit equal to 5% of the amount of loan outstanding during each tax
    year. Accordingly, for each full year for which the loan was outstanding, Banda should have paid income tax of £231
    (£21,000 x 5% x 22%).
    Interest and penalties may be charged in respect of the tax underpaid by both Flores Ltd and Banda and in respect of the
    incorrect returns made to HMRC
    Willingness to act for Banda
    We would not wish to be associated with a client who has engaged in deliberate tax evasion as this poses a threat to the
    fundamental principles of integrity and professional behaviour. Accordingly, we should refuse to act for Banda unless she is
    willing to disclose the details regarding the loan to HMRC and pay the ensuing tax liabilities. Even if full disclosure is made,
    we should consider whether the loan was deliberately hidden from HMRC or Banda’s previous tax adviser.
    In addition, companies are prohibited from making loans to directors under the Companies Act. We should advise Banda to
    seek legal advice on her own position and that of Flores Ltd.

  • 第9题:

    (c) On the assumption that the administrators of Noland’s estate will sell quoted shares in order to fund the

    inheritance tax due as a result of his death, calculate the value of the quoted shares that will be available to

    transfer to Avril. You should include brief notes of your treatment of the house and the shares in Kurb Ltd.

    (9 marks)

    Note: you should assume that the tax rates and allowances for the tax year 2006/07 apply throughout this

    question.


    正确答案:

    (c) Value of quoted shares that can be transferred to Avril
    The value of shares to be transferred to Avril will be equal to £370,000 less the inheritance tax due by the estate.
    IHT is payable on transfers in the seven years prior to Noland’s death and on the death estate.
    The only chargeable gift in the seven years prior to Noland’s death is the transfer to the discretionary trust. No tax is due in
    respect of this gift as it is covered by the nil rate band.

  • 第10题:

    6 (a) Explain the term ‘money laundering’. (3 marks)


    正确答案:
    6 MONEY LAUNDERING
    Tutorial note: The answer which follows is indicative of the range of points which might be made. Other relevant material will
    be given suitable credit.
    (a) Meaning of the term
    ■ Money laundering is the process by which criminals attempt to conceal the true origin and ownership of the proceeds
    of their criminal activity (‘dirty’ money) allowing them to maintain control over the proceeds and, ultimately, providing a
    legitimate cover for their sources of income.
    ■ The term is widely defined to include:
    – possessing; or
    – in any way dealing with; or
    – concealing
    the proceeds of any crime (‘criminal property’).
    ■ It also includes:
    – an attempt or conspiracy or incitement to commit such an offence; or
    – aiding, abetting, counselling or procuring the commission of such an offence.
    ■ Further, it includes failure by an individual in a regulated sector to inform. the financial intelligence unit (FIU), as soon
    as practicable, of knowledge or suspicion that another person is engaged in money laundering.
    Tutorial note: The FIU serves as a national centre for receiving (and, as permitted, requesting), analysing and
    disseminating suspicious transaction reports (STRs).

  • 第11题:

    (c) The OECD’s Financial Action Task Force on Money Laundering (FATF) recommends preventative measures to be

    taken by independent legal professionals and accountants (including sole practitioners, partners and employed

    professionals within professional firms).

    Required:

    Describe FOUR measures that assist in preventing professional accountants from being used for money

    laundering purposes. (8 marks)


    正确答案:
    (c) Measures
    The following measures are designed to assist in preventing professional accountants from being used for money laundering
    purposes:
    ■ developing programmes against money laundering and terrorist financing;
    ■ compliance officer;
    ■ employee training programme;
    ■ customer due diligence (CDD);
    ■ establishing/enhancing record keeping systems for:
    – all transactions; and
    – the verification of clients’ identities;
    ■ reporting of suspicious transactions;
    ■ refusing to have relationships with ‘shell banks’.
    Tutorial note: Only FOUR are required.
    Developing programmes
    ■ Internal policies, procedures and controls should be established and recorded including:
    – compliance management arrangements (including appointment of a compliance officer);
    – an ongoing employee training programme;
    – an audit function to test the system.
    Compliance officer
    ■ Appointing a compliance officer having a suitable level of seniority and experience (e.g. one of the principals of an
    accountancy firm).
    ■ Making alternative arrangements (e.g. appointing a deputy) when the compliance officer is going to be unavailable for
    a period of time (as reports have to be made as soon as is reasonably practicable).
    ■ The compliance officer being made responsible for:
    – receiving and assessing money laundering reports from colleagues;
    – making reports to the FIU; and
    – ensuring that individuals are adequately trained.
    Employee training programme
    ■ Providing an employee training programme on:
    – relevant legislation (e.g. the main money laundering offences);
    – ethical guidance (e.g. ACCA’s ‘Guidance for Accountants’); and
    – the firm’s procedures to forestall and prevent money laundering.
    ■ Establishing a culture of complying with money laundering requirements.
    ■ Documenting the provision of training (to demonstrate compliance).
    ■ Training methods may effectively include:
    – attending conferences, seminars and training courses run by external organizations; and
    – participating in computer based training courses.
    Customer due diligence (CDD)
    ■ Firms should not keep anonymous accounts or accounts in obviously fictitious names.
    ■ Firms should verify the identity of their customers, when:
    – establishing business relations;
    – carrying out occasional transactions (e.g. above a designated threshold);
    – there is a suspicion of money laundering or terrorist financing; or
    – there is doubt about the reliability or adequacy of previously obtained customer identification data.
    CDD measures should include:
    ■ Identifying the customer and verifying that customer’s identity using reliable, independent source documents, data or
    information.
    Tutorial note: Similarly identify and verify the beneficial owner.
    ■ Obtaining information on the purpose and intended nature of the business relationship.
    ■ Conducting ongoing due diligence on business relationships by scrutinising transactions to ensure that they are
    consistent with the firm’s knowledge of:
    – the customer;
    – their business and risk profile;
    – the source of funds.
    Tutorial note: These requirements should apply to all new customers and existing customers on the basis of materiality and
    risk.
    Record keeping
    ■ Maintaining all client identification records together with a record of all transactions, in a full audit trail form.
    ■ Maintaining records of transactions (both domestic or international) in a readily retrievable form. for a period of at least
    five years (to facilitate swift compliance with information requests from the competent authorities).
    Tutorial note: Such records must be sufficient to permit reconstruction of individual transactions (including the
    amounts and types of currency involved, if any) so as to provide, if necessary, evidence for prosecution of criminal
    activity.
    ■ Retaining client verification records throughout the period of the relationship and for five years after termination of the
    relationship.
    ■ Making available identification data and transaction records to domestic competent authorities upon appropriate
    authority.
    ■ Applying ACCA’s Rules of Professional Conduct ‘Retention of books, files, working papers and other documents’.
    ■ Paying special attention to all complex, unusual large transactions, and all unusual patterns of transactions, which have
    no apparent economic or visible lawful purpose (in accordance with ISA 240 ‘The Auditor’s Responsibility to Consider
    Fraud in an Audit of Financial Statements ’).
    Client identification
    ■ For an individual – inspecting official documents, with a photograph, establishing the client’s full name and permanent
    address, e.g:
    – a driving licence or passport, supported by;
    – a recent utility bill.
    ■ For the entity – obtaining from the Registrar of Companies:
    – certificate of incorporation;
    – company’s registered address; and
    – a list of shareholders and directors.
    ■ Checking the names of new clients against lists of known terrorists and other sanctions information.
    ■ For trusts – ascertaining:
    – the nature and purpose of the trust;
    – the original source of funding; and
    – the identities of the trustees/controllers, principal settlers and beneficiaries.
    Suspicion reporting
    ■ Prompt reporting of suspicions to the (FIU) in a suspicious transaction report (STR).
    ■ There should be no ‘de minimis’ concessions. Reporting should be irrespective of:
    – the amount involved; or
    – whether tax matters are involved.
    Tutorial note: Attempted transactions should also be reported.
    ■ Enhancing confidentiality of the source of reports by:
    – disclosing the compliance officer only once; and
    – not naming the personnel making reports to the compliance officer.
    ■ Disclosing further information only if:
    – legally required to do so; or
    – otherwise justified, in the public interest.
    Shell banks
    Tutorial note: A ‘shell bank’ is a bank incorporated in a jurisdiction in which it has no physical presence and which is
    unaffiliated with a regulated financial group.
    ■ Firms should guard against relationships with parties that permit their accounts to be used by shell banks.

  • 第12题:

    问答题
    Many people hold the view that money is everything. What do you think? Write a composition of 400 words on the following topic, expressing your views on the importance of money. HOW IMPORTANT IS MONEY?  In the first part of your writing you should present your thesis statement, and in the second part you should support the thesis statement with appropriate details. In the last part you should bring what you have written to a natural conclusion or a summary.  Marks will be awarded for content, organization, grammar and appropriateness. Failure to follow the above instructions may result in a loss of marks.

    正确答案:
    HOW IMPORTANT IS MONEY? No one would deny that money is unimportant. There are certain things that human beings need—food, shelter, perhaps medical care—and these things cost money. But if one has enough money to live on, to pay for the basic essentials of life, is it important to have a lot more money than that? Will your life improve in proportion to the amount of money that you have? Money is important but it does not guarantee happiness.
    There is no denying that money can buy a lot. Maybe you do not need much money to pay for simple shelter, but how about if you want a nice, big apartment in a nice neighborhood, or if you want to buy a house? The fact is that people do get on each other's nerves if they are crowded together in a small space, and that a married couple or members of a family are likely to get along better if they are not constantly tripping over each other and asking each other not to be so noisy—if each can find a little privacy from time to time. A big apartment or a house will allow them this privacy.
    It is nice to get a little pleasure out of life, a little fun from time to time. Unfortunately, many of the fun things that you can do today cost money. Films, concerts, gyms are available to you only after you have bought the tickets. Delicious food in a restaurant can only be tasted after you have paid for it. Some people believe America is the most fantastic place in the world, while some say it is the hell. Why do their opinions vary so greatly? Because the latter do not have enough money to take advantage of many attractions there.
    However, is money the road to happiness? Not really. Large number of people work every day, work overtime, work weekends, and make a lot of money. Are they happy?. No. They have no time to form or to maintain friendships. Enjoying means taking things in, taking the time to see, to hear. But unfortunately, many people simply do not take the time to do these.
    Surely everyone has thought at times, ff only I had a lot of money, I could be the happiest person in the world. It is important to remember, however, that money is only a means to an end, not the end itself.
    解析:
    本文探讨了一个很古老的话题:钱到底有多重要。作者开门见山提出论 点:钱很重要但不能确保幸福。然后作者用两段论述了钱的重要性。第四段作者笔锋一转指出并非一个人钱越多就越幸福。最后一段作者指出赚钱并不是最重要的,享受生活、感受幸福才是人生的目的。

  • 第13题:

    (b) Using sensitivity analysis, estimate by what percentage each of the under-mentioned items, taken separately,

    would need to change before the recommendation in (a) above is varied:

    (i) Initial outlay;

    (ii) Annual contribution. (4 marks)


    正确答案:

  • 第14题:

    (b) Calculate the corporation tax (CT) liabilities for Alantech Ltd, Boron Ltd and Bubble Ltd for the year ending

    31 December 2004 on the assumption that loss reliefs are taken as early as possible. (9 marks)


    正确答案:

    (b) Schedule D Case I calculation
    The three companies form. a group for both group relief and capital gains purposes as all shareholdings pass the 75%
    ownership test. The calculation of the corporation tax liabilities is as follows:

  • 第15题:

    (ii) Briefly outline the tax consequences for Henry if the types of protection identified in (i) were to be

    provided for him by Happy Home Ltd compared to providing them for himself. You are not required to

    discuss the corporation tax (CT) consequences for Happy Home Ltd. (4 marks)


    正确答案:
    (ii) Provision of protection: company or individual
    If any of the policies are taken out and paid for by Henry personally, then there will be no tax relief on the premiums,
    but neither will there normally be any tax payable on the proceeds or benefits received.
    If Happy Home Ltd were to pay the premiums on a policy taken out by Henry, and of which he was the direct beneficiary,
    then this will constitute a benefit, on the grounds that the company will have satisfied a personal liability of Henry’s.
    Accordingly, income tax and Class 1A national insurance contributions will be payable on the benefit.
    If, however, Happy Home Ltd were to decide to offer protection benefits to their employees on a group basis (and not
    just to Henry), then it would be possible to avoid a charge under the benefits rules and/or obtain a lower rate of premium
    under a collective policy. For example:
    – A death in service benefit of up to four times remuneration can be provided as part of an approved pension scheme.
    No benefit charge arises on Henry and any lump sum will be paid tax free. This could be considered a substitute
    for a term assurance policy.
    – If a group permanent health insurance policy were taken out, no benefit charge would arise on Henry, but any
    benefits payable under the policy would be paid to Happy Home Ltd in the first instance. When subsequently paid
    on to Henry, such payments would be treated as arising from his employment and subject to PAYE and national
    insurance as for normal salary payments.
    – If a group critical illness policy were taken out, again no benefit charge would arise on Henry, but in this case also,
    any benefits received by Henry directly from Happy Home Ltd as a result of the payments under the policy would
    be considered as derived from his employment and subject to income tax and national insurance. Such a charge
    to tax and national insurance would however be avoided if these payments were made in terms of a trust.

  • 第16题:

    (d) Explain whether or not Dovedale Ltd, Hira Ltd and Atapo Inc can register as a group for the purposes of value

    added tax. (3 marks)


    正确答案:
    (d) Dovedale Ltd and Hira Ltd can register as a group for the purposes of value added tax (VAT) because Dovedale Ltd controls
    Hira Ltd and both companies are established in the UK in that their head offices are in the UK.
    Dovedale Ltd will also control Atapo Inc. However, Atapo Inc cannot be part of a group registration unless it is established
    in the UK or has a fixed establishment in the UK. It will be regarded as established in the UK if it is centrally managed and
    controlled in the UK or if its head office is in the UK. A fixed establishment is a place where the company has staff and
    equipment and where its business is carried on.

  • 第17题:

    (iii) State the value added tax (VAT) and stamp duty (SD) issues arising as a result of inserting Bold plc as

    a holding company and identify any planning actions that can be taken to defer or minimise these tax

    costs. (4 marks)

    You should assume that the corporation tax rates for the financial year 2005 and the income tax rates

    and allowances for the tax year 2005/06 apply throughout this question.


    正确答案:
    (iii) Bold plc will be making a taxable supply of services, likely to exceed the VAT threshold. It should therefore consider
    registering for VAT – either immediately on a voluntary basis, or when its cumulative taxable supplies in the previous
    twelve months exceed £60,000.
    As an alternative, the new group can apply for a group VAT registration. This will simplify its VAT administration as intragroup
    transactions are broadly disregarded for VAT purposes, and only one VAT return is required for the group as a
    whole.
    Stamp duty normally applies at 0·5% on the consideration payable in respect of transactions in shares. However, an
    exemption is available in the case of a takeover, reconstruction or amalgamation where there is no real change in
    ownership, i.e. the new shareholdings mirror the old shareholdings, and the transaction is for commercial purposes. The
    insertion of a new holding company over an existing company, as proposed here, would qualify for this exemption.
    There is no VAT on transactions in shares.

  • 第18题:

    (ii) The UK value added tax (VAT) implications for Razor Ltd of selling tools to and purchasing tools from

    Cutlass Inc; (2 marks)


    正确答案:
    (ii) Value added tax (VAT)
    Goods exported are zero-rated. Razor Ltd must retain appropriate documentary evidence that the export has taken place.
    Razor Ltd must account for VAT on the value of the goods purchased from Cutlass Inc at the time the goods are brought
    into the UK. The VAT payable should be included as deductible input tax on the company’s VAT return.

  • 第19题:

    (c) The inheritance tax payable by Adam in respect of the gift from his aunt. (4 marks)

    Additional marks will be awarded for the appropriateness of the format and presentation of the memorandum and

    the effectiveness with which the information is communicated. (2 marks)

    Note: you should assume that the tax rates and allowances for the tax year 2006/07 will continue to apply for the

    foreseeable future.


    正确答案:
    (c) Inheritance tax payable by Adam
    The gift by AS’s aunt was a potentially exempt transfer. No tax will be due if she lives until 1 June 2014 (seven years after
    the date of the gift).
    The maximum possible liability, on the assumption that there are no annual exemptions or nil band available, is £35,216
    (£88,040 x 40%). This will only arise if AS’s aunt dies before 1 June 2010.
    The maximum liability will be reduced by taper relief of 20% for every full year after 31 May 2010 for which AS’s aunt lives.
    The liability will also be reduced if the chargeable transfers made by the aunt in the seven years prior to 1 June 2007 are
    less than £285,000 or if the annual exemption for 2006/07 and/or 2007/08 is/are available.

  • 第20题:

    (b) Explain why making sales of Sabals in North America will have no effect on Nikau Ltd’s ability to recover its

    input tax. (3 marks)

    Notes: – you should assume that the corporation tax rates and allowances for the financial year to 31 March 2007

    will continue to apply for the foreseeable future.

    – you should ignore indexation allowance.


    正确答案:
    (b) Recoverability of input tax
    Sales by Nikau Ltd of its existing products are subject to UK VAT at 17·5% because it is selling to domestic customers who
    will not be registered for VAT. Accordingly, at present, Nikau Ltd can recover all of its input tax.
    Sales to customers in North America will be zero rated because the goods are being exported from the EU. Zero rated supplies
    are classified as taxable for the purposes of VAT and therefore Nikau Ltd will continue to be able to recover all of its input tax.

  • 第21题:

    (iv) The stamp duty and/or stamp duty land tax payable by the Saturn Ltd group; (2 marks)

    Additional marks will be awarded for the appropriateness of the format and presentation of the memorandum

    and the effectiveness with which the information is communicated. (2 marks)


    正确答案:
    (iv) Stamp duty and stamp duty land tax
    – The purchase of Tethys Ltd will give rise to a liability to ad valorem stamp duty of £1,175 (£235,000 x 0·5%).
    The stamp duty must be paid by Saturn Ltd within 30 days of the share transfer in order to avoid interest being
    charged. It is not an allowable expense for the purposes of corporation tax.

  • 第22题:

    (b) Comment on the need for ethical guidance for accountants on money laundering. (4 marks)


    正确答案:
    (b) Need for ethical guidance
    ■ Accountants (firms and individuals) working in a country that criminalises money laundering are required to comply with
    anti-money laundering legislation and failure to do so can lead to severe penalties. Guidance is needed because:
    – legal requirements are onerous;
    – money laundering is widely defined; and
    – accountants may otherwise be used, unwittingly, to launder criminal funds.
    ■ Accountants need ethical guidance on matters where there is conflict between legal responsibilities and professional
    responsibilities. In particular, professional accountants are bound by a duty of confidentiality to their clients. Guidance
    is needed to explain:
    – how statutory provisions give protection against criminal action for members in respect of their confidentiality
    requirements;
    – when client confidentiality over-ride provisions are available.
    ■ Further guidance is needed to explain the interaction between accountants’ responsibilities to report money laundering
    offences and other reporting responsibilities, for example:
    – reporting to regulators;
    – auditor’s reports on financial statements (ISA 700);
    – reports to those charged with governance (ISA 260);
    – reporting misconduct by members of the same body.
    ■ Professional accountants are required to communicate with each other when there is a change in professional
    appointment (i.e. ‘professional etiquette’). Additional ethical guidance is needed on how to respond to a ‘clearance’ letter
    where a report of suspicion has been made (or is being contemplated) in respect of the client in question.
    Tutorial note: Although the term ‘professional clearance’ is widely used, remember that there is no ‘clearance’ that the
    incumbent accountant can give or withhold.
    ■ Ethical guidance is needed to make accountants working in countries that do not criminalise money laundering aware
    of how anti-money laundering legislation may nevertheless affect them. Such accountants may commit an offence if,
    for example, they conduct limited assignments or have meetings in a country having anti-money laundering legislation
    (e.g. UK, Ireland, Singapore, Australia and the United States).

  • 第23题:

    问答题
    Now Internet has almost become the symbol of information age. Some think that it is a very great invention because by it, they can do many things that were impossible before. But some view Internet with much disapproval because it distracts people's attention rather than help people do things better. What is your opinion about the influence of Internet on the modern society? Write an essay of about 400 words on the following topic:Internet and the Modern SocietyIn the first part of your writing you should present your thesis statement, and in the second part you should support the thesis statement, with appropriate details. In the last part you should bring what you have .written to a natural conclusion or a summary.  Marks will be awarded for content, organization, grammar and appropriateness. Failure to follow the above instructions may result in a loss of marks.

    正确答案:
    The Internet and the Modern Society Recently the influence of Internet has attracted much public attention. People worry about the time wasted on it, the damage caused by virus spread on it, and most of all, some violent crimes committed due to the violent games played on it. All these concerns may be reasonable. But if we take a broader perspective, we may find that Internet has had many positive impacts on the modern society.
    First of all, Internet has made the access to information more convenient. In .the past, people could get information they wanted through only limited channels, such as newspaper, radio, and television. This means that only a certain amount of people could get the information at a certain time and in a certain place. But now with the help of internet, people can get information no matter when they want. As a researcher has pointed out, information explosion means that people live in the ocean of information, and Internet has been essential to make that true.
    Besides, Internet has also made communication more convenient. Sociologists agree that communication is vital to maintain harmonious human relation, but the communication was rather inconvenient in the past despite the continuous improvement of technology. Letters have been so slow as to be nicknamed snail mail; telegraph and telephone may be quicker, but they have been very costly. But now many new communication tools developed on the basis of the Internet, such as e-mail, msn and QQ, have made talking to a person extremely quick, convenient, and virtually free of charge. This will undoubtedly improve the human relation in the modern world.
    The most important impact, however, is that Internet has made social interaction more convenient. Before the Internet era, various social institutes had only limited options to choose from if they wanted to reach the public, and naturally the result was usually unsatisfactory. But now in the Internet era, all these institutes can set up their own websites, which can not only provide the public with information but also collect reaction from the public. For example, the government can collect people's opinion about a certain project through the Internet, producers can promote products through Internet, and universities can clarify admission policies through Internet. The result is that Internet can help to bring about a more open, fair and interactive society.
    In a word, more convenient social interaction, personal communication and access to information are the three major changes the Internet has made in the modern society. Although there do exist some problems with the Internet, these positive influences certainly are more important. What we should do is to find measures to solve the problems rather than just talk about them. Just as the proverb goes, we should not stop eating for fear of being choked.
    解析:
    本题的题目首先列举了人们对互联网的两种看法,然后要求考生谈论自己对关于“互联网对现代社会的影响”。本文的引言段采用的是转折式(self-refutation)。作者先列举了互联网的一些问题,然后话锋一转,提出互联网的影响主要是积极的这一观点。在正文段落中,作者分别从三个方面阐述互联网的影响,即获取信息更方便、人际交流更方便和社会互动更方便。这一顺序非常合理,从个人到社会,符合范围从小到大、水平从低到高的规律。前面两段的衔接词分别为first of all和besides,第三段则使用了the most important impact,however,这起到了很好的强调作用。另外,第一段中的专家证言和第二段中的例子都使得文章的内容更加丰富。结论段使用in a word开始,作者在一句话中完成了summary。Final comment中的格言的使用,也为文章添色不少。