(b) Write a letter to Joanne setting out the value added tax (VAT) registration requirements and advising on
whether or not she should or could register for VAT and if registered if she could recover the VAT suffered on
the consultancy fees and computer purchased in October 2005. (7 marks)
第1题:
4 Assume today’s date is 5 February 2006.
Joanne is 37, she was born and until 2005 had lived all her life in Germany. She recently married Fraser, aged 38,
who is a UK resident, but who worked briefly in Germany. They have no children.
The couple moved to the UK to live permanently on 9 October 2005. Joanne was employed by an American company
in Germany, and she continued to work for them in the UK until the end of November 2005. Her earnings from the
American company were £5,000 per month. Joanne has not remitted any of the income she earned in Germany prior
to her arrival in the UK.
Joanne resigned from her job at the end of November 2005. The company did not hold her to the three months notice
stipulated in her contract, but still paid her for that period. In total, Joanne paid £4,200 in UK income tax under PAYE
for the tax tear 2005/06.
Joanne also wishes to sell the shares she holds in a German listed company. The shareholding cost the equivalent of
£3,500 in September 1986, and its current value is £21,500. She intends to sell the shares in March 2006 and to
invest the proceeds from the sale in the UK. Joanne has made no other capital disposals in the year.
Prior to her leaving employment, Joanne investigated the possibility of starting her own business providing a German
translation service for UK companies, and took some advice on the matter. She paid consultancy fees of £5,000
(excluding value added tax (VAT)) and bought a computer for £2,000 (excluding VAT), both on 23 October 2005.
Joanne started trading on 1 December 2005. She made sales of £2,000 in December, and estimates that her sales
will rise by £1,000 every month to a maximum of £7,000 per month. Joanne believes that her monthly expenses of
£400 (excluding VAT) will remain constant. Her year end will be 31 March, and the first accounts will be drawn up
to 31 March 2006.
Although Joanne has registered her business for tax purposes with the Revenue, she has not registered for VAT and
is unsure what is required of her in this respect.
Required:
(a) State, giving reasons, whether Joanne will be treated as resident or non-resident in the UK for the year of
assessment 2005/06, together with the basis on which her income and gains of that year will be subject to
UK taxation. (3 marks)
第2题:
(c) Assuming that she will survive until July 2009, advise on the lifetime inheritance tax (IHT) planning
measures that could be undertaken by Debbie, quantifying the savings that can be made. (7 marks)
For this question you should assume that the rates and allowances for 2004/05 apply throughout.
第3题:
Assume that the rates and allowances for 2004/05 apply throughout this part.
(b) Explain the consequences of filing the VAT returns late and advise Fred how he should deal with the
underpayment and bad debt for VAT purposes. Your explanation should be supported by relevant
calculations. (10 marks)
第4题:
(d) Advise Trent Limited of the consequences arising from the submission of the incorrect value added tax (VAT)
return, assuming that the company has previously had a good compliance record with regard to accounting
for VAT. (6 marks)
第5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)
第6题:
(b) Advise Maureen on deregistration for the purposes of value added tax (VAT) and any possible alternative
strategy. (8 marks)
An additional mark will be awarded for the effectiveness with which the information is communicated.
(1 mark)
第7题:
What does VAT stand for?
A. Value-Assist Tag
B. Value-Added Tax
C. Value-Added Tag
D. Value-Assist Tax
第8题:
A corporate taxpayer has under-reported its taxable revenue in 2002 and hence underpaid value added tax (VAT) and enterprise income tax (EIT). In 2014, the taxpayer was charged by the tax authority with committing an act of tax evasion in 2002.
Which of the following statements is correct?
A.The taxpayer must pay the additional taxes due, plus a late payment surcharge and a penalty
B.There is no need for the taxpayer to pay any additional taxes, late payment surcharge or penalty as the statute of limitation is ten years
C.The taxpayer must pay the additional taxes, but no late payment surcharge or penalty as the statute of limitation is ten years for late payment surcharge and penalties
D.The taxpayer must pay the additional taxes and a late payment surcharge but not a penalty as the statute of limitation is five years for penalties
Per Article 86 of the Tax Collection and Administrative Law, the statute of limitation for an administrative penalty on non-compliances is five years.
第9题:
第10题:
第11题:
True
False
Not Given
第12题:
第13题:
(c) Assuming that Joanne registers for value added tax (VAT) with effect from 1 April 2006:
(i) Calculate her income tax (IT) and capital gains tax (CGT) payable for the year of assessment 2005/06.
You are not required to calculate any national insurance liabilities in this sub-part. (6 marks)
第14题:
3 Assume that today’s date is 10 May 2005.
You have recently been approached by Fred Flop. Fred is the managing director and 100% shareholder of Flop
Limited, a UK trading company with one wholly owned subsidiary. Both companies have a 31 March year-end.
Fred informs you that he is experiencing problems in dealing with aspects of his company tax returns. The company
accountant has been unable to keep up to date with matters, and Fred also believes that mistakes have been made
in the past. Fred needs assistance and tells you the following:
Year ended 31 March 2003
The corporation tax return for this period was not submitted until 2 November 2004, and corporation tax of £123,500
was paid at the same time. Profits chargeable to corporation tax were stated as £704,300.
A formal notice (CT203) requiring the company to file a self-assessment corporation tax return (dated 1 February
2004) had been received by the company on 4 February 2004.
A detailed examination of the accounts and tax computation has revealed the following.
– Computer equipment totalling £50,000 had been expensed in the accounts. No adjustment has been made in
the tax computation.
– A provision of £10,000 was made for repairs, but there is no evidence of supporting information.
– Legal and professional fees totalling £46,500 were allowed in full without any explanation. Fred has
subsequently produced the following analysis:
Analysis of legal & professional fees
£
Legal fees on a failed attempt to secure a trading loan 15,000
Debt collection agency fees 12,800
Obtaining planning consent for building extension 15,700
Accountant’s fees for preparing accounts 14,000
Legal fees relating to a trade dispute 19,000
– No enquiry has yet been raised by the Inland Revenue.
– Flop Ltd was a large company in terms of the Companies Act definition for the year in question.
– Flop Ltd had taxable profits of £595,000 in the previous year.
Year ended 31 March 2004
The corporation tax return has not yet been submitted for this year. The accounts are late and nearing completion,
with only one change still to be made. A notice requiring the company to file a self-assessment corporation tax return
(CT203) dated 27 July 2004 was received on 1 August 2004. No corporation tax has yet been paid.
1 – The computation currently shows profits chargeable to corporation tax of £815,000 before accounting
adjustments, and any adjustments for prior years.
– A company owing Flop Ltd £50,000 (excluding VAT) has gone into liquidation, and it is unlikely that any of this
money will be paid. The money has been outstanding since 3 September 2003, and the bad debt will need to
be included in the accounts.
1 Fred also believes there are problems in relation to the company’s VAT administration. The VAT return for the quarter
ended 31 March 2005 was submitted on 5 May 2005, and VAT of £24,000 was paid at the same time. The previous
return to 31 December 2004 was also submitted late. In addition, no account has been made for the VAT on the bad
debt. The VAT return for 30 June 2005 may also be late. Fred estimates the VAT liability for that quarter to be £8,250.
Required:
(a) (i) Calculate the revised corporation tax (CT) payable for the accounting periods ending 31 March 2003
and 2004 respectively. Your answer should include an explanation of the adjustments made as a result
of the information which has now come to light. (7 marks)
(ii) State, giving reasons, the due payment date of the corporation tax (CT) and the filing date of the
corporation tax return for each period, and identify any interest and penalties which may have arisen to
date. (8 marks)
(a) Calculation of corporation tax
Year ended 31 March 2003
Corporation tax payable
There are three adjusting items:.
(i) The computers are capital items, as they have an enduring benefit. These need to be added back in the Schedule D
Case I calculation, and capital allowances claimed instead. The company is not small or medium by Companies Act
definitions and therefore no first year allowances are available. Allowances of £12,500 (50,000 x 25%) can be claimed,
leaving a TWDV of £37,500.
(ii) The provision appears to be general in nature. In addition there is insufficient information to justify the provision and it
should be disallowed until such times as it is released or utilised.
(iii) Costs relating to trading loan relationships are allowable, as are costs relating to the trade (debt collection, trade disputes
and accounting work). Costs relating to capital items (£5,700) are not allowable so will have to be added back.
Total profit chargeable to corporation tax is therefore £704,300 + 50,000 – 12,500 + 10,000 + 5,700 = 757,500. There are two associates, and therefore the 30% tax rate starts at £1,500,000/2 = £750,000. Corporation tax payable is 30% x£757,500 = £227,250.
Payment date
Although the rate of tax is 30% and the company ‘large’, quarterly payments will not apply, as the company was not large in the previous year. The due date for payment of tax is therefore nine months and one day after the end of the tax accounting period (31 March 2003) i.e. 1 January 2004.
Filing date
This is the later of:
– 12 months after the end of the period of account: 31 March 2004
– 3 months after the date of the notice requiring the return 1 May 2004
i.e. 1 May 2004.
第15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.
第16题:
(ii) The UK value added tax (VAT) implications for Razor Ltd of selling tools to and purchasing tools from
Cutlass Inc; (2 marks)
第17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).
第18题:
5 Gagarin wishes to persuade a number of wealthy individuals who are business contacts to invest in his company,
Vostok Ltd. He also requires advice on the recoverability of input tax relating to the purchase of new premises.
The following information has been obtained from a meeting with Gagarin.
Vostok Ltd:
– An unquoted UK resident company.
– Gagarin owns 100% of the company’s ordinary share capital.
– Has 18 employees.
– Provides computer based services to commercial companies.
– Requires additional funds to finance its expansion.
Funds required by Vostok Ltd:
– Vostok Ltd needs to raise £420,000.
– Vostok Ltd will issue 20,000 shares at £21 per share on 31 August 2008.
– The new shareholder(s) will own 40% of the company.
– Part of the money raised will contribute towards the purchase of new premises for use by Vostok Ltd.
Gagarin’s initial thoughts:
– The minimum investment will be 5,000 shares and payment will be made in full on subscription.
– Gagarin has a number of wealthy business contacts who may be interested in investing.
– Gagarin has heard that it may be possible to obtain tax relief for up to 60% of the investment via the enterprise
investment scheme.
Wealthy business contacts:
– Are all UK resident higher rate taxpayers.
– May wish to borrow the funds to invest in Vostok Ltd if there is a tax incentive to do so.
New premises:
– Will cost £446,500 including value added tax (VAT).
– Will be used in connection with all aspects of Vostok Ltd’s business.
– Will be sold for £600,000 plus VAT in six years time.
– Vostok Ltd will waive the VAT exemption on the sale of the building.
The VAT position of Vostok Ltd:
– In the year ending 31 March 2009, 28% of Vostok Ltd’s supplies will be exempt for the purposes of VAT.
– This percentage is expected to reduce over the next few years.
– Irrecoverable input tax due to the company’s partially exempt status exceeds the de minimis limits.
Required:
(a) Prepare notes for Gagarin to use when speaking to potential investors. The notes should include:
(i) The tax incentives immediately available in respect of the amount invested in shares issued in
accordance with the enterprise investment scheme; (5 marks)
第19题:
Erna Hart _______ a good swimmer; she swam across the English Channel when she was only fourteen years old!
A、must be
B、must have been
C、could be
D、should have been
第20题:
What could the girl in the ticket office do for the passengers without asking the computer?
A. She could sell a ticket.
B. She could write out a ticket.
C. She could answer the passengers' questions.
D. She could do nothing.
37.答案为D 根据文章中的对话:售票员不能卖机票,回答不出旅客提出的问题等等,可推知此题答案为D。
第21题:
第22题:
术语翻译:VAT()
第23题: