ADVANCED TAXATION

Summary of Marking Key

Certified Finance and Accounting Professional Examination – Winter 2021

Note regarding marking scheme:

The marking scheme is given as a guide. However, markers also award marks for alternative
approaches to a question and relevant/well-reasoned comments/explanations. Moreover, the
available marks in answer may exceed the total marks of a question.

Mark(s)
A.1 Comments on the treatment of each of the following:

Sales 4.5

Royalty income 3.0

Cash dividend 2.0

Bonus shares 4.0

Payment to TV channel 1.5

Various payments in respect of foreign consultant’s visit to Pakistan 4.0

Payment of Commission 1.5

Lease rental 4.5

A.2 (a)
Income from business 10.0

Exempt income 2.0

Taxable income 1.0

Gross tax liability 1.0

Net tax liability 1.0

(b)
Adjusted gross sales 1.0

Gross tax liability 1.0

Net tax liability 1.0

A.3 (a)
On part of Khalid:

− Acquisition of property by way of gift 3.0
− Sale of property to his friend 4.0

On part of Jawwad:
− Transfer of property by way of gift 3.0

(b) 01 mark for each provision related to speculation loss 4.0

A.4
Sales tax credit – Input tax 9.0

Sales tax debit – Output tax 7.0

Apportionment of input tax 1.0

Withholding sales tax 2.0

Further tax 1.0

A.5 (a)
Identifying as tier-1 retailer 1.0

Impact on input tax 1.0

Penalty 3.0

(b) 01 mark for each provision related to chargeability of sales tax on sale to
diplomat 5.0

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 ADVANCED TAXATION
Summary of Marking Key
Certified Finance and Accounting Professional Examination – Winter 2021

Mark(s)
A.6
0.5 for identifying tax avoidance / evasion in respect of each matter 2.5

0.5 for specifying the reason in respect of each matter identified as tax
avoidance/evasion 2.5

A.7
Input duty 4.0

Output duty 3.0

Duty drawback 1.0

(THE END)

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