Unit12: Taxation Corporate and Capital Gains Taxation 2 of 2 Mr. Jun Alejo Bathan

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Unit Outcomes Outcome Evidence for the criteria Feedback Assessor’s decision Internal Verification Calculate corporation tax liabilities for companies (3) Calculate chargeable profits and losses for a limited company together with available allowances a Calculate the tax liability of a limited company and advise on payment dates b Explain how income tax deductions are to be dealt with Identify chargeable assets and disposals for an individual c a Calculate the capital gains tax payable for individuals and companies (4) Calculate the capital gains and losses for an individual and a company. together with relevant allowances b Calculate the tax payable in respect of capital gains c Merit grades awarded Distinction grades awarded M1 D1 M2 D2 M3 D3 2 .

.................................................................................. you’ve Areas for improvement: ASSESSOR SIGNATURE NAME:............................................................................................Common Skills A B C D E F G Assignment ( ) Well-structured.......... FOR INTERNAL USE ONLY VERIFIED YES NO DATE NAME : ............... Reference is done properly / should be done (if any) Overall................................................................. : ............. DATE / / VERIFIED BY : ..................Outcome Evidence for the criteria Feedback Assessor’s decision Internal Verification Comments by Assessor ......... COMMON SKILLS & COMPETENCIES ASSESSED (indicated by X) 3 ...................................... DATE / / (Oral feedback was also provided) STUDENT SIGNATURE NAME :.....................................................

There were no accruals of bank interest at the beginning or end of the year. Receive and respond to a variety of information 9. UK and Vietnam resident company. The bank deposits are held for nontrading purposes. APPLYING TECHNOLOGY 16. Transfer skills gained to new/changing situations & contexts D. Use a range of thought processes SCENARIO You are in business as tax practitioners and have recently gained three new clients. Communicate in writing 11.810. Managing own roles & responsibilities 2. Note 3. You are required to carry out the following tasks: Section A Industrial Ltd is a UK resident company that manufactures furniture.622 (1. Deal with a combination of routine & non-routine tasks 14. Use a range of technological equipment and systems C. The company’s results for the year ended 31 March 2011 are summarized as follows: £ Trading profit (as adjusted for taxation but before taking account capital allowances) Income from property (note 1) Bank interest received (note 2) Loan interest received (note 3) Profit on disposal of quoted shares (note 4) Donation to charity (note 5) Note 1 – Income from property Since 1 January 2011 Industrial Ltd has leased an office building that is surplus to requirements. Applying numerical skills and techniques X F. APPLYING NUMERACY 15. Participate in oral & no-verbal communication X G. APPLYING DESIGN AND CREATIVITY X X 17. Present information in a variety of visual forms 10. Treat others beliefs and opinions with respect 6. Work effectively as a team member E.400 which is payable in advance. Use information sources 13. MANAGING TASKS & SOLVING PROBLEMS 12. On that date the company received a premium of £80. Identify & solve routine & non-routine problems X B. Manage own time in achieving objectives 3. MANAGING & DEVELOPING SELF 1.A.Loan interest received The loan interest was received on 31 March 2011.The loan was made for non-trading 4 1. the other is an individual.000 for the grant of a ten-year lease. Note 2 – Bank interest received The bank interest was received on 31 March 2011. COMMUNICATING 8. Relate & interact effectively with individuals & groups 7.000 90.400 12.000 110.500) .500 36. and the annual rent of £30. services or situations 18. Undertakes personal and career development 4. Applying a range of skills and techniques to develop a variety of ideas in the creation of new / modified products. WORKING WITH & RELATING TO OTHERS 5.

The indexation allowance from April 2005 to January 2011 is £29.000 £ 3. In addition to any items of plant and machinery included in the cost of the industrial building (see note 6).250 650.800 36. the following assets were purchased during the year ended 31 March 2011.200 24.purposes to another UK company. Note 5.697. There were no accruals of loan interest at the beginning or end of the year. Note 6.750 93. 15 June 2010 15 August 2010 12 October 2010 10 December 2010 Machinery Motor car (CO2 emissions 170g/km) Lorry General plant 5 £ 130.Donation to charity The donation to charity was the amount paid under the gift aid scheme.800 7. Note 4.200 32.000 .400 The expensive motor car was sold on 31 August 2010 for £19. Land Levelling the land Architects fees Heating system Fire alarm system Strengthened concrete floor to support machinery General Offices Factory Note 7 – Plant and machinery On 1 April 2010 the tax written down values of plant and machinery were as follows: £ Main pool 84. At 1 April 2010 Industrial Ltd had unused capital losses brought forward of £10. The shareholding was purchased on 1 April 2005 for £135.000 that was brought into use on 30 September 2010.000 27.600 Expensive motor car 15.800.419.Profit on disposal of quoted shares The profit of disposal on quoted shares is in respect of a shareholding that was sold on 15 January 2011 for £238.400 17.600.750 281.000 13.Industrial building Industrial Ltd has a new factory constructed at a cost of £600.800.450 62.

000 2. 30 June 2010 Investment property for £150.000 less costs of disposal £1.000 .Other information Industrial ltd has no associated companies. The costs incurred in the period: .Depreciation of fixed assets : 300 . .650. The central bank base interest rate announced at the time of loan: 9%/year.Salaries for worker: 4. legal documents and valid.Fines for the breach of accounting law: 30 . with CIT rate: 20%) Task 1 (Use information given in the section A & B) • Calculate chargeable profits and losses for a limited company together with available allowances (3a) Calculate the tax liability of a limited company and advise on payment dates (3b) HINTS : Calculate Cooperation income tax payable in Vietnam Assume: The enterprise has full invoices.000 Reduction on sales: 1.Tet bonuses : 500 .000 .Interest for loan from other enterprise: 5. Turnover: 20.280. Tet bonuses were not recorded in labour contracts. CIT rate in Vietnam: 25% • • Explain how income tax deductions are to be dealt with (3c) Section C Peter Robinson made the following disposals of assets during the tax year 2010/11. For the year ended 31 March 2010 Industrial Ltd had taxable total profits of £1. Acquired for £79.Expenses for purchase of materials: 330. Section B An enterprise in the tax period following documents: (unit: millions of VND) 1. Iincome from business activities in Japan: 700 (after paying income tax in Japan. . 27 July 2010 6 .Compulsory insurance payments were deducted from salaries as regulation.000.Note 8. one third of them were used for production in fact. Charter capital of the enterprise has fully generated.500. with interest rate at contract: 28% / year .Land lease payable: 55 3.

Select/design and apply appropriate methods/techniques (M2) Characteristics / Possible Evidence – a range of methods and techniques have been used for corporate tax computations and capital gain tax payable by individual. Peter had taxable income of £33. Distinction Use critical reflection to evaluate own work and justify valid conclusions (D1) Characteristics / Possible Evidence – synthesis used to generate tax computation for individual and self-employed and justify valid conclusions on tax advantages to client. Present and communicate appropriate findings (M3) Characteristics / Possible Evidence – an appropriate structure and approach has been used to compile tax computation and used a range of presentation methods like tables. Peter bought a new vase as a replacement for £17. The proceeds of sale were £35. It cost £12. (M1) Characteristics / Possible Evidence – demonstrate relevant theories and techniques have applied to calculate corporate tax liabilities and capital gains tax for individuals. Compensation of £20. Take responsibility for managing and organizing activities (D2) Characteristics / Possible Evidence – demonstrated substantial activities have been planned.Part of a plot of land. 1 September 2010 A vase which was destroyed. Demonstrate convergent. forms and charts.000 on 21 December 2010.000. managed and organized as well as interdependence are recognized to calculate the capital gains and losses and also tax payable on capital gains. The original cost of the land was £54. lateral and creative thinking (D3) 7 . Task 2 (Use information given in the section B) • • • Identify chargeable assets and disposal the tax year 2010/11 (4a) Calculate capital gains stock for the tax year 2010/11 (4 b) Calculate tax payable in respect of capital gains (4 c) GRADING Pass is achieved by meeting all the requirements defined in the assessment criteria.000 in 2010/11.000 was received on 30 September 2010.000.000. (Refer page 2 of the assignment brief) Merit Identify and apply strategies to find appropriate solutions. The costs of disposal were £700. The remainder of the land is worth £70.000.

show a clear and accurate presentation. To achieve a MERIT grade a student must. Understand the results obtained and able to recognize the advantages to be geared from using such technology. show an outstanding quality of presentation. some evidence of different information sources used. apply numerical skills and techniques to draw valid conclusions and confidence to use a range of technological equipment to find best solution. variety of information sources used and select and use appropriate skills and techniques. 8 . Common Skills Grading To achieve a PASS grade a student must. and correctly identify the skills needed for numerical application. but inappropriate techniques used on occasions as well as use a range of technology equipment to aid problem solving. wide range of information sources used.Characteristics / Possible Evidence – demonstrate ideas generated and decisions are taken based on given problems and provided a solution to the client in relation to tax computation for corporate and capital gains taxation. To achieve a DISTINCTION grade a student must. show a vary methods of presentation.

Failure to achieve a PASS grade will results in a REFERRAL grade being given. 7. You must take responsibility for managing your own time effectively. Use 12 point Arial or Times New Roman script. 5. course title.500 words in length. Your assignment should be word-processed and should not exceed 3. Attach all the pages of assignment brief/cover sheet with your report and leave them blank for official use. Content sheet with a list of all headings and page numbers. 4. Use the Harvard referencing system. The assignment should have a cover page that includes the assignment title.PRESENTATION 1. you could be excluded from the course. you properly reference them in your text and any bibliography. 8. Ensure that you give yourself enough time to complete the assignment by the due date. NOTES TO STUDENTS FOR SUBMISSION • • • • • • • • Check carefully the submission date and the instructions given with the assignment. The assignment should be not contain a bibliography – but should contain a list of any references used in the assignment. Late assignments will not be accepted. module title. assignment number. This is an individual assignment. NOTE: If you are caught plagiarizing. A fully typed up professionally presented report document. 3. 9 . Do not leave things such as printing to the last minute – excuses of this nature will not be accepted for failure to hand-in the work on time. 6. Lecturer/tutor name and student’s name. or at worst. 9. Take great care that if you use other people’s work or ideas in your assignment. you may apply (in writing) for an extension. you could have your grade reduced to zero. Ensure that authenticity declaration has been signed. Exhibits/appendices are outside this limit. If you are unable to hand in your assignment on time and have valid reasons such as illness. 2.

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