TAX PLANNING AND PRACTICES

Summary of Marking Key

Certified Finance and Accounting Professional Examination – Summer 2022

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  Identification of business as ‘Small and Medium Enterprise’ 1.0
 Computation of tax liability under following options:
– Form AOP and opt normal tax regime 5.0
– Form AOP and opt final tax regime 3.0
– Form company and opt normal tax regime 6.0
– Form company and opt final tax regime 5.0
 Conclusion 2.0

A.2 Comment on:

 Rent expense 1.5
 Payment of due diligence 2.0
 Payment for development of computer software 2.0
 Interest expense including thin capitalization 6.0
 Interest income 1.5
 Tax depreciation (including tax loss on sale of car) 4.0
 Income from rendering of maintenance services 2.0
 Group relief 6.0

A.3 (a)  Withholding tax implication for Rahat & Co. 4.0
 Withholding tax implication for Sukoon & Co. 2.0

(b) 01 mark for each consequence 2.0

A.4  0.5 mark for identifying each principle and 01 mark for its explanation 3.0
 0.5 mark for each threat 1.0
 0.5 mark for each safeguard 2.0

A.5  Sales tax credit – Input tax 13.0

 Sales tax debit – Output tax 4.0
 Apportionment of input tax 2.0
 Withholding sales tax 1.0

A.6 (a) Comment on:

 chargeability of sales tax 2.0
 withholding of sales tax 1.0

(b) Sales tax implication on:

 import within the limits of Border Sustenance Markets 2.0
 supplies within the limits of Border Sustenance Markets 1.0
 supplies outside the limits of Border Sustenance Markets 1.0

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 TAX PLANNING AND PRACTICES
Summary of Marking Key
Certified Finance and Accounting Professional Examination – Summer 2022

Mark(s)
(c) Discussion on:
 Taxable supply 1.5
 Validity of notice in respect of tax period for which tax was demanded 1.5
 Penalty 1.0

A.7  Implication of sales tax 4.0

 Implication of income tax 4.0

(THE END)

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