Get ACCA - F6 - Taxation FA 2010: Study Text PDF

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ISBN-10: 0751794171

ISBN-13: 9780751794175

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Additional info for ACCA - F6 - Taxation FA 2010: Study Text

Example text

Central government raises revenue through a wide range of taxes. Tax law is made by statute. • Tax is administered by HM Revenue and Customs (HMRC). • Tax avoidance is the legal minimisation of tax liabilities, tax evasion is illegal. • If a client makes a material error or omission in a tax return, or fails to file a tax return, the accountant should cease to act for the client, inform HMRC of this cessation and make a money laundering report. Quick Quiz 1 What is the difference between a direct and an indirect tax?

Chapter Roundup • An individual may be resident and/or ordinarily in the UK, and his liability to UK income tax will be determined accordingly. • In a personal income tax computation, we bring together income from all sources, splitting the sources into non-savings, savings and dividend income. • An individual may receive interest net of 20% tax suffered at source. The amount received must be grossed up by multiplying by 100/80 and must be included gross in the income tax computation. Dividends are received net of a 10% tax credit and must be grossed up for inclusion in the tax computation.

Com Chapter Roundup • Economic, social and environmental factors may affect the government's tax policies. • Central government raises revenue through a wide range of taxes. Tax law is made by statute. • Tax is administered by HM Revenue and Customs (HMRC). • Tax avoidance is the legal minimisation of tax liabilities, tax evasion is illegal. • If a client makes a material error or omission in a tax return, or fails to file a tax return, the accountant should cease to act for the client, inform HMRC of this cessation and make a money laundering report.

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