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There are 4 papers at this level that equip the students with basics of financial accounting, cost accounting, Economics and business mathematics and statistics. Students may be eligible for exemption of any or all of the papers of this level if they possess a professional qualification from a body we recognize.

ASSESSMENT PRINCIPLES

Assessment principles of Foundation Level are as under:

  • Students can take any number of papers in one seat to examination.
  • There are no rules for order in which these papers shall be taken. A student a can take any of the papers alone or in combination with other papers at this level.
  • The assessment exam for each paper shall be of 3 hours duration with 50% pass marks.
  • The advanced level exams contains 100% mandatory questions to ensure that students study all the syllabus in details for passing the exams.

AL1: ADVANCED TAXATION
Learning Objectives

The objective of the syllabus is to enable the candidate to have the requisite knowledge required to work as a professional tax consultant in the business world.

Key Competencies

On successful completion of this exam, the student shall be able to:

  • Have a strong knowledge base of taxation of various streams of income and types of persons
  • Compute the tax liabilities of individuals and corporates.
  • Demonstrate a deeper understanding of VAT legislation and its application in the business world.
  • Explain the tax compliance obligations of the taxpayers.
  • Calculate the tax liabilities of individuals who are residents and non-residents.
  • Deal with CGT issues.
  • Compute the tax liabilities related to dividend income. with taxation
  • Explain the effect of value-added taxes on businesses.

GRID Weightage
Computation of tax liability of individuals both residents and non-residents 20-25
Computation of tax liabilities of corporates 30-40
Tax Reimbursement methods and credits 5-10
Application of VAT law 15-20
Total 100
Components
Residency Rules

  • The concepts of various types of individuals under the income tax regime.
  • Computation of tax liability of salaried individuals both residents and non-residents
  • Computation of tax liability on other incomes of individuals including:
    • Dividend income
    • Dividend income
    • Capital gains
    • Property income
  • Tax declaration rules of individuals.

Computation of Income Tax Liability of Corporates

Advance Payments:

  • Describe the regime of advance payments including:
    • Companies which are required to make advance payments and companies not required to make advance payments
    • Risks of not making advance payments
    • The rule for determining the advance payment of tax
    • Method of making first advance payment
    • deductions available in determining the taxable income along with any related conditions thereto.
Withholding Tax
  • Describe the withholding tax regime including:
    • The rate of withholding tax
    • The persons required to withhold and declare tax.
    • Withholding tax declaration requirements.
    • Communication to be adopted for paying withholding taxes
    • Consequences of non-payment of withholding taxes
    • Professional withholding tax application, calculation, and declaration.
  • Bookkeeping requirements of the companies with respect to the income tax regime.
  • Fiscal advantages available for taxpayers specifically to:
    • Tax shelter for audiovisual productions
    • Tax shelter for performing arts
    • Investment deductions
    • Notional interest deductions
  • Rules regarding control of tax declaration and tax claims.
  • Rules regarding professional benefits taxation, withholding tax implications thereon, specifically the following benefits:
    • Company Cars
    • Loans
    • Other benefits
  • Compute the taxable income and tax liability of corporates from the given data.


Capital Gains, Dividend, Interest Income, and Property Income
  • Taxation rules regarding investment income and capital gains.
  • Treatment of capital losses.
  • Taxation rules of dividend income and withholding requirements.
  • Taxation rules of interest income on saving accounts.
  • Taxation of property income.

Tax Reimbursement Methods, Withholding taxes and Tax Credits
  • What are the methods of tax reimbursements?
  • Concept of tax prepayments/estimates/withholding taxes including PAYE and PAYG.
  • Describe the concept of tax credits along with their rules of application especially tax credits available on:
    • Child care expenses
    • Charitable donations
    • Service cheques
    • Mortgage payments
    • Pension saving plans contributions
    • Life insurance plans contributions

VAT Concepts Registration, rates filing requirements
  • Recoverability of input tax rules and their application.
  • Record-keeping requirements.
  • VAT registration requirements.
  • VAT Return filing requirements.
  • Computation of VAT liability/refund from the given data.