In June 2014, a property management company collected a total of RMB250,000 from the property landlords, of which RMB100,000 was for the water and electricity allocated to the landlords and RMB120,000 was for the salaries of the security guards.<br>How much business tax (BT) should the property management company pay in June 2014？

A. RMB12,500
B. RMB7,500
C. RMB6,500
D. RMB1,500

Which of the following authorities promulgates the Tax Collection and Administrative Law？

A. The National People’s Congress
B. The State Council
C. The Ministry of Finance
D. The State Administration of Taxation

Which of the following transactions is subject to an immediate charge to land appreciation

A. Company P contributed the land use right for the construction of a new factory as capital to its new subsidiary
B. Company D contributed the land use right for the construction of a shopping mall as capital to its new subsidiary
Company X which owned an office tower was merged by absorption with Company Y. Company X was dissolved after the merger
D. The local government transferred the land use right for the construction of a hotel to Company K

Co X, a US company, owned 30% of the equity of a Chinese company, Co A. Co X sold all of the equity in Co A at a profit to a UK company, Co Y.<br>Which of the following statements are correct？<br>(1) Co X is the taxpayer for China enterprise income tax (EIT)<br>(2) Co Y is the withholding agent for China EIT<br>(3) Co A is the withholding agent for China EIT<br>(4) The EIT should be filed at the place where Co

A. is located A 1 and 2
B. 1, 3 and 4
C. 1 and 4 only
D. 3 and 4 only

What is the amount of consumption tax (CT) payable by Cig Ltd in January 2014？

A. RMB42,000
B. RMB42,900
C. RMB60,000
D. RMB77,100

Joe is the managing director and 100% shareholder of OK-Joe Ltd. He has always withdrawn the entire profits of the company as director’s remuneration, but given a recent increase in profitability he wants to know whether this basis of extracting the profits is beneficial.<br>For the year ended 5 April 2016, OK-Joe Ltd’s taxable total profits, before taking account of director’s remuneration, are ￡65,000. After allowing for employer’s class 1 national insurance contributions (NIC) of ￡5,141, Joe’s gross director’s remuneration is ￡59,859.<br>The figure for employer’s NIC of ￡5,141 is after deducting the ￡2,000 employment allowance.<br>Required:<br>Calculate the overall saving of tax and NIC for the year ended 5 April 2016 if Joe had instead paid himself gross director’s remuneration of ￡8,000 and net dividends of ￡45,600.<br>Notes:<br>1. You are expected to calculate the income tax payable by Joe, the class 1 NIC payable by both Joe and OK-Joe Ltd, and the corporation tax liability of OK-Joe Ltd for the year ended 5 April 2016. 2. You should assume that the rate of corporation tax remains unchanged.

Rajesh is a sole trader. He correctly calculated his self-assessment payments on account for the tax year 2015–16 and paid these on the due dates.<br>Rajesh paid the correct balancing payment of ￡1,200 for the tax year 2015–16 on 30 June 2017.<br>What penalties and interest may Rajesh be charged as a result of his late balancing payment for the tax year 2015–16？

A. Interest of ￡15 only
B. Interest of ￡36 only
C. Interest of ￡36 and a penalty of ￡60
D. Interest of ￡15 and a penalty of ￡60

Eva’s income tax liability and class 4 national insurance contributions (NIC) for the tax year 2015–16 are ￡4,840. Her income tax liability and class 4 NICs for the tax year 2014–15 were ￡6,360.<br>What is the lowest amount to which Eva could make a claim to reduce each of her payments on account for the tax year 2015–16 without being charged interest？

A. ￡4,840
B. ￡0
C. ￡3,180
D. ￡2,420

Paloma has been trading for a number of years. Her tax adjusted trading profit for the year ended 31 May 2015 was ￡48,000 and for the year ended 31 May 2016 was ￡43,200.<br>What is the amount of class 4 national insurance contributions (NIC) payable by Paloma for the tax year 2015–16？

A. ￡3,121
B. ￡3,595
C. ￡3,105
D. ￡3,201

Putting an asset into joint names with a spouse (or a partner in a registered civil partnership) prior to the asset’s disposal can be sensible capital gains tax (CGT) planning.<br>Which of the following CANNOT be achieved as a direct result of using this type of tax planning？

A. Making the best use of annual exempt amounts
B. Deferring the CGT due date
C. Reducing the amount of CGT payable
D. Making the best use of capital losses