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Confusion between Pension Schemes in latest paper

Forums › ACCA Forums › ACCA TX Taxation Forums › Confusion between Pension Schemes in latest paper

  • This topic has 0 replies, 1 voice, and was last updated 12 years ago by Avatarwajiman.
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  • October 28, 2013 at 2:54 pm #143939
    Avatarwajiman
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    • Topics: 5
    • Replies: 44
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    Hey,

    I have been going through the latest paper june 2013 and in Q 1 point number 2, i see that John had contributed 28,000 and his employer further contributed 12,000.

    Now in the answer sheet of the exam paper, the examiner is increasing the tax rate bands and treating it as a Personal Pension scheme. If it is a personal pension scheme, then why is it deducting the amount paid by John in the occupational scheme in determining the taxable income of John??

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