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Sir for dividend capacity in J18, Examiner has calculated additional tax paid on Subsidiary profit ,whereas, in J13 he has calculated additional tax paid on dividend remitted from Subsidiary. Why there is difference in treatment?
It is because of the tax rules given in the question.
In the 2013 question it says that the tax authorities charge tax on the dividend remittances.
In the 2018 question it says that tax is charged on the profits made by the subsidiary (which is the more common situation).