*** P6 December 2012 Exam *** Instant Poll and comments***

ffs!!! Felt very confident before the exam and thought should sail through the resit. No chance…. Found it very tricky especially first two questions. Is it just me? Or was it hard?

I’m glad it’s not just me… Felt very down after it. Will start all over again tomorrow. Last one to go

am dead

Well first 2 question were fine ! Optionals were all !! Huhhhhhhh :@ it was hard to decide which optional question will give me atleast 50percent from each optional question
Q1 involved simple share calculation with degrouping charge and indexation allowance .. Higher rate 26 percent used for tax cost
Trade assets was bit complicated .. Goodwill n building rollover was easy though
Upper lower limits were divided by 9 and 9/12 for profit period

First question was fine

Difficulty faced
Capital gain instalments yes or no
Lease asset :@ wat the hell
Conditions for lease asset entrepreneur relief! Can’t they ask something good

Inherent tax was again shit ! Previous trust gift tax paid and NRB wasn’t given so I added up all assets .. Used NRB .. Calculated tax .. Reduced by tax paid on share in foreign country. That’s it !

huhhhhhhh after getting back into my senses still i dnt know wot i did …n wot he askd actually ….
dnt know wot xaminer wants from us or thinks about us…em sure xaminer suppose we are already in tax practice with atleast 2 yrs xperience 🙁

I just want to ask something ..
In first question what cost value did u take ? I take full 100000 because in requirement it was mentioned that it was nb trading company so I don’t think there any capital allowance involved plus in notes it said tax values in pool zero . Any idea ?

anyone here on SGP variant?

Qn 1) Write a report to board of directors for the Singapore Tax issues relating to 3 scenarios. The tax issues should include withholding tax, GST (VAT in UK), stamp duty, property tax

1) Sale and leaseback of factory from a resident company
2) Purchase of equity investment (treat as transfer of shares)
3) Purchase of trade secret
(Can’t remember if it’s a R or NR company for 2 and 3)

Qn 2:Minimise group liability for 3 companies, which includes if s24 (election for group transfer of fixed assets) is useful and calculation of 1 of the company

1) touches on shareholding test, group relief/carry back relief and carry forward relief, and also same trade test
2) transfer of assets from 1 company to another within the same group and advise if s24 should be elected.

Qn 3: Outward investment: Treatment of 3 foreign sourced income when remitted into Sinapore

1) Dividend Income
2) Branch profit
3) Royalties

All 3 foreign income are sourced in 3 different countries in which Singapore has no tax treaty with. Exemptions available for foreign dividend remit back into Singapore but it is not tax efficient to do so. Foreign tax credit pooling method is preferred

Qn 4: Share option (i skipped this)

Qn 5: Non-Resident (NR) company licence a trademark to a Singapore Resident Company. Singapore resident company then pays a fee. Current NR has no tax treaty with Singapore. Alternative structure is for the NR company to licence to another NR company (from country X) which then sub-licence to the Singapore Company. NR company from Country X has tax treaty with Singapore.

There are 2 parts to this question.

1) Forget
2) Comment on the alternative structure and advise the company why IRAS (Singapore tax authority) may challenge.

seriously disappointed. . though I was fully prepared but paper was really tough especially Q1 & 2 . . Anyone who can share the summary of all the questions along with their requirement. thank you. .

What on earth was that? Optional questions seemed easier then compulsory questions. Q1 and Q2 seemed abstract for me. Not seen those type of questions in that style in the P and R kit. Really frustrated to have worked so hard and then to get that kind of paper. June’s exam was much better. Just could not get a real foothold with this exam. Real shame.

Same here not happy with what I have put down. Can anyone remember the questions..

@nicolas03 said:
Leave your feedback on acca website. They may take it into account for marking the exams

can you please share the link of site where exactly we have to leave the feedback ?

anyone please tell me what was the treatment for first part of Q1 where two ways of disposal of a subsidiary was given and asked to calculate tax related to both options, what was the treatment of first one? where all the shares were disposed off for 1million. . as it was also mentioned in the end that no SSE is available than what was the treatment and reliefs that could be applied?