Sensitive of revenue MJ22 Q1biii

Sorry - I obviously missed seeing your question (and then I have been away for two days because of New Year) :-( I am not sure that I understand. what you are asking because the only affect in Marteg of changing the selling price is the extra tax payable in Marteg, and for that there are 2 marks.

Now I understand you, and yes - you would get the 2 marks :-)

The question specifically says that under the terms of the tax treaty they will be assumed to have paid tax at 20%. Whether they did pay at 20% is irrelevant because the treaty says that it will be assumed for the purposes of the treaty that they had paid it.