AAFM Exam CWM_LEVEL_2 Topic 4 Question 88 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 88
Topic #: 4

Section B (2 Mark)

In the year to 31 March 2012, a UK resident company made a UK trading profit of 800,000 and received net overseas income of 26,000 (net of 20% withholding tax). These were the company's only sources of income. The company also paid a qualifying charitable donation of 5,000.

For double tax relief purposes, the charitable donation will be allocated as a deduction from the company's overseas income. True or False?

ATRUE

BFALSE

Show Suggested Answer

Suggested Answer: C

by Malcom at Sep 12, 2024, 10:25 PM

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Joana

1 months ago

True or false? More like true or false alarm! I'm going to need a calculator and a crystal ball to figure this one out.

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Felicidad

1 months ago

This question is making my head spin. I think I need to go back and review the tax regulations one more time before answering.

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Virgina

6 days ago

I think I need to review the tax regulations too. This question is confusing.

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Ora

10 days ago

I'm not sure about this one either. It's a tricky question.

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Minna

22 days ago

B) FALSE

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Cary

23 days ago

A) TRUE

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Kindra

2 months ago

Wait, does this mean I can claim double tax relief on my overseas income AND get a deduction for the charitable donation? Talk about a win-win!

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Jerilyn

19 days ago

User 3: TRUE

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Youlanda

20 days ago

User 2: FALSE

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Glory

1 months ago

User 1: TRUE

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Candida

2 months ago

Well, the question specifically says the donation will be allocated to the overseas income for double tax relief purposes, so I'm going to go with TRUE on this one.

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Francine

9 days ago

User 4: Yeah, that seems like the correct approach for double tax relief.

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Fanny

16 days ago

User 3: TRUE

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Gladis

28 days ago

User 2: I agree, it makes sense to allocate the donation to overseas income.

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Anastacia

1 months ago

User 1: TRUE

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Krystal

2 months ago

But the charitable donation is allocated as a deduction from the company's overseas income, so it should be True.

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Margurite

2 months ago

Hmm, this seems like a tricky one. If the charitable donation is allocated as a deduction from the overseas income, that would reduce the amount of income subject to double tax relief. Gotta think this through carefully.

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