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AAFM Exam CWM_LEVEL_2 Topic 4 Question 88 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 88
Topic #: 4
[All CWM_LEVEL_2 Questions]

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?

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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
8 days ago
I think I need to review the tax regulations too. This question is confusing.
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Ora
11 days ago
I'm not sure about this one either. It's a tricky question.
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Minna
23 days ago
B) FALSE
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Cary
24 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
20 days ago
User 3: TRUE
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Youlanda
21 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
10 days ago
User 4: Yeah, that seems like the correct approach for double tax relief.
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Fanny
17 days ago
User 3: TRUE
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Gladis
29 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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Myra
25 days ago
I disagree, I believe the charitable donation should not be deducted from overseas income for double tax relief purposes.
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Catalina
1 months ago
B) FALSE
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Polly
1 months ago
I think it's true because if the charitable donation is deducted from overseas income, it would affect double tax relief.
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Nickie
2 months ago
B) FALSE
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Hershel
2 months ago
I think it's true because if the charitable donation is deducted from overseas income, it would affect the double tax relief calculation.
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Pedro
2 months ago
A) TRUE
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Marleen
2 months ago
A) TRUE
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Cordelia
3 months ago
I disagree, I believe the answer is False.
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Krystal
3 months ago
I think the answer is True.
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