Operational Level Paper
F1 – Financial Operations May 2012 examination
Examiner’s Answers Note: Some of the answers that follow are fuller and more comprehensive than would be expected from a well-prepared candidate. They have been written in this way to aid teaching, study and revision for tutors and candidates alike.
SECTION A Answer to Question One
Rationale Question One consists of 10 objective test sub-questions. These are drawn from all sections of the syllabus. They are designed to examine breadth across the syllabus and thus cover many learning outcomes.
1.1 Under the OECD model tax convention an entity will generally have residence for tax purposes in the country of its effective management.
1.2
$
Input tax 32,333 x 15% = Output tax 63,250 x 15/115 = VAT due to be paid
(4,850) 8,250 3,400
Answer $3,400
1.3
B
May 2012
1
Financial Operations