Paper F6 (MYS) Taxation - Malaysia

SPEAKERS NOTES: TEACHERS CONFERENCE

Allocate time appropriately to each of the questions within the 3 hours allowed.

Slide 4 Marks vary from one question to another, with the most marks for question 1 (30 marks) and the least marks for question 5 (10 marks). There is a difference of 5 marks between each question starting with question 1. Questions 1 and 2 will be assessed on income tax on individuals and companies and vice versa, with the two questions adding up to 55 marks, with one of the questions being for 30 marks and one for 25 marks. Question 4 which carries 15 marks will be on real property gains tax. Questions 3 and 5 will be on any area of the syllabus and carry 20 marks and 10 marks respectively.

Slide 6

The essential differences between paper 2.3 and paper F6 are: name of the paper: Taxation (compared to Business Taxation) no longer focused on just business taxation covers all the basics of tax for individuals and companies a compulsory paper with 5 compulsory questions (compared to 7 questions compulsory questions and 3 optional questions of paper 2.3).

with 2

Slide 7

Paper F6 will assess new topics which were excluded from paper 2.3, such as: structure of Malaysian tax system generally joint assessment tax rebates personal reliefs more in depth and wider in scope.

Slides 8 - 11 Paper F6 has a list of excluded topics in respect of each type of tax.

Slide 12

These documents will provide you with a structured approach to planning your teaching programmes for paper F6. The Pilot Paper is a model examination paper based on the Syllabus and Study Guide. It will guide students and tuition providers in preparing for the first examination paper in December 2007.

Slide 13 Slide 13 shows the cut off date for examinable documents for December and June. The exam notes, also known as the examinable documents, will indicate to students and tuition providers which regulations and legislation could be assessed at the next examination session. ACCA publishes the exam notes every 6 months - these are published in student accountant and on the website.

Slide 14 By far the most important document throughout your preparation is the Syllabus and Study Guide.

Slide 15

The syllabus provides: - an understanding of the relationship between F6 and other papers, specifically between F6 (Taxation) and P6 (Advanced Taxation). This is to alert students who intend to proceed to Advanced Taxation (P6) of the need to refresh what you have learned in F6. - a narrative of the main taxes assessed (described as main capabilities) followed by a relational diagram linking the main capabilities.

Slides 16 and 17 The aim of paper F6 is to develop knowledge and skills relating to the tax system as applicable to individuals and companies. This is broken down into several main capabilities which divide the syllabus into sections. There are 7 main capabilities which candidates are required to master, namely: A. B. C. D. E. F. Explain the operation and scope of the tax system Explain and compute income tax liabilities of individuals Explain and compute income tax liabilities of companies Explain and compute real property gains tax Explain and compute sales tax Explain and compute service tax

G.

Identify and explain the obligations of: - taxpayers - chargeable persons - taxable persons and/or their agents; and - the implications of non-compliance.

In short, the main capabilities are all about the different type of taxes which the candidates are required to know.

Slide 18

The Syllabus introduces candidates to the subject of taxation and provides the core knowledge of the underlying principles and major technical areas, as they affect the activities of individuals and companies. Thus, an accountant would be knowledgeable about the functions of the tax system and familiar with the different types of taxes in the environment in which they operate. The syllabus considers the separate taxes that an accountant would need to have a detailed knowledge of. These are income tax on individuals from selfemployment, employment and investments; income tax on companies; real property gains tax; sales tax and service tax.

Slide 20

Paper F6 (Taxation) is directly linked to paper P6 (Advanced Taxation) this is indicated by the solid line arrow. This means that students who proceed to take P6 will need to review their previous learning in F6.

Slide 21

Illustrates how the main capabilities of paper F6 are linked.

Slide 22

The Syllabus indicates the core areas under each main capability. For example, main capability C income tax liabilities of companies. Under this capability, four core areas are spelt out in the Syllabus, they are then expanded upon in the Study Guide.

Slide 23

The Study Guide is the main document for all concerned students, tuition providers, authors and examiners will use this document as the basis of their studies, instruction or material. The Study Guide provides detailed information on what will be examinable in any examination session. Topics which are excluded are clearly stated.

The Study Guide further expands the sub-capabilities in the Syllabus into subject areas. The subject areas are then broken down into sub-headings which describe detailed outcomes that the candidate would be required to know. The outcomes are described using verbs which indicate what students are required to demonstrate and the broad intellectual level at which these may be demonstrated.

Slide 24

The skill levels at which a topic/issue can be assessed, can be found by taking note of the number indicated in the square brackets [2] at the end of each of the issues listed under the respective main capabilities sub-heading in the Study Guide. For example: Compute dividend franking account under s. 108.[2] listed as item 3. b) of main capability C is assessed at level 2

Slide 25 - 27

The exam paper will be assessed at one of the three skill levels. The skill levels are generally indicated by the verbs used. The illustration is as follows: - Skill level 1: (Knowledge) denotes knowledge and comprehension. This is conveyed by verbs such as: state, list, define, identify, describe, explain, calculate, record and prepare. - Skill level 2: (Skills) denotes application and analysis. This is conveyed by verbs such as: apply, analyse, select, interpret, discuss, plan, control, demonstrate, implement, recognise, utilize, compute, value, derive, reconcile, forecast and indicate. - Skill level 3: (Professional Essentials and Options) denotes synthesis and valuation. This is conveyed by verbs such as: assess, compare, recommend, advise and determine.

In paper F6 candidates are mainly assessed at skill level 2. The rational in F6 is that most tasks will use verbs from level 2, with a few verbs occasionally used from level 1 and level 3.