ACCA ATX ^UK Syllabus A6. Value Added Tax - The need for an ethical and professional approach - Past Papers ^{5 / 5}

Your manager has asked you to take charge of some work in connection with the Heyer Ltd group of companies. A schedule of information from the client files and an email from your manager detailing the work he requires you to do are set out below.

Email from your manager – dated 8 June 2017
Please carry out the following work:

Required: Carry out the work requested in the email from your manager. The following marks are available:

(d) Disclosure of transfer pricing.                (5 marks)

Your manager has had a meeting with Gail. Gail owns the whole of the ordinary share capital of Aero Ltd.
 An email from your manager setting out the matters discussed in the meeting is set out below.

Email from your manager — dated 9 June 2016 
Please carry out the following work:

(c) Non-disclosure of income
Gail has realised that she has not declared some of her income in respect of the tax year 2011/12. As a result of this, her income tax liability for that tax year was understated. I have already explained the interest and penalties which may be charged in respect of this error.

State the other matters which need to be considered, by us and by Gail, in relation to the disclosure of this error to HM Revenue and Customs (HMRC).

Tax manager

Required: Carry out the work requested in the email from your manager. The following marks are available:

(c) Non-disclosure of income.               (5 marks)