ACCA P6 (ZA) Advanced Taxation aims to apply relevant knowledge, skills and exercise professional judgement in providing relevant information and advice to individuals and businesses on the impact of the major taxes on financial decisions and situations
After completing this examination paper students should be able to:
- Apply further knowledge and understanding of the South African tax system through the study of further taxes, together with more advanced topics within the taxes studied previously
- Identify and evaluate the impact of relevant taxes on various situations and courses of action, including the interaction of taxes
- Provide advice on minimizing and/or deferring tax liabilities by the use of standard tax planning measures
- Communicate with clients, South African Revenue Service and other professionals in an appropriate manner.
The Advanced Taxation syllabus further develops the key aspects of taxation introduced in the compulsory Taxation syllabus within the Skills module and extends the candidates’ knowledge of the tax system, together with their ability to apply that knowledge to the issues commonly encountered by individuals and businesses; such that successful candidates should have the ability to interpret and analyse the information provided and communicate the outcomes in a manner appropriate to the intended audience.
The syllabus builds on the basic knowledge of core taxes from the earlier taxation paper and introduces candidates to additional taxes in the form of donations tax, estate duty and transfer duty. As this is an optional paper, aimed at those requiring/desiring more than basic tax knowledge for their future professional lives, the syllabus also extends the knowledge of income tax, company tax and capital gains tax, to encompass further overseas aspects of taxation, the taxation of trusts and additional exemptions and reliefs.
Candidates are not expected to concentrate on the computational aspects of taxation. Instead this paper seeks to develop candidates’ skills of analysis, interpretation and communication. Candidates are expected to be able to use established tax planning methods and consider current issues in taxation.
APPROACH TO EXAMINING THE SYLLABUS
The paper consists of two sections:
- Section A consists of two compulsory questions.
Question 1 has 35 marks, including 4 professional marks, and question 2 has 25 marks
- Section B consists of three 20-mark questions, two of which must be answered.
Questions will be scenario based and will normally involve consideration of more than one tax together with some elements of planning and the interaction of taxes. Computations will normally only be required in support of explanations or advice and not in isolation.
The examination is a three hour paper, with 15 minutes additional reading and planning time.
Tax rates, allowances and information on certain reliefs will be given in the examination paper.