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Test 1

The document outlines the examination for a Certificate in Accounting and Finance, focusing on tax practices with specific questions related to rental income, estate distribution, residential status of individuals, and the concept of legal representatives. Examinees are instructed to answer all questions in black pen, on new pages, and submit their answers as a PDF. The exam consists of three main questions, each requiring detailed responses regarding tax implications and calculations.

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Idrees Ullah
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Download as PDF, TXT or read online on Scribd
6 views

Test 1

The document outlines the examination for a Certificate in Accounting and Finance, focusing on tax practices with specific questions related to rental income, estate distribution, residential status of individuals, and the concept of legal representatives. Examinees are instructed to answer all questions in black pen, on new pages, and submit their answers as a PDF. The exam consists of three main questions, each requiring detailed responses regarding tax implications and calculations.

Uploaded by

Idrees Ullah
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Certificate in Accounting and Finance Stage Examination

March 22 ,2024
35 minutes – 17 marks
Additional Reading Time – 5 minutes

Tax Practices
Test-1
Instructions to examinee
(i) Answer All Questions
(ii) Answer in Black pen only
(iii) Attempt each Question on new page.
(iv) After attempting, convert your answer script to PDF using CamScanner and upload on your LMS
Question-1
Ali owned a rental property in Islamabad that he leased out to a company, generating rental income every
year. However, in August 2024 (during the tax year), he sold the property and thus the rental source
ceased to exist. In December 2024, the tenant made a delayed payment of rent for the months of June and
July 2024, which Ali received after the property had already been sold.
Required:
How should the rent received in December 2024 be treated for tax purposes? Should it be considered
taxable income for the tax year 2024
(03)
Question-2
Mr. Ahmed passed away in January 2025, leaving an estate valued at PKR 20 million. He had an
outstanding income tax liability of PKR 3 million. As per his will, the estate is to be distributed as
follows:

Heir % of Wealth
Wife 50%
Son 25%
Daughter: 25%
Required:
Calculate the amount each heir will receive
(03)
Question-3
Comment on the residential status of the following persons for the tax year 2025:
(i) BKL is a non-listed public company incorporated under the Companies Act, 2017. All the
shareholders of the company are individuals. The control and management of affairs of the
company was present in America from July 01, 2024 to June 30, 2025.
(ii) Mr. Usman is workiaang as Director Operations in the Ministry of Tourism. He was posted
to Pakistan Embassy in France from July 15, 2023 to July 14, 2025.
(iii) Hugsy LLC was incorporated as limited liability company in UK. The control and
management of its affairs was situated wholly in Pakistan. However, with effect from 01
November 2024, the entire management and control was shifted to UK.
(iv) On 01 February 2025, Mr. Shahid, I.T manager of DC limited, a UK based company, was sent
to Pakistan to work on a special project. He left Pakistan on 23 August 2025.
(08)

Question-3
Explain the concept of “legal representatives”? (03)

(THE END)

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