Paper F6 (MYS) Taxation - Malaysia

SPEAKERS NOTES: TEACHERS’ CONFERENCE

Slide 3

• 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
with 2
compulsory questions and 3 optional questions of paper 2.3).

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

1
 • 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. Explain the operation and scope of the tax system

B. Explain and compute income tax liabilities of individuals
C. Explain and compute income tax liabilities of companies
D. Explain and compute real property gains tax
E. Explain and compute sales tax
F. Explain and compute service tax

2
 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 self-
employment,
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.

3
 • 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.