ICAB PL Business Planning: Taxation and Compliance study guide
ICAB PL Business Planning: Taxation and Compliance · Work through your exam, one topic at a time.
The ICAB Professional Level module in Business Planning: Taxation and Compliance is a later-stage module of the Institute of Chartered Accountants of Bangladesh qualification. It is aimed at candidates who have already covered the fundamentals of accounting, audit and law and are now expected to advise on tax consequences rather than merely compute them. The ICAB PL Business Planning: Taxation and Compliance study guide has 7 sections and about 1,650 words.
01Taxation of Individuals
Individual taxation starts with the scope of charge : residents are taxed on worldwide income, non-residents generally only on local-source income. Candidates must know the building blocks: assessable income, allowable deductions, personal reliefs/allowances, and the rate bands (progressive marginal rates, with a possible higher-rate threshold).
263 words, about 1 min02Taxation of Companies and Corporate Groups
Companies are taxed on taxable profits = accounting profit adjusted for disallowable expenses and capital allowances, then taxed at the corporate rate (often a single rate, sometimes tiered for small companies). Candidates must handle loss relief (carry-forward, carry-back, group relief), dividend/participation exemptions , and transfer pricing within groups.
241 words, about 1 min03Taxation of Partnerships and Unincorporated Businesses
A partnership is generally tax-transparent : the firm computes trading profit, but each partner is taxed on their profit share at personal rates. Understand the profit-sharing ratio , changes in partnership (admission/retirement of partners), and the basis period rules that allocate profits to tax years.
243 words, about 1 min04Capital Gains and Capital Allowances
Capital gains arise on disposal of chargeable assets: gain = disposal proceeds − allowable cost − incidental costs − enhancement expenditure. Apply reliefs and exemptions (annual exempt amount, principal private residence relief, business asset reliefs, rollover/holdover).
222 words, about 1 min05Indirect Taxes (VAT and Sales Tax)
VAT is a multi-stage, destination-based tax on consumption. Candidates must know registration thresholds , taxable supplies (standard, reduced, zero-rated), exempt supplies , and the input tax credit mechanism.
211 words, about 1 min06International Taxation and Cross-Border Transactions
Cross-border taxation rests on residence vs source and double tax treaties (based on OECD/UN models). Understand tie-breaker rules , permanent establishment (PE) , withholding taxes on dividends, interest, and royalties, and relief for double taxation (credit vs exemption).
249 words, about 1 min07Tax Planning, Ethics and Compliance
Tax planning seeks to arrange affairs lawfully to minimise tax, distinguishing tax avoidance (legal but aggressive, often countered by anti-avoidance rules) from tax evasion (illegal). Candidates must know general anti-avoidance rules (GAAR) , disclosure regimes , and professional ethics (integrity, objectivity, confidentiality, competence).
221 words, about 1 min