Page 18 - CIMA OCS Workbook May 2019 - Day 1 Tasks

CIMA MAY 2019 – OPERATIONAL CASE STUDY

I’m concerned that the company may receive an additional demand for tax when it already has
plans in place to expand the business over the next few years.

Could you explain why the stated rate of tax is 20% and, based upon the annual financial
statements, had a tax charge at a different rate for both 2017 and 2018? This should include
explanation of any items included in the financial statements but which are excluded or treated
differently in the tax calculations.

As a separate issue, can you explain briefly the ethical issues that may arise from entertaining
our major customers and suppliers?

Pease reply to this by Friday morning as the next directors’ board meeting is scheduled for Friday
afternoon.

Thanks
Suresh Patel

TASK

Respond to Suresh Patel’s Email. (Time allowed 55 Minutes)

36 KAPLAN PUBLISHING