问答题

问答题 (a) Accra Ltd runs a business selling African vegetables to restaurants. The company’s trading profit for the year ended 31 March 2014 was ￡244,000. On 1 April 2013, Accra Ltd set up a 100% owned subsidiary company, Banjul Ltd, to run a retail shop selling African food products. Banjul Ltd’s trading profit for the year ended 31 March 2014 was ￡36,000. Neither company has any other income or any other associated companies. Required: Calculate the overall corporation tax saving for the year ended 31 March 2014 if, rather than setting up Banjul Ltd as a subsidiary company, the retail shop had instead been run by Accra Ltd as part of its existing business. Note: You should assume that the trading profits of ￡244,000 and ￡36,000 would have remained the same.(4 marks)

问答题 (b) Cairo Ltd runs a business promoting African music. The company’s taxable total profits for the year ended 31 March 2014 were ￡87,000. Cairo Ltd has owned 100% of the ordinary share capital of Dakar Ltd since it began trading on 1 December 2012, running a music recording studio. Dakar Ltd’s results for the year ended 30 November 2013 and for the four-month period ended 31 March 2014 are as follows:

问答题 Kigali Ltd is the holding company for a group of companies. The group structure is as follows: