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Tax calculations - April 2008 - Q2 ii

V

Viki2010

Member
Hi, please can I check the following:

1. What does NCI stand for? Not sure I have cracked this abbreviation....

2. What is NCI profit - in the solution this includes BLAGAB NCI profit and case Vi profit
 
Hi - this is terminology used in the taxation regime that was in force prior to 1 Jan 2013, so you don't need to worry about it for the exam (other than when going through past practice papers of course).

NCI stands for Notional Case I, and NCI profit is basically equivalent to the minimum profit that is considered when determining the BLAGAB taxable amount.

And Case VI profit is basically the trading profit, ie the taxable amount in what is now known as the non-BLAGAB tax fund.

You can basically equate both to just being the measure of "profit" that is used for taxation purposes.

Hope that helps
 
Thank you Lindsay,its so hard to go through past papers for sa2 .......
 
Yes - it would be so much easier (for everyone) if tax and regulation never changed!

In our ASET version of the past papers, we try to update questions/solutions to be relevant to current practice as far as we can (or at least indicate where they are no longer relevant) - but of course the latest version doesn't go back as far as this.

It is great that you are doing all of this past paper practice though - stick with it, even if it can be painful in places!
 
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