Accounting for undistributed income

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. Which of the following is the definition of a 'close company'?

  2. What can section 441 impose?

  3. Where does the surcharge not apply?

  4. At what rate does the surcharge apply?

  5. What is the 'principal part' of a company's income?

  6. Which companies are most likely to be subject to the surcharge?

  7. On what did the Commissioner rely when deciding what fell within the definition of professional services?

  8. What did the firm in the case outlined contend were non-professional services?

  9. What are the two relevant parts of CIR v Maxse in the case before the Tax Appeal Commissioner?

  10. Which of the following most closely reflects the Commissioner's decision in this case?