The aim of ATX (IRL) (formerly P6) is to ensure that candidates can provide individuals and businesses with the information and advice they require regarding the impact that the major Irish taxes may have on their financial decisions and situations. The emphasis is on the practical application of tax rules to client scenarios and the production of professional documents incorporating helpful, clear advice. It should be noted that the ability to communicate with clients, the Revenue and with other professionals, is one of the four main capabilities required of candidates sitting ATX (IRL).
ATX (IRL) is directly underpinned by TX (IRL) (formerly F6). Knowledge and understanding of the technical content of TX (IRL) is, therefore, vital if candidates are to be successful at ATX (IRL). It is quite possible that the technical content of an ATX (IRL) question could be drawn almost wholly from the TX (IRL) syllabus. However, such a question could involve two or more taxes and will require the analysis of information provided, and the application of technical knowledge to address a given situation. An example of such a question would be a revenue audit scenario, where tax issues have arisen over a number of tax heads.
The ATX (IRL) syllabus extends the coverage of income tax, corporation tax, capital gains tax and value added tax and introduces capital acquisitions tax and stamp duty. The syllabus is wide, as befits an optional exam at this level. New technical content is clearly identified in the Study Guide and will be examined regularly.
While no part of the syllabus is more important than any other, it should be recognised from the above that knowledge of the technical areas that are exclusive to ATX (IRL) will not, on its own, be sufficient to pass the exam. However candidates must know ALL of the conditions of the various reliefs on the ATX (IRL) syllabus (eg retirement relief) as an incomplete knowledge of these can lead to the candidate making an incorrect decision when planning their answer .
The technical areas included within the syllabus are set out in the Study Guide on ACCA’s website (see ‘Related links’). Candidates should always check the website for the latest Study Guide relevant to their exam session to ensure that nothing has changed and hence the learning that they are about to embark on is up to date.
Candidates are required to explain, calculate and apply their knowledge of the system of taxation in Ireland. This knowledge must be up to date. Candidates must familiarise themselves with the changes introduced by the recent Finance Acts.
The ATX (IRL) exam is currently offered in paper format only. Candidates are given three hours and 15 minutes.
ATX (IRL) consists of two sections, A and B. From June 2018 onwards, all questions in Sections A and B are compulsory. Questions 1 and 2 in Section A are worth 35 and 25 marks respectively. Question 1 will include 4 professional marks. Questions 3 and 4 in Section B are each worth 20 marks. Candidates are required to answer both of these Section B questions. The whole of the syllabus is examinable throughout both sections of the exam.
The Section A questions require candidates to analyse the information provided and to use any guidance given to help address the requirements. Both questions are likely to deal with a number of different taxes and Question 1 will require a report, letter, memo or meeting notes as part of the answer. Because Section A questions are relatively large, careful time management is important, and candidates are advised to use the number of marks allocated to each requirement to determine how much time to spend on each part.
The Section B questions contain an introductory paragraph, which outlines the technical areas within the question, together with concise structured information and sub-headings to make them easier to assimilate and navigate.
Throughout the exam, candidates are expected to be able to identify issues, as well as demonstrate detailed knowledge of the tax system. In line with this emphasis on practicality, questions may require candidates to address ‘the Irish tax consequences’ of a given situation without indicating which particular taxes to consider. It is up to candidates to identify the relevant taxes, and the issues in respect of those taxes, before beginning their answers. It is common for candidates, for example, to identify the CGT aspects of tax planning questions and then overlook the VAT and /or stamp duty implications and thereby lose valuable marks.
Calculations are normally only required in support of explanations and advice, and not in isolation. Again, it is often up to candidates to decide what calculations to produce in order to do this in the most efficient manner. Advice on how to approach a given problem may be provided in the question.
There is no specific allocation of numerical calculation versus narrative balance within TX (IRL) and ATX (IRL). However, in practice, TX (IRL) is weighted towards numerical calculations whereas ATX (IRL) is weighted towards narrative explanations. In both exams, the ability of candidates to be able to explain their treatments and opinions is vital. It is important to note that this does not mean that candidates need to have perfect grammar or spelling; it means that they need to make themselves understood.
ATX (IRL) has four marks within Question 1 for professional skills, known as professional marks. In order to score well, candidates first have to satisfy the requirement in relation to the style and format of the document requested. Further marks are then available for providing clear explanations and coherent calculations and one of the professional marks is given for ‘appropriate use of support schedules/appendix’.
Irrespective of whether a candidate is preparing for TX (IRL) or ATX (IRL), there are a number of stages that they need to go through in order to be successful. The approach to be taken is as follows:
Candidates should pay particular attention to the following in order to maximise their chances of success in the ATX (IRL) exam:
Address the requirement
Candidates should not provide general explanations or long introductions.
Candidates should think before they start and manage their time. This will:
Written by a member of the ATX (IRL) examining team