Friday Five – 29 March – 5 Questions in 5 Minutes

Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday

What’s this all about?

It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.

1. What is the Information Commissioner’s Office’s main duty?
   1. To ensure that the Data Protection Act is updated e.g. to cover text messages
   2. To levy fines on those failing to comply with the Data Protection Act
   3. To ensure consumers are able to access information
   4. To oversee the regulation of the Data Protection Act and enforce compliance

2. Which one of these terms describes how a gilt could be classified based on its time until redemption?
   1. Mid term
   2. Mediums
   3. Index-linked
   4. Average term

3. A company pays a basic rate taxpaying director a dividend. What is the tax liability for both the company and the director?
   1. There is no tax implication for the company and the director receives the income with a 10% tax credit which satisfies his liability
   2. The company is liable to corporation tax on the dividend payment and the director is liable to income tax at 7.5% if it is in excess of their dividend allowance
   3. There is no tax implication for the company, the director receives the income gross and is liable to tax at 7.5% if it is in excess of their dividend allowance
   4. The company claims the dividend payment as an expense and the dividend is taxed at 7.5%

4. Farley Ltd’s occupational pension scheme is underfunded and The Pension Regulator has concluded they are insufficiently resourced, what measure can they issue?
   1. Contribution Notice.
   2. Financial Support direction.
   3. Freezing Order.
   4. Restoration Order.

5. Daniel’s company provides income protection for him and they pay the premiums. For how long will the benefits usually be paid if he becomes ill?
   1. For a maximum period of 2 years
   2. To the earliest of his recovery or normal retirement date
   3. For a period chosen by the company
   4. For a period of between 2 and 5 years depending on the nature of Daniel’s incapacity

Answers

1. D – See R01 Study Text, Chp 4
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B – See R02 Study Text, Chp 1:1
   Grab our taster mock exam paper for CII R02. Click here to download.

3. C – See R03 Study Text, Chp 8
   Grab our taster mock exam paper for CII R03. Click here to download.

4. B – See R04 Study Text, Chp 3
   Grab our taster mock exam paper for CII R04. Click here to download.

5. B – See R05 Study Text, Chp 6
   Grab our taster mock exam paper for CII R05. Click here to download.

How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.