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- Holding property of the tax payer as security for the unpaid tax.
- As the bank to freeze the bank accounts of defaulter
- Issue of distrait order where the assets of the tax payer are auctioned to recover the tax due and payable.
- The commissioner can sue the tax payer for the unpaid tax
Wilfykil answered the question on February 15, 2019 at 08:35
- Mamba Stores Ltd. deals in a variety of vatable and non-vatable goods. The following transactions took place during the month of December 2009:
Determine:
(i) A value...(Solved)
Mamba Stores Ltd. deals in a variety of vatable and non-vatable goods. The following transactions took place during the month of December 2009:
December 1: Sold goods 011 credit to Wepesi Traders for Sh.100,000.
December 3: Purchased goods on cash basis from Riverside Traders for. 8h.98,000. December 4: Purchased electronic tax register for Sh.75,000 and paid by cheque.
December 8: Wepesi Traders returned goods valued at 8h.30,000 and received a credit note.
December 9: Sold goods to BB Ltd., a company based in Tanzania, for Sh.150,000. December 14: Paid electricity bills amounting to Sh.5,000.
December 15: Received a debit note of Sh.24,000 from Riverside Traders. December 18: Purchased office stationery for Sh.36,000.
December 21: Supplied goods to the Ministry of Agriculture valued at Sh.800,000. December 24: Imported goods from Dubai for Sh.400.000 exclusive of import duty of 25%
and value added tax of 16%
December 28: Purchased fuel for business vehicles for Sh.75,000. December 29: Paid Sh.34,000 for catering services.
December 30: Paid Sh45,000 for audit services.
Determine:
(i) A value added tax (VAT) account for the month of December 2009.
(ii) Comment on the penalties due where the VAT is not paid by Mambo Stores Ltd. on the due date(s).
Date posted: February 15, 2019. Answers (1)
- Outline four categories of goods which could be forfeited to the customs authority of your country upon their importation.(Solved)
Outline four categories of goods which could be forfeited to the customs authority of your country upon their importation.
Date posted: February 15, 2019. Answers (1)
- OjwangMatata is the owner of Mapato Supermarkets. He does not actively engage in the management of the supermarket.
He was therefore surprised recently when a team...(Solved)
OjwangMatata is the owner of Mapato Supermarkets. He does not actively engage in the management of the supermarket.
He was therefore surprised recently when a team of officers from the revenue authority visited him while conducting an investigation relating to tax compliance by Mapato Supermarkets. In particular, the officers were concerned that the supermarket was under-remitting value added tax (VAT).
OjwangMatata strongly feels that the revenue authority officers should have confined their investigations to the managers and staff of the supermarket, He is further concerned that the revenue authority has allowed some of the competing businesses to deregister for VAT purposes.
Advise OjwangMatata on the following:
(i) Powers of the Commissioner General to conduct tax investigations and any restrictions thereto.
(ii) Extent of his liability (if any) for VAT unpaid by Mapato Supermarkets.
(iii) Four circumstances under which a person or business could apply for deregistration from VAT regulations.
Date posted: February 15, 2019. Answers (1)
- Section 185(1) of the East Africa Customs Management Act (2004) provides that "Goods that are re-imported shall be entitled to re-entry free of import duties...(Solved)
Section 185(1) of the East Africa Customs Management Act (2004) provides that "Goods that are re-imported shall be entitled to re-entry free of import duties and to a refund of duties paid on exportation
Outline three conditions to be fulfilled before the refund of duties can be provided under the East Africa Customs Management Act (2004).
Date posted: February 15, 2019. Answers (1)
- The following transactions relate to Jakayo Traders for the month of December 2010:
Determine:
(i) VAT payable by (or refundable to) Jakayo Traders for the month of...(Solved)
The following transactions relate to Jakayo Traders for the month of December 2010:
Determine:
(i) VAT payable by (or refundable to) Jakayo Traders for the month of December 2010.
(ii) Comment on any information not used in your computation under (i) above.
Date posted: February 15, 2019. Answers (1)
- Discuss three challenges associated with the harmonization of taxation policies across regions and trading blocks(Solved)
Discuss three challenges associated with the harmonization of taxation policies across regions and trading blocks
Date posted: February 15, 2019. Answers (1)
- Were and Otieno are in partnership trading as Woti Enterprises. They share profits and losses in the ratio of 2:3 respectively. The partnership's statement of...(Solved)
Were and Otieno are in partnership trading as Woti Enterprises. They share profits and losses in the ratio of 2:3 respectively. The partnership's statement of comprehensive income for the year ended 31 December 2010 is as shown below
Prepare:
(i) A statement of adjusted taxable profit or loss for the partnership business for the year ended 31 December 2010
(ii) A schedule showing total taxable income for each partner for the year ended 31 December 2010
Date posted: February 15, 2019. Answers (1)
- With reference to the East African Community Customs Management Act or other relevant legislation applicable in your country, highlight four functions of the directorate of...(Solved)
With reference to the East African Community Customs Management Act or other relevant legislation applicable in your country, highlight four functions of the directorate of customs
Date posted: February 15, 2019. Answers (1)
- The government of your country is exploring ways of preventing loss of tax revenue from imports
As a tax expert advise the government of possible ways...(Solved)
The government of your country is exploring ways of preventing loss of tax revenue from imports
As a tax expert advise the government of possible ways of preventing the loss of tax revenue from imports
Date posted: February 15, 2019. Answers (1)
- Briefly explain four circumstances under which a taxpayer might be exempted from paying installment tax.(Solved)
Briefly explain four circumstances under which a taxpayer might be exempted from paying installment tax.
Date posted: February 15, 2019. Answers (1)
- Outline four categories of goods which are subject to customs control under the Customs and excise Act.(Solved)
Outline four categories of goods which are subject to customs control under the Customs and excise Act.
Date posted: February 15, 2019. Answers (1)
- Uhuru Traders has provided you with the following details in respect of transactions for the month of December 2011
Determine:
(i) Output tax.
(ii) Deductible input tax.
(iii) VAT...(Solved)
Uhuru Traders has provided you with the following details in respect of transactions for the month of December 2011
Determine:
(i) Output tax.
(ii) Deductible input tax.
(iii) VAT payable
Date posted: February 15, 2019. Answers (1)
- Identify four documents required in support of an application for refund of value added tax (VAT) paid in respect of bad debts(Solved)
Identify four documents required in support of an application for refund of value added tax (VAT) paid in respect of bad debts
Date posted: February 15, 2019. Answers (1)
- Kilifi Ltd. a company registered for value added tax (VAT) purposes, provided the following details in respect of the month of January 2012:
Determine:
i. The VAT...(Solved)
Kilifi Ltd. a company registered for value added tax (VAT) purposes, provided the following details in respect of the month of January 2012:
January 1: Purchased raw materials from South Africa for Sh.668.160 gross inclusive of import duty charged at 20% and VAT.
January 8: Paid for legal services amounting to Sh.52.200.
January 10: Purchased spare parts for motor vehicle repair for Sh. 18,560.
January 12: Exported goods to the Democratic Republic of Congo for Sh.600,000. January 15: Sold goods to Mwanzia, a businessman in Nairobi for Sh.52, 200.
January 18: Sold goods to the Ministry of Finance for Sh.232, 000.
January 20: Issued credit notes to a customer for defective goods for Sh.34.800. January 24: Purchased gas cylinders for Sh. 18,560.
January 26: A debtor of goods valued at Sh.69, 600 was declared bankrupt. January 28: Supplied non-taxable goods to a children's home costing Sh. 180,000. January 29: Purchased goods for Sh.278,400.
January 30: Paid for tax consultancy services of Sh. 61,480.
Note: 25% of purchases were sold at the standard rate of 16%, while the balances were either sold at zero rates or as exempt supplies. All transactions are inclusive of VAT at 16% where applicable
Determine:
i. The VAT payable or refundable.
ii. Comment on the tax computed in (i) above
Date posted: February 15, 2019. Answers (1)
- Highlight five circumstances under which customs duty paid might be refunded(Solved)
Highlight five circumstances under which customs duty paid might be refunded
Date posted: February 15, 2019. Answers (1)
- Mbale Ltd. has not paid tax for a number of years. As a tax consultant, advise the Finance Manager of Mbale Ltd. on four actions...(Solved)
Mbale Ltd. has not paid tax for a number of years. As a tax consultant, advise the Finance Manager of Mbale Ltd. on four actions that the revenue authority could take against the company for recovery of overdue tax.
Date posted: February 15, 2019. Answers (1)
- Explain the following terms as used in taxation:
i) Specific custom duty
ii) Ad valorem custom duty(Solved)
Explain the following terms as used in taxation:
i) Specific custom duty
ii) Ad valorem custom duty
Date posted: February 15, 2019. Answers (1)
- Outline six contents of a notice of assessment.(Solved)
Outline six contents of a notice of assessment.
Date posted: February 15, 2019. Answers (1)
- Beta Supermarket Ltd. is registered for VAT. During the month of January 2013, the supermarket had the following transactions
Determine A value added tax (VAT) account...(Solved)
Beta Supermarket Ltd. is registered for VAT. During the month of January 2013, the supermarket had the following transactions
January
1 Sold goods on credit to Mwamba Enterprises for Sh. 400,000.
2 Purchased goods on credit from Hekima Traders for Sh. 200,000
2 Paid for catering expenses Sh. 68,000 by cash
3 Mwamba Enterprises returned goods valued at Sh.60, 000, and received a credit note.
4 Exported goods to Uzalendo Ltd., a company based in Rwanda for Sh. 300,000
5 Purchased stationery for Sh. 84,000 on credit from Smart Books Bookshop.
9 Purchased goods for Shs 800,000 from Uchumi Enterprises on credit
12 Imported goods from Canada for Sh. 900,000 exclusive of import duty of 25% and value added tax at 16%.
16 Received a debit note of Sh. 48,000 from Uchumi Enterprises
17 Paid electricity bills amounting to Sh. 24,000 by cheque
20 Engaged an auditor and paid him Sh. 60,000 for auditing the supermarket‘s inventory.
21 Sold goods worth Sh. l,400,000 to the Ministry of Youth and Sports
24 Bought spare .parts for repair of motor vehicles for Sh. 120,000
25 Sold goods on credit to Jawabu Enterprises for Sh. 800,000
30 Made cash sales of Sh. 200,000 and banked the cash on the same day
The above transactions are stated inclusive of VAT at the rate of 16% where applicable and unless otherwise stated
Determine A value added tax (VAT) account for the month of January 2013
Date posted: February 15, 2019. Answers (1)
- Outline four offences under the value added tax (VAT) Act(Solved)
Outline four offences under the value added tax (VAT) Act
Date posted: February 15, 2019. Answers (1)