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Circumstances to claim VAT bad debt relief
- Where a debtor of a taxable person is declared bankrupt or insolvency
- Where a debt of taxable person remains outstanding for a period of at least 3 years but not more than 5 years
Wilfykil answered the question on February 25, 2019 at 09:04
- Makosa Maingi has not been maintaining proper books of accounts since inception of the business in the year 2007. The following balances were obtained from...(Solved)
Makosa Maingi has not been maintaining proper books of accounts since inception of the business in the year 2007. The following balances were obtained from the available business records for the four-year period ended 31 December 2010
Date posted: February 25, 2019. Answers (1)
- Your client, Malipo Enterprises, had been operating since 1 January 2008 without filing income tax returns. The rapid but unexplained growth of the firm was...(Solved)
Your client, Malipo Enterprises, had been operating since 1 January 2008 without filing income tax returns. The rapid but unexplained growth of the firm was brought to the attention of the tax-officers through die public media. The revenue authority officers lodged investigations from the period I January 2008 to 31 December 20] I and filed the following details from the business records:
Date posted: February 25, 2019. Answers (1)
- Assume that you are a senior tax assessor with the revenue authority of your country. You have been conducting back-duty investigations on a taxpayer and...(Solved)
Assume that you are a senior tax assessor with the revenue authority of your country. You have been conducting back-duty investigations on a taxpayer and are now about to make your final recommendations on the action to be taken against the taxpayer.
Required:
Discuss five factors that you would take into account in making your final recommendations
Date posted: February 25, 2019. Answers (1)
- Explain The main tax incentives available to investors setting up companies in the Export Processing Zones (EPZs) in Kenya(Solved)
Explain The main tax incentives available to investors setting up companies in the Export Processing Zones (EPZs) in Kenya
Date posted: February 25, 2019. Answers (1)
- Charitable trusts are nonprofit making organizations formed with the objective of promoting the social well-being of the general public. With reference to sections 25 and...(Solved)
Charitable trusts are nonprofit making organizations formed with the objective of promoting the social well-being of the general public. With reference to sections 25 and 26 of the income tax act (cap 470), explain the tax treatment of the charitable trusts
Date posted: February 25, 2019. Answers (1)
- Bima Insurance Company Limited is registered in Kenya to carry out life and general insurance business. From its general ledger and other records for the...(Solved)
Bima Insurance Company Limited is registered in Kenya to carry out life and general insurance business. From its general ledger and other records for the year ended 31 December 2003, you have been able to extract the following information:
Date posted: February 25, 2019. Answers (1)
- The management of Shamrock Bank Ltd. Has sought your professional guidance in determining the Bank’s tax liability for the year ended 31 December 2003.(Solved)
The management of Shamrock Bank Ltd. Has sought your professional guidance in determining the Bank’s tax liability for the year ended 31 December 2003.
The income statement of Shamrock Bank Ltd. For the year ended 31 December 2003 is given below:
Date posted: February 25, 2019. Answers (1)
- Alpha Insurance Company Ltd, provides motor vehicle and fire insurance covers to its policy holders.
The following information was extracted from the financial records of the...(Solved)
Alpha Insurance Company Ltd, provides motor vehicle and fire insurance covers to its policy holders.
The following information was extracted from the financial records of the company for the year ended 31 December 2004:
Date posted: February 25, 2019. Answers (1)
- Omega insurance company is a resident insurance business carrying, on both general and life insurance businesses. The following relates to the insurance company’s financial year...(Solved)
Omega insurance company is a resident insurance business carrying, on both general and life insurance businesses. The following relates to the insurance company’s financial year ended 31st December 2010
Date posted: February 25, 2019. Answers (1)
- Wakulima savings & Credit Co-op. Society Ltd prepared the following income statement for the year ended 31st December 2010(Solved)
Wakulima savings & Credit Co-op. Society Ltd prepared the following income statement for the year ended 31st December 2010
The SACCO intends to distribute Shs. 100,000 as dividend and bonuses to its members. All investment incomes have been stated gross of withholding tax where applicable.
Required;
Determine the taxable profit and tax liability if any of Wakulima Sacco for the year end 31 December
Date posted: February 25, 2019. Answers (1)
- Explain how savings and Credit cooperatives society (Sacco) are taxed(Solved)
Explain how savings and Credit cooperatives society (Sacco) are taxed
Date posted: February 25, 2019. Answers (1)
- Githunguri Dairy farmers cooperative society and prepared the following income statements for the year ended 1st December 2010(Solved)
Githunguri Dairy farmers cooperative society and prepared the following income statements for the year ended 1st December 2010
Date posted: February 25, 2019. Answers (1)
- Makazi Savings and Credit Cooperative Society (Sacco) Ltd. reported the following incomes and expenditure for the year ended 31 December 2005:(Solved)
Makazi Savings and Credit Cooperative Society (Sacco) Ltd. reported the following incomes and expenditure for the year ended 31 December 2005:
Required:
The taxable profit of Makazi Sacco Ltd. for the year ended 31 December 2005
Date posted: February 25, 2019. Answers (1)
- Malipo General Insurance Company Limited has provided the following details with respect to its financial year ended 31 December 2005.(Solved)
Malipo General Insurance Company Limited has provided the following details with respect to its financial year ended 31 December 2005.
Date posted: February 25, 2019. Answers (1)
- Salim Mambo and Shem Bakari have been running Mabaka Enterprises as a partnership for the last five years.
They have provided you with the following information...(Solved)
Salim Mambo and Shem Bakari have been running Mabaka Enterprises as a partnership for the last five years.
They have provided you with the following information relating to their business in the year ended 31 December 2001
Date posted: February 25, 2019. Answers (1)
- Jackson and Martin, who are both resident in Kenya, are in partnerhip trading as Jama Investments. The following details relate to their business for the...(Solved)
Jackson and Martin, who are both resident in Kenya, are in partnerhip trading as Jama Investments. The following details relate to their business for the year ended 31 December 2003. Profits and losses are shared by Jackson and Martin in the ratio of 2:3 respectively.
Date posted: February 25, 2019. Answers (1)
- Shada and Pete have been operating a jewellery retail business in Nairobi and sharing profit and losses equally. They have not maintained proper records of...(Solved)
Shada and Pete have been operating a jewellery retail business in Nairobi and sharing profit and losses equally. They have not maintained proper records of their transactions.
They have engaged you at an agreed fee of Sh. 50,000 to prepare their books and make their annual tax returns. You establish that the partners earn salaries annually and also charge 10% interest per annum on their drawings
The following presented to you is relevant:
Date posted: February 25, 2019. Answers (1)
- Ali and Musa are in partnership trading as Alimusa Enterprises. They share profits and losses in the ratio of 2:3 for Ali and Musa respectively....(Solved)
Ali and Musa are in partnership trading as Alimusa Enterprises. They share profits and losses in the ratio of 2:3 for Ali and Musa respectively. The partners presented the following profit and loss account of the partnership for the year ended 31 December 2004:
Date posted: February 25, 2019. Answers (1)
- Jared Kimutai and Peter Wakoli have been trading in partnership as Kimwa enterprises for the past ten years. The business was converted into a private...(Solved)
Jared Kimutai and Peter Wakoli have been trading in partnership as Kimwa enterprises for the past ten years. The business was converted into a private limited liability company Mwanzo limited on 1 October 2005 with the partners becoming the directors of the new company
The following details were availed to you assist in the filing of tax returns for the financial year ended 31 December 2005
Date posted: February 25, 2019. Answers (1)
- Christine Atieno and Rose Njeri started a law firm as partners on 1st January 2007. They named the firm Atieno, NJeri and Associates. The partners...(Solved)
Christine Atieno and Rose Njeri started a law firm as partners on 1st January 2007. They named the firm Atieno, NJeri and Associates. The partners opened a joint bank account where Njeri deposited sh. 3,000,000 and Atieno sh. 2,000,000 as initial capital. They also agreed that profits and losses would be shared in the ratio of the initial of their capital contributions. Further, they agreed that interest on capital on capital would be paid at 5% per annum based on the initial capital contributions.
On 5th January, 2007 the firm signed a six year lease for an office at an annual lease payments of sh. 200,000. The lease contract required the partners to deposit a lump sum to cover the lease payments for the first two years of lease term
On 11th January, 2007 the firm purchased the following assets for use in the business
Date posted: February 25, 2019. Answers (1)