Circumstances under which imported goods are considered to have been dumped in Kenya;
- Goods are sold in Kenya at a price lower than the cost of Importing i.e. cost of insurance, freight, duty taxes, cost of' goods etc. In the country exporting the goods.
- The export price in the country which is exporting the gods is less than the fair market value of price of goods in that country.
- If the country exporting to Kenya had imported the goods and:
- The export price of goods in the original country of export is less than fair market price in that county
- The export price of goods in the country which is exporting to Kenya after importing is less than fair market price in that country.
Wilfykil answered the question on February 25, 2019 at 09:47
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An investigation of his affairs revealed the following:
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Mr. Dickson Maelfu is a-businessman with interests in the manufacturing sector. He is facing a back duty investigation by the revenue authority which suspects that he has been under - declaring income four years from year 2003 to year 2006.
You are the head of the team from the revenue authority conducting this investigation. Maelfu has submitted to you records of his private and business assets and liabilities from 1 January 2003 to 31 December 2006 as shown below.
Date posted: February 25, 2019. Answers (1)
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The following transactions...(Solved)
Mr. Elias Hodari is a businessman dealing in both vatable and non vatable goods. He is registered for value added tax (VAT) purposes.
The following transactions relate to his business during the month of April 2008:
7 April: Imported men's suits from Dubai (United Arab Emirate) for sh. 3,600,000.
9 April: Purchased motor vehicle spare parts from a local dealer for sh. 500,000.
10 April: Exported motor vehicle spare parts to Uganda and received sh. 800,000.
14 April: Sold ten bales of second hand clothes to retail traders at a local market for sh. 80,000 per. bale,
14 April: Purchased materials to construct a godown at Nairobi's Industrial area for sh. 960,000.
17 April: Paid the godown construction firm a deposit of sh 800,000 to commence the construction.
The contract price was agreed at sh. 1,800,000 with the balance being payable on completion of the" go- down construction.
21 April: Sold men's suits to a local trader for sh. 4,800,000.
22 April: Supplied motor vehicle spare parts worth sh. 600,000 to the Armed forces of Kenya.
25 April: Purchased women's clothes from a local fashion designer for sh. 1,200,000.
25 April: Supplied non-vatable goods to a VAT registered trader for.sh. 900,000.
26 April: Some of the men's suits imported from Dubai were found to be of poor quality and returned to the exporter in Dubai. A credit note of sh. 450,000 was issued by the exporter to Mr. Hodari.
30 April: The Company's hired godown was broken into and men's suits valued at sh. 720,000 were stolen.
Transactions are stated as VAT inclusive where applicable
The standard rate of VAT is 16%.
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The VAT payable (or refundable) by Mr. Hodari for the month of April 2008 (ignore customs duty and restrictions on deductible input tax).
Date posted: February 25, 2019. Answers (1)
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Date posted: February 25, 2019. Answers (1)
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An investigation of his personal and business assets...(Solved)
Alexus Mumila has not maintained proper books of account for his business since commencing operation in year 2005.
An investigation of his personal and business assets and liabilities revealed the following balances at the end of each of the years specified below:
Required:
i. Capital statements for each of the years ended 31 December 2005, 2006, 2007 and 2008
ii. Taxable income (if any) of Alexus Munila for each of the years ended 31 December 2006, 2007 and 2008
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Mwisho Ltd. was wound up on 30 October 2009 by which date the company had paid Sh. 5,000,000 to Mwanzo Ltd in relation to the transaction for October 2009.
Assume the payments by Mwisho Ltd. were made in proportion to the nature of sales
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Required:
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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.
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The following information was extracted from the financial records of the...(Solved)
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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.
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