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Explain tax legislation attempts to prevent creative accounting by multinational companies
- Where non- Residents Company produces goods in Kenya and sells them elsewhere. The gains or profits arising there-from are deemed to be derived from Kenya.
- No deduction of administrative and management expenses are allowed if a branch is operating from Kenya unless the management expenses have been incurred in Kenya
- The prices of goods and inputs must be reported at arm’s length
- Royalties are not allowed for a non-resident companies
Wilfykil answered the question on February 25, 2019 at 10:41
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- Mrs. Carol Wasike is a practicing accountant working under the style and name of Wasike and Associates. Her firm is registered for Value Added Tax...(Solved)
Mrs. Carol Wasike is a practicing accountant working under the style and name of Wasike and Associates. Her firm is registered for Value Added Tax (VAT). During the month of September 2001, she undertook and completed the following assignments:
Required:
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Mr. Joseph Omuora commenced a soft drinks distribution business on 1 January 1998. He has not been maintaining proper books of account and the Commissioner of Income Tax has raised doubts about the accuracy of the annual tax returns submitted by him.
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Date posted: February 25, 2019. Answers (1)
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The following is a summary of the sales and purchases of Panda Limited for the six months ended 31 December 2003:
Required:
VAT account for the six-month period ended 31 December 2003.
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Date posted: February 25, 2019. Answers (1)
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ABC Ltd. has VAT due amounting to Sh. 3,600,000. It was late in making the returns and payment of the amount due by five months.
Required:
The penalties that ABC Ltd. will be required to pay by the VAT Department.
Date posted: February 25, 2019. Answers (1)
- Mediner Ltd. deals in a variety of goods in the month of September 2004, the Company accountant recorded the following transactions (exclusive of VAT):(Solved)
Mediner Ltd. deals in a variety of goods in the month of September 2004, the Company accountant recorded the following transactions (exclusive of VAT):
The accountant believes that the allocative method is the best in restricting the input VAT deductible against output VAT. The accountant is also of the opinion that on average, twenty percent of the standard rate purchases were sold as standard rate sales.
Required:
Compute the input VAT deductible against output VAT using the allocative method.
Date posted: February 25, 2019. Answers (1)