- Ann Mwajuma runs a small business in Kisii town. The revenue authority has asked her to submit a self assessment return for the year ended...(Solved)
Ann Mwajuma runs a small business in Kisii town. The revenue authority has asked her to submit a self assessment return for the year ended 31 December 2008
However, Ann Mwajuma did not maintain complete accounting records for the year ended 31 December 2008. She has therefore requested you to assist her and has provided you with the following information:
1. Opening and closing balances of assets and liabilities were as follows for the year ended 31 December 2008:
Date posted: February 25, 2019. Answers (1)
- Mr. Felix Madzeke is a citizen of Malawi but has been residing and conducting business in your country since 2005. However, he was not aware...(Solved)
Mr. Felix Madzeke is a citizen of Malawi but has been residing and conducting business in your country since 2005. However, he was not aware of the requirements to maintain proper records and submitting regular assessment to the revenue authority.
An inspection conducted by the revenue authority on his business and personal transactions over past four years revealed the following:
Assets and liabilities (business and personal) as at:
Date posted: February 25, 2019. Answers (1)
- Revelation Traders Ltd. started its operations on 1 January 2007. The following trial balance was extracted from the books of the company as at 31...(Solved)
Revelation Traders Ltd. started its operations on 1 January 2007. The following trial balance was extracted from the books of the company as at 31 December 2008:
Date posted: February 25, 2019. Answers (1)
- Briefly explain the procedure to be followed when an error on past returns is discovered either by the tax payer or commissioner for Domestic Taxes.(Solved)
Briefly explain the procedure to be followed when an error on past returns is discovered either by the tax payer or commissioner for Domestic Taxes.
Date posted: February 25, 2019. Answers (1)
- Fahari Limited, a company making various leather products, commenced operation on 1 January 2009. The following information relate to the assets that the company purchased...(Solved)
Fahari Limited, a company making various leather products, commenced operation on 1 January 2009. The following information relate to the assets that the company purchased or constructed before commencement of operations
Date posted: February 25, 2019. Answers (1)
- What should individuals and corporates put in mind to mitigate their tax exposure or avoid being taxed unfairly?(Solved)
What should individuals and corporates put in mind to mitigate their tax exposure or avoid being taxed unfairly?
Date posted: February 25, 2019. Answers (1)
- How can corporates avoid taxes?(Solved)
How can corporates avoid taxes?
Date posted: February 25, 2019. Answers (1)
- What techniques or ways can individuals take advantage of to avoid taxes?(Solved)
What techniques or ways can individuals take advantage of to avoid taxes?
Date posted: February 25, 2019. Answers (1)
- Tax refunds and tax credits are increasingly being used by governments in the information and modernization taxation policies(Solved)
Tax refunds and tax credits are increasingly being used by governments in the information and modernization taxation policies.
Required:
i) Citing examples distinguish between a tax refund” and a “tax credit”
ii) Evaluate the fundamental role of tax refunds and tax credits in a government’s developments agenda
Date posted: February 25, 2019. Answers (1)
- In the year ended 31 December 2011. Malipo Ltd. earned a profit before tax of Sh. 400 million from its main operation.(Solved)
In the year ended 31 December 2011. Malipo Ltd. earned a profit before tax of Sh. 400 million from its main operation.
In addition, the company earned an investment income of Sh. k60 million. Dividend paid to members for the year amounted to Sh. 98 million.
The corporation tax rate is 30%
Required:
Shortfall tax, inclusive of penalties (if any) payable by the company for the year ended 31 December 2011.
Date posted: February 25, 2019. Answers (1)
- Justify the imposition of shortfall tax on companies(Solved)
Justify the imposition of shortfall tax on companies
Date posted: February 25, 2019. Answers (1)
- A number of countries, particularly in the developing world, have rest fact urea their revenue authorities to provide for large taxpayer units (LTUs).(Solved)
A number of countries, particularly in the developing world, have rest fact urea their revenue authorities to provide for large taxpayer units (LTUs).
Required;
i) Explain three reasons that have motivated the formation of LTUs.
ii) As a tax consultant in a country that intends to form an LTU, describe three key functional areas of an LTU.
Date posted: February 25, 2019. Answers (1)
- Discuss three reasons that related parties may give to justify the continued use of transfer pricing systems.(Solved)
Discuss three reasons that related parties may give to justify the continued use of transfer pricing systems.
Date posted: February 25, 2019. Answers (1)
- Describe ways in which related parties could be transfer pricing systems to avoid tax(Solved)
Describe ways in which related parties could be transfer pricing systems to avoid tax
Date posted: February 25, 2019. Answers (1)
- Briefly explain how firms or individuals could mitigate tax exposure through.
i) Stock dividends
ii) Share repurchases programmes.
iii) Registered venture capital entities.(Solved)
Briefly explain how firms or individuals could mitigate tax exposure through.
i) Stock dividends
ii) Share repurchases programmes.
iii) Registered venture capital entities.
Date posted: February 25, 2019. Answers (1)
- Discuss four tax incentives that could "have contributed to the growth of financial markets in your country.(Solved)
Discuss four tax incentives that could "have contributed to the growth of financial markets in your country.
Date posted: February 25, 2019. Answers (1)
- The following information was provided by Chamka Ltd. for the year ended 31 December 2011.(Solved)
The following information was provided by Chamka Ltd. for the year ended 31 December 2011.
Date posted: February 25, 2019. Answers (1)
- Savana Holdings Ltd. is a foreign controlled company operating in your country.
The following information was extracted from the financial statements for the year ended 31...(Solved)
Savana Holdings Ltd. is a foreign controlled company operating in your country.
The following information was extracted from the financial statements for the year ended 31 December 2011:
Required:
i) Justify the argument that the company was thinly capitalized.
ii) Compute the company's interest tax shield.
Date posted: February 25, 2019. Answers (1)
- Mr. Maji Mengi knows very little about double taxation agreements. He is a consultant, who works in many countries and in many cases, he has...(Solved)
Mr. Maji Mengi knows very little about double taxation agreements. He is a consultant, who works in many countries and in many cases, he has ended up paying taxes on the same income more than once.
Required:
Explain to Mr. Maji Mengi the concept of double taxation treaty.
Date posted: February 25, 2019. Answers (1)
- Having read in the press about the benefits accruing to Kenya businessmen as a result of regional initiatives such as the East African Community and...(Solved)
Having read in the press about the benefits accruing to Kenya businessmen as a result of regional initiatives such as the East African Community and COMESA, Mr. Jitendra Kumar, a prominent foreign businessman has contacted you seeking your advice on how he could reduce his liability to tax arising from expansion of his business operations into Kenya
Required:
A report addressing in clear and concise details, the following matters raised by Mr. Jitendra Kumar.
(a) The tax objectives under the COMESA treaty.
(b) Rules of origin provisions under the COMESA treaty.
Date posted: February 25, 2019. Answers (1)