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Accf 431: Taxation Question Paper

Accf 431: Taxation 

Course:Education And Pre-University

Institution: Kenya Methodist University question papers

Exam Year:2011



FACULTY : EDUCATION & SOCIAL SCIENCES
DEPARTMENT : EDUCATION AND PRE-UNIVERSITY
TIME : 2 HOURS
INSTRUCTIONS Answer ANY FOUR Questions

Question 1
a) Explain FIVE canons of taxation. (10marks)
b) Explain FIVE disadvantages of indirect taxation. (5marks)

Question 2
a) Explain FIVE desirable characteristics of a tax system. (10marks)
b) Explain how the economic impact of a tax can be absorbed in an economy. (5marks)

Question 3
a) Differentiate between the benefit approach and the ability to pay approacher to taxation.(7marks)
b) Evaluate how taxation can be used in achieving the fiscal objective of a developing economy. (8marks)

Question 4
a) Define the term evasion. (3marks)
b) Identify THREE ways a person can evade tax. (6marks)
c) Briefly outline FOUR advantages of indirect tax. (6marks)

Question 5
a) Explain the term tax incidence. (3marks)
b) Briefly explain ANY FOUR factors that cause taxes to shift. (4marks)
c) Explain FOUR benefit of VAT as a tax. (8marks)

Question 6
a) Explain following taxation system
i) Regressive tax
ii) Proportional tax
iii) Progressive tax. (6marks)
b) Explain the rights of a registered trader in respect to value added tax. (6marks)
c) Explain what is value added tax. (3marks)






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