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1. Tax amnesty
Tax amnesty means forgiveness from payment of .taxes or duties to the extent specified by the term of amnesty
The objectives of tax amnesty as a policy in tax administration are:
a) Increase tax revenue through collection of previously undisclosed taxes/duties
b) To enhance post-amnesty voluntary compliance with tax legislation
c) To widen the tax base
2. Backward shifting of tax
It is the transfer of the tax burden from the buyer to the supplier of the commodity on which tax is imposed
Backward shifting of tax is achieved when buyers demand for the lowering of cost of goods by the value of tax imposed
3. Tax treatment of standing timber
According to Section 15 (2) (i) of the Income Tax Act, the following rules apply:
In the case of gains or profits of the owner of land from the sale of, or the grant of the right to fell, standing timber which was growing on the land at the time the owner acquired the land
(i) where the land was acquired for valuable consideration, so much of the consideration as the Commissioner may determine to be just and reasonable as representing the cost of the standing timber; or
(ii) where no valuable consideration was given tor the land, so much of that as the Commissioner may determine to be just and reasonable as representing the value of the standing timber at the time the owner acquired the land, as is attributable to the timber sold during that year of income;
(iii) in the case of gains or profits from the sale of standing timber by a person who has purchased. the right to fell that timber, so much of the price paid for that right as the Commissioner may determine to be just and reasonable as attributable to the timber sold during the year of income;
Wilfykil answered the question on February 13, 2019 at 08:28
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