i) Royalty income
- Royalty income for resident individuals is taxed in two stages;
- First a withholding tax of 5% of the gross royalty income is imposed
- Then gross royalty less allowable expenses is added to other incomes of a taxpayer and taxed, and a relief of withholding tax earlier deducted is set off against tax computed.
ii) Loan from an employer
- Up to 11 June 1998, low interest benefit was taxed on the employee at the difference between the interest rate charged and prescribed commissioner‘s rate.
- With effect from 12 June 1998, loans at a rate below the 91 Day Treasury bill rate, (below market interest rate) will attract a fringe benefit tax payable by the employer at the corporate tax rate of 30%.
Wilfykil answered the question on February 13, 2019 at 08:39
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Kalimu and Shikah commenced trading in partnership as Kashi Enterprises on 1 January 2013. They share profits and losses in the ratio of 2:1 for...
(Solved)
Kalimu and Shikah commenced trading in partnership as Kashi Enterprises on 1 January 2013. They share profits and losses in the ratio of 2:1 for Kalimu and Shikah respectively. The partners were to receive monthly salaries of Sh.18, 000 and Sh.22,000 for Kalimu and Shikah respectively. The partnership did not maintain a complete set of accounting records.
The following summary of the bank statements for the year ended 31 December 2013 has been presented to you.
Required:
(i) Adjusted partnership profit or loss for the year ended 31 December 2013.
(ii) Distribution schedule of the profit or loss calculated in (i) above.
Date posted:
February 13, 2019
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Answers (1)
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Explain four reasons why a country might prefer a multiple tax system over a single tax system
(Solved)
Explain four reasons why a country might prefer a multiple tax system over a single tax system
Date posted:
February 13, 2019
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Answers (1)
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Write brief notes on the following
i. Tax amnesty
ii. Backward shifting of tax
iii. Tax treatment of standing timber
(Solved)
Write brief notes on the following
i. Tax amnesty
ii. Backward shifting of tax
iii. Tax treatment of standing timber
Date posted:
February 13, 2019
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Answers (1)
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Explain the following:
(a) Role of the revenue authority in a country
(Solved)
Explain the following:
(a) Role of the revenue authority in a country
Date posted:
February 13, 2019
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Answers (1)
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Discuss four arguments in favor of progressive taxes in a country.
(Solved)
Discuss four arguments in favor of progressive taxes in a country.
Date posted:
February 13, 2019
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Answers (1)
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Briefly explain the meaning of the following terms:
(i) Tax planning.
(ii) Tax avoidance.
(iii) Tax evasion.
(Solved)
Briefly explain the meaning of the following terms:
(i) Tax planning.
(ii) Tax avoidance.
(iii) Tax evasion.
Date posted:
February 13, 2019
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Answers (1)
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Distinguish between a "tax" and a "charge" as imposed by the government
(Solved)
Distinguish between a "tax" and a "charge" as imposed by the government
Date posted:
February 13, 2019
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Answers (1)
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Briefly explain three factors that influence the extent of forward shifting of indirect taxes.
(Solved)
Briefly explain three factors that influence the extent of forward shifting of indirect taxes.
Date posted:
February 13, 2019
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Answers (1)
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A number of revenue authorities in the region have embarked on various tax modernisationprogrammes.
Discuss three goals of such modernization programmes
(Solved)
A number of revenue authorities in the region have embarked on various tax modernisationprogrammes.
Discuss three goals of such modernization programmes
Date posted:
February 13, 2019
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Answers (1)
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One of the challenges faced by a number of countries today is how to finance their budget deficits, The problem is compounded by the fact...
(Solved)
One of the challenges faced by a number of countries today is how to finance their budget deficits, The problem is compounded by the fact that some of the alternatives available for financing the budget deficit might negatively impact on the country.
Required:
Citing one disadvantage in each case, briefly explain three measures that a government could undertake to finance a budget deficit.
Date posted:
February 13, 2019
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Answers (1)
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Identify four ways in which an individual or firm could engage in ?tax avoidance
(Solved)
Identify four ways in which an individual or firm could engage in ―tax avoidance
Date posted:
February 13, 2019
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Answers (1)
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Argue six cases against indirect taxes imposed in your country
(Solved)
Argue six cases against indirect taxes imposed in your country
Date posted:
February 13, 2019
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Answers (1)
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One of the facilitators in a tax seminar commented that "tax incentives tend to aid growth of capital markets.
Justify the facilitator's comment by identifying four...
(Solved)
One of the facilitators in a tax seminar commented that "tax incentives tend to aid growth of capital markets.
Justify the facilitator's comment by identifying four incentives intended to aid the growth of capital markets in your country.
Date posted:
February 13, 2019
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Answers (1)
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Outline four sources of revenue for a county or local authority
(Solved)
Outline four sources of revenue for a county or local authority
Date posted:
February 13, 2019
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Answers (1)
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Discuss four factors that influence tax shifting in an economy
(Solved)
Discuss four factors that influence tax shifting in an economy
Date posted:
February 13, 2019
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Answers (1)
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Outline five causes of tax evasion in developing countries
(Solved)
Outline five causes of tax evasion in developing countries
Date posted:
February 13, 2019
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Answers (1)
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Explain the term "set-off tax" as used in taxation
(Solved)
Explain the term "set-off tax" as used in taxation
Date posted:
February 13, 2019
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Answers (1)
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Distinguish between a "single tax system" and a "multiple tax system".
(Solved)
Distinguish between a "single tax system" and a "multiple tax system".
Date posted:
February 13, 2019
.
Answers (1)
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Distinguish between "digressive taxes" and "regressive taxes".
(Solved)
Distinguish between "digressive taxes" and "regressive taxes".
Date posted:
February 13, 2019
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Answers (1)
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Explain the term =taxable limit‘ as used in taxation
(Solved)
Explain the term ‗taxable limit‘ as used in taxation
Date posted:
February 13, 2019
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Answers (1)