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- There is reduced cost of compliance to VAT requirements
- Less time is spent on filing of VAT returns because one need not register for VAT.
- The VAT refund burden is eased on the part of the government because one need not claim input tax.
- There will be less tax evasion because the number of application for VAT refund will be minimised.
Wilfykil answered the question on February 15, 2019 at 06:08
- Outline four ways through which a government could prevent loss of revenue from imports(Solved)
Outline four ways through which a government could prevent loss of revenue from imports
Date posted: February 15, 2019. Answers (1)
- As a tax student, you have been nominated by your institution to make a seminar presentation regarding the various rights conferred to a registered taxpayer...(Solved)
As a tax student, you have been nominated by your institution to make a seminar presentation regarding the various rights conferred to a registered taxpayer under the VAT Act
Summarise eight rights of a registered taxpayer that you would include in your presentation.
Date posted: February 15, 2019. Answers (1)
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The revenue authority of your country has recently launched an online based integrated tax management system whose aim is to make it more convenient for firms and individuals to pay tax.
In light of this statement:
(i) Briefly explain how an online based integrated tax management system works.
(ii) List three types of tax returns that are filed under the system.
(iii) Evaluate five benefits that are derived from use of the system over the traditional model of filing tax returns
Date posted: February 15, 2019. Answers (1)
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Assume that you have been requested to make a presentation in a tax seminar, on the measures that should be put in place to curb the problem of tax evasion in your country
Discuss four measures of overcoming the problem of tax evasion that you would include in your presentation
Date posted: February 15, 2019. Answers (1)
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Determine The total VAT payable or refundable to Haraka Enterprises...(Solved)
The following purchases and sales were made by Haraka Enterprises during the month of December 2013:
Determine The total VAT payable or refundable to Haraka Enterprises for the month of December 2013.
Date posted: February 15, 2019. Answers (1)
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Highlight four circumstances under which the government might revoke the licence of a manufacturer of excisable goods.
Date posted: February 15, 2019. Answers (1)
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Argue four cases in favor of introduction of capital gains tax (CGT) in most countries
Date posted: February 15, 2019. Answers (1)
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Outline four requirements for a valid memorandum of appeal
Date posted: February 15, 2019. Answers (1)
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Summarize four details that are required to accompany the list submitted to the revenue authority on employees who have received lump sum payment from the employer.
Date posted: February 15, 2019. Answers (1)
- Explain the following terms in the 'context of customs and excise duty:
(i) Prohibited goods.
(ii) Restricted goods(Solved)
Explain the following terms in the 'context of customs and excise duty:
(i) Prohibited goods.
(ii) Restricted goods
Date posted: February 15, 2019. Answers (1)
- Ujenzi Limited maintained the following assets in its fixed registers as at 31 December 2007
Determine Capital allowances due to Ujenzi limited for the year ended...(Solved)
Ujenzi Limited maintained the following assets in its fixed registers as at 31 December 2007
Determine Capital allowances due to Ujenzi limited for the year ended 31 December 2007
Date posted: February 14, 2019. Answers (1)
- Limo Limited prepares its accounts to 31 December each year. The company‘s trading profit and loss account for the year ended 31 December 2007 is...(Solved)
Limo Limited prepares its accounts to 31 December each year. The company‘s trading profit and loss account for the year ended 31 December 2007 is presented below
Determine:
i) Capital allowances due to Limo Limited for the year ended 31 December 2007
ii) Taxable profit (or loss) of Limo Limited for the year ended 31 December 2007
iii) Tax liability (if any) from the profit (or loss) computed in (ii) above
Date posted: February 14, 2019. Answers (1)
- Mosocho Agroforestry Ltd. has two operating divisions; Agriculture Division and Forestry Division. The following information relates to the capital expenditure incurred by the two divisions...(Solved)
Mosocho Agroforestry Ltd. has two operating divisions; Agriculture Division and Forestry Division. The following information relates to the capital expenditure incurred by the two divisions for the year ended 31 December 2008
Determine for the year ended 31 December 2008:
(a) Capital deduction due to be company.
(b) Adjusted taxable profit for the company
Date posted: February 14, 2019. Answers (1)
- Wote Suppliers Ltd. commenced operations on 1 July 2008 after incurring the following expenditure
Determine Capital allowances due to the company for the years of income...(Solved)
Wote Suppliers Ltd. commenced operations on 1 July 2008 after incurring the following expenditure
Determine Capital allowances due to the company for the years of income ended 31 December 2008 and 2009.
Date posted: February 14, 2019. Answers (1)
- The following information relates to Sawira Limited for the two years ended 31 December 2009 and 2010
Capital allowances due to Sawira Limited for each of...(Solved)
The following information relates to Sawira Limited for the two years ended 31 December 2009 and 2010
Determine Capital allowances due to Sawira Limited for each of the two years ended 31 December 2009 and 2010.
Date posted: February 14, 2019. Answers (1)
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Citing three reasons, argue the case for capital gains tax in an economy.
Date posted: February 14, 2019. Answers (1)
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Citing two reasons, argue the case against capital allowances in an economy
Date posted: February 14, 2019. Answers (1)
- Faza Ltd. a large scale manufacturing company, has provided you with the following information for the year ended 31December 2010
Compute for Faza Ltd. for the...(Solved)
Faza Ltd. a large scale manufacturing company, has provided you with the following information for the year ended 31December 2010
Compute for Faza Ltd. for the year ended 31 December 2010:
(i) Capital allowances.
(ii) Taxable profit
Date posted: February 14, 2019. Answers (1)
- Heshima Ltd. commenced operations on 1 January 2011 after incurring the following expenditure
Compute for Heshima Ltd. for the year ended 31 ended 2011
i) Capital allowances
ii)...(Solved)
Heshima Ltd. commenced operations on 1 January 2011 after incurring the following expenditure
Compute for Heshima Ltd. for the year ended 31 ended 2011
i) Capital allowances
ii) Adjusted taxable profit
Date posted: February 14, 2019. Answers (1)
- Turbo Mining Company Ltd started prospecting for minerals in Turkana in year 2008. Expenditure relating to research, testing and winning access to minerals amounted...(Solved)
Turbo Mining Company Ltd started prospecting for minerals in Turkana in year 2008. Expenditure relating to research, testing and winning access to minerals amounted to Sh.48 million.
The company paid Sh. 124 million to the government to acquire the rights over the minerals and shs.180 million for purchase of land.
The following assets were constructed or purchased during the year 2009:
1. Labour quarters were constructed at a cost of Sh. 15 million.
2. Senior manager's house was constructed on the site at a cost of Sh.6 million.
3. The director's house was acquired at a nearby trading centre at a cost of Sh.9 million.
4. Specialised processing machineries for mining were acquired at a cost of Sh.860 million.
5. Computers were purchased at a cost of Sh.0.72 million.
6. A forklift was acquired at a cost of Sh.4.5 million.
7. A saloon car for the general manager was purchased at a cost of Sh.3 million.
8. Office furniture was acquired at a cost of Sh. 1.5 million.
9. An aircraft was acquired for Sh. 144 million.
10. A store was constructed at a cost of Sh.21 million.
Determine The capital allowances due to the company for the years ended 31 December 2009, 2010 and 2011.
Date posted: February 14, 2019. Answers (1)