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Duty may be offset on capital goods imported with prior approval of the Minister of Finance pursuant to Section 39(a) of the Income Tax Act.
Conditions
- The Capital goods should qualify for wear and tear allowance
- The capital goods should be used in a project, the cost of which is not less than seventy thousand United States dollars.
- The capital goods should be used within a period of two years from the date of first investment expenditure.
- The Minister should be satisfied that the investment is capable of generating net economic benefits to Kenyans.
- The project should be private and not funded by the government.
Wilfykil answered the question on February 15, 2019 at 09:12
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Date posted: February 15, 2019. Answers (1)
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As a tax specialist, briefly explain how you would treat the following issues for tax purposes:
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(ii) Trans Country Bus Services Ltd. runs a public service transport business in your country. The bus company also undertakes transport business across the borders to the neighbouring countries. The company did not include the revenue arising from cross- border transport amounting to Sh.2,000,000 in its tax returns for the year ended 31 December 2008.
(iii) During a business trip to Dubai, Mrs Agnes Latoya, a resident of your country, purchased ten suits for her husband's use at a cost of Sh.300,000. However, upon her return the husband did not like the suits.
Mrs Agnes Latoya thereafter sold the suits and realised a profit of Sh.50,000. She included this profit with her other income for the year ended 31 December 2008.
(iv) Rahani Hotels Ltd. offered the following services to foreign tourists for which it did not charge VAT:
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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With reference to the Income Tax Act (Cap.470), explain the term "incorrect returns".
Date posted: February 15, 2019. Answers (1)
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Determine:
i) Value added tax payable by (or refundable to)...(Solved)
The following transactions were extracted from the books of IB Trader; for till: month of September 2009:
Determine:
i) Value added tax payable by (or refundable to) JB Traders tor the month of September 2009.
ii) Comment on any information that you have oat used in your computations under (i) above.
Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)
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Determine:
(i) A value...(Solved)
Mamba Stores Ltd. deals in a variety of vatable and non-vatable goods. The following transactions took place during the month of December 2009:
December 1: Sold goods 011 credit to Wepesi Traders for Sh.100,000.
December 3: Purchased goods on cash basis from Riverside Traders for. 8h.98,000. December 4: Purchased electronic tax register for Sh.75,000 and paid by cheque.
December 8: Wepesi Traders returned goods valued at 8h.30,000 and received a credit note.
December 9: Sold goods to BB Ltd., a company based in Tanzania, for Sh.150,000. December 14: Paid electricity bills amounting to Sh.5,000.
December 15: Received a debit note of Sh.24,000 from Riverside Traders. December 18: Purchased office stationery for Sh.36,000.
December 21: Supplied goods to the Ministry of Agriculture valued at Sh.800,000. December 24: Imported goods from Dubai for Sh.400.000 exclusive of import duty of 25%
and value added tax of 16%
December 28: Purchased fuel for business vehicles for Sh.75,000. December 29: Paid Sh.34,000 for catering services.
December 30: Paid Sh45,000 for audit services.
Determine:
(i) A value added tax (VAT) account for the month of December 2009.
(ii) Comment on the penalties due where the VAT is not paid by Mambo Stores Ltd. on the due date(s).
Date posted: February 15, 2019. Answers (1)
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Outline four categories of goods which could be forfeited to the customs authority of your country upon their importation.
Date posted: February 15, 2019. Answers (1)
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He was therefore surprised recently when a team...(Solved)
OjwangMatata is the owner of Mapato Supermarkets. He does not actively engage in the management of the supermarket.
He was therefore surprised recently when a team of officers from the revenue authority visited him while conducting an investigation relating to tax compliance by Mapato Supermarkets. In particular, the officers were concerned that the supermarket was under-remitting value added tax (VAT).
OjwangMatata strongly feels that the revenue authority officers should have confined their investigations to the managers and staff of the supermarket, He is further concerned that the revenue authority has allowed some of the competing businesses to deregister for VAT purposes.
Advise OjwangMatata on the following:
(i) Powers of the Commissioner General to conduct tax investigations and any restrictions thereto.
(ii) Extent of his liability (if any) for VAT unpaid by Mapato Supermarkets.
(iii) Four circumstances under which a person or business could apply for deregistration from VAT regulations.
Date posted: February 15, 2019. Answers (1)
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Section 185(1) of the East Africa Customs Management Act (2004) provides that "Goods that are re-imported shall be entitled to re-entry free of import duties and to a refund of duties paid on exportation
Outline three conditions to be fulfilled before the refund of duties can be provided under the East Africa Customs Management Act (2004).
Date posted: February 15, 2019. Answers (1)
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Determine:
(i) VAT payable by (or refundable to) Jakayo Traders for the month of...(Solved)
The following transactions relate to Jakayo Traders for the month of December 2010:
Determine:
(i) VAT payable by (or refundable to) Jakayo Traders for the month of December 2010.
(ii) Comment on any information not used in your computation under (i) above.
Date posted: February 15, 2019. Answers (1)
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Date posted: February 15, 2019. Answers (1)