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Mr. Joseph Omuora commenced a soft drinks distribution business on 1 January 1998. He has not been maintaining proper books of account and the Commissioner...
(Solved)
Mr. Joseph Omuora commenced a soft drinks distribution business on 1 January 1998. He has not been maintaining proper books of account and the Commissioner of Income Tax has raised doubts about the accuracy of the annual tax returns submitted by him.
You have been appointed to estimate the correct amounts of taxable incomes for the years ended 31 December 1998, 1999, 2000, 2001 for comparison with those disclosed in the annual returns. These returns had disclosed the following profits or losses:
Date posted:
February 25, 2019
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Answers (1)
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Mediner Ltd. deals in a variety of goods in the month of September 2004, the Company accountant recorded the following transactions (exclusive of VAT):
(Solved)
Mediner Ltd. deals in a variety of goods in the month of September 2004, the Company accountant recorded the following transactions (exclusive of VAT):
The accountant believes that the allocative method is the best in restricting the input VAT deductible against output VAT. The accountant is also of the opinion that on average, twenty percent of the standard rate purchases were sold as standard rate sales.
Required:
Compute the input VAT deductible against output VAT using the allocative method.
Date posted:
February 25, 2019
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Answers (1)
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Explain how section 19 (1) of the VAT Act, on recovery of “tax due and payable from a person who owes money to the tax...
(Solved)
Explain how section 19 (1) of the VAT Act, on recovery of “tax due and payable from a person who owes money to the tax payer” may be enforced by the commissioner.
Date posted:
February 25, 2019
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Answers (1)
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Explain the requirements of an application for refund of VAT paid in respect of Bad debts.
(Solved)
Explain the requirements of an application for refund of VAT paid in respect of Bad debts.
Date posted:
February 25, 2019
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Answers (1)
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Explain briefly the meaning of “goods subject to customs control” under the Customs and Excise Act (Cap. 472)
(Solved)
Explain briefly the meaning of “goods subject to customs control” under the Customs and Excise Act (Cap. 472)
Date posted:
February 25, 2019
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Answers (1)
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Name four incentives given by the government to encourage the growth of capital market in Kenya
(Solved)
Name four incentives given by the government to encourage the growth of capital market in Kenya
Date posted:
February 25, 2019
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Answers (1)
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Explain the term “thin capitalization.”
(Solved)
Explain the term “thin capitalization.”
Date posted:
February 25, 2019
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Answers (1)
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List four circumstances under which duty paid on imports is refundable
(Solved)
List four circumstances under which duty paid on imports is refundable
Date posted:
February 25, 2019
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Answers (1)
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Under what circumstances are imported goods considered to have been dumped in your country.
(Solved)
Under what circumstances are imported goods considered to have been dumped in your country.
Date posted:
February 25, 2019
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Answers (1)
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The following details were extracted from the books of Abib Traders. VAT No.A11146789P for the month of December 2005.
(Solved)
The following details were extracted from the books of Abib Traders. VAT No.A11146789P for the month of December 2005.
Date posted:
February 25, 2019
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Answers (1)
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Zawadi Ltd is a Nakuru based company dealing in a variety of VAT designated goods. The following transactions were recorded for the month of September...
(Solved)
Zawadi Ltd is a Nakuru based company dealing in a variety of VAT designated goods. The following transactions were recorded for the month of September 2006:
Date posted:
February 25, 2019
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Answers (1)
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Mr. Dickson Maelfu is a-businessman with interests in the manufacturing sector. He is facing a back duty investigation by the revenue authority which suspects that...
(Solved)
Mr. Dickson Maelfu is a-businessman with interests in the manufacturing sector. He is facing a back duty investigation by the revenue authority which suspects that he has been under - declaring income four years from year 2003 to year 2006.
You are the head of the team from the revenue authority conducting this investigation. Maelfu has submitted to you records of his private and business assets and liabilities from 1 January 2003 to 31 December 2006 as shown below.
Date posted:
February 25, 2019
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Answers (1)
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Samia Ltd. reported the following income during the year ended 31 December 2007:
(Solved)
Samia Ltd. reported the following income during the year ended 31 December 2007:
Date posted:
February 25, 2019
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Answers (1)
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Briefly explain two conditions under which bad debt relief on VAT might be provided
(Solved)
Briefly explain two conditions under which bad debt relief on VAT might be provided
Date posted:
February 25, 2019
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Answers (1)
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Your client, Malipo Enterprises, had been operating since 1 January 2008 without filing income tax returns. The rapid but unexplained growth of the firm was...
(Solved)
Your client, Malipo Enterprises, had been operating since 1 January 2008 without filing income tax returns. The rapid but unexplained growth of the firm was brought to the attention of the tax-officers through die public media. The revenue authority officers lodged investigations from the period I January 2008 to 31 December 20] I and filed the following details from the business records:
Date posted:
February 25, 2019
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Answers (1)
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Explain The main tax incentives available to investors setting up companies in the Export Processing Zones (EPZs) in Kenya
(Solved)
Explain The main tax incentives available to investors setting up companies in the Export Processing Zones (EPZs) in Kenya
Date posted:
February 25, 2019
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Answers (1)
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Charitable trusts are nonprofit making organizations formed with the objective of promoting the social well-being of the general public. With reference to sections 25 and...
(Solved)
Charitable trusts are nonprofit making organizations formed with the objective of promoting the social well-being of the general public. With reference to sections 25 and 26 of the income tax act (cap 470), explain the tax treatment of the charitable trusts
Date posted:
February 25, 2019
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Answers (1)
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Bima Insurance Company Limited is registered in Kenya to carry out life and general insurance business. From its general ledger and other records for the...
(Solved)
Bima Insurance Company Limited is registered in Kenya to carry out life and general insurance business. From its general ledger and other records for the year ended 31 December 2003, you have been able to extract the following information:
Date posted:
February 25, 2019
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Answers (1)
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The management of Shamrock Bank Ltd. Has sought your professional guidance in determining the Bank’s tax liability for the year ended 31 December 2003.
(Solved)
The management of Shamrock Bank Ltd. Has sought your professional guidance in determining the Bank’s tax liability for the year ended 31 December 2003.
The income statement of Shamrock Bank Ltd. For the year ended 31 December 2003 is given below:
Date posted:
February 25, 2019
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Answers (1)
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Omega insurance company is a resident insurance business carrying, on both general and life insurance businesses. The following relates to the insurance company’s financial year...
(Solved)
Omega insurance company is a resident insurance business carrying, on both general and life insurance businesses. The following relates to the insurance company’s financial year ended 31st December 2010
Date posted:
February 25, 2019
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Answers (1)