1. Forward shifting .
Shifting the tax burden to the consumer through increase in selling prices. If increase in selling price is equal to increase in tax, this is full shifting. If they are not equal, this is partial shifting.
2. Backward shifting
The produce of the taxed commodity transfer the money burden of tax to the supplier of factors of production. The supplier accepts lower prices for FOP
3. Tax impact
The first point of contact between the tax burden and tax payer
4. Tax incidence
The final resting place of taxes, e.g. if there is increase of tax on beer, the impact of tax is on KBL. However, KBL increases the price and the incidence of tax is on the consumer
Wilfykil answered the question on February 25, 2019 at 10:35
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Define the term "shortfall distribution tax". Under what circumstances can a company be exempted from shortfall distribution tax?
(Solved)
Define the term "shortfall distribution tax". Under what circumstances can a company be exempted from shortfall distribution tax?
Date posted:
February 25, 2019
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Answers (1)
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Write brief notes on the bodies the tax payer may appeal to incase he/she is aggrieved by the manner in which an objection for tax...
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Date posted:
February 25, 2019
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Write brief notes on Objections by the taxpayer of an assessment done by the commissioner
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Write brief notes on Objections by the taxpayer of an assessment done by the commissioner
Date posted:
February 25, 2019
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Where taxes assessed are not collected by due dates the collector of income tax has power to collect the tax due as a debt owed...
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Date posted:
February 25, 2019
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Explain five types of notices of assessment
Date posted:
February 25, 2019
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Answers (1)
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What are the contents of a notice of assessment?
(Solved)
What are the contents of a notice of assessment?
Date posted:
February 25, 2019
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(Solved)
Write brief notes on back duty.
Date posted:
February 25, 2019
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Answers (1)
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(Solved)
Explain what is meant by Tax Avoidance?
Date posted:
February 25, 2019
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Answers (1)
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(Solved)
Explain the meaning of tax evasion
Date posted:
February 25, 2019
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Answers (1)
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State the conditions which should be fulfilled before an exemption from payment of tax is granted under the V AT and Customs and Excise Acts.
(Solved)
State the conditions which should be fulfilled before an exemption from payment of tax is granted under the V AT and Customs and Excise Acts.
Date posted:
February 25, 2019
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Answers (1)
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It may be advantageous for a trader whose turnover is below the legislated turnover limits under the sixth schedule to the V AT Act to...
(Solved)
It may be advantageous for a trader whose turnover is below the legislated turnover limits under the sixth schedule to the V AT Act to register for VAT voluntarily. Under what circumstances could this be beneficial?
Date posted:
February 25, 2019
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Answers (1)
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Mrs. Carol Wasike is a practicing accountant working under the style and name of Wasike and Associates. Her firm is registered for Value Added Tax...
(Solved)
Mrs. Carol Wasike is a practicing accountant working under the style and name of Wasike and Associates. Her firm is registered for Value Added Tax (VAT). During the month of September 2001, she undertook and completed the following assignments:
Required:
(a) Prepare a VAT Account for Wasike and Associates for the month of September 2001.
(b) The VAT you have computed in (a) above, was paid on 22 October 2001 since 20 October was on a Saturday. The VAT return was also submitted on the same day. How much additional tax would be payable, if any?
(c) Kikwetu Limited was the subject of a creditors voluntary winding up and the appropriate resolution was passed on 1 April 2002. By that time the company paid Wasike and Associates only Sh.240,000 for services rendered. Assuming that all the conditions for the refund of bad debt relief are met, calculate the amount of VAT bad debt relief.
Date posted:
February 25, 2019
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Answers (1)
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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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The following is a summary of the sales and purchases of Panda Limited for the six months ended 31 December 2003:
(Solved)
The following is a summary of the sales and purchases of Panda Limited for the six months ended 31 December 2003:
Required:
VAT account for the six-month period ended 31 December 2003.
(Where applicable, the transactions are exclusive of VAT at the standard rate).
Date posted:
February 25, 2019
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Answers (1)
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ABC Ltd. has VAT due amounting to Sh. 3,600,000. It was late in making the returns and payment of the amount due by five months.
(Solved)
ABC Ltd. has VAT due amounting to Sh. 3,600,000. It was late in making the returns and payment of the amount due by five months.
Required:
The penalties that ABC Ltd. will be required to pay by the VAT Department.
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)