Explain tax legislation attempts to prevent creative accounting by multinational companies
- Where non- Residents Company produces goods in Kenya and sells them elsewhere. The gains or profits arising there-from are deemed to be derived from Kenya.
- No deduction of administrative and management expenses are allowed if a branch is operating from Kenya unless the management expenses have been incurred in Kenya
- The prices of goods and inputs must be reported at arm’s length
- Royalties are not allowed for a non-resident companies
Wilfykil answered the question on February 25, 2019 at 10:41
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“Many objectives of the Common Market for Eastern and Southern African (COMESA) treaty remain elusive due to emerging challenges”. Highlight four such challenges
(Solved)
“Many objectives of the Common Market for Eastern and Southern African (COMESA) treaty remain elusive due to emerging challenges”. Highlight four such challenges
Date posted:
February 25, 2019
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Answers (1)
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Identify and explain instances when a capital statement may be required.
(Solved)
Identify and explain instances when a capital statement may be required.
Date posted:
February 25, 2019
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Answers (1)
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Outline the main types of duties to be levied on goods according to the provisions of the Customs and Excise Act (Cap.472).
(Solved)
Outline the main types of duties to be levied on goods according to the provisions of the Customs and Excise Act (Cap.472).
Date posted:
February 25, 2019
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Answers (1)
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Giving appropriate examples, distinguish between forward and backward tax shifting.
(Solved)
Giving appropriate examples, distinguish between forward and backward tax shifting.
Date posted:
February 25, 2019
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Answers (1)
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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...
(Solved)
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 assessment to the commissioner has been dealt with.
Date posted:
February 25, 2019
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Answers (1)
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Write brief notes on Objections by the taxpayer of an assessment done by the commissioner
(Solved)
Write brief notes on Objections by the taxpayer of an assessment done by the commissioner
Date posted:
February 25, 2019
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Answers (1)
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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...
(Solved)
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 to the government. Explain how such a debt can be collected.
Date posted:
February 25, 2019
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Answers (1)
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Explain five types of notices of assessment
(Solved)
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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Answers (1)
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Write brief notes on back duty.
(Solved)
Write brief notes on back duty.
Date posted:
February 25, 2019
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Answers (1)
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Explain what is meant by Tax Avoidance?
(Solved)
Explain what is meant by Tax Avoidance?
Date posted:
February 25, 2019
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Answers (1)
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Explain the meaning of tax evasion
(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)