“Most favoured nation” status concept
This is where one country in a particular region is given a preference tax treatment by another country. The country that is favoured is considered as a strategic trading partner. Usually new rules regarding the flow of trade between the two countries are introduced e.g. china is given the most favoured status by the USA.
The benefits of this status are:-
i) To facilitate trade between the two countries
ii) Ensure transfer exchange of goods and services
iii) Foster economic co-operation
iv) Facilitate exchange of technical experts and invest most in the two countries.
Wilfykil answered the question on February 25, 2019 at 10:54
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Daniel Otwori, a resident of Kenya earned income from the countries listed below during the year ended 31 December 2006. Income from Kenya: ksh 1,765,000
(Solved)
Daniel Otwori, a resident of Kenya earned income from the countries listed below during the year ended 31 December 2006. Income from Kenya: ksh 1,765,000
Income from United Kingdom (UK) UK £4,800 net Tax deducted amounted to UK £960. The average exchange rate during the year was 1 UK £ = 140 KSH, .A double taxation agreement exists between Kenya and United Kingdom.
Required:
The double taxation relief (in Kenya shillings) due to Daniel Otwori for the year ended 31 December 2006.
Date posted:
February 25, 2019
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Answers (1)
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Hodari Nkan is resident of Kenya. During the year ended 31 December 2010, he received the following income:
(Solved)
Hodari Nkan is resident of Kenya. During the year ended 31 December 2010, he received the following income:
From Kenya: Sh. 720,000
From Zambia Sh. 540,000 (net of tax of sh. 78,000)
Assume that Kenya has a double taxation agreement with Zambia
Required:
The double taxation relief due to Hodari Nkan for the year ended 31 December 2010
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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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 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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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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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)