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The following information relates to ABC Ltd. for the year ended 31 December 2006.
(Solved)
The following information relates to ABC Ltd. for the year ended 31 December 2006.
- Profit before tax sh. 4,000,000
- Import duty refunded by the authority sh. 400,000
- Dividend distributed by .ABC Ltd. sh. 8,800,000
- Dividend distributed by ABC Ltd. Sh. 3,000,000
- Corporation tax rate 30%.
Required:
Compensating tax payable by ABC Ltd. for the year ended 31 December 2006.
Date posted:
February 26, 2019
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Answers (1)
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The following information was extracted from the books of Faida Ltd. for the year ended 31 December 2006
(Solved)
The following information was extracted from the books of Faida Ltd. for the year ended 31 December 2006
- Profit before tax sh. 400,000
- Import duty refunded by tax authority sh. 400,000
- Dividend distributed by Faida Ltd. sh. 8,800,000.
- Dividend received by Faida Ltd. sh 3,000,000
The rate of corporation tax is 30%
Required:
Compensating tax payable by Faida Ltd. for the year ended 31 December 2006
Date posted:
February 26, 2019
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Answers (1)
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Primark Ltd. manufactures a variety of goods for the local market. The company commenced operations on 2 January 2006. The following is an extract from...
(Solved)
Primark Ltd. manufactures a variety of goods for the local market. The company commenced operations on 2 January 2006. The following is an extract from the company's balance sheet as at 31 December 2006
Required:
i) Capital allowances due to Primark Ltd. for the year ended 31 December 2007.
ii) Tax payable by the company (if any) for the year ended 31 December 2007.
Date posted:
February 25, 2019
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Answers (1)
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Ann Mwajuma runs a small business in Kisii town. The revenue authority has asked her to submit a self assessment return for the year ended...
(Solved)
Ann Mwajuma runs a small business in Kisii town. The revenue authority has asked her to submit a self assessment return for the year ended 31 December 2008
However, Ann Mwajuma did not maintain complete accounting records for the year ended 31 December 2008. She has therefore requested you to assist her and has provided you with the following information:
1. Opening and closing balances of assets and liabilities were as follows for the year ended 31 December 2008:
Date posted:
February 25, 2019
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Answers (1)
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Mr. Felix Madzeke is a citizen of Malawi but has been residing and conducting business in your country since 2005. However, he was not aware...
(Solved)
Mr. Felix Madzeke is a citizen of Malawi but has been residing and conducting business in your country since 2005. However, he was not aware of the requirements to maintain proper records and submitting regular assessment to the revenue authority.
An inspection conducted by the revenue authority on his business and personal transactions over past four years revealed the following:
Assets and liabilities (business and personal) as at:
Date posted:
February 25, 2019
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Answers (1)
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Revelation Traders Ltd. started its operations on 1 January 2007. The following trial balance was extracted from the books of the company as at 31...
(Solved)
Revelation Traders Ltd. started its operations on 1 January 2007. The following trial balance was extracted from the books of the company as at 31 December 2008:
Date posted:
February 25, 2019
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Answers (1)
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Briefly explain the procedure to be followed when an error on past returns is discovered either by the tax payer or commissioner for Domestic Taxes.
(Solved)
Briefly explain the procedure to be followed when an error on past returns is discovered either by the tax payer or commissioner for Domestic Taxes.
Date posted:
February 25, 2019
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Answers (1)
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Fahari Limited, a company making various leather products, commenced operation on 1 January 2009. The following information relate to the assets that the company purchased...
(Solved)
Fahari Limited, a company making various leather products, commenced operation on 1 January 2009. The following information relate to the assets that the company purchased or constructed before commencement of operations
Date posted:
February 25, 2019
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Answers (1)
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How can corporates avoid taxes?
(Solved)
How can corporates avoid taxes?
Date posted:
February 25, 2019
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Answers (1)
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Tax refunds and tax credits are increasingly being used by governments in the information and modernization taxation policies
(Solved)
Tax refunds and tax credits are increasingly being used by governments in the information and modernization taxation policies.
Required:
i) Citing examples distinguish between a tax refund” and a “tax credit”
ii) Evaluate the fundamental role of tax refunds and tax credits in a government’s developments agenda
Date posted:
February 25, 2019
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Answers (1)
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Justify the imposition of shortfall tax on companies
(Solved)
Justify the imposition of shortfall tax on companies
Date posted:
February 25, 2019
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Answers (1)
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Discuss four tax incentives that could "have contributed to the growth of financial markets in your country.
(Solved)
Discuss four tax incentives that could "have contributed to the growth of financial markets in your country.
Date posted:
February 25, 2019
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Answers (1)
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The following information was provided by Chamka Ltd. for the year ended 31 December 2011.
(Solved)
The following information was provided by Chamka Ltd. for the year ended 31 December 2011.
Date posted:
February 25, 2019
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Answers (1)
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Mr. Maji Mengi knows very little about double taxation agreements. He is a consultant, who works in many countries and in many cases, he has...
(Solved)
Mr. Maji Mengi knows very little about double taxation agreements. He is a consultant, who works in many countries and in many cases, he has ended up paying taxes on the same income more than once.
Required:
Explain to Mr. Maji Mengi the concept of double taxation treaty.
Date posted:
February 25, 2019
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Answers (1)
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Having read in the press about the benefits accruing to Kenya businessmen as a result of regional initiatives such as the East African Community and...
(Solved)
Having read in the press about the benefits accruing to Kenya businessmen as a result of regional initiatives such as the East African Community and COMESA, Mr. Jitendra Kumar, a prominent foreign businessman has contacted you seeking your advice on how he could reduce his liability to tax arising from expansion of his business operations into Kenya
Required:
A report addressing in clear and concise details, the following matters raised by Mr. Jitendra Kumar.
(a) The tax objectives under the COMESA treaty.
(b) Rules of origin provisions under the COMESA treaty.
Date posted:
February 25, 2019
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Answers (1)
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Kenya has entered into double taxation agreements with a number of countries. Explain the meaning and implications of a double taxation relief.
(Solved)
Kenya has entered into double taxation agreements with a number of countries. Explain the meaning and implications of a double taxation relief.
Date posted:
February 25, 2019
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Answers (1)
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Outline the benefits which may accrue to a country from being a signatory to the most favored nation's status agreement
(Solved)
Outline the benefits which may accrue to a country from being a signatory to the most favored nation's status agreement
Date posted:
February 25, 2019
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Answers (1)
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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)