Liability Of A Person In Whose Name Income Of Another

Write short notes on: (i) Liability of a person in whose name income of another person is assessed. (3 marks) (ii) Additional tax in event of fraud in relation to a return. (5 marks) (iii) Incidence of taxes on imports and exports. (6 marks)(b) Amsa owns and runs a supermarket in Nairobi. For the year of income 2000, he withdrew from his trading stock goods worth Sh. 200,000 for use by his family. The selling price of these goods was Sh. 250,000. He also paid school fees for his children amounting to Sh. 150,000 during the year from business income. On 31 December 2000, he sold his entire business for Sh. 20,000,000 which was Sh. 5,000,000 above the fair value of the assets of the business. Required:State and explain the tax treatment of the above transactions. (6 marks) (Total: 20 marks)DECEMBER 2001QUESTION ONEHaving 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. (4 marks)(b) Rules of origin provisions under the COMESA treaty. (4 marks)The main tax incentives available to investors setting up companies in theExport Processing Zones (EPZs) in Kenya. (4 marks)(d) Anti-avoidance provisions under the Income Tax Act. (4 marks)(e) Tax treatment of expatriate staff. (4 marks) (Total: 20 marks)

Originally posted 2018-07-17 03:55:17. Republished by Blog Post Promoter