Free Taxation revision

1. Kenya’s ________is responsible for determining the allocation of national revenue among counties, and provides oversight of how national revenue is allocated to county governments.

2. There different types of tax assessments in Kenya. In (a)________-assessment, the assessment is filed by the commissioner where the taxpayer has failed to file tax returns in accordance with the provisions of the tax law, whereas, (b)______assessment is dome by the taxpayer and submitted in the prescribed form.

3. Where an industrial building is sold before use by the builder or contractor, the qualifying cost is:

4. Fortunas limited, located in Nairobi, deals in wholesale of assorted vatable products sourced locally or imported. During the month of June 2021, the company made the following transactions:

ii. The purchases recorded during the month were as follows:

iii. The company paid the following services during the months:

iv. During the month, the company paid kshs 27,971 and kshs 34,765 for electricity and water bills respectively.
v. The transactions are inclusive of VAT at the rate of 16% where applicable

Required :Calculate for Fortunas limited for the month of June 2021:

a. Deductible input tax
b. Output tax
c. VAT payable (or refundable)

5. The role of the Intergovernmental Budget and Economic Council is __________.

6. _________is changeable on the whole of a gain which accrues to a company or an individual upon transfer of property situated in Kenya, whether or not the property was acquired before 1^st January 2015.

7. The taxpayer who wishes to dispute a tax decision lodges an objection against that tax decision by writing a notice of objection and lodging it with the Commissioner within 30 days of being notified of the decision before proceeding under any other written law. Highlight what should be stated in the notice?

8. The accounting technique used to periodically lower the book value of a loan or an intangible asset over a set period of time is referred to as __________

9. ___________refers to a statement by the government about its plans to raise and spend money in the coming financial year and the main priorities it will spend it on.

10. Which of the following statements is not true?

11. The main function of the __________is to facilitates public participation in the budget process at the county level.

12. TRUE OR FALSE: Custom duty protects a country’s economy, residents, jobs, or environment, by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.

13. Dumping refers to _________

14. Highlight five methods of collecting income tax in Kenya

15. TRUE OR FALSE: Generally, withholding tax is good for the governments, but bad for the taxpayer.