Day: February 20, 2021

THE TIME VALUE OF MONEY  QUESTION 1 John Matata has just borrowed Sh.220,000 from a bank payable at 12% per annum compounded annually to be repaid in six equal annual instalments. These payments are to be sufficient to repay the Read More …

VALUATION OF FINANCIAL ASSETS QUESTION 1  Zedi Ltd. is forecasting a growth rate of 12% per annum for the next 2 years. The growth rate is likely to fall to 10% for the third and fourth years. After that, the Read More …

QUESTION 1 Nice Ltd. is considering raising capital from an issue of ordinary shares and debentures in a mix that will maintain its gearing ratio constant. The company has an issued share capital of ten million ordinary shares of Sh. Read More …

What is a registered pension scheme and what are its implications? Registered Pension Scheme is a retirement benefit scheme registered under rule 4 of the Income Tax Act and the following are the main rules relating to a registered Pension Read More …

 QUESTION ONE A person who is registered for VAT must maintain certain records to satisfy the VAT regulations.                Give ten examples of such records that must be kept.                                    (10 marks) Ten of the records a person registered for Read More …

 QUESTION THREE Distinguish between farm works deductions and capital deductions. (  5 marks)                                                        Read More …

  Write short notes on the following:  Taxable turnover in relation to VAT;   If a business is making taxable supplies, the value of these supplies is called taxable turnover. All goods are taxable except those listed in the second schedule Read More …

  Answer ALL questions. Marks allocated to each questions are shown at the end of the question. Show ALL your workings. Any assumptions made must be stated.  QUESTION ONE Explain the concept of elasticity with respect to: Direct Tax         Read More …

QUESTION ONE   Briefly explain the rationale behind the “benefit theory” of taxation. ( 4 marks)   Maintains that justice in taxation is secured by taking each citizen in proportion to the benefits he derives from the activity of the state. Read More …

QUESTION ONE Write brief notes on each of the following matters: Taxation of pension income (3 marks)  In case of period income, the first Ksh.180,000 p.a. (15,000 p.m) is tax exempt if from registered pension schemes only. In case of Read More …