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    B4 Grande Finale Solving (Nov 2021) - Set 4

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    Iddi Senkondo

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    B4 Grande Finale Solving (Nov 2021) - Set 4

    Uploaded by

    Iddi Senkondo
    8 views3 pages

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    B4 GRANDE FINALE SOLVING (NOV 2021) - SET 4

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    8 views3 pages

    B4 Grande Finale Solving (Nov 2021) - Set 4

    Uploaded by

    Iddi Senkondo

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    © All Rights Reserved
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    of 3

    GRAND FINALE PROBLEM SOLVING SESSION

    PUBLIC FINANCE AND TAXATION (B4)


    FOR NOVEMBER 2021 EXAMS

    &

    SET 4

    Prepared By: Azizi Abdul Munisi [MIB, B.com Acc (Hons), CPA (T)] Keep in touch via: 075618794
    0714818101|0788555544|[email protected] | www.covenantfinco.com
    PUBLIC FINANCE AND TAXATION (B4) GRANDE FINALE SOLVING SESSION NOVEMBER 2021 SET 4

    QUESTION ONE [Topic: Public Finance]


    (a) National income worked as an important indicator to measure the level of economic growth and welfare of
    the country and it narrates the picture of saving, investment, distribution of national income, consumption and
    employment level of the country.
    REQUIRED:
    Identify and explain methods of measurement of national income. (3 marks)
    (b) National Income Accounting is a Set of methods and principles used for measuring an economy's overall
    performance, focusing especially on the overall level of production of goods and services.
    REQUIRED:
    Explain four (4) reasons as to why National Income Accounting is important. (3 marks)
    (c) Suppose a country produces four goods: rice, clothes, cement and cars. The production of the four commodities
    in the year 2019 - 2020 was as follows.
    Unit Price
    Product Units (TZS. "000")
    Rice 1000 10
    Clothes 5000 20
    Cement 2000 50
    Cars 200 4000

    Other relevant information are as follow:-


    Net factor income from abroad was (-) TZS 430,000,000, consumption of fixed capi·tal TZS. 160,000,000, indirect
    taxes TZS.500,000,000 and subsidies TZS.300,000,000
    REQUIRED:
    Calculate.
    (i) GDP at market prices.
    (ii) GNP at MP
    (iii) GDP at FC
    (iv) Net National Product at market price (10 marks)

    (a) Explain methods that can be used to quantify the level of tax avoidance and tax evasion. (3 marks)
    QUESTION TWO [Topic: Stamp Duty]
    (a) What are objectives of charging Stamp duty?
    (b) What Instrument is chargeable with Stamp Duty? Give four examples of instruments subject to Stamp duty and
    its rate.
    (c) What are the basis of Computations of Stamp duty?
    QUESTION THREE [Topic: Tax Administration]
    (a) The Tanzania Revenue Authority (TRA) was established by Act of Parliament No. 11 of 1995 as amended
    and started its operations on 1st July 1996. In carrying out its statutory functions, TRA is regulated by law, and is
    responsible for administering impartially various taxes of the Central government.

    REQUIRED:
    Identify and discuss the TRA revenue departments and their roles in tax administration. (5 marks)

    QUESTION FOUR [Topic: Tax Administration]


    (a)Interpretation refersto assigning meaning or interpreting a particular word or phrase or section of the law
    according to the context required in the process of dispensation of justice. For the purpose of tax matters the
    institutions which are mandated to interpret tax laws are the Commissioner General, the Tax Revenue Appeals
    Board, Tax Revenue Appeal Tribunal and the Court of Appeal of Tanzania. However, for criminal cases involving

    Azizi Abdul Munisi [MIB, B.com Acc (Hons), CPA (T)] Keep in touch via: 075618794
    0714818101|0788555544| [email protected] | www.covenantfinco.com Page | 1
    PUBLIC FINANCE AND TAXATION (B4) GRANDE FINALE SOLVING SESSION NOVEMBER 2021 SET 4

    tax matters like tax evasion and other tax offenses, normal courts may also interpret tax statutes when adjudicating
    different matters in the process of dispensation of justice.

    REQUIRED:

    (i) Explain the reasons for interpretation of tax statutes. (4 marks)


    (ii) Interpretation of tax laws can be obtained from different sources governing different tax matters in Tanzania.
    REQUIRED:
    Discuss the sources of tax laws in Tanzania. (8 marks)
    QUESTION FIVE [Topic: Excise Duty]
    (a) Define Excise duty
    (b) Explain Methods of Charging Excise Taxes
    (c) With examples explain four major problems on charging Excise duty on products of your choice
    QUESTION SIX [Topic: Tax assessment and VAT]
    (a) Mr. Maduka had been busy since 2014 with his prosperous business, Maduka Ltd. He made a profit of TZS
    200,000,000 for the year ended 31st December 2018, exceeding the estimated profit by TZS 100,000,000. Because
    of the activities at his business, Mr. Maduka neither filing annual returns nor pay tax on final assessment on
    time until 2nd January 2020 but he paid all estimated tax payable on time.
    REQUIRED:

    (i) Advise him of the latest date by which his self-assessment tax return for the tax year ended 31 st
    December 2018 should be filed. (2 marks)
    (ii) Advise him as to how long he must retain the records used in preparing his tax return for the tax
    year 2018. (2 marks)
    (iii) Using the Tax Administration Act, 2015:
    a. Calculate the interest for failure to pay taxes on due dates if the statutory rates for 2018 was
    8% per annum. (5 marks)
    b. Calculate penalty for failure to file tax return on time. (5 marks)
    (Total: 20 marks)

    (b) Mkaroson Co. Ltd deals with sharobaro garments and was registered for VAT since July, 2013. The company
    accurately lodged the respective VAT returns up to October 2020. However, the returns from November 2020
    to March 2021 were all submitted on 20th June 2021. The VAT due for each month were as follow:

    Month Amount in TZS.


    November, 2020 18,000,000
    December, 2020 15,000,000
    January, 2021 11,500,000
    February,2021 12,000,000
    March, 2021 (11,200,000)

    REQUIRED:
    (i) Calculate the total penalty due. (5 marks)
    (ii) Compute interest for failure to pay tax on time if the taxes were all paid on 20 th June 2021.
    (5 marks) (Total : 20 marks)

    Kindly invite your relatives, friends and other loved ones to enroll for certificates and diploma
    programs in Accounting, Business Administration etc. with Covenant Institute of Accountancy
    and Technology. We shall provide full details once the registration process is over. Welcome to
    Covenant Institute of Accountancy and Technology. Be ever blessed all.
    Visit Our website: www.ciat.ac.tz and Follow our Instagram page @ciat_tz
    “Come and make a covenant with us that you will never regret”

    Azizi Abdul Munisi [MIB, B.com Acc (Hons), CPA (T)] Keep in touch via: 075618794
    0714818101|0788555544| [email protected] | www.covenantfinco.com Page | 2

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