Tax Accounting 1 (ACCC3105)

Higher Institute of Commerce and Management (HICM)

Semester: First Semester

Level: 300

Year: 2016

Answers (200 )
QUESTION ONE (5marks)
i. Give.-two types each of the following classification of taxes in Cameroon:
(a) Based on economic criteria, (b) Based on the tax system structure.(2pts)
ii. Give a brief distinction between the following types of taxation system:
(a) Progressive tax system (b) Proportional Tax system (c) Regressive tax system(2pts)
iii. Use annual turnover to distinguish between the simplified and actual taxpayers assessment
systems in Cameroon. (lpt)
Q
UESTION two
(5
marks)
Mr NGWAFOR is carrying out a commercial business registered under the simplified taxation
system.- Its actual turnover is 40,000,000 F before tax during the financial year 2015. The turn over,
has been traced by the down payments made during the year on the sales.
Work required
:
Calculate the PIT to be paid in account of the financial year 2015, knowing
NQWAFOR is importing.
. . ’ T*
QUESTION THREE (10 marks)
DOUALA BAR Pic. is a general trade business registered under the actual earnings system with a
capital amounting to 400,000,000 CFAF. For the financial year 2015, its main profit and loss account
shows the following data:
- ordinary activity net income: 5,459,080 CFAF;
- off-ordinary activity net income: 470,950 CFAF.
A thorough examination of the profit and loss account highlighted some observations:
1.
Rates and taxes includes fines and penalties for
2
174,000 CFAF.
2.
Donations to the Presbyterian Church of Cameroon:-2,3.60,000 CFAF.
3.
The General Manager receives a monthly allowance for his missions for 175,000 CFAF. And
during the year, he was reimbursed for his missions 1,400,000 for the missions performed on
presentation of justificative vouchers.
4.
Provision written back for paid leaves: 260,000 CFAF.
5.
Royalties paid to a company based in Belgium on account of use of patents: 670,000 CFAF.
6.
The total amount of salaries paid 11,879,000 CFAF of advance salary for January 2016.
7.
Payment made to an undisclosed person: 7630,000 CFAF.
8.
Net dividends received from a Cameroonian company: 3,841,000 CFAF.
THE UNIVERSITY OF BAMENDA
HIGHER INSTITUTE OF COMMERCE AND MANAGEMENT
SESSIONS: CONTINUOUS ASSESSMENT 2015/2016
DEPARTMENT:
ACCOUNTING AND FINANCE
LEVEL:
200
COURSE
TITLE:
TAX
ACCOUNTING
1
TIME
ALLOWED:
2
H
OURS
LECTURER: Mr. Joseph M. NYOBE and Mr Elvis N. TAMAFOR
Instructions: Attempt all questions
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9.
Interest was paid on shareholders account for 4,410,000 CFAF. The funds
remuneratedamounted to 42,000,000 CFAF and were disposed from 1st February to 31
st
The
BEAC’s rate increased from 8 % top % on the Is* July 2015.
10.
In 2015, the turnover and the- purchases amounted to 300,000,0,00 CF and
231,000,000 CFAF respectively. And during the financial year 2015 the company regularly
made down payments on purchases as well as on turnover.
Work required: Assess the corporation tax to be paid of the financial year
QUESTION FOUR (10 marks)
KEDAK Company .is an industrial business, which activities are:'
- A: activities liable to VAT;
- B: activities exempted to VAT;
- C: export of taxable products.
You are also given the following information evaluated before VAT;
Activities
Financial
year 2014
Financial
year 2015
September.
Remarks '
Sales
A
B
C
187,050,00
0
132,500,00
0.
32,100,000.
10,220,000
8,§00,000
Purchases for A and C
exclusively
88,900,000 19,8008000 Purchases. Related the
taxable activities
Other purchases for A, B
and C
70,100,000 10,130,000. Purchases related to
taxation taxable exempted
activities
Work required:
1. Calculate the final pro rata for the year 2014. (2pts)
2. Calculate the VAT to be repaid to the state, according to the following assurnptiQn5'(6p
ts) A. KEDAK Company has organized his accounting system as follows:
- Section A consists of activities liable to VAT;
- Section B consists of activities exempted to VAT.
And knowing that the other purchases for A, B, and C are shared out as follows:
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Months
Activities
A B C
Total
September 2015 26% 40% 34% 100%
B. KEDAK Company is not discriminating between the transactions- liability -VAT and
exonerated.
3. Is it profitable for KEDAK Company to keep to accounting systems (that the -activities
liable to VAT and exonerated one)? (2pts)
ANNEX: THE PIT SCALE
Income brackets Rate
From 0 to 2,000,000CFAF 10%
From 2,000,001 CFAF to 3,000,000CFAF 15%
From 3,000,001 CFAF to 5,000,000CFAF 25%
More than 5,000,000CFAF 35%
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