Taxation 1 (ACCM3203)
Faculty of Economics and Management Science (FEMS)
Semester: Resit
Level: 300
Year: 2017
Section A; COST ANALYSIS
Hint: all the workings must appear on your answer sheet.
Question one: /05 marks
A. All the male inhabitants of Cameroon are to pay a compulsory levy of 3,500FCFA to their local
councils.
B. All the workers of the Bamenda city council must pay 5% of their gross salaries to the council
as income taxes.
C. An import duty of 300,000FCFA is to be paid on any car that is imported through the Limbe
deep seaport.
An import duty of 10% is to be paid on the purchase price of all cars imported through the
Douala seaport.
Question Two:/05 marks
Indicate the canons of taxation that are described by the following phrases:
A. Every subject should be taxed in proportion to their respective ability to pay
B. Taxes should be based on the citizens’ income and/or wealth
C. The tax that everyone has to pay should be clearly known.
D. The yield on the collection of taxes should be greater than the cost of collection.
Question three: /25marks
An examination of the accounts of a company for taxation purposes for the 2016 year ended
reveals the following elements to be adjusted:
a. On 01/06/2016 the company bought a car at 6,000,000FCFA and depreciated it at 25%
following the straight-line method. The useful life of the car is 5 years.
b. The accountant recorded 5,010,000FCFA of net financial revenues received by the company
from inter-company investments without considering the deducted tax on revenues from
securities.
c. The company use to buy and sell without transformation, some products bought abroad, of
which the situation (stock structure) for the 2016 financial year is as follows:
Opening stock: 5,616,000FCFA
Closing stock: 1,296,000FCFA
Purchases of the year: 8,200,000FCFA
d. The company paid 656,000FCFA abroad for brokerages on purchases
e. Some shareholders have deposited money in the company’s Bank Account:
Name of the
shareholder
Sum deposited (in
CFCA)
Date of deposit % of shares held
MUH Victor
NDIKUM Emmanuel
KET Justine
80,000,000
60,000,000
30,000,000
01/07/2003
02/08/2003
01/07/2004
18
15
04
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
Resit Course: Taxation: ACCT306
Credit Value:
Course Lecturers:
Time: Course Status: Date:
Venue: Instruction:
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These funds were remunerated at the rate of 13% per year for MUH Victor and NDIKUM
Emmanuel and at the rate of 12% for KET Justine. The BEAC rate passed from 09.5% to 10%
on 01/07/2004.
f. NDIKUM Emmanuel received from the company 70,000FCFA and 150,000FCFA for monthly
rents on a building and truck respectively.
g. The company donated to a handicraft center based in Yaoundé, the sum of 650,000FCFA.
h. The company deposited the sum of 15,000,000FCFA to the Chines Company for a market
study.
i. An equipment bought on 01/01/2000 at 5,000,000 FCFA was considered completely
depreciated on 31/12/2015. Depreciation rate: 25%; acceptable fiscal rate: 20%
j. The accounting net profit is 50,000FCFA.
k. The turnover tax inclusive is 142,100,000FCfA.
Required:
1. Determine the taxable profit of the year 2016.
2. For each item, show the fiscal analysis.
3. Determine the company tax.
4. Determine the net profit awaiting appropriation.
Question Five:/20marks.
During the year 2011, NZIKO Corp purchases amounted to amounting to 24,684,475CFAF of
which:
-Stocks and services: 14,906,250 FCFA (amount VAT inclusive):
-Transporting Van: 9,778,800FCFA (amount VAT inclusive)
1. What are the adjustments to be made for each year, provided that:
- the interim pro rata was 13% in 2011;
-the final pro rata was 7% in 2011;
-the final pro rata was 35% in 2012;
-the final pro rata was 50% in 2013;
-the final pro rata was 47% in 2 014;
-the final pro rata was 19% in 2015;
-the final pro rata was 80% in 2016;
2. What will be the interim pro rata applicable in 2017?
Question six:/15 marks
The following information is provided on the importation of a stock of soft drinks:
-purchase price: 23,700,000 FCFA.
-production cost: 18,560,000 FCFA.
-freight: 300,000FCFA.
-insurance: 560,000FCFA.
-customer duties: 20% of the CIF valued.
Determine the excise duty, the VAT due by this importer and the purchase cost of this stock of
soft drink in Cameroon, considering that the goods are imported from France.
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