Taxation 1 (ACCM3203)
Faculty of Economics and Management Science (FEMS)
Semester: Second Semester
Level: 300
Year: 2018
Section A; COST ANALYSIS
Question one: /5 mks
Briefly explain what you understand by the following terms as used in taxation and give a
concrete example for each of them as applied in Cameroon taxation system.
a) Tax heaven b) Sin Tax c) Tax avoidance d) Tax Liability e) Tax base
Question two: /10 mks
XYZ limited company assessed under the actual earning taxation system was created on
March 15
th
1986 in Bamenda and registered under the chronological number 11223344 with
index as D. this company realized a taxable profit of 22,500,350 CFAF for the fiscal year
ended 31/12/2017. The total income tax advance paid by this company during the 2017 fiscal
year amounted to 4,850,800 frs (of which 1,325,500 CFAF represents the advance tax on
turnover)
Required:
a) The unique identification number for this company
b) What is the fiscal minimum tax for this company for the financial year ended?
c) What is the company tax liability for the 2017 year ended?
Assuming that another company assessed under the simplified taxation system realized a
taxable profit of 12,502,890 frs with the total income tax advance paid by the company for
the fiscal year ended being 3,750,300 frs( of which 2,206,600 frs represents the advance tax
on turnover)
d) You are required to repeat calculations as in (b) and (c) above
e) What are the minimum and maximum annual tax liabilities for persons assessed under
the global taxation system?
f) Give two aspects that distinguish the simplified system from the actual taxation
system
Question three /15 mks
MBAH Company is an industrial business, which activities are:
A-: Activities liable to VAT
B-: Activities not liable to VAT
C-: Export of taxable products
you are also given the following information evaluated VAT exclusive:
Activities Financial year 2017 March 2018 Remarks
Sales
A
B
C
180,000,000
67,000,000
53,200,000
15,000,000
8,250,000
9,900,000
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
2
nd
Semester C.A Course: Taxation: ACCT306
Credit Value:
Course Lecturers:
Time: Course Status: Date: 2018
Venue: Instruction:
www.schoolfaqs.net
Purchase for A and
C exclusively
81,600,000 9,800,000 Purchase related to
taxable activities
Purchase for B
exclusively
41,100,000 5,700,000 Purchase related to
activities not liable
to VAT
Work Required:
1- After explaining the concept of prorate, calculate the final prorate for the year 2017
(7mks)
2- Calculate the VAT to be repaid to the state, provided that MBAH company is not
discriminating between the transactions liable and not liable to VAT (8MKS)
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