Taxation 1 (ACCM3203)
Faculty of Economics and Management Science (FEMS)
Semester: Second Semester
Level: 300
Year: 2017
THE UNIVERSITY OF BAMENDA/UNIVERSITE DE BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES DEPARTMENT OF ACCOUNTING
Re-Sit Examination - 2017/2018
Course code and title: ACCT 306-TAXATION 1 Credit Value: 5 Course Status: C
Course Lecturers: Mr. Octavian DINGA / Mr. Joseph NYOBE Venue:
To be determined Date: 16/06/2017 Time: 1:00pm - 2.30pm
Instructions: Answer all questions
Hint: All the workings must appear on your answer sheet.
Question 1:
/05 marks
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 the Cameroon taxation system:
a) Tax heaven (b) Sin tax (c) Tax avoidance (d) Tax liability (e) Tax base
Question 2:
/10 marks
XYZ Limited Company assessed under the actual earnings tax system was created on March 15
th
1986 in Bamenda and registered under chronological number 11223344 with index as D. This
company realised 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
CFAF (of which 1 325 500 CFAF represents the advanced 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 realised a taxable
profit of 12 502 890 CFAF with the total income tax advance paid by the company for the fiscal year
ended being 3 750 300 CFAF (of which 2 206 600 CFAF represents the advanced tax on turnover).
d) You are required to repeat calculations as in (b) and (c) above.
e) What are the minimum and maximum annual lax liabilities for persons assessed under the global
taxation system?
f) Give two aspects that distinguish the simplified system from the actual taxation system.
Question 2:
/15 marks
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
180,000,000
15,000,000
B
67,000,000
8,250,000
C
53,200,000
9,900,000
Purchases for A and C
exclusively
81,600,000
9,800,000
Purchases related to taxable activities
Purchases for B exclusively
41,100,000
5,700,000
Purchases related to activities not liable to VAT
Work required:
1.
After explaining the concept of prorate, calculate the final prorata for the year 2017
(7 marks).
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
(8 marks).
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