Taxation 2 (ACCM4203)
BSc. Accounting - ACC
Semester: Second Semester
Level: 400
Year: 2019
THE UNIVERSITY OF BAMENDA/UNIVERSITE DE BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES ACCOUNTING DEPARTMENT
Second Semester Examination 2018/2019 Academic year
Course code and title: ACCM 4203 - Taxation II, Credit Value: 5, Status: C
Course instructors: Mr. AKOSO Wilfred / Mr. NDINGA Octavian
Venue: I BB 05 / PBB 06 Date 04/07/2019 Time: 10:30- 12:30
Instructions: Answer all questions
During a recruitment test for the position of student-tax consultant in a firm, two files are handed to you to be processed as
follows:
FILE N°-1: COUNCIL TAXES /15 mks
The newly elected councilors of the Tubah council have invited you to take part in their first council
meeting with objectives to vote the various taxes that can be used in raising revenue for the council.
Required:
1.1)
Indicate FIVE types of direct council taxes (their domain of application and assessment base) that
maybe used by tills council to raise revenue.
1.2)
Indicate FIVE types of indirect council taxes (council taxes controlled by the state) that may be
used by this council to raise revenue (their domain of application and assessment base)
NB: Use a table as follows for 1.1 and 1.2:
Tax name Domain of application Assessment base
FILE N°-2: PERSONAL INCOME TAX /30 mks
Mr. Achu. a senior staff in ABC C° Ltd has the following elements of monthly salary:
Basic Salary: 350 000 CFAF
Transport allowance: 50 000 CFAF
Duty Allowance: 100 000 CFAF
Telephone allowance: 70 000 CFAF
Housing allowance: 50 000 CFAF
In addition to these elements:
He has a service car and stays in the staff residential area of the company.
All the bills for water and electricity consumption are paid by the employer.
He owns a building rented out at a monthly rate of 800 000 CFAF with no justification for expenses.
He owns a poultry with the annual net income for this being 760 080 CFAF.
Required:
2.1)
Determine his annual taxable salary.
2.1)
Determine his annual personal income tax liability.
FILE N
o
: BUSINESS LICENCE /25 mks
COMPLUS Ltd, a business dealing with telecommunication products realized a turnover of 298 125 000
000 CFAF (Incl. VAT) during the 2018 financial year ended. This business falls under the category of
major (large scale) enterprises.
Required:
Determine the business license liability of this entity for the 2019 financial year and show the
distribution to the various beneficiaries of this tax.
www.schoolfaqs.net
SOME EXTRACTS
OF THE General Tax Code
Section 17 (1): The rate of the tax shall be 30%, to be increased by 10% as additional council tax rate.
Section 69 (2): For taxable profits from industrial, commercial and agricultural activities, real estate
revenues, the personal income tax shall be calculated by applying the rate indicated in section 17 of this
code.
Section C8, .... C 13: The business license to be paid shall be calculated by applying a rate to the turnover
of the last financial year ended, as defined below:
-0.159% on the turnover of large enterprises, for a minimum contribution of CFAF 5 million and a
maximum contribution of CFA
F
2.5 billion;
- 0.283% on the turnover of medium-sized enterprises, for a minimum contribution of CFAF 141,500
and CFAF4 500 000 maximum;
-0.494% on the turnover of small-sized enterprises, for a minimum contribution of CFAF 50 000 and
CFAF140 000 maximum
The distribution of the business license shall be calculated as follows:
i)
Council 39.4%
ii)
CRTV(AVCT) 49.27%
iii)
FEICOM: 9.85%
iv)
CCCIM: 1.48%
v)
CT: according to the tax table of foe LDT (to be subtracted from foe principal amount before tie
distribution is done).
vi)
Assessment and collection fees: 10% of the amount earmarked for each beneficiary.
Business license amount (in
CFAF)
Local development tax
100 001 to 150 000 22 500
150 001 to 200 000 30 000
200 001 to 300 000 45 000
300 001 to 400 000 60 000
400 001 to 500 000 75 000
Above 500 000 90 000
Benefits or advantages in kind are valued according to foe following rates:
• Housing at 15% of the Intermediary Gross Taxable Salary;
• Electricity at 4% of the Intermediary Gross Taxable Salary;
• Water at 2% of the Intermediary Gross Taxable Salary;
• Domestic servant at 5% of Intermediary Gross Taxable Salary per servant
• Vehicle at 10% of Intermediary Gross Taxable Salary per vehicle;
• Food (feeding) at 10% of Intermediary Gross Taxable Salary
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