Taxation 2 (ACCM4203)
BSc. Accounting - ACC
Semester: Resit
Level: 400
Year: 2018
UNIVERSITY OF BAMENDA/UNIVERSITE DE BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT
SCIENCES DEPARTMENT OF ACCOUNTING
Second Semester Examination - 2018/2019
Course code and title: ACCT 406 - TAXATION II Credit Value: 5 Course Status: C
Course Lecturers: Mr. Octavian DINGA / Mr. Akoso Wilfred Date: 11/07/2018
Venue: To be determined Time: 11:00am - 12.00pm
Instructions: OHAOA accounting plan is allowed for the purpose of this paper
QUESTION ONE: /20 marks
An executive of SGC Bank received 400.000 CFAF as a basic monthly salary and the following monthly
allowances for the month of January 2019:
Productivity allowance: 50000CFAF:
Vehicle allowance: 45,000 CFAF;
Housing allowance: 100.000 CFAF.
He worked 60hours during this month, Of which 08 on the first of January, and 08 on a Sunday, in addition to his
job income, he also owns landed property that gives him a- monthly gross rents of 200 009 CFAF with no clear
records for monthly expenditures on the landed property.
Required: Determine the monthly PIT liability, assuming that his monthly NSIF contribution for old
age pension is 22 COOCFAF
Question TWO: /10marks
Finance House Yaounde has invested in 100 ordinary shares of ABC C
0
Ltd. The nominal value of these shares
stands at 20 000 CFAF each. The Directors of ABC C
0
Ltd have declared a gross interim dividend off 780 CFAF
per ordinary share for the first quarter of the 2019 financial year.
Required: Determine the income tax on the interim dividend and the net dividend payable by ABC C
0
.
ANNEXES
ANNEX
I:
Annual PIT scale
Taxible Income Bracket (CFAF) PIT RATE
0 –
2000000
10%
2000000 –
3000000
15%
3000000 –
5000000
25%
Above 5000000
35%
ANNEX
II:
TAXA B LE RATES F OR BE NE FI T S IN KI ND
Housing
15
Electricity
4%
Water
2%
Per domestic servant
5%
Food or feeding
10%
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