Taxation 2 (Catch up CA) (ACCM4203)
BSc. Accounting - ACC
Semester: Second Semester
Level: 400
Year: 2019
UBa; FEMS
CATCHUP CA TAXATION II
DURATION 45MINS
Question 1: /30 marks
(A) Compare tire following, giving two similarities and three differences; the Personal Income
Tax and tire Company Tax (10mks)
(B) An executive of SGC Bank received 1,000,000 CFAF as a gross monthly salary and the
following monthly allowances for the month of January 2019:
Domestic servant allowance: 50,000 CFAF;
Vehicle allowance: 45,000 CFAF;
Housing allowance: 100,000 CFAF.
He worked 60 hours overtime during this month, of which 08 on the first of January
7
, and 08 on a
Sunday. In addition to Iris job income, he also owns landed property that gives him a monthly
gross rents of 200 000 CFAF with no clear records for monthly expenditures on the landed
property.
Required: Determine the monthly PIT liability. (26mks)
Additional Information:
Benefits In kind are evaluated according to the following scale applicable to the gross taxable
salary;
Housing ........ 15%
Each vehicle....10%
Food. ......... 10%
Each servant.. 5%
Water. .......... 2%
Electricity. ... 4%
Old Age Invalidity and Death Pension NSIF...4.2% of the contribution salary, Maximum, Per
Month being 750,000 FCFA or 9,000,000 per year
Professional expenses .... 30% of Gross Taxable Salary
Fixed allowance ............. 500,000 FCFA per year
Personal income tax computation table
From 0 to 2,000,000 FRS. ........ ... ............... 10%
From 2,000,001 FRS to 3,000,000 FRS ....... 15%
From 3,000,001 FRS to 5,000,000 FRS ....... 25%
From 5,000,001 FRS and above .................. 35%
Housing loan funds ........ 1% of gross taxable salary
CRTV Tax (range) ......... 13,000 FCFA per month
Communal Tax (range) ....... 30,240 FCFA (annually)
Additional Council Tax Rate ... 10% of the principal
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