Answered: special schemes for VAT administration

Business

Accounting

special schemes for VAT administration

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter15: Choice Of Business Entity—other Considerations

Section: Chapter Questions

Problem 82P

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Rainy-day Ltd is a company registered for Value Added Tax (VAT) in the United Kingdom. The following information is available in respect of Rainy-day Ltd’s VAT for the quarter ended 31 March 2021: Invoices were issued for sales to VAT registered customers of £16,200 in respect of exempt sales, £5,650 in respect of reduced rate sales and £205,250 in respect of standard rated sales. The reduced rate and standard rated sales figures are exclusive of VAT. Invoices were issued for sales to non-VAT registered customers of £32,350in respect of exempt sales and £25,670 in respect of standard rated sales. The standard rated sales figure is inclusive of VAT. On 25 March 2021 Rainy-day Ltd received a deposit for standard rated services to be supplied to a VAT registered customer on 31 March 2021. The customer paid the balancing payment on 31 March 2019. Rainy-day Ltd issued an invoice on 2 April 2021. The sales manager of Rainy-day Ltd is provided with free fuel for both business and private…
Rainy-day Ltd is a company registered for Value Added Tax (VAT) in the United Kingdom. The following information is available in respect of Rainy-day Ltd’s VAT for the quarter ended 31 March 2021: Invoices were issued for sales to VAT registered customers of £16,200 in respect of exempt sales, £5,650 in respect of reduced rate sales and £205,250 in respect of standard rated sales. The reduced rate and standard rated sales figures are exclusive of VAT. Invoices were issued for sales to Non-VAT registered customers of £32,350 in respect of exempt sales and £25,670 in respect of standard rated sales. The standard rated sales figure is inclusive of VAT. On 25 March 2021 Rainy-day Ltd received a deposit for standard rated services to be supplied to a VAT registered customer on 31 March 2021. The customer paid the balancing payment on 31 March 2019. Rainy-day Ltd issued an invoice on 2 April 2021. The sales manager of Rainy-day Ltd is provided with free fuel for both business and private…
Rainy-day Ltd is a company registered for Value Added Tax (VAT) in the United Kingdom. The following information is available in respect of Rainy-day Ltd’sVAT for the quarter ended 31 March 2021: 1. Invoices were issued for sales to VAT registered customers of £16,200 in respect of exempt sales, £5,650in respect of reduced rate sales and £205,250 in respect of standard rated sales. The reduced rate and standard rated sales figures are exclusive of VAT.2. Invoices were issued for sales to non-VAT registered customers of £32,350in respect of exempt sales and £25,670 in respect of standard rated sales. The standard rated sales figure is inclusive of VAT.3. On 25 March 2021 Rainy-day Ltd received a deposit for standard rated services to be supplied to a VAT registered customer on 31 March 2021. The customer paid the balancing payment on 31 March 2019. Rainy-day Ltd issued an invoice on 2 April 2021.4. The sales manager of Rainy-day Ltd is provided with free fuel for both business and…
Jitrah Sdn Bhd is a Malaysia tax resident company. Jitrah is registered under sales tax. Jitrah import taxable goods for RM450,000 from Brunei to use in its business on 5.04.2020. The import duty is 10% and sales tax is 10%. Jitrah issued an invoice for RM250,000 for the supply of healthy food (manufactured goods) to Big Sdn Bhd on 11.06.2020. Jitrah receive the full payment on 1.5.2020. The sales tax rate on healthy food is 5%. a. Calculate the sales tax payable by Jitrah Sdn Bhd for goods imported from Brunei. b. If Jitrah Sdn Bhd was not registered for sales tax purposes, discuss whether your answer to requirement (b)(i) would differ c. Calculate the - sales tax payable and - total invoice amount on the goods sold by Jitrah Sdn Bhd d.State the taxable period the sale by Jitrah Sdn Bhd should be accounted for, state the due date to remit the sales tax to RMCD.
A company registered for Value Added Tax (VAT) in the United Kingdom. The following information is available in respect for the quarter ended 31 March 2021: 1. Invoices were issued for sales to VAT registered customers of £16,200 in respect of exempt sales, £5,650 in respect of reduced rate sales and £205,250 in respect of standard rated sales. The reduced rate and standard rated sales figures are exclusive of VAT. 2. Invoices were issued for sales to Non-VAT registered customers of £32,350 in respect of exempt sales and £25,670 in respect of standard rated sales. The standard rated sales figure is inclusive of VAT. 3. On 25 March 2021 the company has received a deposit for standard rated services to be supplied to a VAT registered customer on 31 March 2021. The customer paid the balancing payment on 31 March 2019. The company issued an invoice on 2 April 2021. 4. The sales manager of the company is provided with free fuel for both business and private mileage driven in his company…
Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2021, Isaac had $632 million in sales of this type. Scheduled collections for these sales are as follows: 2021 2022 2023 2024 2025 Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. O $62 million. $ Ignoring operating expenses, what deferred tax liability would Isaac report in its year-end 2021 balance sheet? (Round your answer to the nearest whole million.) O $584 million. 62million 122million 138million 153million 157million $ 632million O $134.5 million. O $143 million.
An Omani Establishment sold goods worth OMR 110,000 on Credit in which the debtor made payment of OMR 106,000 on 5th June, 2018. However, the company had written off OMR 4000 as bad debts and claimed deduction as an allowable expenses at the end of tax year 2018. On 3rd June 2019, the defaulting debtor made payment of RO 4,000 which was included in the profit and loss account of the tax year 2019. The tax treatment in regards to bad debts of RO 4,000 for the tax year 2019 will be a. To be ignored for the tax year 2019 b. To be taxed in the tax year 2020 c. Deemed income for the tax year 2019 d. To be added for the tax year 2018
PLEASE ANSWER THE LAST QUESTION ONLY!! (QUESTION 4 ONLY) Rainy-day Ltd is a company registered for Value Added Tax (VAT) in the United Kingdom. The following information is available in respect of Rainy-day Ltd’s VAT for the quarter ended 31 March 2021: Invoices were issued for sales to VAT registered customers of £16,200 in respect of exempt sales, £5,650 in respect of reduced rate sales and £205,250 in respect of standard rated sales. The reduced rate and standard rated sales figures are exclusive of VAT. Invoices were issued for sales to Non-VAT registered customers of £32,350 in respect of exempt sales and £25,670 in respect of standard rated sales. The standard rated sales figure is inclusive of VAT. On 25 March 2021 Rainy-day Ltd received a deposit for standard rated services to be supplied to a VAT registered customer on 31 March 2021. The customer paid the balancing payment on 31 March 2019. Rainy-day Ltd issued an invoice on 2 April 2021. The sales manager of Rainy-day Ltd…
The following information relates to Swans Ltd, a vendor, and a resident of the Republic, for its tax period (a two-month period) ended 31 December 2022: Supplies of goods made by it subject to value-added tax at the standard rate amounted to R345 000 (R300 000 plus value-added tax of R45 000). Supplies of goods or services made by it subject to value-added tax at the zero-rate amounted to R100 000 (R100 000 plus value-added tax of Rnil). These goods were exported. Supplies of goods or services made by it not subject to value-added tax (exempt) amounted to R30 000 (R30 000 plus value-added tax of Rnil). Input tax of R50 000 was incurred by it for capital goods purchased. Input tax incurred for goods and services supplied to it was R25 000. Second-hand goods (not of a capital nature) were purchased by it from a non-vendor for R23 000 and paid for in cash. A debtor who owed it R69 000 (R60 000 plus value-added tax of R9 000) was liquidated during this period. A first and final…
This is under Singapore Tax Laws. For the year ended 30 September 2020, Maximus Pte Ltd’s trading profit was $200,000. The company also derived other income, details of which are provided below: Interest income of $7,600 credited to the income statement arising from $300,000 fixed deposit placed with HSBC since 1 July 2019, renewable every 6 months. The following interest matured during the respective periods: - $4,000 matured on 31 December 2019 - $3,800 matured on 30 June 2020 - $3,600 matured on 31 December 2020 The amount of interest income accrued as at 30 September 2020 was $1,800. Calculate the company’s statutory income for Year of Assessment 2021. Why is the interest income of 7,600 not included in the statutory income?
Halwings Group Ltd, a company operating in Kenya has the following information as at 1st December 2020; The company made a profit before tax of Ksh. 14,000,080 in the past 12 months of accounting -The company made a net book loss of Ksh.1,100,050 in the year 2019 -The company engaged in consultancy services in the year 2020 where they were paid Ksh. 5,000,000 -The company supplied vaatable goods worth Ksh. 3,500,000 and Ksh. 9,000,000 in the years 2019 and 2020 respectively -The company is seeking to invest Ksh. 7,000,000 in the coming year in a foreign country and in a different line from what they are dealing with in Kenya Required: (I) Calculate the different taxes due from the company as at the close of the year 2020 (ii) Advise the company concerning their planned investment in terms of the taxation concept of incvestment.
In 2021, Archibald Corporation incurred the following expenses in connection with the product of its business: P100,000 worth of plane tickets and hotel bills of its employees who were sent to business seminars; P200,000 transportation allowances of its officers from home to office and vice versa as part of their employment contract; P80,000 transportation expenses of messengers from office to several clients; P20,000 special assessment. Determine the allowable expenses that could be deducted by Archibald Corporation from its gross income.