Or induction, if you're picky. I found it to be and interesting look at the By william gregoryI found it to be and interesting look at the way Sherlock HolmeWant to be a little bit more like Sherlock Holmes? The Deduction Guide will provide you with an alternate way of perceiving your surroundings, and allow you begin to make deductions about people and objects. Expenditure and losses of capital nature should be excluded.
The following tax credit are provided in the FA; Blind person, Elderly person, Disability and Medical expenses including contributions to medical aid societies. The definition of a person includes: i. A company ii. A trust iii. A i only B i and ii only C i and iii only D iii only 3. Section 2 of the Income Tax Act defines a person as including a company, a local authority, deceased and insolvent estate but excluding a partnership.
Which of the following is the implication of the definition in relation to partnerships? A Income from a partnership is exempt from tax B The partners forming a partnership are the ones taxable on partnership income. C A partnership should not remit tax returns D A partnership has no tax obligations like other persons named in the above definition 4.
Mr Jones is an accountant with a local company. Which transaction is of capital nature? Acquisition of shares so as to sell them when they appreciate in value ii. Purchase of raw materials for manufacturing purposes A i and ii only B ii only C i , ii and iii D ii and iii 6. Why are taxes levied? Which of the following is exempt by nature of income?
A Salary and allowance paid to the president B Scholarship or bursary paid to a student C Amount accruing to a parastatal entity D Compensation paid to a person as a result of injury, sickness or death at work.
Which of the following is an exemption applicable to individuals? The wives of the two both work for the partnership. Which of the following credits is not apportioned? Which of the following is NOT a direct tax? Magogo and Munetsi are in partnership sharing profits and losses in the ratio respectively. Which of the following is a deduction to income in respect of employment income of individuals? Which of the following is NOT an invalid appliance? Wheel chair ii.
Artificial limp iii. Modifications to a toilet or bathroom to enable use by a disabled person iv. Spectacles A i , ii and iii B iii only C All D None Question 1 a Describe the main purpose of taxation in a modern economy and outline three basic principles that a good tax system should be guided by.
Source ii. Accrued to iii. Total amount iv. Received by v. It is commonly known as the Charging Act. The contents of this Act are revised each year through debates in parliament. All other tax statutes refer to the FA for rate on which an amount should be charged. Amendments to the FA are issued out each year, which also contains amendments of other statues. Pool promoter of a pool betting business promoted within Zimbabwe Representative of the promoter of a pool betting business promoted outside Zimbabwe Copper dealer Casino licence, other than a temporary casino licence Temporary casino licence The 13th Schedule to the ITA, gives the basis for taxing employment income.
Thus, every employer is required to withhold part of the remuneration payable to his or her employee as is equivalent to the tax liability of such employee. The employee tax as referred to in the above paragraph is known as PAYE. Employers are required under the same paragraph of the 13th Schedule to register with Zimra within 14 days of becoming an employer.
On the same token, employers are required to notify the Commissioner of any changes of his or her business address or on ceasing to be an employer within the same period. On registration, employers are given a Business Partner Number which should be quoted on all returns submitted to Zimra.
To make assessment easy, every employer is required to maintain records of remuneration paid and PAYE withheld, in respect of each employee for each year of assessment. The employer will furnish the Commissioner, within 30 days after the end of year of assessment, a return ITF 16 showing: name and address of each employee, total remuneration paid and PAYE withheld. Thirteenth Schedule, paragraph 1 Also the representative of an employer meets the definition of employer.
A representative of an employer can mean, in the case of a company- a public officer of such company; in the case of a trust- a trustee, etc.
The term employee excludes a director except where the Act specifically cites to the contrary. An employee has one of these characteristics; - Has no independence in execution of his or her work, i.
Under the PAYE system, all employers administered the collection of employee tax, but at the end of the tax year, the tax department would assess the same PAYE to account for income tax variance. The system resulted in the duplication of similar processes and a lot of resources were therefore tied up in assessing the final tax liabilities. FDS is most appropriate to employers with computerised payroll system, though that cannot be the basis of the Commissioner for directing an employer to be on FDS.
In addition, under this system, the employee whose income consists solely of employment income will not submit returns after the end of the year if employed by one employer during the year.
Employees whose employer is on FDS need not submit returns to Zimra, provided that they have been in continuous employment with the same employer for the whole year. Employees who should submit returns to Zimra are those who have; - Terminated employment during the year of assessment. Refunds Refunds for overpaid tax Refunds awarded by only awarded by the the employer by Commissioner.
This creates savings in resources from both the Revenue Authority and the employee perspectives. Gross income For employment income, remuneration is what constitutes gross income to an employee.
Remuneration has been defined in paragraph 3. The maximum exemption of USD is provided by the Act on the aggregate of bonuses or performance related award received by an employee during Tax Year. Both payments are taxable in the hands of the employee.
A prize generally is a receipt of capital nature, an exception is a prize won as a result of employment which is however, taxed, for instance, employee of the year award. It is not taxable in the hands of recipient nor is it deductible in the hands of the payer.
Such payment is gross income to the employee and is taxable. Usually CIL is paid on termination of employment where cessation of the contract renders it impossible for the employee to take his or her accrued leave days. Gratuity is usually paid to long serving employees. Gratuity is taxable in full, unless it is paid together with a retrenchment package to which it is part, in such circumstance an exemption applies. Retrenchment package is gross income in the hands of an employee.
Only approved retrenchment package qualifies for exemption. Retrenchment package includes Severance pay, Gratuity and any other payments associated with redundancy, but specifically excludes Cash In lieu of Leave and Pension receipts.
One third of the retrenchment package is exempt subject to a minimum of USD 10 , and to a maximum of a retrenchment package of USD 60 i. Calculate the exemptions attributable to each of them. It can be paid in cash or in kind. Where no cash is paid by the employer, the value of the benefit is also taxable. Valuation of a benefit for tax purpose is generally based on the cost to the employer for providing the benefit, except for housing and furniture benefit which is valued in reference to the value to the employee.
The journey undertaken should be in connection with taking up or termination of employment or any other journey made by an employee, his spouse and children or one or more of them in so far as that journey is not made for the purpose of a business transaction of the employer.
Passage benefit is apportioned on time or usage basis if the journey is undertaken for dual purposes. Example Mr Sadombo, who works for Alisto Engineering as a production manager, went to a business trip to Brazil in May He was accompanied by his wife and son.
The benefit shall be valued according to open market rentals for a house that is located within a municipal area, if the house is not within the municipal area the benefit is measured as Usually, the benefit is granted together with the housing benefit. In addition any school fees discounts or reductions granted because of the employer-employee relationship become taxable benefits in the hands of the employee.
Take note that no benefit arises if the motor vehicle is disposed to an employee who is above 55 years of age. No benefit arises if the loan extended to the employee does not exceed USD A Loan extended to an employee for educational or technical training or medical expenses for the employee, spouse or children is however, exempt from tax. Mr Manjoro is supposed to pay back the loan together with interest at the end of the year.
Calculate his taxable benefit for the year He was allocated a BT50 engine capacity cc, at the beginning of the year. Calculate his taxable income for the year of assessment. These include:- - Use of telephone and cell phone.
A pension commutation is included in gross income of an individual and taxed as received. Only portions of pension contributions that were not allowed as deduction will escape tax.
A pension commutation is a receipt of capital nature. Calculate his taxable income. A lump sum receipt is taxed at the highest marginal rate, i. Example Mr Makumbe who had served his employer for 5 years resigned with effect from 30 June For instance income received from a source outside Zimbabwe.
Pension contribution, in most cases, is 7. If the pension contributed is not given, apply 7. The aggregated maximum permissible deduction in respect of pension contributions i. Subscription to sporting or recreational clubs are not allowed, also not allowed are subscription paid by students to professional bodies. Only qualified tradesmen such as journeymen are eligible for such deductions. Trainee and apprentices do not qualify for this deduction.
See discussion on tax credits in chapter1. Bonus The main distinguishing feature of FDS is that it bases on accumulated earnings when calculating tax.
Calculate his tax liability for the month of July. Calculate his tax liability for the month of August. To be eligible for the exemption a retrenchment package should be approved by the Minister responsible for Labour and Social welfare.
Retrenchment package constitute severance pay and gratuity but specifically excludes Cash in lieu of leave and pension receipts. Allowable deductions have an effect of reducing income that will be subject to tax.
Credits have an effect of setting off tax liability of a person. The following employees should however, render returns: o Employees who have terminated employment o Employees who have started employment or changed employment o Received pension Exam tips 1. Examiners usually set questions on individual income which includes employment and non-employment income. You should be able to separate employment and business income and compute tax liability separately, unless, a question requires you to compute taxable income.
Certain incomes are taxed at their own rates like lump sum pension receipt which is taxed at marginal rate i. A 14 days B 30 days C 10 days D 15 days 2. What is the taxable housing benefit to the Mrs Lingu? He was also given a car on the same date, engine capacity cc. What is the total taxable benefit to Mr John? Libor is 1. Mapuranga was retrenched during the year ending 31 December What is their total exemption?
The following details relate to Mrs Mutamba for the year ended 31 December Which of the following is NOT taxable to employees: i. Passage benefit to the extend used for private purposes ii. Entertainment allowance paid to an employee which is expended on company guests iii. Motor vehicle disposed to an employee at below the market value iv. The following expenses were suffered by an employee during the tax year ended 31 December Which of the following is NOT a characteristic of an employee?
Has no independence in execution of his or her work ii. Receives remuneration fixed by employer iii. Is entitled to leave iv. Is paid fees to which he or she has the power to charge. A i only B ii only C iii only D iv only Which of the following benefits are valued on the basis of cost to the employer? Housing ii. Motoring iii. Passage iv. Under FDS, credits and deductions are claimed during the year and need not wait for assessment iii.
Under PAYE the obligation of assessment rests with the employer. A i only B iii only C i and ii only D None Stephen James went on a business trip to Germany the cost of the trip was paid by his employer. He was doing business for 10 days but he extended his stay by a further 5 days. When he returned home from Bangladesh, he was employed by Price Waterhouse Coopers, which is based in Harare, as an information systems audit manager.
The following details relates to his employment in the tax year ended 31 December In March the employer provided him with a free use of a car with engine capacity cc. Libor 1. Generally a pension contribution is based on 7. On retirement an annuity will begin to be paid to the member of a pension fund. In certain circumstances, a lump sum is paid first, and then followed with a series of pension annuity.
However, not all people receive their pension on retirement; some may get back the fruits of their contribution because of their withdrawal from a pension fund or the winding up of a pension fund. Pension receipts are taxable in the hands of the beneficiary.
To determine the taxability of such receipts, the source of the pension should be identified as either one of these funds: Benefit Fund, Pension Fund and Unapproved Fund. Receipts from a Retirement Annuity Fund are not taxable since contribution to a retirement fund is not allowable as a deduction. This is the date when pension laws were amended. As such pension or benefit funds are classified into three: - Old Fund — pension or benefit funds established before 1 July, whose rules have not changed.
A benefit should be approved by the Commissioner on his satisfaction that such fund is a permanent fund that is established for the purpose of providing sickness, accident or unemployment benefits for its members; or benefits for the widows, children, dependants or nominees of deceased members.
Pension received by an elderly person from the Consolidated Revenue Fund or from an approved pension fund is however exempt from tax. Thus the whole amount of contribution is allowed. If the amount of contribution does not exceed the above amounts, then deduction is allowed on the amounts of contribution.
Nursery Private Ltd commenced business operations on 1 July and employs five full-time employees. This pension fund had not yet registered with the Commissioner of Insurance, Pension and Provident Funds as at 31 December What is the maximum allowable contribution for arrears pension contribution?
She had been working for her employer for the past 10 years. What is her taxable income? M ltd contributed to pension on behalf of its five employees. The amount of contribution was calculated as 7. The following were annual gross salaries for the five employees. Generally, capital expenditure is not allowable as a deduction, but however, section 15 2 c , authorises the deduction of the cost of various assets. Capital allowance represents the loss of value of an asset due to use, wear and tear, etc.
The taxman disregards depreciation and applies capital allowances for the determination of taxable income. The fourth schedule provides the guidelines as to which class a certain asset falls, and capital allowances that are applicable.
Generally capital expenditure includes expenditure on: - Acquisition of fixed assets including the cost of bringing it into its useful state - The improvements or alteration of fixed assets - The construction of fixed assets, etc.
This paragraph details the criteria for qualification of expenditure on specific assets. The following do not qualify: - Buildings covered by other definitions namely, farm improvements, industrial buildings, staff housing and tobacco barns. The terms cover all other assets that could be employed by a taxpayer in the furtherance of trade and production of income.
Examples of such assets are; computers, equipment, etc. Computer software means any set of machine-readable instructions that directs a computer processor to perform specific operations. The following tables give a comparison of terms, in respect of assets, used by the accountant and the taxman. Taxman Accountant Capital Allowance e.
Straight line or Reducing Balance. Special Initial Allowance is granted to a taxpayer upon election, the election of which is binding. Such Special Initial Allowances is not granted on improvements or additions to assets.
Special initial allowance shall be allowed in respect of half of the capital expenditure incurred in the purchase of any fiscalised electronic register whose purchase qualifies for relief in terms of section 15 3 k of the VATA. Notes on S. A - Is charged in the first year an asset is brought into use. A is granted to a lessor on a finance lease. A is elected. Calculate capital allowances in respect of the truck for the year ended 31 December Scrapping allowance is limited to the cost of an asset.
It is in granted only were assets so scrapped belongs to the taxpayer. The allowance is apportioned if the asset was used for dual purposes. The company had elected for SIA in the year of acquisition. Calculate scrapping allowance on disposal of the car. Solution Year 1: S. It is income in terms of section 8 1 j and is taxable. Recoupment to the taxman is recovery of capital allowances previously lost in respect of use of an asset. Recoupment is the lesser of capital allowances granted in the life of an asset and the amount by which the sale proceeds of an asset exceeds its Income Tax Value.
The company had elected for S. A on purchase of the car. Calculate recoupment to be taxed in the hands of Masawara Ltd. Solution Year S. Calculate recoupment, if any, to be taxed in the hands of MTC Communications in on the following assumptions: a That the building was not replaced b That the building was replaced by February at a cost of and brought into use in May Capital allowances are thus claimed against capital expenditure.
Qualifying assets would be charged on S. A, assets that do not qualify for S. A will automatically be charged a Wear and Tear allowance. Exam tips It is important to correctly classify an asset, identify any restrictions that may apply to that asset and to determine the capital allowances that should be claimed on the asset S.
Which of the following is not a characteristic of an industrial building? Building which was created on or after 1st of April ii. Building containing or used for the of operating machinery iii.
A warehouse used for storage of raw materials which are to be used for manufacture of other goods. Staff welfare building. What is the amount of SIA chargeable on immovable properties? Using the same information in question what is the total capital allowances in respect of motor vehicles. What are total capital allowances chargeable on all of the above assets? Dublin Co. The fourth schedule to the Income Tax Act classifies certain assets into categories such as Commercial buildings, Industrial buildings, Staff housing, Passenger Motor Vehicle etc.
The number of employees for the wholesale sector on the other hand, ranges between and Additionally, the revenue made is also a key item of consideration for the business. Offers checklists of deductible expenses and record-keeping requirements and points out money-saving federal tax deductions, including charitable contributions and expenses for small business owners.
Every Landlord's Tax Deduction Guide gives small residential landlords who cant afford to hire high-priced accounting or law firms the guide they need to save money on taxes. Every Landlord's Tax Deduction Guide explains how to: fill out the dreaded IRS Schedule E, determine whether an expense is a deductible repair or depreciable improvement, take real estate tax credits, maximize depreciation deductions, deduct losses arising from real estate ownership, keep proper tax records, deduct home office, travel and entertainment expenses.
It also covers other deductions landlords can take, including. The truth is, having a home-based business is one of the least understood tax loopholes to creating wealth. With this book you'll learn This is why Doug wrote this book for the home-based business community. Inside, you'll also discover how to: Legally write-off thousands of dollars you never knew you could Avoid easy-to-correct mistakes that drain your savings account Turn tax season from annoyance and frustration into profit Eliminate the chance of being audited Understand why your tax preparer is giving you bad advice And so much more!
It's time you will learn everything you need to claim all of your home-based business tax deductions and lower you taxes. Are you ready to lower your taxes big time and change your tax paying future forever? Get it now! Provides a complete guide to tax deductions for people in the business of selling real estate, whether as a broker or salesperson.
This book—the first of its kind—shows you how to make the most of your hosting business without risking problems with the IRS Learn everything you need to know about taxes, including: deductions you should be taking how to report your short-term rental income how to deduct losses and vacation home and tax-free rental rules. As a small business, filing your taxes properly can help you to save a lot of money.
Therefore, it is very important that you keep an accurate record of your business expenses. So, you will need to save all your receipts. These receipts are what you will use to back up your claims when you are completing the various forms to file to the Internal Revenue Service or IRS.
This is especially important when it comes to the authentication of the deductions that you can take as a small business. It is very important that you consult with an advisor or an account before you make the claim for certain deductions.
Juindans un train entre Quimper et Paris. In DecemberDoyle had Holmes and Professor Moriarty plunge to their deaths together down the Reichenbach Desuction in the story " The Final Problem ", creator of the literary character Raffles and his two nephews also died shortly after the war. Archived from the original on 7 June Hornung. No trivia or quizzes yet.
Psychic Paradoxes. While Doyle was not unhappy at Stonyhurst, Euclidean ge. The latest Tweets from Fishology Alaska Fishology. Herald Scotland. Goodreads helps you keep track of books you want to read. Want to Read saving…. Want to Read Currently Reading Read. Other editions.
Enlarge cover.
0コメント