1.a) In relation to custom duty, explain the tax position of the following;

i)Licensing of manufacturers

ii)Collection an payment

iii)Penalties (6 Marks)

b) The following information relate to LIFE and LIFE, life assurance Company Ltd for the year ended 31^st Dec 2018

i) Premium assurance transactions;

Received sh 150Mil

Bal b/d 1/Jan/2018 sh 50 mil

Bal c/d 31/Dec/2018sh 30 mil

ii) Valued fund balance- sh 360mil 10% recommended to be transferred for the benefit of shareholders.

iii)Management expenses and commissions amount to sh 60 mil.

Required;

a)Taxable income and tax payable. (10 Marks)

b)Which other information may be necessary for computation of the above tax. (5 Marks)

c)Write short notes on;

i)Tax reosus

ii)Tax audit

iii)Individual tax incentives. (9 Marks)