Case One

Taxpayer Information

Taxpayers name: Ato Ayele

Region Addis Ababa

Zone / City / Kifle Ketema Kolfe

TIN: 0000121361

House Number: 1534

Telephone: 011 126 3434

Assume ATO AYELE, the owner of AYU BUILDING, let out (leased) the Building at Br 2,000,000 per annum. In addition to this, the lessee will incur Br 100,000 cost for repair and maintenance of the building. Assume further that Ato Ayele maintains books of Accounts and the cost of the building is Br 20,000,000 and the following expenses are incurred by the lessor:

Cost of Lease payments on Land................................	Br 100,000
Land and Building Tax.....................................................	4,800
Other Deductible Expenses...........................................	5,200

Required:

1. Determine the Gross Rental Income, Taxable Rental Income, and Rental Income Tax
2. Prepare the Rental Income Tax Return i.e., Complete the Rental Income Tax Declaration form to be filed with Tax Authority.

Case Two

Tana Merchandising Enterprise is a Category A taxpayer but not a body. The enterprise reported Br 3,000,000.00 sales revenue; Br 2,000,000 Cost of goods sold and Br 620,000 operating expenses during the tax year ending Sene 30, 2011.

Required:

1. Determine the Taxable Business Income and Business Profit Tax to be paid.
2. Prepare the Business Income Tax Return i.e., Complete Business Income Tax Declaration form to be filed with Tax Authority.