Dan a businessman in Kabalagala has been operating a general merchandise shop for the last five years. He is a Ugandan by taxation definition. He is a registered VAT person as far as his business is concerned. During the Month of November 2021, he purchased taxable supplies (All Tax Exclusive) at UGX 28,000,000; and made sales of taxable supplies worth UGX 48,000,000. His supplies are all standard rated. He is trying to find out from tax experts if there are other rates and what would be their advantages or limitations. One other thing disturbing him is the tax periods applicable in each case. He is employed with Chacha Ltd a Kampala based company and has some houses for rent as a business. During the week ended 31 October, URA put locks on the premises where Dan operates his business for noncompliance. 

Someone told him that he had to pay passage cost or at least get a life insurance to overcome this.  Dan claims URA had presented him with a tax demand beyond what he thought was too much. URA, however has warned him of possible penalties and/or fine. The revenues and expenses from rent were:

Location	Rental Revenue (UGX)	Maintenance expenses (UGX)
Katanga	12,000,000	2,000,000
Mutungo	11,000,000	1,000,000
Nakawa	6,000,000	700,000
Kabalagala	13,000,000	2,300,000

 He bought 4000 shares from Chacha Ltd as a senior employee at UGX 300 @. The market price per share was UGX 800 @. 

summary of incomes from the above highlighted sources:
Particulars	UGX '000'
Net Taxable Revenue from general merchandise	45,000
Remuneration from Employment:
Monthly Salary	4,600,
Leave Pay	1,200
Gardens Manager	700
Home and Private Services Manager	600
Baby Sitter	600
Monthly Private Communication Data	700
Motor Vehicle (For personal use from 1st July 2020)	56,000
Company Apartment for Accommodation (Market Price)	1,500
Holliday allowance (Foreign Trip)	4,000
Computer given to him as a donation	2,000
Office chair given to him as a gift	9.7
University Fees for his daughter paid by Chacha Ltd (@semester per year)	2,550
Medical Costs paid on his behalf by Chacha Ltd	1,800
Refund of cash paid by Dan on behalf of Chacha Ltd for Yaka	1,300
Annual Bonus received from Chacha Ltd	2,000
Paid for personal fuel to use in his personal car	1,100

Q.

1. Distinguish between forms of 'residents' and 'taxpayers' in the tax laws of Uganda.                                                                                                                             In a memo explain to Dan on Passage and medical and Life insurance costs.                                  
2. Using the information above advise Dan on his tax liability from:
3. Rental Business.                                                                                                                                                                                              
4. Employment.                                                                                                    
5. Gross Income.                                                                                                               

Q.

1. With sound illustrations, describe the objectives for Government of Uganda taxing her citizens even when the citizens threaten not to vote for them.                                                  
2. With clear illustrations, write a memo to Chacha Ltd explaining the following as an expert in taxation concerning:
3. Disallowable and allowable expenses in tax accounting.                                            
4. Application of six canons of a good tax system to taxpayers and for (URA).                                                                                                                             
5. Residence and its implications on Dan's Tax liabilities.                                                             
6. How Dan can evoke the Tax objections and Tax appeals in his circumstances.                                                   

Q.

1. Advise Dan on VAT payable/refundable.                                                               
2. Describe the process of lodging objections to URA for the VAT Taxpayer.                                               
3. Describe the roles of taxation in achieving budgetary objectives in government.                               
4.  Discuss the concepts of taxable persons under Excise and Import Duty.                

Q.

Write a special Advice Memo advising Dan on:

1. The legality/illegality Tax evasion, tax avoidance and ethical issues under taxation.                          
2. Responsibilities in tax accounting.                                                                             
3. Distinguish between Progressive, Regressive and Proportional Taxes.                        
4. Discuss the concepts of E- Payment, E- Registration and E-Invoices as used in Taxation.