Distinguish between the following: (i) Trading receipt and balancing charge (2Marks) (ii) Tax evasion and tax avoidance (2Marks)

(a) I) Mr. Allan Movozi is a Ugandan business man wishing to invest in Kenya. He has approached you for professional advice on the tax implication of various forms of business. Required: Explain to him four tax advantages enjoyed by sole properties over a company. (4Marks) 2) Mr. John Mpole accepted voluntary retirement from the cruel services on 1st January 2020. He received a golden handshake of 2 million. He is now considering six possible investments as listed below: (i) Purchase ordinary shares in Kenya Airways limited. (ii) Purchase ordinary share in Uganda breweries limited. (iii) Open affixed deposit account with Kenya Commercial Bank Limited. (iv) Purchase government treasury bills. (v) Open a saving account with Kenya post office saving Bank limited. (vi) Subscribe for debentures in National Bank of Tanzania limited. Required: For each of the investment above, advise Mr.Pole on the income tax consequences. (6Marks) b) Mr. Duda is a professional medical doctor, practicing in Mandera. Given below are the financial details of her clinic for the year ended 31 December 2020 Sh. Gross professional fees received 3,000,000 Directors fees received (deductions at source) 360,000 Interest income from AB Bank Ltd. Gross 72,000 Dividend income (net 102,000 Subscriptions to professional association and publications 60,000 Donations to destitute childrens home 30,000 Subscriptions to Wildlife Magazine 6,000 Debt collection (patients) expenses 18,000 Wages for clinic assistant 360,000 Replacement of clinic instruments 120,000 Rent for the clinic premises 420,000 3 Electricity and water clinic 120,000 General expenses clinic 210,000 Car hire expenses for use in practice 150,000 Uniform for staff 115,000 Payment of school fees for own children 120,000 Contribution to Registered Provident Fund self 180,000 Payment of life insurance premium self 60,000 Terminal benefits paid to retired receptionist 150,000 Depreciation on furniture clinic 36,000 Rents received from sub-rentals 42,000 Rent collection expenses 6,000 Wages paid to cleaners an watchman clinic 150,000 Tarmacking of drive-way personal residence 240,000 Additional servant quarters personal residence 420,000 Required i. Taxable income of Mr. Dida for the year ended 31 December 2020. (6 Marks) ii. Tax payable by Mr.Dida. (2 Marks) iii. Indicate the date when the tax, if any, is payable to the Income Tax Department. (2 Marks)