QUESTION TWO 1. With regards to Property Transfer Tax (PTT), what is the general rule on realised value of: a) Property b) Shares (4 Marks) 2. Musonda Nyirenda made the following disposal of assets as follows during the tax year 2019/20 a) He sold off a piece of Land in Shimabala area measuring 10 Acres for K2,000,000. The 10 acres was part of a farm plot that he bought in 2001 for K300,000. The plot was sold at a price that the government valuers estimated as the Open Market value. b) He sold 150,000 ordinary shares of K1.50 each in Kalengwa PLC for K3 Million on 31 March 2020. He acquired 300,000 ordinary shares of K1 each in Kalengwa PLC through a Public Offer. Kalengwa PLC was listed on the Lusaka Stock Exchange c) Musonda sold 3 Million Ordinary shares of K1 each in COX LTD for K10 Million during March 2020. He bought 6 Million ordinary shares of K1 each in the company in May 2010 when the company was founded. Musonda paid K6 Million for the shares on acquisition. Required: Calculate the Property Transfer Tax payable by Musonda and state when it should have been paid. (11 Marks) TOTAL: 15 MARKS QUESTION THREE 09:27 P Thursday 29th Oct 202...a6af8c12569c32df1e3 - Read-only A Sign in to edit and save changes to this file. TAX TABLES Table Company Tax Rate 30% Category Mining Farmin Manufacturing 10% 34% Table 2 EXCISE DUTY RATES Rate 15 Motor Vehicle Engine Capacity WV less than 1500 CC WW more than 1500CC but less than 2000CC MV more than 2001CC but less than 3500CC My more than 3501CC but less than 2010 20 25 10 Import VAT 10% Custom 20% Table 3 PAYE RATE INCOME TAX BAND Annual 19,600 04 Above 39,600 - 49,200 Above 19,200 -74.400 Above 74.400 25% 30% 37.5% Table 4 Personal to Holder Vehicles Motor Vehicle Engine Capacity Below 1600CC Between 1500CC and 2800CC Above 2100CC Amount () 18,000 30,000 40.000 11 Table With-holding Tax Rates Category Dividends Residenti 15 III 09:27 P Thursday 29th Oct 202...a6af8c12569c32df1e3 - Read-only A Sign in to edit and save changes to this file. Table 4 Personal to Holder Vehicles Motor Vehicle Engine Capacity Below 1600CC Between 1500CC and 2800CC Above 2100CC Amount 18.000 30.000 ODO Table 5 Withholding Tax Rates 0 Category Rate 11 Dividends Resident 15 Dividends on resident 20 Mining Dividends (LUSE listed 0 Dividends (non-USE listed 15 Interest, Management & Consultancy, Royables 15 10 Exchange rates: US Dollar 1 to ZMK16 11 III