TAXATION THEORY & PRACTICE

1) Income from an employment may be the only source for some individuals, however, for other persons there may be other sources of income. You are required to conduct research and to explain how each of the following income for an individual is treated for tax purposes:

Interest income (bank, building society, credit union etc.)

Dividend income

Pension income

Rental Income

Income from the sale of investment (land or any other asset)

Gains on the stock exchange

2) Explain the conditions under which the following may be taxable:

Scholarships and bursaries

Gambling

Maintenance payments (alimony, palimony, maintenance or separation allowance)

3) Identify and describe the followings that are exempted from taxation.

Some persons based on their job, position or title.

Benefits that some category of workers receive.

4) What are the similarities and differences (if any) between the income tax liability of residents and non-residents?

5) Lump sum payments in respect of the termination of employment of a person may be relieved from tax. Discuss the conditions that must be met for these payments to be made without the deduction of tax.

Required: Your writing should reflect the following coverage: - APA Format Reference List 10 (You will be marked down if your references are missing) Content: 30 Relevance 20 Evidence of Research 30 Grammar/Format 10 Total: 100