1. Explain the following:
(a). 'Person' as described by Income Tax Act. (3 marks)

(b). 'Employment income' in relation to any person. (3 marks)

2. Explain the remedies available to the aggrieved party on the decision of the Commissioner
General on an objection. (6 marks)

3. Elaborate the offenses committed by employers willfully and with intent to evade tax liability,
and the penalty applicable to that offense. (6 marks)

4. List any six persons who are exempted from tax for any tax year. (3 marks)

5. Discuss the four basic characteristics of a good tax system. (8 marks)

 

6. Three cases are presented below, and you are requested to classify the type of tax with
reasons. (6 marks)

Case 1:
The tax rate is fixed at 12.5%
Case 2:
The tax rates are given as follows:
Amount BWP Tax to be deducted
0 - 30 000 0
30 000 - 60 000 0 + 5% of excess over P30 000.
60,000 + 1 500 + 12.5% of excess over P60 000.

Case 3
20 % on income earned up to P20 000.
10% on income earned up to P30 000.
5% on income earned up to P40 000.

7. Classify individuals in the following three cases as resident or non-resident persons. (6 marks)
(a). Gaone is employed by Debswana as the Marketing Manager. He has been serving the company for the past 10 years. The company's policy is to renew the contracts of its senior
managers every five years. To date, Gaone's contract has been extended for further three years.

(b). Ms. Lillian is employed by DTC South Africa, a company with more than 10 branches in South Africa. The company has established another branch here in Botswana. This new branch is registered in Botswana. As the Senior Production Engineer, Ms. Lillian was transferred to work in Botswana for only two months so he assisted in coming up with a system similar to that at the branch he is currently working in South Africa. Within a period of two months, Ms. Lillian had accomplished his mission and he returned back to South Africa to resume her duties.