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Yes. There's two questions. QUESTION ONE (TOTAL: 20 MARKS] a) A farmer grows a bushel of wheat and sells it to a miller for k1.00.
Yes. There's two questions.
QUESTION ONE (TOTAL: 20 MARKS] a) A farmer grows a bushel of wheat and sells it to a miller for k1.00. The miller turns the wheat into flour and then sells the flour to a baker for k3.00. The baker uses the flour to make bread and sells the bread to an engineer for k6.00. The engineer eats the bread. What is the amount of VAT paid at each point of the supply chain value? The VAT charged is 16%. [4 marks] b) A tax is a compulsory levy imposed by a public authority against which tax payers cannot claim anything. TABLE.2 TAX SCHEDULE TAX RATE VAT 16% PAYE 3300 AND BELOW 0% 3300.1-4200 25% 4200.1-6200 30% 6200.1 AND 37.5 ABOVE CORPORATE TAX 35% 1. Mr. Notulu gets paid a gross salary of k15, 000. Calculate how much his net salary is going to be. Select the appropriate tax to use from the table above. State the type and classification where the tax you have chosen falls. [8 marks] Unilus made profits worthy k5, 000, 000 in 2017 and K7,000,000 in 2018. Choose the appropriate tax that Unilus profits are subject to and calculate the amount of taxes due for each year. State the type and classification where the tax you have chosen falls. [4 marks] From table one it's clear that some goods and services are not subject to VAT payment. Provide four reasons that government might have for not charging VAT on certain goods and services. [4 marks] illStep by Step Solution
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