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1: Which of the following is not an advisable way of preventing tax disputes

Correct! Wrong!

2. Which is the following is not a tax assessment under the Tax procedures act

Correct! Wrong!

3. Identify the immediate course of action for a tax payer who is dissatisfied with the commissioner’s assessment

Correct! Wrong!

4. What is the maximum duration allowed by the commissioner for a tax payer to lodge an objection after being served with a notice of assessment?

Correct! Wrong!

5. What is the maximum duration allowed for the tax appeal tribunal to hear and determine an appeal?

Correct! Wrong!

6. Which of the following is not true about the Alternative dispute Resolution (ADR) Mechanism

Correct! Wrong!

7. The following are benefits of the Alternative dispute Resolution (ADR) Mechanism except

Correct! Wrong!

8. Is tax avoidance punishable under the law?

Correct! Wrong!

9. State the penalty for failing to register or de-register as tax payer when required to do so by the law

Correct! Wrong!

10. Mr tax payer has made a VAT refund claim of Shs 100,000. Thorough scrutiny of his claim revealed that he was not entitled to any refund. State the penalty that will be imposed on him

Correct! Wrong!

11. What is the maximum period allowed to for a taxpayer to recover losses against profits made in subsequent years?

Correct! Wrong!

12. Which of the following gains is not subject to tax in Kenya

Correct! Wrong!

13. Which of the following incomes is subject to capital gains tax in Kenya

Correct! Wrong!

14. Mashamba Ltd Buys huge parcels of land then subdivides for resale. Which tax is chargeable on their transactions?

Correct! Wrong!

15. Which of the following entities is not exempt from taxation

Correct! Wrong!

16. Which of the following facts is not true about VAT

Correct! Wrong!

17. Which type of tax is popularly known as “sin tax”

Correct! Wrong!

18. Lilly had the following profits and losses for the year 2018. i. Profits from salon business 400,000 ii. Farming loss (100,000) iii. Directors allowance 300,000 iv. Insurance compensation for her car 200,000 What is her taxable income for the year?

Correct! Wrong!

19. Taxes

Correct! Wrong!

20. The year of income (tax year) for individuals runs from

Correct! Wrong!

21. An indirect tax is a tax that is charged on

Correct! Wrong!

22. Which of the following employment benefits is exempted from tax

Correct! Wrong!

23. A bank offers its employees loans at Zero interest rate. What is the tax implication of the interest benefit?

Correct! Wrong!

24. The tax advantage of a mortgage is

Correct! Wrong!

25. Persons with disabilities

Correct! Wrong!

26. As per the income tax act, income includes

Correct! Wrong!

27. The following is true about tax residential status except

Correct! Wrong!

28. Which of the following expenses is generally not deductible against income from employment

Correct! Wrong!

29. Free meals provided by an employer to an employee

Correct! Wrong!

30. Manyumba Ltd collects monthly rent of Sh. 200,000 from its stalls in town. The applicable tax rate is

Correct! Wrong!

31. What is the maximum allowable deduction for contributions made by employees to registered pension schemes?

Correct! Wrong!

32. Which of the following professionals is not qualified to act as a tax agent?

Correct! Wrong!

33. Withholding tax is NOT

Correct! Wrong!

34. The principle of equity in taxation implies

Correct! Wrong!

35. Tax shifting is

Correct! Wrong!

36. Comment on taxation of pension annuities received by a 58-year-old retiree

Correct! Wrong!

37. Comment on taxation of pension annuities received by a 68-year-old retiree

Correct! Wrong!

38. Comment on taxation of pension lump sum received by a 58-year-old retiree

Correct! Wrong!

39. Medical insurance or benefit offered by an employer to employees

Correct! Wrong!

40. Fringe benefit tax is

Correct! Wrong!

41. Tax free remuneration refers to

Correct! Wrong!

42. Mr Taxpayer files his tax return of Sh. 100,000 on 5th July 2020, five days after the due date. His tax penalty shall be

Correct! Wrong!

43. Kasuku Ltd Filed July’s PAYE return of Sh. 1000,000 on 12th August 2020. The late PAYE filing penalty shall be

Correct! Wrong!

44. Amadi Ltd Filed July’s PAYE return of Sh. 20,000 on 12th August 2020. The late PAYE filing penalty shall be

Correct! Wrong!

45. Taylor Ltd deducts withholding tax on professional services offered by Karan consultants in the month of July 2020. The due date for remitting the amount deducted is on

Correct! Wrong!

46. Taylor Ltd deducts Sh. 100,000 withholding tax on professional services offered by Karan consultants in the month of July 2020. The withholding tax is remitted on 17th August 2020. The late payment penalty shall be

Correct! Wrong!

47. The advance tax payable for a 20 ton truck is

Correct! Wrong!

48. The following is true about motor vehicle advance tax except

Correct! Wrong!

49. A Resident person is subject to Turnover tax (TOT) if the turnover for a given year is

Correct! Wrong!

50. TOT does not apply to the following except

Correct! Wrong!

51. What is the maximum duration allowed for a trader to claim input tax?

Refer to Sec 17(2) VAT act 2013
Show hint
Correct! Wrong!

52. Which of the following documents cannot be used in claiming input tax

Refer to Sec 17(3) VAT act 2013
Show hint
Correct! Wrong!

53. How is a newly registered person supposed to deal with input tax on inventory held at the date of registration?

Refer to Sec 18 VAT act 2013
Show hint
Correct! Wrong!

54. In case of overpayment of VAT, the maximum duration to launch a refund claim is

Refer to Sec 30 VAT act 2013
Show hint
Correct! Wrong!

55. In case of a bad debt written off, an application for refund must be made within

Correct! Wrong!

Tax laws amendment act reduced the period from 5 years to 4 years

56. A bad debt written off and refunded by the commissioner is subsequently recovered, the registered person should

Refer to Sec 31 VAT act 2013
Show hint
Correct! Wrong!

57. Njeuri a registered trader is convicted for interfering with his supermarket cash registers such that they exempt taxable goods. He is liable to

Refer to Sec 41 VAT act 2013
Show hint
Correct! Wrong!

58. A trader not registered for VAT charges tax on supply of goods. The trader shall

Refer to Sec 42(2&3) VAT act 2013
Show hint
Correct! Wrong!

59. The VAT classification of bottled water is

Only piped water is exempt (first schedule-95)
Show hint
Correct! Wrong!

60. The VAT classification of Factory plant and machinery is

Was initially exempt but now taxed under TLAA 2020
Show hint
Correct! Wrong!

61. The VAT classification of plastic biogas digesters is

Was initially exempt but now taxed under TLAA 2020
Show hint
Correct! Wrong!

62. The VAT classification of transfer of a business as a going concern is

Was initially exempt but now taxed under TLAA 2020
Show hint
Correct! Wrong!

63. The VAT classification of parts imported for assembly of computers is

Was initially exempt but now taxed under TLAA 2020
Show hint
Correct! Wrong!

64. The VAT classification of bread is

Zero rated VAT act 2013 second schedule (13A)
Show hint
Correct! Wrong!

65. The VAT classification of maize flour is

VAT act 2013 (second schedule 13)
Show hint
Correct! Wrong!

66. The VAT classification of unprocessed milk is

Exempt (first schedule-21)
Show hint
Correct! Wrong!

67. The VAT classification of processed milk is

VAT act 2013 (second schedule 15)
Show hint
Correct! Wrong!

68. The VAT classification of fermented milk (yoghurt) is

VAT act 2013 (second schedule 15) zero rates processed milk not concentrated
Show hint
Correct! Wrong!

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