Reverse charge

Reverse charge This refers to VAT charged on imported services. The VAT in this case is paid by the person importing the service since the provider of the service is outside the scope of VAT. The importer of the service also claims the tax paid as input tax.

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What problems are experienced in attempting to achieve justice in taxation? Support your answer with the four main theories which explain why it is difficult to exercise justice in taxation

Problems in achieving justice in taxation Recommendations: Distribution of taxation can be considered and treated as payment for public services and a payment equal to the cost of the services rendered. People can pay tax in proportion to benefits derived from the state activity. Sacrifice by the tax-payer should be taken into account. Problems experienced:

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Purpose of Import declaration form

Import declaration form Import declaration form is a form supplied by the customs department for the importer to fill in order to ensure that: He declares/shows the goods he is importing, and that He indicates the correct value of the goods he is importing Show country of origin and destination Name/address of importer and exporter

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Explain the reasons why, for a particular year of income, the total income received is usually different from total taxable income.

Why accounting income is different from taxable income. Some income of capital nature e.g. capital gain is not taxable but it is part of accounting profits. Accounting profits are determined after deducting depreciation but from taxable income, we deduct capital allowances. Some accounting expenses are not allowable for tax purposes e.g. general provision for bad

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What is “stamp duty”?

Stamp duty is charged on a large number of legal documents and agreements e.g cheques, bonds, marketable securities etc. Payable within 30 days after transaction.

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