UCSF 137 Lecture 1: UCSF 137 - Lecture 1 (2)

A charge of 5.0 mu or micro CC is located at x = 0, y = 0 and a charge Q2 is located at x = 19 cm, y = 0. The force on a 2 mu or micro CC charge at x = 38 cm, y = 0 is 0.9 N, pointing in the negative x direction. When this 2 mu or micro CC charge is positioned at x = 84.31 cm, y = 0, the force on it is zero. Determine the charge Q2.

Taxation table
Income Tax

Capital Allowances
Implements, plant and machinery and commercial vehicles:

Presumptive Taxes
Turnover Tax

Customs and Excise duties on used motor vehicles

Surtax
Surtax on all motor vehicle aged more than 5 years K2,000

Introduction
You are a tax assistant in a firm of chartered accountants. Thefirm has many clients and you are
part of a team that deals with small tax payers operating inZambia. Your Tax senior has assigned
you some responsibilities relating to some clients whoseinformation is presented in the extracts
below. You should deal with each client separately.
Client 1 – Jacob Zuze
Jacob commenced to trade on 1 September 2017 and prepared the firstset of accounts for the
sixteen months period ended 31 December 2018. Your firm advisedJacob to register for Value
Added Tax (VAT) immediately he commenced to trade on 1 September2017. He had bought
goods for resale on 1 August 2017 for K125,000 (including VAT) andall of these goods were still
available at 1 September 2017.
Jacob is now interested in knowing the total amounts of income taxand VAT that were payable
by him for the period of trading ended 31 December 2018.

The following additional information is available:
(1) Turnover and expenses accrued evenly throughout the sixteenmonths’ period. 10% of the
turnover consists of zero rated supplies and 20% consist of exemptsupplies. The rest of the
turnover consists of standard rated supplies.
(2) 80% of purchases and other revenue expenses are attributed tothe taxable turnover. The
remaining 20% are attributed to exempt supplies.
(3) Jacob had the following transactions in implements, plant andmachinery during the sixteen
months period:

(4) It has been agreed with the Commissioner General that Jacob hasprivate use of 25% in the
Toyota Camry motor car. The other revenue expenses of K150,800shown in the statement
of profit or loss include K29,000 motor car expenses relating tothe Toyota Camry motor car

(5) Unless stated otherwise, all of the above figures are VATinclusive where applicable.
Client 2 – Vincent Kakuwa
Vincent commenced in business on 1 January 2017 trading as Kankuwa& Co. At the start of the
tax year 2017, his provisional income was K515,000. He calculatedand paid the provisional
income tax correctly on the due dates and he also submitted thereturn of provisional income for
the tax year 2017 correctly. At the end of the tax year 2017,Kakuwa’s final taxable profit was
K590,000. Kakuwa calculated the balance of income tax still to bepaid for the tax year 2017 and
he also calculated the provisional income for the tax year 2018 atK600,000 in January 2018.
As a result of unfavourable business conditions at the start of theyear 2018, kakuwa revised his
provisional income in February 2018, from the original amount ofK600,000 to only K510,000. The
unfavourable business conditions at the start of the year 2018resulted in Kakuwa experiencing
serious liquidity problems such that he paid the provisional incometax for the quarter ended 31
March 2018 and also submitted the return of provisional income forthe tax year 2018 on 30 June
2018. In addition, he paid the provisional income tax for thequarter ended 30 June 2018 together
with the balance of income tax for the tax year 2017 on 13 August2018. He also submitted his
self assessment income tax return for the tax year 2017 on 13August 2018. Cash flow problems
were fully resolved after 13 August 2015 and Kakuwa is certain thatall the outstanding taxes
thereafter would be paid properly.
In September 2018, Mooya received a notice from the CommissionerGeneral stating that his self
assessment Income tax return for the tax year 2018 was the subjectof a compliance check. When
computing taxable income of K590,000 for the tax year 2017, it isalleged that Kakuwa deducted
a non-allowable private expense of K27,600. The CommissionerGeneral therefore raised an
assessment for underpaid income tax of K10,350 in respect of thetax year 2017 and this notice
was served on Mooya on 15 September 2018. No adjustment wasrequired to the return of
provisional income for the tax year 2018 as this return wassubjected to the compliance check.
Client 3 – Jennifer Liungu
Jennifer intends to commence in business on 1 January 2019. Sheneeds to engage four workers
in her business and each worker will be paid an annual salary ofK48,000. Jennifer will also earn
an annual salary of K72,000 from the business. Her business isexpected to earn a turnover of
K760,000 per annum in each of the first two years of trading. Allof Jennifer’s sales will be zero
rated supplies for VAT purposes and the business will beprofitable. Jennifer will run the business
from rented premises.
The budgeted statement of profit or loss for the year ending 31December 2019 is as follows:

Rent and other revenue expenses are standard rated supplies and theamounts recognized in the
statement of profit or loss are inclusive of VAT. Sales revenue,cost of sales and operating
expenses will accrue evenly throughout the year ending 31 December2019.

Required:
(a) Client 1

(ii) Calculate the VAT paid by Jacob for each of the tax years 2017and 2018. You MUST
clearly show the amounts of output tax and the recoverable inputtax for each supply
for each of the two tax years. Monthly figures of VAT are NOTREQUIRED.
(15 marks)
(iii) Assuming that the income tax rates and bands for the tax year2018 apply to the tax
year 2017 as well, calculate the income tax paid by Jacob for eachof the tax years
2017 and 2018. (20 marks)
(iv) Explain how the VAT and income tax you have calculated aboveshould have been
properly paid, stating the relevant due dates and the amountspayable on each due
date. (4 marks)
(b) Client 2
(i) Advise Kakuwa of the amounts of penalties and interest onoverdue taxes and tax
returns charged on all payments and tax return submissions made upto and including
13 August 2018. (16 marks)
(ii) State the possible reasons why the Commissioner General hassubjected Kakuwa’s
self assessment income tax return for the tax year 2018 to acompliance check.
(6 marks)
(iii) Explain the initial alternative courses of action that areopen to Kakuwa following
receipt of the notice of assessment showing additional income taxpayable for the tax
year 2017 of K10,350. (6 marks)
(i) Advise kakuwa of the interest on overdue tax and penalties thathe may be liable for
as a result of the Commissioner General’s compliance check into hisself assessment
income tax return for the tax year 2017and state a possible reasonwhy these penalties
and interest may apply. (7 marks)
(c) Client 3

(iii) If Jennifer registers voluntarily for VAT, calculate:
(1) The amount of VAT that she would pay and explain how it mayhave to be properly
paid. (4 marks)
(2) The amount of income tax that she would have to pay (5marks)
(Total: 100 marks)

Please solve using Laplace Transform showing all steps.