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Question: $1$

a$)$ What is meant by chargeable income for income tax purposes? $(02$ Marks$)$

b$)$ Mention any four obligations of the employer in relation to PAYE. $(08$ Marks$)$

c$)$ Supposing Jessica is an employee with the same company. She receives a basic salary of shs$.$

$500,000=$ per month, travelling allowance of $5\%$ of basic pay; housing allowance shs$.210,000=$; medical

Allowance of shs$.50,000=$; utilities shs$.150,000=.$

Additional information

$$ Jessica travelled to Nairobi to attend a conference on behalf of the company and the company settled her bills worth shs$.250,000=$

$$ Shs received a loan of shs$.2,000,000=$ from the company at an interest rate of $2\%,$ the statutory rate was $5\%$ per Annam.

$$ The company usually provides tea brake to its company staff daily at an average cost $40,000=$ per month per individual.

$$ Jessica used the company vehicle every weekend of the week for private use the cost of the car was shs$.10,000,000=$

$$ Jessica had previously bought shares from Stanbic bank and received dividends worth shs$.260,000=$

$$ The company contributes $10\%$ of the employee$$s basic salary to NSSF$.$

$$ The premium paid by Jessica$$s employer for her life insurance was shs$.1,800,000=.$

$$ Jessica was provided with a shamba boy and two house helpers who were in the company$$s pay roll

$$ And each receives shs$.120,000=$ per month. To qualify for this scheme, Jessica contributes shs$.$

$60,000$ per month

Required:

Compute Jessica$$s monthly income from employment and Tax liability for the month. $(15$ Marks$)$

Question: $2$

Aisha Ltd owns a number of housing units in Kampala city which she lets out. The following was reported for the year ended $30$th June $2023.$

Location of property Number of units Rent per month per unit

Bugolobi $3500000$

Bukoto $4600000$

Kireka $6250000$

Muyenga $7800000$

Additional information;

$$ The following expenses were incurred during the year in the provision of the housing units to generate income;

$$ General expenses $600,000=$

$$ Cleaners wages $8,758,000=$

$$ Utilities $2,000,000=$

$$ Stationery $625,000=$

$$ Garbage collection $1,750,000=$

$$ Two $(2)$ units in Kireka were not in use for three $(3)$ month period.

Required:

a$)$ Compute Aisha Ltd taxable rental income and tax liability for the year of income ending $30$th June

$2023.(15$ Marks$)$

b$)$ Supposing the properties where for Aisha a non$-$resident, would the taxable income and tax liability be of any difference? Justify.

Question: $3$

Tax administration function refers to assessment of tax payable and the other is the collection of tax due, the

Responsible body being URA. As a graduate of taxation,

a$)$ With examples, examine five $(5)$ challenge that are faced in tax administration by Uganda Revenue

Authority $($URA$).(10$ Marks$)$

b$)$ Elaborate on the seven $(7)$ pivotal roles of taxation in Uganda$$s development process. $(07$ Marks$)$

c$)$ Explain the key four factors used to distinguish between direct and indirect taxes giving examples in each Case

Question $5$:

In a bustling market district in Kampala, Uganda Revenue Authority $($URA$)$ encounters difficulties in taxing the

Numerous street vendors and small traders who populate the area. Despite efforts to register businesses and

Promote tax compliance, many vendors continue to operate informally, avoiding registration and tax payments. As a tax consultant;

a$)$ Identify and assess seven major challenges faced by the URA in administering taxes effectively. How do

These challenges impact revenue collection and compliance? $(07$ Marks$)$

b$)$ What are the eight main strategies employed by the URA to ensure tax compliance among individuals and businesses?. $(08$ Marks$)$

c$)$ Can you identify any five recent changes or initiatives aimed at enhancing tax enforcement in your country? How effective have they been?

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