THE INSTITUTE OF FINANCE MANAGEMENT

THE FACULTY OF ECONOMIC AND

MANAGEMENTS SCIENCE

DEPARTMENT OF TAX MANAGEMENT

BTX TWO 2015/2016

A PROJECT REPORT ON XXXXXXXXXXXXXX

NAME : XXXXXXX

REG. NO : XXXXXXX

SUPERVISOR: XXXXXXX

SUBMISSION DATE: XXXXXXX

 TITLE (COVER) PAGE – (See format above)
THE PRELIMINARY PAGES
The following items should, sequentially, appear – either all or some of them – in the
preliminary pages:
- Dedication

- Acknowledgement

- Executive Summary

- Table of contents

Description of each item above should start on a fresh page.

Headings must be written in bolded capital letters. Each heading should appear at the top
of the page and positioned at the centre.

CHAPTER ONE (1.5 to 2 pages)

1.0 INTRODUCTION
- Introducing the topic of your project by stating the context of the subject matter.
- State the purpose of the project and what the project is expected to assert or explain or
support or defend or a combination of them. In other words, summarize the main idea of
the project and make the idea understood to the reader.
CHAPTER TWO (3 to 4 pages)
2.0 OVERVIEW OF THE ASSESSMENT INCOME TAX
- Provide a clear description of the following;
- Tax compliance
- EFD machines
- Business income

CHAPTER THREE (5 to 6 pages)

3.0 LITERATURE REVIEW

Describe the detail about presumptive and large taxpayers
Explain about theory of tax compliance.

CHAPTER FOUR (2 to 3 pages)

4.0ANALYSIS OF THE CURRENT SITUATION

Calculate the taxable income of mr. madirisha.

CHAPTER FIVE (2 page)

5.0 CONCLUSION AND RECOMMENDATION

5.1 Conclusion

- Provide an effective conclusion which gives the answer to the main questions/objectives
of the project

- Identify if there is any challenges in your analysis

5.2 Recommendations

- In line with what you observed in your analysis, give your advice to the respective
authority addressing the needs of your project and the challenges, if any.

6.0 REFERENCE/ BIBLIOGRAPHY

- Use either reference or bibliography as your heading for this section. In both cases, make
sure that you discuss with your supervisor and agree on which term to use.

- Adhere to the alphabetical order i.e. different entries should be arranged in alphabetical
order by the surname of the first author. Each entry starts with a hanging indent and 1.5
lines spacing between.

- no numbering for your list

Formatting

Font; Times New Roman , size 12.0, heading chapter print size 16 in bold type face, sub heading
print size 14 in bold typeface.

Page number: centered at the bottom of the page

Line spacing 1.5

Alignment; Justified

NOTE;

 Please follow the structure of the project as indicated above.

  The words limit should not be less than 2,000 not exceed 10,000

 The deadline set for your project will be communicated.

 You are advised to plan your work carefully and back-up your work using different
storage devices in order to avoid problems as a result of computer crash, virus attack or
any other reason. Computing and printing problems will NOT be accepted as reasons for
non-submission
 Finally, PLAGIARISM is not accepted
Mr. Madirisha commenced his cargo and passenger transport business on july, 1 2004 using the
business name of Madirisha transporter. Mr. madirisha prepared his first accounts for the period
1st July 2004- 30th June 2005.the profit and loss account of Madirisha transporters for the above
period is as follows (in ths)

Gross profit 80,000,000

Profit-sale of assets 8,000,000

88,000,000

Less: salaries and wages 3,800,000

General expenses 600,000

Telephone,electricity, water 200,000

Printing and stationary 300,000

Depreciation on assets 10,000,000

Motor vehicle write-off 2,000,000

Advertisements 50,000

Repairs 700,000

Fine due to fraudulent tax returns 250,000

Subscriptions, donations 120,000

Legal expenses 340,000

Bad debts 500,000

Motor vehicle expenses 12,000,000

Stamp duty-valuation of property 1,800,000 32,660,000

Net profit 55,340,000

The following addition information is provided:

1. Salaries and wages: the amount including 800,000 paid to Mrs.Madirisha for assisting her
husband as an accountant for the business and tshs 100,000 for interest payable (under
section 100, of ITA,2004) for failure to timely pay tax.
2. General expenses: the amount includes
i) Medical expenses for Mr. and Mrs. Madirisha tshs. 120,000
ii) Airfare and hotel accommodation Mr. and Mrs Madirisha for a holiday visit to
Mikumi wild life lodge tshs 300,000
3. Telephone, electricity, and water expenses: 20% of the expenditure represents private use
by Mr. Madirisha’s family residence
4. Advertisements: 10% of the expenditure represents the cost of a large roadside coloured
poster advertising the services of Madirisha transporters.
5. Repairs: the total expenditure relates to major renovation of the garage building that was in
a serious state of disrepair.
6. Subscription and donation: the total amount represents contribution to a local sports club,
which Mr. Madirisha patronises.
7. Legal expenses: the amount was spent on greasing the palms of the regional co-operative
manager to secure the tender for transportation of crops from the villages to the region
warehouse. Mr. Madirisha won the tender.
8. Printing and stationery: 50% is a loss of stationery items that were spoilt by water because
of store leaking
9. Bad debts: the debtors were top region government authorities who used Madirisha
transporter services.
10. Motor vehicle expenses: the payment was in respect of the motor vehicle fuel and
lubricants and car services. Tshs 105,000 represented the cost related to Mr. Madirisha’s
personal car, of which the only 40% was used for the business.
11. Motor vehicle write- off: the vehicle belonged personally to Mr. Madirisha’s son, a reckless
driver.
12. Depreciable assets: Mr. Madirisha’s transport business has various pools of depreciable
assets and in the year of income 2005 the business is illegible and can be granted
depreciation allowances per 3rd schedule of the ITA,2004 amounting to 400,000
13. These are business assets per ITA,2004 that were disposed during the year of income. Gain
from realization per ITA, 2004 is determined to be 1,000,000.

Required:
Calculate Madirisha transporters adjusted business income for the tax purposes for the year of
income 2005 taking into account all the above information. Show your workings