Eductional services are exempt

Note that the supply of short term courses is not an educational service as defined even if the institution is registered with the

Stuff transferred from outside zim via the internet eg books etc is an imported service and use the same explanation we know
meets Sect 2 dfn
T.O.S is earlier of invoice or payment
deemed to be VAT inclusive hence use tax fraction
For input tax claiming always mention the two criteria for one to be able to claim i.e was charged and making taxable supplies

For local flights, VAT is charged since the sections for fare paying passenger only mentions vehicles not planes

Cooking oil supply is a basic commodity and zero rated

Cooking oil by products sale is standard rated

For rental agreements and instalment credit agreements ALWAYS Justify why your have classified a transaction as either of th

Residential accomodation supplies are exempt

Value of supply for sales between connected persons in the Market value.

On VAT , first comment that the item is a taxable supply unders s61a or the item constitues the supply of a service then proce

Exported exempt supplies remain exempt and will not become zero rated bcoz they are now being exported.

Whenever there are input vat consequences , start by mentioning the claiming criteria in s16 and then test

Entertainment allowance shall not have VAT effects since it is the supply of money
stitution is registered with the ministry -standard rated and in furtherance of trade.

he same explanation we know i.e

d and making taxable supplies(justify this) .

les not planes

ed a transaction as either of the two

supply of a service then proceed on your answer as usual

ng exported.
If told the VAT category of the comapany- on Time of supply u can specify the month the return will be furnished

Insurance services are financial services therefore exempt (eg insurance premiums for an asset)

Input tax deduction for bad debts in respect of a loan is not allowable since its not a taxable supply- financial service

Government grant is gross income - s8(1)m

If employee works for a medical company and enjoys medical services eg dental work from the same company -the benefit is

If on resignation an employee takes for example a software they were using for work …apportion the amount paid for the soft

Obligatory lease improvements are deductible over 10yrs or lease period whichever is lower

Voluntary lease improvements u can claim capital allowances

On thin capitalisation ..if we are starting from profit you calculate the portion that should not be allowed and add it back
will be furnished

ply- financial service

same company -the benefit is exempt

n the amount paid for the software over the period used for work and period used for own benefit to calculate employee benefit

allowed and add it back

ate employee benefit
Motor Vehicle lease expenses are deductible to 80 000 16(1)k
Amounts received not in cash
xx use s8 GI defn
xx if gds received have an ascertainable value it constitutes an amount-Butcher Bros case
xx Received means received for own benefit - Geldenhys case
xx Accrued means entitled (Lategan case) of due and payable (Delfos case)

Insurance compensation
xx to fill a hole in capital asset eg replacing the destroyed asset - capital in nature -
xx for destroyed inventory - to fill a hole in profits hence taxable - Burmah Steamship case
xx for loss of business due to closure - to fill a hole in profits - Burmah Steamship case

xx For VAT , these are deemed supplies except for compensation for loss of business due to closure since there is no s

Choosing the most appropriate valuation method

xx if bs is making +ve CFs hence u can FCF method
xx more assets than liabilities hence can use Net Asset Value method
xx if there is a market - fair value less costs to sell can be used
xx if expected to continue earning - maintainables earnings can be used - difficult if not provided with prior years profi

Acceptable level of debt and encumbering of assets

xx acceptable level is based on type of industry or legal requirements
xx also use business experience and risk appetitie
xx high debt is risky since assets will be attateched
xx consider ability to service the debt
xx debt is a cheaper source of finance
xx acceptable level is point where incremental cost of debt finance is equal to incremental revenue
xx encumbering assets creates risk of losing those assets
xx limits business's abiility to acquire more debt as aseest which shld be used are alread encumbered
xx loss of ability to control the assets

ITA
xx if retiring employee buys a MV at a lower cost than MV the benefit is exempt if the person is an elderly person
e to closure since there is no supply

provided with prior years profits

encumbered

erson is an elderly person

VAT for fringe benefits
If employer incurred costs-discuss whether they were charged VAT and if they can claim input VAT
Also discuss S17(3) to see if output tax is payable.

Over the counter drugs are standard rated.

For a lease to qualify as an instalment credit agreement, the property in question should be movable, otherwise it r

VAT on an unbundling transaction

Supply of a grp of assets should be tested to see if its not a b/s
if it qualifies as a bs then its zero rated

Employment income
Lumpsum from pension is exempt if over 55yrs
Gratuity lumpsum is exempt if over 55yrs
Contribution to medical aid by employee is a prohibited deduction in their tax comp, can claim a credit
Elderly person credit is apportined if the person died during the yr
Transfer of a a specified asset as distribution after death of someone is exempt from CGT.
aim input VAT

uld be movable, otherwise it remains a rental agreement

can claim a credit

Lease improvements
dedcuted as per s15(2)e or capital allowance
excess improvements per contract , can claim capital allowances