3 English –Tax Accounting – After Mid-Term M.A.

H Courses
Final Exam 2022 ( ‫ نرجس‬/‫)جزء د‬
 Questions (1-6)
A factory sold 40 refrigerators 8 feet, as follows: 35 units to public, the price of each refrigerator
is 1500 pounds; and 5 units to the wives and sons of the factory managers at 1,250 pounds for
each. fridge in 2020.

1) The value of sales to public is

A. 52,500 EP B. 55.200 C. 60.000 EP D.25.500 EP
Solution: 35 X 1500

2) The value of sales to related parties is

A) 6,250 EP B) 5,500 EP C) 6,000 EP D) 2,650 EP
Solution: 5 X 1250 = 6,250

3) VAT base before adjustment is

A. 261,250 B. 58,750 EP C. 558,250 EP D. 855.250 EP
Solution: 52,500 +6250 = 58,750

4) VAT base after adjustment is ….

A. 38,750 EP B. 60,000 C. 2,650 EP D. 50,000 EP
Solution: 5 X 250 = 1250 581750 + 1250 = 60,000

5) Refrigerators 8 feet subject to…………..

A. table tax – rate B. VAT - %14 C. VAT - %13 D. Table tax -rate - %13

6) VAT is…………………..
A. 875 EP B. 7,637.5 EP C. 7. 800 EP D. 8.400 EP
Solution: 60,000×14% = 8,400

 Questions (7 - 15)
January 2021, a seller sold 2 cars less than 1600 CC at 20.000 EP each, 3 local manufactured cars
more than 2000CC at 30,000 each, and 5 imported cars more than 2000CC at 10.000 $. the
exchange rate 6 EP/$ and the custom duty is 45,000 EP.

7) Sale revenues of cars less than 1600 CC is …………..

A. 9,000 EP B. 8,000 EP C. 4000 EP D. 40.000 EP
Solution: 2 X 20,000 = 40,000

8) Schedule tax on cars less than 1600 CC is…………….

A. 3,200 EP B. 400 EP C. 5,600 EP D. 5,200 EP
Solution: 40,000 X 1% = 400

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3 English –Tax Accounting – After Mid-Term M.A.H Courses
9) Schedule tax on local manufactured cars more than 2000CC is………………
A.11,700 EP B. 13,500 EP C. 12.600 EP D. 9.000 EP
Solution: 3 X 30,000 = 90,000 X 15%

10) Taxable base subject to VAT of the local manufactured cars more than 2000 CC is………….
A. 20,000 EP. B. 103, 500 EP C. 102,600 EP D. 101.700 EP
Solution: 90,000 + 13,500

11) VAT on local manufactured cars more than 2000CC is………………

A. 15,525 EP B. 13,455 EP C. 14,490 EP D. 12,455 EP
Solution: 103,500 X 14% = 14,490 EP

12) Taxable base of imported cars more than 2000CC with Egyptian pounds is
A. 955,000 EP B. 345,000 EP C. 435,000 EP D. 959,000 EP
Solution: [5 X 10,000 X 6] + 45,000

13) Schedule tax on imported cars more than 2000CC is……………..

A. 44,850 EP B. 51.750 EP C. 48,300 EP D. 103 500 EP
Solution: 345,000 X30%

14) Taxable base subject to VAT on imported cars more than 2000CC is……….
A. 448,500 EP B. 844,000 EP C. 51.500 EP D. 103.500 EP
Solution: 345000 + 103500 = 448,500 EP

15) VAT on imported cars more than 2000CC is ……….

A. 62,790 EP B. 844.000 EP C. 448.500 EP D. 26.790 EP
Solution: 448,500X14%

 Questions (37 - 50)

1. January 2021 the sales revenues of 3 bottles from soft drink were 3000 EP so VAT required
is 420 EP (False)

2. Five cars for the personal use of the diplomat shall be exempted. (False)

3. The VAT and Schedule Tax return must be submitted on a annually basis (False)
Correction: Monthly bases

4. A penalty of no less than EP 5,000 and no more than EP 10,000 is imposed for failure to file
a tax return. (False)
Correction: 20,000

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3 English –Tax Accounting – After Mid-Term M.A.H Courses
5. Machinery and equipment used in production taxable or non-taxable goods or rendering
services are subject to Schedule tax at 5% (False)
Correction: 5% VAT

6. Indirect tax has progressive nature. (False)

Correction: Regressive nature
7. Value-Added Tax (VAT) is indirect consumption tax imposed on sales of goods and services
and paid by the consumer as a percentage of the final price according to different methods
of collection and remitted to the government by the seller. (True)

8. Value Added Tax (VAT) Law no 67 of 2016 replaced the General Sales Tax (GST) Law no.11
of 1991 (True)

9. Overcoming tax evasion and enhancing tax compliance through taxing goods on multiple
stages of production is one of advantages of general sales tax no 11 of 1991 (False)

10. According to VAT Law no. (67) of 2016, there are two different types of tax: Value added
tax, and Schedule tax. (True)

11.According to VAT Law no. (67) of 2016, The VAT general rate is decided to be 13% for the
fiscal year 2016/2017,to be increased to 15% as of the fiscal year 2017/2018 (False)
12.There are goods and services subject to VAT, other goods and services subject to Schedule
(table) tax, and others subject to both VAT and schedule tax. (True)

13.After Law No.26 of the year 2020 amending the Article (7) of Law 91 for (2005), Tax is due
on the total net income in excess of five thousand pounds earned by a resident taxpayer
during the tax year. (False)

14.In accordance with Tax Law 91 of 2005, interest expenses occurred on loans borrowed by
the firm and employed in the activities whatever its value is a tax-deductible cost. (True)

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