Preview

Tax Exemptions

Good Essays
Open Document
Open Document
1114 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Tax Exemptions
QUESTION: MAKE A WRITE UP ON EXEMPTIONS AS STIPULATED BY THE INCOME TAX ACT
-------------------------------------------------
Tax Exemptions are a deduction allowed by the law to reduce the amount of income that is subject to tax, these exemptions come in many forms but what they have in common is they reduce or entirely eliminate tax obligations. These exemptions can be categorized into two, exemptions based on the identity of the receipt and exemptions based on the nature of income .The amounts which enjoy exemption from income tax by reason of the identity or character of their recipient include:income and accruals from Public utilities, etc. (para 1) The income of local authorities, the Reserve Bank of Zimbabwe, the Zambezi River Authority, the Natural Resources Board and the Post Office Savings Bank .In addition they are Non-profit-sharing bodies(para 2)Bodies which for the most part fall within such categorization, and which are exempt, these include: agricultural, mining and commercial societies not operating for the pecuniary benefit of the members. This would include the various show societies, etc.;approved benefit funds, pension funds (see 10.22), building societies, friendly societies and medical aid societies;clubs, societies, institutes and associations which are organised and operated solely for social welfare, civic improvement, pleasure,recreation, or advancement or control of any profession or trade; and cannot, under their constitutions, distribute their profits to their members, except as bona fide remuneration for services;and religious, charitable and educational institutions of a public character and (see The Endeavour Foundation and UDC Ltd v COT (1995) 57 SATC 297) trusts of a public character.The exemption in relation to charitable and educational institutions of a public character may apply not only to their investment income but also to profits from the rendering of services and from sales of goods: ITC 1565 (1994) 56 SATC 18 and

You May Also Find These Documents Helpful

  • Powerful Essays

    Taxation Law Assignment 2012

    • 2336 Words
    • 10 Pages

    In this assignment, it is assumed that Emma and Ryma are both tax residents of Australia.…

    • 2336 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Tax Research Project

    • 1006 Words
    • 5 Pages

    Taxable income, as defined in §63(b) is “adjusted gross income, minus the standard deduction, and the deduction for personal exemptions.” We already know that Dale and Jane have a $157,000 adjusted gross income or “AGI”, defined in §62 (a) as “gross income minus the following deductions” (all of the deductions that are listed are found on the first page of form 1040).…

    • 1006 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Federal Taxation Week 6

    • 802 Words
    • 4 Pages

    What limits are placed on the selection of a tax year of an S corporation? How do these limits differ from those applicable to C corporations and partnerships?…

    • 802 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Taxes Quiz

    • 2222 Words
    • 9 Pages

    At of the end of its accounting period, December 31, 2009, Great Marks Company has assets of $940,000 and liabilities of $300,000. During 2010, Great Marks sold $65,000 of capital stock and declared and paid $45,000 in dividends. What is the amount of net income during 2010, assuming that as of December 31, 2010, assets were $995,000, and liabilities were $270,000?…

    • 2222 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    Tax Requirements

    • 9561 Words
    • 42 Pages

    Source: Payroll Administration Guide > State and Local Income Tax Withholding > Multistate Withholding Requirements: State Comparison Chart…

    • 9561 Words
    • 42 Pages
    Powerful Essays
  • Good Essays

    Marta Torres Tax Relief

    • 925 Words
    • 4 Pages

    The purest form of tax relief comes in the form of tax exemption status. This is only applicable to non-profit and charitable businesses or organizations. An entity whose sole purpose is to better the community or nation must file for this tax exemption status with the Internal Revenue Service. If granted, then the charity does not have to pay any state, local, or federal taxes. Churches are a common example of tax exempt organizations.…

    • 925 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Deduction Interest

    • 521 Words
    • 3 Pages

    Interest on qualified student loan can deduct the interest as a deduction for AGI. This deduction is permitted if the money borrowed was used to finance qualified education expense. In order to deduct the interest on Qualified Student Loan the money must have been paid qualified education expense. The maximum deduction is $2,500 and is phased out for taxpayers with modified AGI in excess of…

    • 521 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Statutory Instrument 89

    • 892 Words
    • 4 Pages

    All CSOs are non-profits whose budget are met by well-wishers which leaves one wondering why the government wants to make it difficult or even impossible for citizens to observe their internal processes which are a critical foundation for democracy. Members of CSOs are all well-meaning Zimbabweans who are determined to see their country prosper and develop into a competitive democracy thus therefore any law or regulation that seeks to make it difficult or…

    • 892 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Tax Implications

    • 643 Words
    • 3 Pages

    The ratio of tax distribution is most equitable in retail tax. I believe that every individual is responsible for contributing to the nation’s tax revenue despite age, but I believe that retirees should have the least contribution as they have already paid their dues to society from all the years they have previously worked. With this in mind, the retail tax is the fairest solution due to it being the most equal in distribution. Each group is still paying a considerable amount of tax, with retirees having the lowest share in retail and workers having the highest. This makes sense as workers have a high and stable amount of money coming in. This is by far the fairest plan of them all and is in the best interest of the community and for retirees.…

    • 643 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    TAX QUIZ 1 ANSWERS

    • 1826 Words
    • 7 Pages

    F_____ 3. Uniformity and equity in taxation means that payment of taxes shall be more or less the same.…

    • 1826 Words
    • 7 Pages
    Satisfactory Essays
  • Satisfactory Essays

    t and t

    • 668 Words
    • 3 Pages

    a type of Businesses are non-profit organisation which like public sector and voluntary, some of the building and services are provided by government, and someone who working within are also paid from government. They are also providing good services, but not looking for making money. However, the money that government had been given was came from taxes. (E.g. library, college, hoplites etc.)…

    • 668 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Currently, out of the Taxpayer population of 3822 on the Copperbelt, only 1422 are paying this Tax, partly or in full despite paying tax at a flat rate of 3% on their annual turnover. The rest are not paying. This represents 37.159% compliance level in revenue collection. Therefore the problem we have at hand is to reverse this negative trend of non-compliance by Taxpayers in this category. This is because if 62.841% are not paying taxes, then there is significant loss of revenue and consequently, the government’s capacity to provide social services to its citizens is also reduced. If the Government’s ability to provide social services is reduced, it means reducing poverty levels in the country will be at a slow pace. Therefore it is important to investigate the effect that increasing expenditure on publicity can have on the collection of Turnover tax by Zambia Revenue Authority.…

    • 765 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    project on tds

    • 5236 Words
    • 21 Pages

    TAX DEDUCTION AT SOURCE (TDS) Information to help you with TDS Department of Revenue & Customs (HQ) Ministry of Finance Thimphu: Bhutan Table of Contents INTRODUCTION 4 PART I 1.…

    • 5236 Words
    • 21 Pages
    Powerful Essays
  • Powerful Essays

    .Incentives Act

    • 3155 Words
    • 13 Pages

    The purpose of this report is to understand how the incentives can bring into help to…

    • 3155 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    research proposal

    • 11329 Words
    • 46 Pages

    The indigenization and economic empowerment Act (Chapter 14.33) of 2007 was gazette on March 7, 2008 and was signed into law on April 17, 2008. According to the Indigenization and Economic Empowerment Act 14.33, S2(1) indigenisation means “a deliberate involvement of indigenous Zimbabweans in the economic…

    • 11329 Words
    • 46 Pages
    Good Essays

Related Topics