Part one Sheet
Sheet (Part I)
Tax Accounting
Dr. Fatma Gabr
Answer the following questions:
1. Define tax.
2. Describe the historical development of tax in Egypt.
3. What are the main characteristics of tax on natural person’s
income.
4. There are main rules of imposing tax on natural person’s
income. Clarify in details.
5. Differentiate between: A) Direct & indirect tax. B) Separate
& unified tax.
6. There are 3 main goals of tax system. Mention them in
details.
7. What are the main elements of tax system?
Choose the letter indicating the correct answer for each of
the following questions:
1. When calculating the building tax on the first residential
unit (private residency) its annual rental value is L.E 45000.
Net rental value is:
a) 30000 b) 31500 c) 20500 d) 30500
2. According to question no.1, Tax base is:
a) 6000 b) 65000 c) 7500 d) 3500
3. According to question no.1, Annual tax due is:
a) 600 b) 650 c) 350 d) 750
4. When calculating the building tax on the second residential
(non-private residency) unit its annual rental value is L.E
30000. Net rental value is:
a) 30000 b) 21500 c) 21000 d) 32500
5. According to question no.4, Tax base is:
a) 21000 b) 20000 c) 30000 d) 35000
6. According to question no.4, Annual tax due is:
a) 2000 b) 2100 c) 3000 d) 3500
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Part one Sheet
7. Calculate the building tax on the non-residential unit
(administrative/commercial) its annual rental value is L.E
[Link] rental value is:
a) 36000 b) 34000 c) 38000 d) 35000
8. According to question no.7, Tax base is:
a) 32000 b) 32800 c) 30000 d) 35000
9. According to question no.7, Annual tax due is:
a) 3200 b) 3280 c) 3000 d) 3500
10. Suppose that a sole proprietorship borrowed 225,000 EGP
loans during 2006 at an interest rate of 20% (i.e., debited
interests were paid to it during the year amounting to
225,000 x 20% = EGP 25,000), of which EGP 5,000 is a loan
from a tax-exempt natural person. Some of these were used
Loans to obtain tax-exempt income “credit returns”
amounting to10000 EGP, bearing in mind that the discount
rate announced by the Central Bank on the first of January
is 6%.Debit interests which are deductible costs =
a) 10000. b) 6000. c) 16000. d) 9000.
11. The accounting profit of a sole proprietorship for the year
ended 31/12/2021 amounted to L.E 93750, if you knew the
following:
I found a sales invoice costing 18000 pounds and the
value of 25000 pounds was not recorded in the books
inadvertently.
The firm sent goods to an agent on commission at a cost
of L.E 15000 and it was recorded in sales at the selling
price that is determined on the basis of (cost + 30%),
noting that 60% of these goods are available to the agent
and have not been sold.
The value of goods sent to a customer L.E 27500 that
was included in the inventory lists, at a cost of L.E
20,000, was not recorded in sales.
2
Part one Sheet
The firm obtained furniture with a market value of
10500 pounds in exchange for goods that were recorded
in sales at an amount of 12000 pounds. Taxable Net
Profit=
a) 114000 b) 110000 c) 214250 d) none of the mentioned
12. The net profit before tax according to the income statement
prepared in accordance with the Egyptian accounting
standards for the individual commercial and industrial
establishment owned by the financier (M.B.) amounted to
EGP 589,000 for the year ending on December 31, 2006, if
you knew that:
Company’s expenses include:
EGP 48000 salaries, including EGP 12000 salary to the
taxpayer against management, EGP 4000 salaries paid to the
financier’s relatives (the same salary is EGP 2000), EGP 40,000
for cultural and sports services for employees (the workers
contribute in a quarter), EGP 2000 provision for disputed taxes
from previous years, EGP 2000 Depreciation of a purchased
machine at a rate of 10% for its investment In production on
1/7/2006 (the book tax balance of machines on 1/1/2006 is
352000), 100,000 selling price of a machine on 1/3/2006, 8000
EGP Depreciation of a car purchased for the use of the facility
at the rate of 10% on 1/5/2006 2000 EGP provision for
uncollectible debts.
The company's revenues include:
EGP 10,000 bond returns, 15,000 interests on deposits
and savings accounts in banks registered in Egypt.
Required:
Determining the tax base:
a) 490000 b) 495000 c) 450000 d) none of the mentioned
13. What are the main taxable revenues and expenses
according to commercial and industrial profit tax?
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Part Two Sheet
Part II
Tax Accounting
Dr. Shorouk Esam
Choose the correct Answer:
1- The sales of one of the plastic products factories during
the month were 8000 pieces that were sold from the
factory outlet to consumers directly at 57 pounds per
piece inclusive of 14% value added tax, the value added
tax due is:
A- 560000 B-63840 C- 40000 D-Non-of the above
2- Value added tax rate imposed on machinery and
equipment used to produce a good or perform a service is:
A- 5% B- 10% C- 14% D- 20%
3- When determining the taxable value of goods or services
used for personal consumption , it is determined at:
A- Cost B- Market price C- Cost or market price
whichever the less D- Non- of the above
4- Tax-generating incident for Goods and services is:
A- At customs release B- Before customs release
C- When verifying the fact of benefiting from the service in
Egypt.
D-When selling or when performing a service
5- All of the following items are exempted from Value
Added Tax Except:
A- Samples that are consumed in government laboratories
B- Goods and services imported by members of a foreign
diplomatic mission
C- Used goods that were sold after being used for a period
of not less than two years sold by the same taxpayer
D- Donations and gifts to the state administrative body
Exercise:
The following are data about an engineer who owns
an engineering office in Egypt for the year 2021:
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Part Two Sheet
- 800,000 engineering design fees collected this year, in
contrast to 50000 fees for last year’s fees and 70,000 fees in
advance for next year
- Fees for engineering designs for works in Dubai, 150,000, if
you know that the main activity is in Egypt.
- Furniture was sold for 11,000 in cash (the historical cost of
furniture is 20,000 and its depreciation is 13,000)
- One of the branches of the office in Benha city was disposed
of with a value of 300,000 in cash and the book value of net
assets of 220,000
- The annual salary is 400,000, the rent is 30,000 .
- Car expenses 60,000 annually
- The price of books and subscriptions to professional
magazines is 5000
- Furniture depreciation 20000
- Registration fee in the syndicate 2000
- Fees required to practice the profession 5000
- Life insurance premiums in favor of his wife 5000
- Documented general expenses 100000
- Un-documented expenses 20000
- Donations include: 60000 for Tahya Misr Fund- 20,000 for
charities- 40000 charity Iftar tables.
6- From previous data .total revenues liable for tax equal:
A- 1160000 B-170000 C-1134000 D-1154000
7- Capital profit from selling furniture will be equal:
A- 3000 B- 4000 C-5000 D-None of the above
8- Car expenses included and deducted in the expenses will
be equal:
A- 40000 B- 48000 C-50000 D- 58000
9- Total expense liable for tax equal, if regular accounting
books are maintained:
A- 609000 B- 622000 C-509000 D- 602000
10- Un documented expenses which will be deducted equal:
A-5000 B-6000 C-7000 D-20000
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Part Two Sheet
11- Net income before donations will be equal :
A- 525000 B-532000 C-625000 D- 638000
12- Net taxable income equal:
A- 602000 B- 605000 C-532000 D-452000
13- Total tax due equal:
A- 89150 B- 90125 C-94180 D-95140
14- Suppose that No regular accounting books are
maintained, the total cost will be equal:
A- 82200 B-62200 C-115400 D-116900
15- Suppose that No regular accounting books are
maintained, net taxable income will be equal
A- 936000 B-940000 C-985700 D- 958600
16- Suppose that No regular accounting books are
maintained, tax due will be equal
A- 224650 B- 225200 C- 228600 D-229000
17- An employee obtained a loan of 30000 from his employer
at interest rate of 8% annually, knowing that the total
sums he obtained from work during the six months prior
to his obtaining the loan was 22000 so the value of the
annual taxable variable in kind benefit is:
A- 18000 B-36000 C- 22000 D-None of the Above
- Use the following information for questions 18-19. An
employee was mandated to give a lecturer in Faculty of
Commerce, Suez Canal University for total amount of L.E.2000.
18- The tax due is:
A- L.E.0 B- L.E. 50 C-L.E.200 D- L.E.300
19- The net amount received by the employee is:
A- L.E.2200 B- L.E. 1800 C- L.E.2000 D-L.E.2300
20- If net taxable income equal 592000, the tax due will be
equal:
A- 111231 B- 125125 C-135211 D-140202
