Registration of a group of companies a group of

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Intermediate Algebra
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Chapter 1 / Exercise 47
Intermediate Algebra
Tussy/Gustafson
Expert Verified
Registration of a Group of Companies A group of companies that is owned or substantially controlled by one person may apply to be registered and treated as one person. But this is subject to the discretion of the commissioner. The commissioner can de-register a group of companies by giving a notice of thirty days if:
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Intermediate Algebra
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Chapter 1 / Exercise 47
Intermediate Algebra
Tussy/Gustafson
Expert Verified
96 i. He is satisfied that the group registration has caused or is causing undue risk to revenue ii. One of the companies ceases to make taxable supplies iii. The person in whose name the group is registered ceases to have a substantial control of the group. NB: Upon de-registration, each company will be required to register separately and become individually responsible for the tax due and payable. VAT Deregistration A registered person can be deregistered if: a. The value of taxable turnover does not exceed 5 million in any period of twelve months. b. He ceases to make taxable supplies. A person applying for deregistration should notify the commissioner of the value of taxable materials and other goods in stock. If satisfied the commissioner will deregister the person from the date when that person pays the tax due. A Registered Person Disposing the Business as a Going Concern If a registered person disposes his business as a going concern to another registered person, he may make the transfer without accounting for VAT. Both persons must provide the commissioner with the following details: i. Details of the transaction ii. Arrangements made to pay any outstanding tax iii. Quantities and value of assets and stock of taxable goods on hand at the date of disposal. iv. Details of the arrangements made for transferring the responsibility for keeping the records and producing books of the business for the period before the disposal.
97 Changes Affecting Registration A registered person is required to notify details to the commissioner within a period of fourteen days of occurrence of the following changes. i. Change of address of the place of business ii. Additional premises to be used for the purpose of the business iii. Premises used for business which cease to be used iv. Change of business or trading name. v. An interest of more than thirty percent of the share capital of a ltd company are acquired by a person or group of persons. vi. The person authorized to sign returns is changed vii. The partners in a partnership are changed viii. A change occurs in the trade classification of the goods or services supplied (Exempt, standard, zero rates) 9.3.3 VAT Records The act requires a registered person to keep records either in English or Kiswahili language for a period of at least five years from the date when the last entry was posted. Paragraph seven of the VAT regulations and the seventh schedule to the Act prescribes the following records.

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