Tax Management Officer Interview Questions and Answers, On this article you will go through who is Tax Management Officer, What are functions of Tax Management Officer, Which are most Common Interview questions for Tax Management Officer and bonus questions for review.
Who is Tax Management Officer?
Tax Management Officer Is an Individual who deals with management of finances, for the purpose of paying taxes. But also deals with functions below.
Functions of Tax Management Officer
- To assist in the preparation of action plans;
- To conduct face vetting of tax returns;
- To conduct desk audit on simple cases and assist in field audits;
- To conduct physical and compliance surveillance surveys;
- To prepare respective periodic management reports;
- To gather information for new taxpayers’ registrations;
- To prepare tax positions for all taxpayers and arrears list and follow up payments;
- To conduct face vetting of application for tax exemptions, relief, refunds, motor vehicle and driver’s license application;
- To process annual motor vehicle licenses renewal, transfers of ownership and issue the licenses;
- To conduct registration, audit, data processing and examination; and
- To perform other duties as may be assigned by the supervisor.
Tax Management Officer Interview Questions and Answers.
Tax management defined as the management of finances, for the purpose of paying taxes. Tax Management mostly deals with filing Returns in time, getting the accounts audited, deducting tax at source etc. Tax Management helps in avoiding payment of interest, penalty, prosecution.
The following are common Tax Management Officer Interview Questions:
QUESTION ONE
State five documents and relevant information that should be forwarded to the tax office for opening a tax file for a taxable company.
QUESTION TWO.
(a). Explain the meaning of ‘an employment’.
(b) Mr. Kizu has just been appointed as a financial consultant of MTANASHATI Ltd for a contract of one year and he will be stationed at MTANASHATI Ltd’s premises for the whole period of the contract. His terms of the contract include a weekly remuneration based on hours that Mr. Kizu will be working at MTANASHATI Ltd.
REQUIRED: Distinguish between ‘a contract of service’ and ‘a contract for service’ using the information above.
(c) Rabia & Assey Ltd employed Ms. Malaika Mukoba as the company human resource officer with effect from 1st September 2009. By the time the company submitted a statement of employment income for year 2010, the following information was revealed to her as her annual emoluments:
- Basic annual salary TZS.6,000,000
- Transport allowance TZS.2,500,000
- Lunch allowance TZS.1,500,000
- Medical allowance TZS.1,000,000
The employer housed her for free. The annual market rental value of that area was TZS.4,000,000 and the expenditure claimed by the company per annum for that premise was TZS.1,500,000. The contribution made by the employee was TZS.500,000 as rent. Besides the emoluments stated above, the employee had the following benefits:
- A self-driven car for private use, which is 3000 cc, brand new. The company claims expenditure of car maintenance.
- Other benefits included electricity TZS.30,000 and water TZS.25,000 per month in her office.
Though her employment services were terminated on 31st December 2010, the company paid her TZS.30,000,000 as termination benefits (compensation for lost employment). Other income she received in 2010 was TZS.300,000 interest from MBY Bank, TZS.1,500,000 – lease amount from MSK Company for the building she leased to the company since 2009.
REQUIRED: Calculate the total income for Ms. Malaika Mukoba for the year of income 2009.
QUESTION THREE
(a) Basically there are four types of supplies for Value Added Tax purposes. These are standard rated, zero rated, special relief supplies and exempt supplies. VAT collections depend, to a large extent, on the type of supply made.
REQUIRED: Briefly explain VAT implication of
(i) zero rated supplies
(ii) special relief supplies
(iii) exempt supplies
(b). Timbwilitimbwili Ltd owns a quarry. It extracts stone from this quarry and sells the stone to Mchapakazi Ltd for TZS 25 million plus VAT. Mchapakazi Ltd converts all the stone into paving slabs and sells these slabs to Sasakazi Ltd for TZS 45 million, plus VAT. Sasakazi Ltd owns and runs a garden centre, where one third of the slabs are sold at TZS.65 million plus VAT to the general public in Tanzania and the remaining part is sold to Kenya for a total of TZS 15 million, plus VAT.
REQUIRED: Show how VAT is charged and collected at each stage of this process. (10 marks).
(c) With examples, differentiate between ‘mixed supplies’ and ‘composite supplies’.
QUESTION FOUR
(a) Explain the meaning of the term “rules of origin” and its importance as applicable under the East African Customs Union Rules. (6 marks)
(b) Explain four problems of implementing the East African Customs Union Rules. (6 marks)
(c) Explain in what forms does smuggling occur and the problems associated with smuggling.
QUESTION FIVE
The problem of tax avoidance and evasion is inherent in all tax systems. In fact, tax avoidance and evasion are as old as the taxes themselves and the Tanzanian taxation system is not exception to the fact.
REQUIRED:
(i) Briefly discuss the effects of tax evasion and avoidance in Tanzania.(6 marks)
(ii) With examples, discuss international and national perspective of tax evasion and avoidance. (5 marks)
(iii) Briefly discuss measures taken by the government of the United Republic of Tanzania to deal with the problem of tax evasion and avoidance. (9 marks)
QUESTION SIX
(a) Explain briefly the requirements for filing returns in respect of income of an individual. (8 marks)
(b) Under the Income Tax Act 2004 in Tanzania, a tax payer who is not satisfied with the income assessment made upon him by a relevant tax authority may file an appeal in writing within 30 days.
REQUIRED: State the items to be set out in the Notice of Appeal.
QUESTION SEVEN
(a) Differentiate between ‘public goods’ and ‘private goods’. (12 marks) (Total : 20 marks) (5 marks)
You are given the following information about the market for motorcycles.
Market Demand: P = 4,000,000 – 4Q Market Supply P = 4Q Where P = Price and Q = quantity
REQUIRED:
(i) Find the equilibrium price and quantity in this market. (2 marks)
(ii) Suppose that the government decides to impose an excise tax of TZS.80,000 per motorcycle on producers in this market. What will be the number of motorcycles sold in this market once this tax is imposed? (5 marks)
(iii) Given the tax described in part (ii) above, what will be the tax incidence on consumers?
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ANSWERS FOR ALL QUESTIONS.
ANSWER FOR QUESTION ONE
Documents and relevant information that should be forwarded to the tax office are:
- Certificate of incorporation.
- Signed copy of Memorandum and Articles of Association.
- Statement of estimated income.
- Nature of business of the company.
- Date of commencement of business.
- Letter of appointment of auditors.
- Names and addresses of directors.
- Registered address of the company.
- Accounting year of the company
ANSWERS FOR QUESTION TWO.
(a) Employment includes in particular:
- A position of an individual in the employment of another person;
- A position of an individual as manager of an entity other than as partner of a partnership;
- A position of an individual entitling the individual to a periodic remuneration in respect of services performed; or
- A public office held by an individual, and includes past, present and prospective employment.
- Any explanation on contract of service.
(b) Employment is determined by the presence of contract of service or employment. The contract of service exists when an employer dictates what an employee should do and how, in return for periodic payments.
The contract of service might exist when:
- An employee agrees that, in consideration of a wage or other remuneration, he will provide his own work and skill in the performance of some service for his master.
- An employee agrees, expressly or impliedly, that in the performance of that service he will be subject to the other’s control in a sufficient degree to make that other master.
- The other provisions of the contract are consistent with its being a contract of service.
On the other hand, a contract for service occurs when a contractee hires his own employees, provides and maintains his own tools or equipment; the contractor is paid by reference to the volume of work done; has invested in the enterprise and bear the financial risk; has the opportunities of profit or the risk of loss; and the relationship is not permanent.
Therefore Mr. Kizu is an employee of MTANASHATI Ltd. i.e. contract of service exist.
We will update the Answers for remaining questions soon (Saa 7).
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