Assignment 12

What are the advantages of the withholding tax system for taxpayers?




A. It reduces the burden on taxpayers who would otherwise have to pay considerable amounts within short periods.

B. It is the most effective and inexpensive way of collecting taxes for the tax administration.

C. It ensures a regular flow of revenue to the government.

D. It is a useful instrument in encouraging voluntary compliance.

E. It helps to minimize tax evasion and is especially effective In areas where it is difficult or uneconomic to detect evasion if payments were not taxed at source.



What are the includes in "Borrowing cost" in accordance with SLAS 20?



A. Interest on bank overdrafts and short term and long term borrowings.

B. Amortization of discounts or premiums relating to borrowings

C. Amortization of ancillary costs incurred in connection with the arrangement of borrowings.

D. Exchange difference arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.



How can we recognize 'Borrowing cost' in the financial statements?



A. Borrowing cost shall be recognized as an expense in the period in which they are incurred.

B. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset shall be capitalized as part of the cost of that asset.http://lahirumanagement.tk/,http://www.carterdecosta.com/