FACULTY OF COMMERCE,

MANAGEMENT & LAW

DISTANCE MODE ASSIGNMENT
LETTER

Academic Year 2022

Semester (2)

[Taxation 1B- ATP3782]

A MUST, TO READ THE ENTIRE

DOCUMENT
 ACCOUNTING, ECONOMIC & MANAGEMENT
SCIENCES

ASSIGNMENT ADMINISTRATION
CORE CALENDAR FOR DISTANCE AND ONLINE COURSES – 2022
SEMESTER 2
MONTH DATES ACTIVITIES Schools

JULY 25 July 2022 Semester 2 Commence

August 22 -25 August Compulsory Face to Face Vacation School All Schools
2022

FIRST ASSESSMENT: 2nd SEMESTER MODULES

30 August 2022 Due date: 01st Assessment of 02nd Semester Modules Only School of Accounting, School of Business
31August 2022- Grace Period for assessment submission/ completion Management, Governance & Economics
2 September 2022 School of Law

MAKE-UP/ COMPENSATORY ASSESSMENT 1: 2nd SEMESTER MODULES

September 13 September 2022 Make-up assessment due date: 1st Assessment School of Accounting, School of Business
– Only applicable if you score 1-39% in Assignment 1. Management, Governance & Economics
Take note that a new assessment (test or assignment) is School of Law
to be submitted.

SECOND ASSESSMENT: 2nd SEMESTER MODULES

September 20 September 2022 Due date: 02nd Assessment of 02nd Semester Modules Only School of Accounting, School of Business
21 September 2022 Grace Period for assessment submission/ completion Management, Governance & Economics
-23 September School of Law
2022

MAKE-UP/ COMPENSATORY ASSESSMENT 2: 2nd SEMESTER MODULES

11 October Make-up assessment due date: 2nd Assessment Semester 2 School of Accounting, School of Business
2022 Modules Management, Governance & Economics
October – Only applicable if you score 1-39% in Assignment 1. School of Law
Take note that a new assessment (test or assignment) is
to be submitted.
21 October Lectures end for Second Semester
2022 CA Marks Due
27 October End Year Examinations
2022

All Schools

NOVEMBER 28 Nov – 02 Supplementary examinations commence

Dec
DECEMBER 09 End of Second Semester
16 2021 Academic year ends
JANUARY 09 -21 Summer Term
2022
12 University Opens
24 Academic Staff resumes office duties
For modules that will have online tests, all information shall be communicated well in advance. Kindly take note that some modules might
have 3 to 4 assessments. E.g.
2 assignments and 1 to 2 online tests. All necessary information will be shared timely.
Good luck!
 2022 Distance Mode Assignments
[Taxation 1B- ATP3782]
Dear Student,

Welcome to the University of Namibia. We are confident that your studies and hard work will be rewarded
with success. We kindly advise that you obtain all the relevant information and booklets available for
distance students from your Moodle platform (including the 2022 Student Information Letter, Online
Assignment Submission Guide and other documents). These documents will provide guidance on how
to approach your studies and will guide you through your study materials as well as providing useful
administrative information in submitting assignments.

1. Study materials
Your study guide is essentially your “teacher/lecturer”. However, in addition, you are required to visit the
library to consult prescribed books and recommended readings that are indicated in the study guide as well
as browse the Internet in general. You are also responsible to purchase any prescribed textbooks required
for your respective courses/modules. Furthermore, you are strongly advised to follow the guidelines in the
Online Assignment Submission Guide available on Moodle.

2. Collaborative Learning
Unam avails all your modules through Moodle, enabling you to interact with your fellow students online
through forum discussions and chats. You can use the same platform to engage with your lecturers and
tutors regarding academic support. Please take advantage of Moodle to avoid isolation and strengthen your
interaction with colleagues, ask for help, and share/receive resources to aid your learning process. See
below how to access forum discussions on Moodle:

Figure 1: Forums in courses

3. Submission of assignments
It is very important to complete and submit a clean, clear and well-argued assignment for marking. Make
sure that you have understood the questions in order to answer them correctly. It is your responsibility to
make sure that every page of the completed assignment is correctly numbered before submitting your
assignment.
As from 2017, ALL assignments are submitted through the Moodle Learning Management System.
This is an online platform where you will access all your modules and related information such as course
outlines, course notes and other learning materials that your lecturer/tutor may choose to share with you.
Moodle is accessible here: http://elearning.unam.edu.na. You should complete and submit all assignments
on or before the given due date in the assignment letter if you wish to obtain your CA marks and qualify for
examinations. UNAM always updates its assignment covers on an annual and semester basis. Please
ensure that you have used the latest assignment cover. The latest assignment cover is availed on each
course on Moodle.
A user guide is available on how to submit your assignment in each module on the Distance Education
Common Space and you can access it on the Online Support system. Pay close attention to the following
key points listed at the beginning of the guide on:
3.1 How you would know when you have successfully submitted your assignment:
that is when the submission status shows “Submitted for grading”

Figure 2: Assignment submission status

MAKE SURE THE SYSTEM GIVES YOU A CONFIRMATION OF SUBMISSION by the

submission status shown as "Submitted for grading" when done. If that status is NOT displayed
when done, IT DOES NOT COUNT AS A SUBMISSION.

3.2 Errors to avoid when submitting your assignment (committing these errors may result
in you failing to submit your assignments and therefore potentially failing your course)

a. You are submitting on the correct Module/Course

b. You have selected and uploaded the correct Assignment document from your
computer
c. You are submitting the correct Assignment number for the respective activity (i.e.
Assignment 1, 2, etc.)

3.3 How to check the assessment feedback when your assignment has been graded.

4. Due Dates
All assignment due dates for 2022 are published on second page of this assignment letter. With the shift
from manual to online assignment submission since 2017, due dates are automated and non-negotiable.
This means that you would be required to submit your assignments ON or BEFORE the due date set on
your assignment (before 11h55 PM). After the date has passed (i.e. 12h00AM of the next day) the
assignment submission will be disabled, and you would no longer be able to submit your
assignment. Please note that assignment submissions will be open long before the due dates.
Please note that your assignment due dates are on page 2 of this Tutorial Letter. Use this assignment due
dates to set up your calendar tool on your mobile phone or computer to set reminders for yourself and
manage your time. Another way to keep pace with due dates, is by regularly visiting your Timeline of each
of your courses on Moodle on the Course Overview. Also download the Moodle mobile app to access
Moodle on your mobile phone or tablet and have access to notifications about due dates at your fingertips
from Google Play Store for Android or Apple App Store for IOS.
5. Submission of Assignments
Due to challenges with Internet connectivity and speed, large files may take too long to upload, which is a
big risk if you wait until the last minute to submit your assignments. You are therefore strongly advised NOT
to wait until the final hours of the due dates to submit your assignments to avoid disappointments. You are
also advised to ensure that you are in an area with good Internet connectivity when submitting your
assignments. Timely submission of all assignments on or before the given due date is crucial for the timely
grading and processing of your CA marks and determining admission to exams.
Take note that assignments should never be submitted directly by email or hard copy to individual
tutors or any other staff members of the University of Namibia.
6. Academic Support
One every Moodle course there is an embedded Academic Support section with materials to assist you
with your writing process (see Figure 3 below). Go through the videos in order to enhance your writing
process and submit better quality assignments.

Figure 3: Academic Support tutorials

7. Grace Period
A grace period refers to three (3) additional days added after your assignment due date.
The purpose of this grace period is to provide each student with time to verify and or to
make amendments to assignments already submitted. These changes may include
correcting errors like submitting a file to a wrong module or on a wrong assignment;
submitting a wrong file; losing internet connectivity, etc. An example would be that a
student attempting to submit an assignment and they lose internet connection would still
be able to try again the day after at a different place or when the connection has been
restored.

8. Plagiarism Control
It has been observed that some students copy information from the Internet and paste into their
assignments without acknowledging the sources of the information. This is called plagiarism. A copy of the
Policy on Academic Integrity has been provided to you on every course on Moodle. Please note that
plagiarism which includes copying and pasting information from the Internet would not be tolerated, shall
result in your assignments declared null and void and graded as a “0”. All assignments submitted through
Moodle would be checked for plagiarism using plagiarism detection software. You are therefore strongly
urged to acknowledge EVERY source that you use for your assignment by using the appropriate citations
and references following the referencing style prescribed by your lecturers (APA Referencing guides are
available freely online). Find one here: http://www.uofa.edu/docs/apa-documentation.pdf

Any assignment found with high similarity scores or with evidence of clear attempts to cheat such as
submitting an assignment that is not your own would result in a zero (0) grade.

9. Vacation schools
Attending vacation school is COMPULSORY and the vacation school timetable will be made available
through the UNAM Moodle

10. My UNAM Portal and Moodle

We recommend that you regularly (at least twice a week) access your “My UNAM Portal”
(http://my.unam.edu.na) for your registration status and information, and Moodle
(https://elearning.unam.edu.na ) for your learning and assessment information.

Also visit the Distance Education Common Space on Moodle where you can find all necessary information
and user manuals related to your distance mode studies and also engage with other students studying on
distance mode. See additional information under Section 11 below.

11. Online Support (Ticketing) System

An online support system is provided where you can report some of the issues that you may experience
regarding your studies. This system is easily accessible from the Moodle LMS system.

Figure 4: Online ticketing system

You can also make use of the Online Support (Ticketing System) for queries to be responded to by the
responsible person within 48 hours. We recommend you use this system for Help Topics or issues listed
on the system rather than email or telephone calls.
12. Online information, Tutorials and Distance Education Common Space
Information and Tutorials are provided in each course on the Moodle Learning Management System
which you should first familiarise yourself once you first access your courses.

Figure 5: Info-Tutorials on Moodle

 Indicated in Figure 4 above, the Distance Student Orientation provides video tutorials on various activities
you would perform such as submitting your assignments, converting your documents into pdf format,
changing your email address, how to check your results when assignments have been graded and so on.
Updates and information with regard to your studies and related events would be shared in the Distance
Education Common Space which you can access from any course as shown in screenshot below. All
students studying on distance mode are linked this the space where you can collaborate or discuss general

issues.
You will also find the Student Information Letter, your Vacation School Timetable and User Guides in the
Distance Education Common Space.
13. Staff Contact Information
If you study conscientiously, your efforts will be rewarded. Should you need any assistance or clarification
on the module contents, you can reach the relevant staff members at the contact details as given below:

Figure 6: Distance Education Common Space

Tutor:
immanuelheita96@gmail
For Module/Subject content related matters, Immanuel Heita 0814255067
.com
Assignments marks and CA marks queries
Student Support Coordinator: Ms. Anna-Marie Murere 0612063729 amurere@unam.na
Faculty officers: Ms. O. Nelago 061 2063987 onelago@unam.na
061-2064881 ukatjangua@unam.na
Unondjamo Katjangua (WHK)
Examination Officers: 061-2063715 snehoja@unam.na
Stephanie Nehoja (WHK)
For Exam marks and exam timetable, exam All exam officers at respective
related matters campuses assist students of those
campuses

eLearning Administrator: Mr Owen Lisulo 0612063381 olisulo@unam.na

Moodle related queries (technical problems), Mr Shaka Maikhudumu 0612063000 smaikhudumu@unam.na

linking of Modules, etc.
https://elearning.unam.edu.na/sup
Please create an online ticket for any assistance port/open.php

NOTE: For additional information consult the Prospectus and UNAM General Information and Regulations
Prospectus.
Serious offence not tolerated at all
Note well: Plagiarism
Plagiarism is “the wrongful appropriation or purloining, and publication as one’s own, of the ideas, or the expression
of the ideas of another” (OED). All published and unpublished material, whether in manuscript, printed or electronic
form, is covered under this description.
The Proctors’ Disciplinary Regulations concerning conduct in examinations (see Part 19.4. and 19.5, p. 52) state that
‘No candidate shall present for an examination as his or her own work any part of the substance of another person’s
work. In any written work (whether thesis, dissertation, essay, coursework, or written examination, or assignment)
passages quoted or closely paraphrased from another person’s work must be identified as quotations or paraphrases,
and the source of the quoted or paraphrased material must be clearly acknowledged.’ In all written work students must
be vigilant in citing the work they have referred to or quoted from (please see further Appendix D). Examples of
plagiarism and detailed advice as to how to avoid it are given on http://www.admin.ox.ac.uk/edc/goodpractice/: you
are strongly advised to consult this website.
It has been observed that some students merely download information from the Internet, copy verbatim from other
printed sources (including the Study Guide, employ other people to do their assignments for them, or plagiarise each
other’s assignments (either directly, that is, word-to-word, or through a re-arrangement of words or paragraphs in
order to deceive the tutor or marker).
These practices constitute very serious academic offences of academic dishonesty, alternatively, intellectual fraud,
which attract very serious and heavy penalties. Students must desist from such practices. Such students may score
very high marks but invariably perform very poorly in examinations. It is in the interest of such students to endeavour
to exercise their own intellectual faculties, do their own research, and personally do the set assignments.

No hardcopies are allowed, all assignment are to be uploaded through Moodle.

 Assignments should be submitted in PDF – only. Kindly save your assignments in PDF format
 Make sure that you submit one assignment as one file/document. Do not create and upload
several folders; do not zip the documents. Have 1 one document/file for 1 (ONE) entire
assignment.
 Assignments for modules with formulas can be handwritten, scanned in one document and
uploaded on Moodle accordingly.
 Make sure you submit a document that is readable and virus free.
 Make sure you upload the right file with the relevant assignment content.
 After submitting your assignment on Moodle do verify on the file you uploaded. Always try to
submit your assignment few days before the due date, this allows you to double-check all the
nitty-gritties.
NO LATE SUBMISSIONS WILL BE TOLERATED. NO LATE submission due to not adhering to the
above advises or guidance WILL BE ACCEPTED nor ENTERTAINED.
 Faculty Economic & Management Sciences

School School of Accounting

Subject Taxation 1B

Subject Code ATP3782

Assessment type Semester Two 2022 ASSIGNMENT 1

Marks 100

UNIVERSITY OF NAMIBIA EXAMINATIONS

ASSIGNMENT 1
Examiner Immanuel Heita
IMPORTANT SUBJECT SPECIFIC GUIDELINES FOR ANSWERING
ASSIGNMENT QUESTIONS:

1. ACTION VERBS
Before attempting the assignment please familiarise yourself with the following. That which you
as student should learn (and that which will be assessed by the lecturer later) are always
formulated with a specific verb – which is known as the action verb in the formulation of the
outcome, assignment or exam question.

In the Accounting context the following verbs are regularly used in the formulation of exam
questions (please note the meaning of each):

Present: Show accounting information on the face of financial statements, in

the correct format.
Analyse: Investigate and discuss in detail.
Prepare: Provide an account, statement or notes in the correct format.
Calculate/determine: Calculate/determine the amount/value of.
Describe: Give a proper description of exact detail.
Discuss: Give your opinion on.
Discuss critically: Give your critical opinion on.
Prove: Support the answer with logical arguments and application of facts.
Define: Give a comprehensive definition of.
Differentiate: List and discuss the differences between.
Evaluate: Assess a matter based on certain criteria.
Give an overview: Summarise a large amount of knowledge in a logical and systematic
manner without losing the essence of the matter.
Identify: Choose the correct description of an item.
Journalise: Write up a transaction in the form of a journal entry.
Classify: Classify in a group or class.
List: List facts one by one.
Measure: Determine the amount at which the item will be included in the
financial statements.
Name: Only give the names of.
Note/write up: Write the information on the source document in the journal.
Develop/create: Develop a document/system by using given information.
Disclose: Show required accounting information in detail in the notes to the
financial statements.
Post: Carry information over from the journals to the ledger (provide a
ledger entry).
Explain: Clarify or interpret in an unbiased way.
Account for: Treat transactions in the correct accounting manner in the journal,
ledger or financial statements.
Compare: Matters are set against each other and differences and similarities
are pointed out.
Complete: Provide additional information on the given data.
Value: Determine the value of.
2. REQUIRED BY DEFAULT
If a question does not explicitly state that the following are not required, they are required
by default:

Disclosure of comparative figures. The disclosure of comparative figures is a requirement of

IAS 1 and must always be provided. If the question however does not require comparative figures
to be disclosed, the question will specifically state that comparative figures are not required.

Journal narrations. It is general practice to always provide journal narrations (descriptions), in

order to keep a record of the reasons for general journals in practice.

Presentation brackets. If uncertainty can arise over the type of account, the type of account
should be shown in brackets after the account name, e.g. in journals (i.e. specify ‘P/L’, ‘OCI’, ‘SFP’
or ‘SCE’ in brackets after the account name). It is also not sufficient to simply specify ‘SPLOCI’ –
be more specific in specifying either ‘P/L’ or ‘OCI’.

Taxation. Taxation is always required, except if it is clearly excluded in the required.

3. WARNING AGAINST PLAGIARISM

ASSIGNMENTS ARE INDIVIDUAL TASKS AND NOT GROUP ACTIVITIES (UNLESS
EXPLICITLY INDICATED AS GROUP ACTIVITIES).

Copying of text from other learners or from other sources (for instance prescribed material or
directly from the internet) is not allowed – only brief quotations are allowed and then only if
indicated as such.

You should reformulate existing text and use your own words to explain what you have read. It
is not acceptable to retype existing text and just acknowledge the source in a footnote – you
should be able to relate the idea or concept, without repeating the original author to the letter.

The aim of the assignments is not the reproduction of existing material, but to ascertain whether
you have the ability to integrate existing texts, add your own interpretation and/or critique of the
texts and offer a creative solution to existing problems.

Be warned: students who submit copied text will obtain a mark of zero for the assignment
and disciplinary steps may be taken by the Faculty and/or University. It is also
unacceptable to do somebody else’s work, to lend your work to them or to make your work
available to them to copy – be careful and do not make your work available to anyone.

Disclaimer: All events as well as the names of all persons associated with this company as
mentioned in the assessment are purely fictitious in nature and any resemblance to a real person,
living or dead or an actual business entity is purely coincidental.
Question 1 30 Marks
You are an established Tax expert in the Namibian consultancy market. Upon finishing
your Honours Degree in Accounting from the University of Namibia, you furthered your
studies specializing in Tax and later became a well-established Tax Practitioner in the
Republic of Namibia.
At a recent business leadership seminar organized by NAMRA on the 15th of June 2022,
you met your high school friend Ajay who studied science and thus has limited knowledge
of Namibian Taxation. Ajay has always been a business optimist and registered his
company in the retail industry (Ajay Retailers Pty Ltd) immediately after varsity. Knowing
that you are a Taxation guru, Ajay briefed you after the meeting that he wants you to
assist him with a few VAT related matters.
A week after the seminar, your friend emailed you the following transactions of his
company relating to June 2022 and requested your VAT expertise:
1. Ajay Retailers made Cash Sales of N$ 345 000.
2. Purchased inventory amounting to N$ 195 000 on credit.
3. Paid interest of N$ 10 000 in cash on loan obtained from Standard Bank Namibia.
4. Purchased stationery for N$ 5 700 in cash.
5. Paid Salaries of N$ 150 00.
Required
Through an email, respond to your friend’s email addressing the following:
1. Discuss in details the distinction between goods and services in the context of
Value Added Tax 4 Marks
2. Briefly define exempt supplies in the context of Value Added Tax. 1 Mark
3. Show the journal entries to record transactions in the accounting records Ajay Pty
Ltd. Amounts include VAT at 15% where applicable. Journal narrations are not
required. 15 Marks
4. For the above transactions, draw up the t-account for the vat control account
assuming the following: 8 Marks
1. Opening Balance was a receivable of N$ 25 000.
2. A payment was made during the VAT period of N$ 27 500.
Communication and presentation marks 2
Question 2 20 Marks

PDK Limited is a Namibian incorporated company. PDK Ltd is listed on the Namibian
Stock Exchange. Its share capital as at 30 June 2022 was held as follows:

SHAREHOLDERS % Holding
Mr. USA (Director) 6%
Mrs. USA 5%
Mr. China (Director) 9%
Jnr. China 3%
Mr. Russia 12%
Merkel Co-operative 8%
Italy Ltd 5%
Greece Pension fund 12%
Gold dollar Mining (Pty) Ltd 5%
UN (Pty) Ltd : Shares held as 22%
Mr. USA 35%
Mr. China 25%
Mr. Russia 20%
Mr. Trump 20%
G8 Ltd : Shares held as 13%
Mr. China 10%
Mr. Russia 10%
Individuals general public 80%
Total 100%

Required:

Determine whether PDK Ltd is a public or private company for tax purposes.

(Include in your answer a reason for including or excluding any shareholders in

determining whether this is a public or private company) (20 Marks)
Question 3 34 Marks

Part A 12 Marks

Ben Apple is employed at Bakers Biscuits CC which has a financial year end of 30th June
every year.

The following information relates to Ben’s 2022 year of assessment:

Taxable income from employment N$355 000

Income from sales of woodwork – April 2016 N$50 000

Retirement annuity fund contributions, N$55 0000

Bakers Biscuits CC had a taxable income of N$560 000 in 2020 and N$590 000 in 2021.
The entity foresees that taxable income will grow by 20% during the 2022 year of
assessment. The entity acquired new manufacturing equipment worth N$900 000 during
December 2021. This acquisition was not accounted for in the taxable income prediction.
No other significant transactions took place during the year of assessment.

Required:

Carefully consider the options below and choose the correct option.

1. The amount to be deducted as PAYE from Ben Apple’s salary for the 2022 year of
assessment is:

a. N$63 200 once per annum

b. N$53 200 once per annum

c. N$49 170 once per annum

d. None of the above

2. The 1st provisional tax payment if he wants to pay the minimum amount and avoid
any penalties and interest, will be:

a. Payable on 31 August 2021 and will be N$29 200

b. Payable on 30 September 2021 and will be N$36 500

c. Payable on 31 August 2021 and will be zero

d. None of the above

3. The 3rd final top up payment, if he paid N$1 000 as a 1st and N$2 000 as a 2nd
provisional tax payment, will be:

a. N$6 800

b. N$14 000

c. N$11 000

d. None of the above

4. Mr Ben’s tax return with the final top up payment is due on:

a. 31 August 2022

b. 30 September 2022

c. 28 February 2022

d. None of the above

5. The taxable income for Bakers Biscuits CC for the 2022 year of assessment will
be:

a. N$408 000

b. N$708 000

c. N$558 000

d. None of the above

6. The payment dates for provisional tax for Bakers Biscuits CC for the 2022 year of
assessment will be:

a. 31 December 2020, 30 June 2021 and 31 January 2022

b. 30 August 2020, 28 February 2021 and 30 September 2022

c. 31 December 2020, 30 June 2021 and 30 January 2022

d. None of the above

Part B 22 Marks

Scrutinize the statements below and indicate “True” or “False” with the support of a brief
reason.

1. Sec 1 (viii) of the Act defines a domestic company as a Namibian company which is
managed and controlled in Namibia.

2. The current tax rate for Close corporations is 30%

3. In terms of the definition of a company, a close corporation is not regarded by the Act
as a company for tax purposes.

4. A company that registers as a Private Company i.e. (Pty) Limited, will always stay a
Private company for tax purposes.

5. Public companies are defined by the income tax act are as follows:

If a company is quoted on a Stock Exchange, the general public interest > 50% whereas
if a company is not quoted on a Stock Exchange, then the general public interest > 40%

6. Directors of the company and their relatives are included in general public.

7. Tax avoidance is a criminal act and it is prohibited by the Income Tax Act.

8. Tax evasion is legal

9. Appreciation in value of units of a unit trust can be included in gross income.

10. Provisional tax payments must be based on the total actual taxable income for the
current year.

11. A taxpayer (other than a company) who derives his income wholly or mainly from
farming, should only make one provisional tax payment according to paragraph 23 of
Schedule 2 of the Income Tax Act.
Question 4 16 Marks

a) What are the main considerations when determining the taxable income of
farmers?
(4 marks)
b) Mention 4 items that must be included in the farmers Livestock and produce
reconciliation. (4 marks)
c) Define in details tax planning (2 Marks)
d) Define in details employees tax (2 Marks)
e) Your friend Abner Katangolo wants to understand the basics of employee tax. As
a tax expert, explain to your friend the meaning of remuneration and indicate two
items which are specifically excluded from remuneration as per Schedule 2 of the
income Tax Act (4 Marks)

The End!
 Faculty Economic & Management Sciences

School School of Accounting

Subject Taxation 1B

Subject Code ATP3782

Assessment type Semester Two 2022 ASSIGNMENT 2

Marks 100

UNIVERSITY OF NAMIBIA EXAMINATIONS

ASSIGNMENT 2

Examiner Immanuel Heita

IMPORTANT SUBJECT SPECIFIC GUIDELINES FOR ANSWERING
ASSIGNMENT QUESTIONS:

1. ACTION VERBS
Before attempting the assignment please familiarize yourself with the following. That which you
as student should learn (and that which will be assessed by the lecturer later) are always
formulated with a specific verb – which is known as the action verb in the formulation of the
outcome, assignment or exam question.

In the Accounting context the following verbs are regularly used in the formulation of exam
questions (please note the meaning of each):

Present: Show accounting information on the face of financial statements, in

the correct format.
Analyse: Investigate and discuss in detail.
Prepare: Provide an account, statement or notes in the correct format.
Calculate/determine: Calculate/determine the amount/value of.
Describe: Give a proper description of exact detail.
Discuss: Give your opinion on.
Discuss critically: Give your critical opinion on.
Prove: Support the answer with logical arguments and application of facts.
Define: Give a comprehensive definition of.
Differentiate: List and discuss the differences between.
Evaluate: Assess a matter based on certain criteria.
Give an overview: Summarise a large amount of knowledge in a logical and systematic
manner without losing the essence of the matter.
Identify: Choose the correct description of an item.
Journalise: Write up a transaction in the form of a journal entry.
Classify: Classify in a group or class.
List: List facts one by one.
Measure: Determine the amount at which the item will be included in the
financial statements.
Name: Only give the names of.
Note/write up: Write the information on the source document in the journal.
Develop/create: Develop a document/system by using given information.
Disclose: Show required accounting information in detail in the notes to the
financial statements.
Post: Carry information over from the journals to the ledger (provide a
ledger entry).
Explain: Clarify or interpret in an unbiased way.
Account for: Treat transactions in the correct accounting manner in the journal,
ledger or financial statements.
Compare: Matters are set against each other and differences and similarities
are pointed out.
Complete: Provide additional information on the given data.
Value: Determine the value of.
2. REQUIRED BY DEFAULT
If a question does not explicitly state that the following are not required, they are required
by default:

Disclosure of comparative figures. The disclosure of comparative figures is a requirement of

IAS 1 and must always be provided. If the question however does not require comparative figures
to be disclosed, the question will specifically state that comparative figures are not required.

Journal narrations. It is general practice to always provide journal narrations (descriptions), in

order to keep a record of the reasons for general journals in practice.

Presentation brackets. If uncertainty can arise over the type of account, the type of account
should be shown in brackets after the account name, e.g. in journals (i.e. specify ‘P/L’, ‘OCI’, ‘SFP’
or ‘SCE’ in brackets after the account name). It is also not sufficient to simply specify ‘SPLOCI’ –
be more specific in specifying either ‘P/L’ or ‘OCI’.

Taxation. Taxation is always required, except if it is clearly excluded in the required.

3. WARNING AGAINST PLAGIARISM

ASSIGNMENTS ARE INDIVIDUAL TASKS AND NOT GROUP ACTIVITIES (UNLESS
EXPLICITLY INDICATED AS GROUP ACTIVITIES).

Copying of text from other learners or from other sources (for instance prescribed material or
directly from the internet) is not allowed – only brief quotations are allowed and then only if
indicated as such.

You should reformulate existing text and use your own words to explain what you have read. It
is not acceptable to retype existing text and just acknowledge the source in a footnote – you
should be able to relate the idea or concept, without repeating the original author to the letter.

The aim of the assignments is not the reproduction of existing material, but to ascertain whether
you have the ability to integrate existing texts, add your own interpretation and/or critique of the
texts and offer a creative solution to existing problems.

Be warned: students who submit copied text will obtain a mark of zero for the assignment
and disciplinary steps may be taken by the Faculty and/or University. It is also
unacceptable to do somebody else’s work, to lend your work to them or to make your work
available to them to copy – be careful and do not make your work available to anyone.
Disclaimer: All events as well as the names of all persons associated with this company as
mentioned in the assessment are purely fictitious in nature and any resemblance to a real person,
living or dead or an actual business entity is purely coincidental

Question 1 30 marks

Archie Marvel and his close friend Hulk Mattel have started their own private detective
agency, Avengers Inc. on the 1st October 2021. Previously, they were employed by
separate employers.

Archie was retrenched from his employer due to the economic recession; his last working
day was 31 August 2021. His basic salary was N$18 000 per month. PAYE deducted for
that period amounts to N$4 500 per month. He also received a lump sum from his
employer of N$310 000 as a token of appreciation for 5 years of loyal service by Archie.

Hulk resigned from his employment with a last working day on the 30 September 2021
when Archie came with the idea of creating this partnership. Hulk received a total salary
of N$120 000 from his previous employer; PAYE deducted was N$13 650. He received a
lump sum of N$35 000 from the employer for services for the last 3 years of loyal service.
Archie and Hulk agreed that they will share profit and losses in the ration 60:40.

The following information of Avengers Inc. relates to the 2022 year of assessment:

Amount N$
Income
Investigating fees 350 000

Expenditure
Surveillance costs (note 1) 45 000
Advertising 5 000
Interest (note 2) 8 000
Insurance (note 3) 16 000
Legal expenses (note 4) 5 000
Lease rentals (note 5) 30 000
Bank charges 1 200
Cleaning charges 2 200
Other deductible expenses 5 500
Salary: Archie Marvel 75 000
Salary: Hulk Mattel 65 000
Notes:

1. Surveillance costs consists of the following:

New Equipment (Bought in 40 000

Namibia)
Maintenance of surveillance 5 000
equipment
45 000
2.
• Interest on Archie’s personal credit card N$ 500
• Interest on Avengers Inc. business account overdraft N$7 500

3. Included in the insurance expense is Hulk’s personal short term insurance of N$3
500 as he can get a better rate through the partnership.

4. Legal expenses of N$5 000 were for the compilation of the partnership
agreement.

5. The property was obtained through a 5 year leasehold contract that was signed
on the 1 October 2021. Included in the N$30 000 expense:
• Monthly rental payment of N$5 000
• Refundable deposit of N$5 000

Required:

a) You are required to calculate the 2022 taxable income of Archie and Hulk. Archie will
take the option where he will pay the least amount of tax in the 2022 year of
assessment. Start your answer with the net profit. You must indicate the reason for
each adjustment that is made to the net profit to earn a mark for the adjustment. (24
Marks)

b) Calculate the tax payable to the Receiver of Revenue by Archie and Hulk for the 2022
year of assessment. (6 Marks)
Question 2 30 Marks

Mrs Angie Simon owns properties in and around Windhoek that are leased out under her
solely owned enterprise.

Her property portfolio includes both the letting of residential and commercial property, of
which the accountant provided you the portfolio setting out supplies as follows:

Commercial rentals N$5 420 305

Residential rentals N$2 359 000

Total Lease Income N$7 779 305

Assume that the correct apportionment ratio as determined by NAMRA is in line with the
lease income split of Mrs Angie Simon’s enterprise as indicated above.

Angie’s additional income and expenditures for the 2-month tax period ending 28
February 2022 are as follows (all amounts are inclusive of VAT):

Other Income Note: Amount

N$

Interest charged on overdue rentals from commercial property 65 044

Interest charged on overdue rentals from residential tenants 28 308

Insurance payout 1 273 500

Expenditure

Interest on mortgage bond 770 151

Levies paid (all relate to residential property) 471 800

Security 235 900

Telephone & Internet Services 2 5 570

Cleaning Services 3 450

Repairs 3 208 400

Maintenance 42 600

Bank Charges 622 344

Audit fees 155 586

Wages 580 970

Insurance premiums (for all property) 45 100

Legal expenditure for new lease contracts;

Commercial tenants 12 500

Residential tenants 24 670

Bad debts 4 12 700

Entertainment expenditure 5 2 430

Notes:

1. The insurance settlement was for fire damages to two separate buildings.
A commercial property suffered fire damages, resulting in a pay-out of N$ 235 000.
A second fire caused damages to a residential property, of which compensation of
N$ 38 500 was paid out by the Insurance Company.

2. Angie pays the general managers’ telephone account. The general

manager has to make business calls on a regular basis. The general manager
indicated that 70% of his calls were for business purposes. The telephone bill for
the 2-month period was N$ 2 125. Wi-Fi and Internet services amounted to N$
980, Angie incurred N$ 1 450 worth of calls, of which 80% were for business
purposes.

3. It cost N$ 180 000 to repair the burnt down commercial property and N$ 28
400 to repair the residential property.

4. Bad debts are made up of N$ 7 400 written off for residential tenants and
the rest to commercial tenants.

5. Angie Simon takes the Auditors and the lawyer to lunch from time to time.
REQUIRED: Calculate the VAT payable/refundable by or to Mrs Angie Simon’s
enterprise for the 2-month period ending 28 February 2022. (30 marks)

Question 3 40 Marks

Part A 20 Marks

a) Differentiate in details between an employer and an employee as defined in

Schedule 2 of the Namibian Income Tax Act (6 Marks)
b) The mining sector is a major economy driver as it contributes 25% to Gross
Domestic Product (GDP) of Namibia. State the effective tax rate of diamond mining
companies and diamond mining services companies. (2 marks)
c) All income of a deceased estate which the executor receives which would have
been income in the hands of the deceased are always taxable in the hands of the
deceased estate. Indicate whether this statement is true or false and give a brief
reason. (2 marks)
d) Discuss the requirements for an individual to register as a provisional tax payer in
Namibia. In your discussion, include the due dates for the different provisional tax
payments to be made to NAMRA by individuals as well as the consequences for
underestimation of such payments. (10 Marks)
Part B 20 Marks

Mrs Viviaan Martin created a living trust. Mrs Martin also donated certain assets to the
trust that generate its income. Two trustees have been appointed who have the discretion
to distribute the income of the trust as they see fit. An extract of the trust deed is shown
below:

TRANSFER OF PROPERTY

The Settlor, Viviaan Martin, hereby conveys transfers and assigns the Property to the
Trustee to be held on trust on such terms as are set out in this Trust Deed. The Trustee
hereby acknowledges receipt of the Property and consents to the terms of the Trust
Deed and admits and acknowledges that they are holding the Property in trust on the
terms as set out in this Trust Deed. The Trustee is also expressly authorized to receive
further property in the future from the Settlor or from any other person and to add this
new property to the Trust Fund.

Subject to the following conditions,

Distributions to Beneficiary, Talent Martin, shall be subject to him receiving his

law degree at the University of Namibia.

DISTRIBUTIONS TO MINORS

The Trustees may make distributions to Beneficiaries who are minors in the following
ways: either a) payment to those minors directly, or, b) payment to their parents or
guardians. The Trustees shall have absolute discretion over which manner to choose
and either manner shall be a valid discharge of their powers

Schedule A

The Trust property (subject of the Trust) shall be the following:

• Leased Property, as set out in the annexure.

• Share investments, 20,000 shares in Bank Windhoek

Schedule B

The Trust Beneficiaries (objects of the Trust) shall be the following:

Beneficiary Percentage

1. Mr Lee Martin (Mrs Martin’s husband), 50%

 2. Talent Martin (22 years of age) and 20%

3. Esther Martin (8 years of age). 20%

You have been given the income and expenses of the trust during the year of assessment
ended 28 February 2022:

N$

Rental income of leased property 115 000

Dividends 12 400

Bank Charges (3 200)

Interest on mortgage over properties (13 800)

Maintenance expenditure on leased out property (7 890)

Other expenditure in production of income (1 610)

100 900

Assume that Talent has not yet finished his degree for the year of assessment ending 28
February 2022.

The trust only distributed 40% of the dividend income and 80% of the rental income to the
beneficiaries during the year.

YOU ARE REQUIRED TO:

Calculate the taxable income of Mr Lee Martin, Talent Martin, Esther Martin and the Trust.
(20 marks)
Draw up your answer as follows:

Description Calculation Mr Lee Talent Esther Trust

Gross Income

Exemptions

Deductions

Taxable Income

The End!