Taxation CTRL 606 Spring 2018

Quiz 2-C

Name: ID: Group:

T/F Questions.

1) With respect to agricultural land tax, Taxes on revenues of agricultural land cultivated
with Horticultural crops is paid by the owner of the land only F

2) The crops of Oridnary land are not subjected to taxes. T

3) With respect to ordinary lands, Taxable revenue is determined after deducting 20% for all
costs and expenses. F

4) Regarding Productive Fruits ,revenues of areas exceeding three feddans are subject to tax T

B) Problem Solving
You were assigned as a tax consultant to determine the tax base for Yaseen and Ali .
The followings are the information provided to you regarding their agricultural lands.

1- Yaseen owns 20 Feddans half of them are planted with Nurseries (in which 5 are for
personal use) and the other half is planted with Cotton. The annual rental value is L.E.
100 per feddan.

2- Yaseen rented 15 feddans from Ali and planted them with ornamental plants . The
total annual rental value for the per Feddan is 200 LE

3- Yaseen rented 10 feddans from Ali and planted them with Wheat. The agricultural
land tax is L.E. 14 per feddan.

Required:

Determine “ Tax Base” for Yaseen and Ali in the year end 2017.
 Taxation CTRL 606 Spring 2018

Answer

Yaseen

1. 1st Feddans planted with Nurseries :

Tax Base= (10-5) * 100 * 80% * 2= 800LE

2nd : Feddan Planted with Cotton:

Tax Base = 10 * 100 * 70% = 700LE

2. Feddans Planted with ornamental plants :

Tax Base = (15-1) * 200 * 80% = 2240LE

3. Feddans Planted with Wheat =

Tax Base = 0

Total Tax base for Agricultural lands for Yaseen =

800+700+2240= 3740LE

Ali

2. Feddans Planted with ornamental =

Tax Base = (15-1) * 200 * 80% = 2240 LE

3.Feddans Planted with Wheat =

AAR = 14 / 14% = 100 LE
Tax Base = 10 * 100 * 70 % = 700 LE

Total Tax Base for Agricultural Lands for Ali = 2240+700 = 2940LE