[WAKAWEZI]

MALCOM SA, a company operating in the field of general trade, presents the following
information to you and asks you to determine the amount of corporation income tax.
The transactions carried out in the year 2021 are as follows:
• Purchase of goods: 8 000 000
• Sales of goods: 6 000 000
• Stock of goods at 01/01/2021: 2,000,000
• Stock of goods at 31/12/2021: 1 500 000
• Operating subsidy received: 3 000 000
• Cost of services: 3 400 000
• Transportation costs: 700,000
• Land acquisition: 15 000 000
• Reversal of provision: 9 000 000
• Provisions expenses for retirement: 2 000 000
• Financial income: 5,000,000
• Depreciation of assets : 2,500,000, including 800,000 for passenger vehicles
• Acquisition of computer equipment: 7,000,000
• Deposit of cash into the bank : 4000 000
• Financial expenses : 2000 000
• Taxes and duties : 800 000
• Staff costs: 1 800 000
• Acquisition of shares : 6000 000
Additional information:
The corporate income tax rate is 30%. Provisions for retirement benefits are not deductible.
Depreciation of passengers’ cars is 50% deductible. One third of the reversals of provisions
concerns provisions that had previously been reinstated.
The situation of the losses carried forward is as follows:
2017 loss: 3,400,000
2018 loss: 1,500,000
According to the General Tax Code, loss can be carried forward for three years.
Proposed methodology:
1) Determine the accounting profit or loss for 2021 (5 marks)
2) Determine the tax base for 2021 (10 marks)
3) Calculate the amount of tax for 2021 (5marks)

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