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.