QUESTION $1$

a$)$ Amanda and James are married. James is blind and $56$ years old. He has a taxable income of $$8000.$ Amanda who is $50$ years old earns $$1400$ per month.

Required calculate the tax for each of them in $2011.[15]$

$1($a$)$ James

Taxable income $8000$

Tax on $3000$ Nil

$5000$@$20\%1000$

$1000$

Less tax credit

Elderly person $900$

Blind person $($bal $800)1001000$

Tax liability Nil

Amanda

Taxable income $16800$

Tax on $120001800$

$4800$@$25\%1200$

$3000$

Less tax credit

Blind person transferred from James $(900-100)800$

$2200$

Add $3\%$ aids levy $66$

Tax payable $2266$

b$)$ Identify the five statutes that form the main source of tax legislation in Zimbabwe. $[10]$

$$ Income tax Act $($chapter $23$:$06)$

$$ The capital gains tax $($chapter $23$:$01)$

$$ The finance act $($chapter $23$:$04)$

$$ Value added tax Act $($chapter $23$:$12)$

$$ The estate

$$ Duty act $($chapter $23\mathrm{.}03)$