Question

BIN enterprise engaged in the manufacturing of steel leased out its services Truck to visitors for three monthsat birr 18,000per month. Such incomes are referred as casual rental income by the tax expert of the authority. Required:

A. how much is the tax to be paid to tax authority?
B. who is liable to pay the tax to the tax Authority?​

Answer 1

According to the tax expert of the authority, the casual rental income earned by leasing out the steel manufacturing company's Truck to visitors for three months at birr 18,000 per month is subject to tax. The amount of tax to be paid to the tax authority is dependent on the tax rate applicable to casual rental income. As for who is liable to pay the tax to the tax authority, it is the responsibility of the steel manufacturing company that leased out the Truck to visitors to pay the tax.