College of Administrative and Financial Sciences Assignment 1 Deadline: Saturday 10/10/2020 @ 23:59 Course Name: Tax and Zakat Accounting Student’s Name: Course Code: ACCT 422 Student’s ID Number: Semester 1 CRN: Academic Year: 1441/1442 H For Instructor’s Use only Instructor’s Name: Students’ Grade: Marks Obtained/Out of Level of Marks: High/Middle/Low Instructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. 1 Assignment Question(s): (5.0 Marks) Q1. Depreciation rates used in financial accounting shall not be used in tax accounting whereas tax law gives tax credits to tax payers by using accelerated depreciation rates for some groups of assets (1.5 Marks). . Required: State depreciation rates under the Article 17 of the Saudi Income. Answer: Q2. The paragraph (e) in the article 17 of the Saudi income tax explained how depreciation expense is calculated for any group of assets. (2.0 Marks). Required: a. Discuss In Detail This Article b. Give a numerical example explaining the applicability of the paragraph (e) in the article 17 of the Saudi income tax. Answer: (Answer in your own words DO NOT copy from the Law). 2 Q3. Resident Bank fully owned by Sweden investors has the following selected items drawn from its accounting books (Amounts in Saudi Riyal) (1.5 Marks). Account Amount Deductible Nondeductible Allowance For Loan Losses 840,000 Employees’ share in retirement fund. 190,000 Bad debt (written off) 18,340 Donations to the Help the Poor Organization (nonlicensed in Saudi) 11,350 Depreciation for New computers purchased to be used 35,100 on research and development Old employees’ reunion party expenses 3,000 Bank’ share in retirement fund within the limit in the 145,000 law. Loss on denoted assets 8,000 Income tax paid to tax and zakat authority 150,000 Required: check mark items in the table below either deductible or non-deductible under income tax law in the kingdom. Answer: 3
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