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Introduction to Taxation

Unit: Public Finance and Taxation

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April 2025

1 Questions
Question 3b
Curbing tax evasion requires a multifaceted approach such as combining enforcement, incentives and public awareness. 

In light of the above statement, explain FOUR strategies the Revenue Authority may use to strengthen tax laws and enforcement in order to curb tax evasions in your country. ​​


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December 2024

1 Questions
Question 4b
​​Summarise FOUR reasons why the government in your country levies taxes


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August 2024

2 Questions
Question 5a
​​Argue FOUR cases against indirect taxes imposed in your country


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Question 5b
​​Assume that you have been requested to make a presentation in a tax seminar on measures that should be put in place to curb the problem of tax evasion in your country. 

Required: 
Identify FOUR measures of curbing tax evasion that you would include in your presentation.


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April 2024

1 Questions
Question 3b
​​Explain THREE ways through which individuals could engage in tax avoidance.


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December 2023

2 Questions
Question 5a
​​Identify THREE distinctions between “direct taxes” and “indirect taxes”.


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Question 5c
​​The Revenue Authority in your country established a Medium Taxpayers Office (MTO). 

In relation to the above statement, propose THREE objectives of the Medium Taxpayers Office (MTO).


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August 2023

2 Questions
Question 4b
​​Outline FOUR determinants of taxable capacity in your country


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Question 3b
​ ​​Summarise FOUR roles that taxation policies of a country play in achieving budgetary objectives.


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April 2023

1 Questions
Question 4a
​​Distinguish between a “single tax system” and a “multiple tax system”.


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December 2022

2 Questions
Question 4c
​​Identify THREE objectives of fiscal policies adopted by most developing countries.


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Question 5a
​​Identify FOUR factors that might influence tax shifting.


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August 2022

1 Questions
Question 3a
​​Explain the following terms as used in taxation: (i) Absolute taxable capacity. (2 marks) (ii) Relative taxable capacity.


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April 2022

2 Questions
Question 5b
​​Propose five reasons for the failure to achieve tax revenue targets by the Revenue Authority in your country.


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Question 5a
​​Identify five factors that determines the taxable capacity in your country.


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Question 4a
​ ​​Ernest a citizen of USA has been assigned to work for his company’s branch located in Kenya for the next ten years. He has approached you to assist him in understanding the Kenyan tax system especially on the basis of taxing an income in Kenya. 

Required: 
Explain to Ernest the Cardinal rules of taxing an income in Kenya.


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Question 2c
​​Discuss three roles of taxation in achieving budgetary objectives


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December 2021

1 Questions
Question 5b
​​Propose four ways through which taxpayers could engage in tax avoidance.


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August 2021

2 Questions
Question 3a
​ ​​Explain three activities that constitute tax evasion in your country.


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Question 5a
​​ Discuss four ways in which taxation could be applied to achieve fiscal policy objectives of a developing economy.


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May 2021

2 Questions
Question 5b
​​Summarise four objectivesof fiscal policies in your country.


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Question 5a
​​Explain four reasons for the declining trend in tax revenue in most developing countries.


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November 2019

1 Questions
Question 5b
​​Summarise four factors which could influence the extent of tax shifting.


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November 2018

1 Questions
Question 3a
​​Fiscal policy influences both the pattern of economic activities and also the level and growth of aggregate demand, output and employment.

Required:
Summarise four ways through which taxation could be used as a tool of fiscal policy in your country.


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May 2017

1 Questions
Question 4b
​​ Argue four cases against indirect taxes imposed in your country.


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May 2016

1 Questions
Question 3b
​ ​​Identify any four activities that constitute tax evasion in your country.


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November 2015

2 Questions
Question 1c
​​One of the challenges facing developing countries is how to finance their budget deficits. This problem is further compounded by the fact that some alternatives of financing the deficit might negatively impact on the country's economy. 

Required: 
Citing one disadvantage in each case, explain four measures that a government could undertake to finance a budget deficit.


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Question 1a
​​Outline four benefits of an effective tax policy to an economy.


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Question 5b
​​Regressive taxes present an unmatched opportunity for any developing country to increase its revenue collection from taxes. 

Explain the validity or otherwise of this assertion.


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May 2015

1 Questions
Question 1a
​​ Explain the significance of the following canons in designing the tax systems of an economy:

i) Equity

ii) Economy

iii) Convenience

iv) Certainty


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