Discuss the tax implications of the following independent transactions:
(i) 16% VAT paid on a new factory building constructed on behalf of
Wema Ltd.
VAT of Sh.60,000 due on the invoice to Disaster Limited which has remained
unsettled by them for 6 months. Transfer of a building worth Sh.5,000,000 from a father to a daughter for a
nominal sum of Sh.1,000,000 in an urban area.
Custom bond executed by Watu Insurance Company on behalf of Barm
Limited for sugar worth Sh.100 million which was not re-exported as promised.