Case:

1. Mr. Kasem work as manager for a company with monthly salary 7500 NIS and have bonus addition career 1500 and bonus addition high cost of living 400 and bonus addition for travel 550 Required: calculate the income tax if you know that he is married and have 4 sons. three of them study via Islamic university and he lives in a rent house 800 NIS monthly. the exchange rate for dollar 4.2 NIS

2. Mr. Majed works in the bank of Palestine with monthly base salary 360$ and bonus addition high cost of living amounted 75% of base salary. and bonus addition for cash risk 100$ monthly, he is cashier. If you know that his contribution of saving box with 10% of base salary. And social security contribution (pension) 40$. Mr. Majed gets 15 salaries yearly (banking system) Required: calculate the income tax in case 1- single. 2- (married + 4) and additional income from part time work 200$ paid monthly.

3. Case: Dr. Yahia works in his own private clinic and you have the following information on 31-12-2007 The total gross income = 170000 NIS And paid the following expenses: • Electricity bills 1800 NIS annually. • Water bills 600 NIS annually. • Phone bills 2160 NIS annually 70% accepted • In January 2007 bought Computerized Tomography (CT) equipment amounted 10000$ and the depreciation rate is 7% annually. • Dr Yahia gets salary for managing 3500 NIS • Mrs. Om Naser work as a nurse with monthly salary 1700 NIS • Dr. Yahia married with Dr. Sozan and she works at UNRWA • They have three sons, Ahmed student in the 6th class and Amjad student via Islamic university with full scholarship, and Rana married and lives with here husband. • Dr. Yahia lives with his father and he has pension from Palestinian army. • They live in a rent house 170$ monthly paid by Dr. Yahia If you know that Dr. Yahia has no income except 200$ monthly salary from (USAID) paid for his medical consulting. Required: calculate the following:1- total gross income.2- taxable income. 3- The deductions and exemptions.4- the accrued value of tax annually and monthly. The exchange rate for dollar 4 NIS.

4. How is the income tax collected by the government? Consider the cases of employee and self-employed tax payer. • Who is responsible for collecting VAT and who actually pays the tax? Is your answer the same for customs? • What is the purpose of deduction? • What is the purpose of exemption? • Why tax of gifts is not applied in the Palestine tax law? • Explain why the tax officer don’t like the taxpayer go to the court? • Explain the resources of income tax law 17-2004. history view. • How is gross income different from taxable income? • What is the basic test that an expense permitted to be deductible? • What is the tax credit?

5. What is a tax credit different from a tax deduction? • What is included in the 30-day letter, and what option does the tax payers have after receiving one? • How is calculation of the taxable income for individual and partners different from the calculations of corporation's taxable income? • What is the purpose of standard deductions for individuals? • Why is the pay-as-you-go concept important to the successful operation of the income tax system? • What are the two accounting methods used by the taxpayer? which is better ? • What is the effect of capital recovery concept on income recognition for trading business and fixed assets ? • The legislative grace concept is both an income concept and deduction concept. Explain.