Page 70 - Bisiness Studies_Form_3

Business Studies for Secondary Schools

(a) Her business may face tax penalties and could have its business licence
revoked.
(b) She will receive a free extension for renewing her business licence.

(c) The TRA will send a reminder, but no penalties will be imposed.
(d) She will receive an automatic refund for overpaid taxes.
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(ix) Nengelia has a registered business but has not renewed his business licence for
the past two years. Local authorities discover this during an inspection. What
action could be taken against Nengelia?

(a) His business will receive a written warning and be allowed to continue
operating without any penalties.

(b) His business will be fined, and he may be required to pay backdated licence
fees before resuming operations.
(c) The authorities will provide a 30-day grace period before issuing any

penalties.
(d) His business will automatically receive a one-year extension for renewal.
(x) Miriam has been operating her small business without a business registration
certificate from BPRA, and she has been selling goods in the market for several
months. What could happen if she is caught by the authorities? She:

(a) May be ordered to pay a fine and cease operations until she registers her
business.
(b) Will be offered free registration, and no penalties will apply.

(c) Will automatically get a business licence from the government.
(d) Is only required to submit a business plan and not face any penalties.

(xi) Abdi operates a small electronics repair shop in Kiembesamaki. His business is
registered, but he has not paid taxes for the past two years. What is the potential
consequence Abdi could face for his non-compliance?
(a) He will be penalised and ordered to pay back taxes, along with interest, for

the overdue period.
(b) Abdi will be given a tax exemption for the past two years of operation.
(c) The authorities will allow him to continue operating without paying taxes.

(d) He automatically receives a grace period of six months to pay the overdue
taxes without penalties.

Student’s Book Form Three 62