problem 1: Luther is about to commence business as a plumber, and seeks your help regarding problems with Value Added Tax.

Luther has obtained a contract with a local builder to install all the plumbing fittings, sanitary ware and so on for a new housing development.  Luther’s only other income will be from small repair jobs that he will carry out in the evenings.

Luther estimates that his receipts will total Rs2.5M in the first year of business with his only main expense being the purchase of an estate car which he estimates will be used 60% for the business and 40% for private motoring.

Required:

a) State what advice you would give to Luther regarding whether or not he has a liability to be registered for VAT and describe fully the rules which govern registration.

b) State with reasons whether Luther has to charge VAT on the work he carries out.

c) Describe how Luther must deal with the VAT on:

i) The materials he purchases for the building contract and the repair work carried out;                
ii) The purchase of motor car;
iii) The petrol purchased for the motor car.

problem 2: Name the institution/s responsible for the licensing, regulation and supervision of the banking sector and the non banking sector.

problem 3: List five functions of the Bank of Mauritius?

problem 4: Banks are under a duty to guarantee strict confidentiality of information however they are compelled to disclose information under certain circumstances.

List such circumstances.

problem 5: Consider the reasons why the stock market in Mauritius is considered attractive.