Author Archives: Mohamed Ebrahim, MBA, CeMap, MLIBF, MCSI

TAX UPDATE 02/2020 ACE Group of Companies

RESIDENTIAL RENTAL INCOME The following key pointers are important for you to ensure you comply with the MRI regulations from the onset and avoid the penalties and interest that come with non-compliance. 1. MRI is a tax payable by resident persons on residential rental income received. It is payable by property owners whose residential rentContinue reading “TAX UPDATE 02/2020 ACE Group of Companies”

TAX ALERT 01/2020 ACE Group of Companies

TURNOVER TAX (TOT) Turnover tax was re-introduced in the Finance Act 2019 effective 1st January 2020 with similar regulations previously applied. Notable changes are; Monthly submission of the TOT returns by 20th of the following month. Presumptive tax is still applicable in addition to the TOT Presumptive tax can be claimed as a credit againstContinue reading “TAX ALERT 01/2020 ACE Group of Companies”

ISTISNA – BUY, BUILD, MANUFACTURE FINANCING

Istisna’ is a sale transaction structure of contract where a commodity is transacted before it comes into existence. It is an order to a manufacturer/contractor to manufacture/construct a specific commodity/asset for the purchaser.

Business Valuation 103 – RELATIVE VALUATION MODELS

When businesses have grown to a size that the ‘rule of thumb’ approach is no longer appropriate, then some form of market-based pricing methodology must be used. The principle here is to find some standard variable within companies which appear to be consistently priced by the capital market.  As expected, there are a large numberContinue reading “Business Valuation 103 – RELATIVE VALUATION MODELS”

Business Valuation 105 – Contingent Methods of Valuation

The Black and Scholes option pricing theory (OPT) offers a clue as to how the equity in a firm may be valued. Suppose we recognise the fact, that an equity investor in a geared firm with limited liability has a call option on the underlying assets of the firm. In that case, we have, potentially, a method for valuing the business.   Conceptually thisContinue reading “Business Valuation 105 – Contingent Methods of Valuation”

MURABAHA – Cost plus Financing

Murabaha is currently the most widely used Islamic sharia compliant mode of finance, used by Islamic sharia-compliant financial institutions: it is as simple as buy an asset for the customer; sell the asset at a premium (profit), allow payment of the sale price in instalments to the customer. That is a Murabaha. A Murabaha isContinue reading “MURABAHA – Cost plus Financing”

What is MUSHARAKA?

Definition and classification of Musharaka The literary meaning of Musharaka is “sharing”. The root of the term “Musharaka” in Arabic comes from the word “Shirka”, which means ‘being a partner’. Under Islamic jurisprudence, Musharaka means; “a joint enterprise formed for conducting some business in which all partners share the profit according to a specific ratioContinue reading “What is MUSHARAKA?”

Be winners in the new economy, the Digital Economy by mastering Digital and Cryptocurrencies.

Bitcoin was the first Cryptocurrency, and today it is the most valuable as listed in the crypto or digital currency exchanges like Coinbase https://www.coinbase.com/. This trend to create global currencies, which are tradeable globally is driven by advances in secure ICT technology called Blockchain. To learn more about these development ME School of Finance, AccountingContinue reading “Be winners in the new economy, the Digital Economy by mastering Digital and Cryptocurrencies.”