Mr. Allen is a 65-year-old Jamaican tax resident. He is the director of a hotel, Allen’s Rest Well Resort. He has requested that your firm assists with the preparation of his 2021 income tax computation. He provided you with the following information: Gross salary $7,000,000 per year. As a retired teacher, he receives a monthly pension of $75,000 from the Accountant General. PAYE of $225,000 was deducted. He sold shares held in NCB for $200,000. Making a gain of $35,000. As part of his compensation, he receives a meal allowance of $6,000 per week. The company also pays his son school fees for $70,000 per term. (Assume three terms) Income from the rental of his personal investment property was $1,500,000. Expenses was $650,000. Capital allowance for this property was $180,000. 7. He receives dividend of income of 127,500 (net) from investment held at JMMB. $22,500 withheld at source. 8.During the year he paid quarterly estimated tax totaling $80,000 Required Using the current tax rates in Jamaica. Calculate Mr. Joseph’s tax payable/refundable
Mr. Allen is a 65-year-old Jamaican tax resident. He is the director of a hotel, Allen’s Rest Well Resort. He has requested that your firm assists with the preparation of his 2021 income tax computation. He provided you with the following information: Gross salary $7,000,000 per year. As a retired teacher, he receives a monthly pension of $75,000 from the Accountant General. PAYE of $225,000 was deducted. He sold shares held in NCB for $200,000. Making a gain of $35,000. As part of his compensation, he receives a meal allowance of $6,000 per week. The company also pays his son school fees for $70,000 per term. (Assume three terms) Income from the rental of his personal investment property was $1,500,000. Expenses was $650,000. Capital allowance for this property was $180,000. 7. He receives dividend of income of 127,500 (net) from investment held at JMMB. $22,500 withheld at source. 8.During the year he paid quarterly estimated tax totaling $80,000 Required Using the current tax rates in Jamaica. Calculate Mr. Joseph’s tax payable/refundable
Chapter4: Income Exclusions
Section: Chapter Questions
Problem 70IIP: In each of the following problems, identify the tax issue(s) posed by the facts presented. Determine...
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Mr. Allen is a 65-year-old Jamaican tax resident. He is the director of a hotel, Allen’s Rest Well Resort. He has requested that your firm assists with the preparation of his 2021 income tax computation. He provided you with the following information:
- Gross salary $7,000,000 per year.
- As a retired teacher, he receives a monthly pension of $75,000 from the Accountant General. PAYE of $225,000 was deducted.
- He sold shares held in NCB for $200,000. Making a gain of $35,000.
- As part of his compensation, he receives a meal allowance of $6,000 per week.
- The company also pays his son school fees for $70,000 per term. (Assume three terms)
- Income from the rental of his personal investment property was $1,500,000.
Expenses was $650,000. Capital allowance for this property was $180,000.
7. He receives dividend of income of 127,500 (net) from investment held at JMMB.
$22,500 withheld at source.
8.During the year he paid quarterly estimated tax totaling $80,000
Required
Using the current tax rates in Jamaica. Calculate Mr. Joseph’s tax payable/refundable
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