John Pete is aware that
Chapter1: Financial Statements And Business Decisions
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Problem 1Q
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![John Peter is aware that there is no Capital Gains tax in Jamaica. He decided to buy a large
piece of land. The land was hilly, so he blasted it to make it flatter, installed a soak away so
the water does not settle on the land and made several roadways for ease of access. Six
months after he purchased the land, he subdivided the area and sold it in lots to 30 separate
persons, thereby making a large gain.
Required
Advise Mr. Peter how these gains would be treated for tax purposes in Jamaica. Appropriate
case laws should be included in your answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdbb7fdd8-4a97-459d-9aa0-49903d117a71%2F23bed691-833a-4ec1-ab0b-11e171ba214d%2F9wlw2zh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:John Peter is aware that there is no Capital Gains tax in Jamaica. He decided to buy a large
piece of land. The land was hilly, so he blasted it to make it flatter, installed a soak away so
the water does not settle on the land and made several roadways for ease of access. Six
months after he purchased the land, he subdivided the area and sold it in lots to 30 separate
persons, thereby making a large gain.
Required
Advise Mr. Peter how these gains would be treated for tax purposes in Jamaica. Appropriate
case laws should be included in your answer
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