Kwame Lee has been made redundant from a managerial position in an oil company in Trinidad where he had worked for the past fifteen years. His plan is to go into private practice as an environmental engineer consultant working in Trinidad and the Eastern Caribbean countries. Initially he was unsure whether he should operate as a sole proprietor, incorporate a company in which he will be the sole director; or operate in partnership with a former school friend. However, he was advised that a partnership would be the best structure. Kwame intends to employ staff and invest excess cash from the business in purchasing stocks/shares. The stocks/shares will be purchased by the partnership but will be held in trust for Kwame and his children. Required: Advise Kwame of the following: 1) The direct taxes and indirect taxes that he will need to consider, the tax filing obligations which he is required to fulfil for compliance, the powers of the Revenue Authority and his responsibility as a taxpayer. 2) Kwame Lee has heard the term ‘Appropriation Account’, but he does not understand what it means. He asks that you explain the need for an appropriation account and what is included in this account. He would like you to give practical examples.
Kwame Lee has been made redundant from a managerial position in an oil company in Trinidad where he had worked for the past fifteen years. His plan is to go into private practice as an environmental engineer consultant working in Trinidad and the Eastern Caribbean countries. Initially he was unsure whether he should operate as a sole proprietor, incorporate a company in which he will be the sole director; or operate in
Required:
Advise Kwame of the following:
1) The direct taxes and indirect taxes that he will need to consider, the tax filing obligations which he is required to fulfil for compliance, the powers of the Revenue Authority and his responsibility as a taxpayer.
2) Kwame Lee has heard the term ‘Appropriation Account’, but he does not understand what it means. He asks that you explain the need for an appropriation account and what is included in this account. He would like you to give practical examples.
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