Mr A is a florist. He owns a delivery van which is primarily used for collecting supplies and making deliveries to customers. However, outside of regular business hours, Mr A uses the van for personal errands, such as shopping and driving his children to school. Throughout the Tax Period, Mr A recorded the mileage of his business and personal journeys. The mileage records revealed that journeys made for a business purpose accounted for 60% of the use of the van, while the remaining 40% of use related to Mr A’s personal use of the van. Mr A’s accounting income for the tax period is AED 4,500,000. Vehicle expenses were calculated to be AED 120,000. What is Mr A's tax liability?
Mr A is a florist. He owns a delivery van which is primarily used for collecting supplies and making deliveries to customers. However, outside of regular business hours, Mr A uses the van for personal errands, such as shopping and driving his children to school. Throughout the Tax Period, Mr A recorded the mileage of his business and personal journeys. The mileage records revealed that journeys made for a business purpose accounted for 60% of the use of the van, while the remaining 40% of use related to Mr A’s personal use of the van. Mr A’s accounting income for the tax period is AED 4,500,000. Vehicle expenses were calculated to be AED 120,000. What is Mr A's tax liability?
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