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 assist with the preparation of his 2021 income tax computation. He provided you with the following information: a) Gross salary $7,000,000 per year. b) As a retired teacher, he receives a monthly pension of $75,000 from the Accountant General. PAYE of $225,000 was deducted. c) He sold shares held in NCB for $200,000. Making a gain of $35,000. d) As part of his compensation, he receives a meal allowance of $6,000 per week. e) The company also pays his son school fees for $70,000 per term. (Assume three terms) f) 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. g) He receives dividend of income of 127,500 (net) form investment held at JMMB. $22,500 withheld at source. h) During the year he paid quarterly estimated tax totaling $80,000 Required 1. Using the current tax rates in Jamaica. 1. List the filing and payment requirements including due dates that Mr. Allen should observe. 2. Explain your treatment of the proceeds and gain from the sale of shares.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 assist with the preparation of his 2021 income tax computation. He provided you with the following information: a) Gross salary $7,000,000 per year. b) As a retired teacher, he receives a monthly pension of $75,000 from the Accountant General. PAYE of $225,000 was deducted. c) He sold shares held in NCB for $200,000. Making a gain of $35,000. d) As part of his compensation, he receives a meal allowance of $6,000 per week. e) The company also pays his son school fees for $70,000 per term. (Assume three terms) f) 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. g) He receives dividend of income of 127,500 (net) form investment held at JMMB. $22,500 withheld at source. h) During the year he paid quarterly estimated tax totaling $80,000 Required 1. Using the current tax rates in Jamaica. 1. List the filing and payment requirements including due dates that Mr. Allen should observe. 2. Explain your treatment of the proceeds and gain from the sale of shares.
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