Mr. Allen is a 65-year-old Jamaican tax resident. He is the director of a hotel, Allen’s Rest
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
Question
Explain the treatment of the proceeds and gain from the sale of shares.
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