n, he receives a meal allowance of $6,000 per week. e) The company also pays his son's 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 were $650,000. The capital allowance for this property was $180,000. g) He receives a dividend of income of 1

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 assists 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's 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 were $650,000. The capital allowance for this property was $180,000.
g) He receives a dividend of income of 127,500 (net) from an 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. Calculate Mr. Joseph’s tax payable/refundable.

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