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:  Gross salary $7,000,000 per year. As a retired teacher, he receives a monthly pension of $75,000 from the Accountant General. PAYE of $225,000 was deducted. He sold shares held in NCB for $200,000. Making a gain of $35,000. As part of his compensation, he receives a meal allowance of $6,000 per week. The company also pays his son school fees for $70,000 per term. (Assume three terms) 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.        7. He receives dividend of income of 127,500 (net) from investment held at JMMB.           $22,500 withheld at source.        8.During the year he paid quarterly estimated tax totaling $80,000 Required Using the current tax rates in Jamaica. Calculate Mr. Joseph’s tax payable/refundable

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter19: Deferred Compensation
Section: Chapter Questions
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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: 

  1. Gross salary $7,000,000 per year.
  2. As a retired teacher, he receives a monthly pension of $75,000 from the Accountant General. PAYE of $225,000 was deducted.
  3. He sold shares held in NCB for $200,000. Making a gain of $35,000.
  4. As part of his compensation, he receives a meal allowance of $6,000 per week.
  5. The company also pays his son school fees for $70,000 per term. (Assume three terms)
  6. 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. 

      7. He receives dividend of income of 127,500 (net) from investment held at JMMB.

          $22,500 withheld at source. 

      8.During the year he paid quarterly estimated tax totaling $80,000

Required

Using the current tax rates in Jamaica. Calculate Mr. Joseph’s tax payable/refundable

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