Shawn John and his wife operate a successful snack packaging business, Healthy Snacks, in St Mary, Jamaica. The bulk buying of the raw materials (nuts and dried fruits), the packaging and delivery to corporate area shops are done by the members of the family. The accounts for Mr. John’s business at 31st December 2015 showed a profit of $4,500,000 after charging: • $180,000 depreciation of equipment and office furniture; • $750,000 for salary to his wife who supervises the office, $496,000 to his 18 year old son Shane, and $1,720,000 to himself. • $78,000 interest on a loan he had obtained to expand his business 3 years ago. (a) Prepare a statement; with notes where applicable; of the Healthy Snacks business showing the taxable profits and income tax liability for the year of assessment 2015 for Shawn John (b) Shane is a part-time student at the University of the West Indies. What is his tax liability, if any?
Shawn John and his wife operate a successful snack packaging business, Healthy Snacks, in St Mary, Jamaica. The bulk buying of the raw materials (nuts and dried fruits), the packaging and delivery to corporate area shops are done by the members of the family. The accounts for Mr. John’s business at 31st December 2015 showed a profit of $4,500,000 after charging: • $180,000
(a) Prepare a statement; with notes where applicable; of the Healthy Snacks business showing the taxable profits and income tax liability for the year of assessment 2015 for Shawn John
(b) Shane is a part-time student at the University of the West Indies. What is his tax liability, if any?
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