1. The Banana Industry was given a grant of J$2 million to fund research, an American consultant, Dr. Green (resident and domiciled in Florida), was hired to do the work. He was in the island for periods totalling four months in year of assessment 2017. He received one payment of J$900,000 (gross) soon after he arrived. He returned to the United States to write up the research report and asked that the balance due of J$1.1 million be converted into US dollars and paid to him at his home address in Florida.

What is Dr. Green's liability to Jamaican income tax if any? (assume US$1 = J$120)

2. Arlene Baker is employed as a marketing director by a Kingston company. Her salary is $600,000 per year. She also receives rent paid to an independent land lord of $20,000 per month. She owns a house in London from which she receives rent of 400 per month. Her agent in London has paid expenses totalling 1,200 for 2018. She also had shares in British telecom plc and in 2018 received net dividends of 300 (tax deducted 100). What is Arlene's liability to tax for 2018 ?

3. What are the penalties in the following circumstances:

i. A business, Harold's Hardware deducts PAYE from employees'

salaries and does not pay over the amount by the due date?

ii. Mongoose Ltd failed to deduct Contractors Levy at the required rate of 2% on the gross payments it made to a sun-contractor who received $9

million?

iii. Jinal Ltd (a private company) paid dividends to shareholders net,

recorded the amount of tax due as a liability in its accounts but after six months ha not remitted the tax to revenue department?

Answer rating: 100% (QA)

Scenario 1 Dr Greens Jamaican Income Tax Liability Residence and Domicile Dr Greens residency and do... View the full answer