$2$

SECTIONA

Ansiwer nll questions

$[20$ marks$]$

Question $1-$ GCT

JDC Limited is involved in the business of retailing mixed supplies. The company files monthly returns and had the following Iransnetions during the month of January $2022.$ All tax invoices were nvailable.

Supplies made $($GCT exclusive$)$:

Standard rated supplies : $,$$$41,000,000$

$-$Zero$-$rated supplies. $,$$$$10,800,000$

Fixported goods to other Crribbean countrics $,$$$12,300,000$

$-$ Exempt supplies $$24,500,000$

Local taxable purchases nnd expenses $($GCT exclusive$)$:

$$ dditional notes:

The company hired a public relations company, New Life Communications, which is resident in the US$.$ The fee for the completed job was $$6,400,000.lo{n}_{mp}$

l$.$es $1$ in pud

The company purchased a new motor car and cleared it at the wharf. The CIF value of the car was US $$32,000.$ The duties and taxes excluding GCT totaled $35\%$ of the CIF value. The GCT charged on the motor car was at the standard rate. The rate of exchange was J$$156$: USS$1.$ input $0\mathrm{.}07$

The company wrote of bad debts of $$3,520,000($GCT inclusive$)$ in respect of invoices due for payment. The company also recovered bad debts of $$4,531,000($GCT inclusive$).$ sup plies

Included in other expenses is an amount of $$300,600($GCT inclusive$)$ for entertaining clients. input

Required:

Using examples explain what is meant by the statement "General Consurnption Tax is regarded as a valuc$-$added tax". $(2$ marks$)$

Compute the GCT payable$/$ refundable for JCD limited for January $2022.$

$(14$ marks$)$

JCD Limited was audited by the tax authorities and subsequently received a GCT assessment. The company does not agree with the nssessment. Advise JCD Limited of the

$(2$ marks$)$

sp days can so L levenus ceat, ceusl of

Indicate two things a GCT registered taxpayer might fail to do that would incur penalties. $($:${?}^n=$ann,$g^{1,+1}\}$

$+$ tificls

nol dile.

$(2$ marks$)$