In a recent budget presentation, the Minister of Finance and Planning Dr. Omar Davis announced changes...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In a recent budget presentation, the Minister of Finance and Planning Dr. Omar Davis announced changes to property tax effective April 1, 2005. This is with the objective to reduce the system's complexity and so improve compliance. The system has been simplified by the removal of the tax bands and caps, the introduction of a threshold of $300,000 and a flat rate of 0.05% on any amount in excess of $300 000. This simplification is expected to lead to increasing compliance, which is currently at 40%. Property tax is paid into the parochial revenue fund and is used by local government through parish councils to carry out services such as street lighting and garbage collection. Taken from 2015-2016 Budget Presentation Required: i. Based on the scenario above, explain the tax structure of property taxes. Identify the economic impact of the tax and THREE (3) other economic effects of (3 marks) ii. taxation. Assess THREE (3) attributes of a good tax system and indicate whether the tax referred to in the scenario possesses any of these attributes. (4 marks) iii. (6 marks) Part B Angela Burke is a hotel worker. She receives a salary of $1 250 000 per annum and is in receipt of gratuities of $100 000 per annum. Miss Burke is studying part-time and receives a scholarship of $150 000 from her employer to assist with her tuition fees. i. Miss Burke also likes to play Cash Pot. For the year 2020, she received $800 000 from her lotto and cash pot winnings. Miss Burke received dividends from Jamaica Teas, a company that is traded on the Jamaica Stock Exchange. She received $55,000 net of tax. Miss Burke has other investments including a time deposit at Jamaica National which paid interest of $30,000 (net). ii. I11. Compute Angela's gross emoluments for the year, writing appropriate notes. (7 marks) In a recent budget presentation, the Minister of Finance and Planning Dr. Omar Davis announced changes to property tax effective April 1, 2005. This is with the objective to reduce the system's complexity and so improve compliance. The system has been simplified by the removal of the tax bands and caps, the introduction of a threshold of $300,000 and a flat rate of 0.05% on any amount in excess of $300 000. This simplification is expected to lead to increasing compliance, which is currently at 40%. Property tax is paid into the parochial revenue fund and is used by local government through parish councils to carry out services such as street lighting and garbage collection. Taken from 2015-2016 Budget Presentation Required: i. Based on the scenario above, explain the tax structure of property taxes. Identify the economic impact of the tax and THREE (3) other economic effects of (3 marks) ii. taxation. Assess THREE (3) attributes of a good tax system and indicate whether the tax referred to in the scenario possesses any of these attributes. (4 marks) iii. (6 marks) Part B Angela Burke is a hotel worker. She receives a salary of $1 250 000 per annum and is in receipt of gratuities of $100 000 per annum. Miss Burke is studying part-time and receives a scholarship of $150 000 from her employer to assist with her tuition fees. i. Miss Burke also likes to play Cash Pot. For the year 2020, she received $800 000 from her lotto and cash pot winnings. Miss Burke received dividends from Jamaica Teas, a company that is traded on the Jamaica Stock Exchange. She received $55,000 net of tax. Miss Burke has other investments including a time deposit at Jamaica National which paid interest of $30,000 (net). ii. I11. Compute Angela's gross emoluments for the year, writing appropriate notes. (7 marks)
Expert Answer:
Answer rating: 100% (QA)
i Tax structure of property tax According to the budget proposal for 201516 the threshold is set at ... View the full answer
Related Book For
Microeconomics Principles, Problems and Policies
ISBN: 978-1259450242
20th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
Posted Date:
Students also viewed these economics questions
-
Jean Baptiste Colbert was the Minister of Finance under King Louis XIV of France. He famously observed, The art of taxation consists in so plucking the goose as to obtain the largest possible amount...
-
The Minister of Finance for the State of Tranquility has just estimated the expected inflation rate for the coming year at 6.75%. If the real rate for the coming year is 3%, what should the nominal...
-
The garbage collection and disposal services of a local government might be accounted for through the General Fund, a Special Revenue Fund, or an Enterprise Fund. Indicate the circumstances in which...
-
On March 19, Modern Kitchens, a retail store, received Credit Memorandum 244 for $4,290 from J & M Appliance Corporation. The credit memorandum covered a return of damaged trash compactors originally...
-
How would your answer to the Problem 16 be different if the employer in question sold his product according to the demand schedule P = 20 - Q?
-
Artero Corporation is a traditional toy products retailer that recently started an Internet-based subsidiary that sells toys online. A markup is added on goods the company purchases from...
-
Which report would be most useful for estimating likely bad debts? a. accounts receivable aging schedule b. profitability analysis c. sales analysis d. cash budget
-
CoffeeShop Doughnuts has current assets of $280 million; property, plant, and equipment of $430 million; and other assets totaling $170 million. Current liabilities are $170 million and longterm...
-
What are communication challenges, cultural differences, and security and privacy concerns faced by Home Depot as it moves toward, or operates as a virtual organization. Does its operating as a...
-
Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business...
-
Using LinkedIn send out personalized connection requests (5+) to professionals who work in careers or industries of interest to you within the Toronto area. All messaging must be done in English. 2....
-
Stock valuation for Bethesda Imaging, Inc. was described in the context of "real" versus "financial" markets. What is the significance of the different markets and how does it affect stock price?
-
Discuss how the Eurobanks can survive when they operate with such a small spread.
-
Explain the "bottom line" on the meaning of the Bayh-Dole Act to research institutions. In what ways do you think the Act influenced the spirit of entrepreneurship at college campuses?
-
Has the Sarbanes-Oxley Act "fixed" the problems with transparency in providing financial statements to the general public? Why or why not? Analyze a situation from the cur- rent press where the act...
-
Maas and Leauby [9] describe concept maps as a "planning tool". Explain how this can be applied to your classroom learning of finance and accounting.
-
Compare the rights protection afforded in the constitutions of Canada and Afghanistan. You may use https://www.constituteproject.org. Choose three points of comparison such as legal rights, civil or...
-
Consider model (9.18). What is the effect on the model parameter estimates, their standard errors, and the goodness-of-fit statistics when (a) The times at risk are doubled, but the numbers of deaths...
-
Imagine you have some workers and some hand-held computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he...
-
Explain how each of the following can be obstacles to the growth of income per capita in the DVCs: lack of natural resources, large populations, low labor productivity, poor infrastructure, and...
-
China had a $214 billion overall current account surplus in 2012. Assuming that Chinas net debt forgiveness was zero in 2012 (its capital account balance was zero), by how much did Chinese purchases...
-
Define and explain diminishing marginal utility.
-
Can we make interpersonal utility comparisons?
-
What is utility?
The Right Price A Value Based Prescription For Drug Costs 1st Edition - ISBN: 0197512879 - Free Book
Study smarter with the SolutionInn App