John is a keen investor who has been successful in making some money on the South...

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John is a keen investor who has been successful in making some money on the South Pacific Stock Exchange. He purchased a parcel of 20,000 shares in ATH at $4.10 a share in January 2019. John later sold the shares in less than two months at $5.20 a share. John's accountant believes that the gain of $1.10 per share by John on this share deal will be taxable. Required: Comment on the accountant's advice. Your answer requires reference to the FITA and case laws. (5 marks) John is a keen investor who has been successful in making some money on the South Pacific Stock Exchange. He purchased a parcel of 20,000 shares in ATH at $4.10 a share in January 2019. John later sold the shares in less than two months at $5.20 a share. John's accountant believes that the gain of $1.10 per share by John on this share deal will be taxable. Required: Comment on the accountant's advice. Your answer requires reference to the FITA and case laws. (5 marks)

Answer rating: 100% (QA)

SOLUTION Under the Fiji Income Tax Act FITA capital gains are taxable unless specifically exempted Section 34 of the FITA defines capital gains as the ... View the full answer