Mauritian Satellite Services Ltd is a global license company incorporated in accordance with the Mauritian Law....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Mauritian Satellite Services Ltd is a global license company incorporated in accordance with the Mauritian Law. The company principal activity is to provide boardband connection for Direct to Home (like Canal Plus). For the year ended 31 Dec 2021, the draft income statement shows the following details: USD Turnover Less: Cost of Sales Satellite Slot Satellite insurance Satellite operation fees Depreciation of satellite Total cost of sales Gross profit Other income Termination of contact Unrealised gain EXPENSES Staff cost Rent Travelling expenses Legal and Professional Expenses Depreciation Other expense Management services Operating profit Finance income Finance Cost Net profit before tax Notes 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1,400,000 3,500,000 1,200,000 17,000,000 150,000 30,000 25,000 75,000 5,000 25,000 2,000,000 500,000 3,800,000 USD 55,000,000 (23,100,000 31,900,000 2,500,000 200,000 (2,300,000) 32,300,000 (3,300,000) 29,000,000 NOTES 1. Turnover has not taken into consideration service rendered amount USD 1,000,000 but not yet bill as contract has not been signed despite the term and condition agreed. Satellite slot fees is USD 120,000 per month. 2. 3. Satellite insurance include insurance agent fees of USD 150,000 for three satellite (including two owned by sister companies) and the month insurance cost is USD 300,000. 4. Satellite operation cost is USD 100,000 per month. 5. The company make provision for depreciation of Satellite base on the actual fuel consumed. The total cost of constructing the satellite cost USD 375,000,000 in 2015. 6. Termination of contract relates to fees paid by a customer to terminate their contract before the ending date. Unrealised gain relates to revaluation of deposit from customer in INR. 7. 8. Staff cost relates to salaries and other benefit paid to the employees of the company. The company has not provided for the employee gratuity amount to USD 10,000 9. Rent amount include 3-month deposit. 10. Travelling expense relates to travel abroad for employees. 11. Legal and professional expenses relate to auditing fee provision amounting to USD 15,000 made by the company. 12. Depreciation amounting USD 5,000 to furniture and fitting costing USD 750,000 in 2018. 13. Other expense are general office expenses such as stationeries. 14. Management fees is USD 150,000 on monthly basis. 15. Finance income relates to interest received from the bank. 16. Finance cost include USD 200,000.00 which is penalties for late payment of capital and interest. 17. On 31 Dec 2021, USD was purchase for 46 and was sold for 47.50 REQUIRED From the above information compute the amount of tax payable under the Income Tax Act 1995 Mauritian Satellite Services Ltd is a global license company incorporated in accordance with the Mauritian Law. The company principal activity is to provide boardband connection for Direct to Home (like Canal Plus). For the year ended 31 Dec 2021, the draft income statement shows the following details: USD Turnover Less: Cost of Sales Satellite Slot Satellite insurance Satellite operation fees Depreciation of satellite Total cost of sales Gross profit Other income Termination of contact Unrealised gain EXPENSES Staff cost Rent Travelling expenses Legal and Professional Expenses Depreciation Other expense Management services Operating profit Finance income Finance Cost Net profit before tax Notes 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1,400,000 3,500,000 1,200,000 17,000,000 150,000 30,000 25,000 75,000 5,000 25,000 2,000,000 500,000 3,800,000 USD 55,000,000 (23,100,000 31,900,000 2,500,000 200,000 (2,300,000) 32,300,000 (3,300,000) 29,000,000 NOTES 1. Turnover has not taken into consideration service rendered amount USD 1,000,000 but not yet bill as contract has not been signed despite the term and condition agreed. Satellite slot fees is USD 120,000 per month. 2. 3. Satellite insurance include insurance agent fees of USD 150,000 for three satellite (including two owned by sister companies) and the month insurance cost is USD 300,000. 4. Satellite operation cost is USD 100,000 per month. 5. The company make provision for depreciation of Satellite base on the actual fuel consumed. The total cost of constructing the satellite cost USD 375,000,000 in 2015. 6. Termination of contract relates to fees paid by a customer to terminate their contract before the ending date. Unrealised gain relates to revaluation of deposit from customer in INR. 7. 8. Staff cost relates to salaries and other benefit paid to the employees of the company. The company has not provided for the employee gratuity amount to USD 10,000 9. Rent amount include 3-month deposit. 10. Travelling expense relates to travel abroad for employees. 11. Legal and professional expenses relate to auditing fee provision amounting to USD 15,000 made by the company. 12. Depreciation amounting USD 5,000 to furniture and fitting costing USD 750,000 in 2018. 13. Other expense are general office expenses such as stationeries. 14. Management fees is USD 150,000 on monthly basis. 15. Finance income relates to interest received from the bank. 16. Finance cost include USD 200,000.00 which is penalties for late payment of capital and interest. 17. On 31 Dec 2021, USD was purchase for 46 and was sold for 47.50 REQUIRED From the above information compute the amount of tax payable under the Income Tax Act 1995
Expert Answer:
Answer rating: 100% (QA)
To compute the tax payable under the Income Tax Act 1995 we need to calculate the taxable income fir... View the full answer
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
Posted Date:
Students also viewed these corporate finance questions
-
If the focal length of a lens is 3 centimeters and the image distance is 5 centimeters from the lens, what is the distance from the object to the lens?
-
A manufacturer purchases a part for use at both of its plants-one at Roseville, California, the other at Akron, Ohio. The part is available in limited quantities from two suppliers. Each supplier has...
-
Wynn Resorts owns a variety of popular gaming resorts. Its annual report contained the following information: Debenture Conversions Our convertible debentures are currently convertible at each...
-
Swingley Company used an accelerated method to depreciate its fixed assets for tax purposes and the straight-lime method for financial reporting purposes. In 2011, the accelerated method recognized...
-
If P1A2 = 0.4 and P1B2 = 0.5 and P1A and B2 = 0.2, then P1BA2 = a. 0.80. b. 0.50. c. 0.10. d. 0.40. e. none of the above.
-
A project has been selected for implementation. The net cash flow (NCF) profile associated with the project is shown below. MARR is 10 percent/year. a. What is the internal rate of return of this...
-
Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. The cost accounting department has supplied you the costs relevant to the aggregate...
-
Using the list method or the switch method, find the inverse function of: f(x)=6x+1-13 f1(x) =
-
The fire station in Grindvik municipality, dating back to the mid-1960s, falls short of meeting all the requirements for a modern facility. Consequently, municipal politicians have decided to...
-
P5. (10 pts) Consider a slotted ALOHA system. Suppose there are 2N nodes sharing the channel. These nodes are divided in two groups with N nodes each. The probability that a node in group 1 and group...
-
Critique review of Love is Not a Pie attached Essay Instructions A critique is a formal evaluation of a text, and one of the most common forms of critique in literature is the review. In a review,...
-
For a water cooled ammonia condenser find the heat extracted if con- denser surface area 3 m, steel tube thickness 3 mm, condenser temperature 25C, average water temperature 18C, overall coeffi-...
-
A certain capacitor is made of two plates with a surface area of 2.4 m and separated by 7.2 m of an insulating material. If the capacitor is rated at 8 F, what is the material's dielectric constant?...
-
Describe how a rootkit works? What is adware, dumpster diving, backdoor, and botnets? What are the differences between Hacker and Cracker? What are the different types of hackers? Explain. How...
-
Suppose a transport cost-oriented firm consumes two inputs (one from source I1, the other from source I) in order to produce one output, which is consumed at the output market M. M H I 1 a) Assume...
-
Prove the following D,(cos x) = - sin x (Hint: Apply the identity cos(A + B) = cos A cos B sin A sin B)
-
On January 1, Kinney, Inc., an S corporation, reports $4,000 of accumulated E & P and a balance of $10,000 in AAA. Kinney has two shareholders, Erin and Frank, each of whom owns 500 shares of...
-
Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is married to Michele R. Albert (Social Security number 123-45-6789). The Alberts live at 512 Ferry Road, Newport News, VA...
-
Compute Aidens 2019 taxable income on the basis of the following information. Aiden is married but has not seen or heard from his wife for over three years....
-
True or false? Economic theory argues that discrimination should be eliminated. Why?
-
Why is discrimination based on characteristics that affect job performance difficult to eliminate?
-
Visit the Suzy Lamplugh Trust website at http://www.suzylamplugh.org and the Social Research Association at http://the-sra.org.uk/sra_resources/safety-code/ . Browse the guidance leaflets/web pages...
Study smarter with the SolutionInn App