Mr Lewin is a sole trader engaged in the manufacturing of plastic bags and his income...

   

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Mr Lewin is a sole trader engaged in the manufacturing of plastic bags and his income statement for the year ended 31 December 2016 is as follows: Rs Details INCOME Turnover Profit on sale of Office Equipment Interest from Bank Total Income EXPENSES General expenses Repairs & Renewals Legal and accountancy charges Subscriptions and donations Salaries and Wages Travelling Depreciation Rent & Rates Total Expenses PROFIT BEFORE TAX Notes 1. General expenses include the following: Entertaining Staffs Entertaining Suppliers Staff Welfare party Penalty for late filing of tax return Rs 12,000 8,000 18,000 8,000 636,480 115,000 98,000 8,000 210,250 60,000 20,000 8,000 Rs 2,662,500 52,650 18,000 2,680,500 (1,155730) 1,524,770 2. Repairs & Renewals Decorating his private residence during Divali festival Renovations to his house Renovations to his business premises Debt collection Service Audit and accountancy fees Attorney fees for the purchase of a residential land 3. Legal and accountancy charges are made up as follows Rs 14,000 58,000 20,000 R$ 21,250 Business Premises- Cost Business Premises TWDV 18,000 53,000 4. Subscriptions and donations include donation to political party amounting to Rs 5,500. 5. Salaries and Wages include remuneration paid to his gardener and watchmen of his private residence amounting to Rs 34,000 and Rs 26,000 respectively. 6. The tax written down value of the business assets are as follows: Rs 500,000 360,000 122,000 155,000 Office equipment TWDV Motor vehicles TWDV 7. Office equipment which was acquired in October 2012 amounting to Rs 95,400 was disposed of at Rs 75,680 in November 2015. 8. Quarterly Current Payment System (CPS) returns were filed and tax paid as follows: a) Quarter ended 31 Mar 2014 Quarter ended 30 Jun 2014 Quarter ended 30 Sep 2016 9. Mr Lewin paid interest of Rs 46,788 to the Mauritius Commercial Bank on a loan raised in August 2013 to finance the costs of his only house. b) Rs 10. The two children of Lewin are above 18 years of age and are attending full time course at DCDM business school where he had paid annual costs of Rs 55,000 for each child. Required c) 5,000 5,000 5,000 You are required to compute Mr Lewin 's Tax liability when he files his return in December 2016 while his wife stays at home to take care of the house and look after their children. (30 Marks) Mr. Paul earns R$800,000 p.a. and his wife earns Rs90,000 p.a. Mr. Paul's employer provides him with a 2500c.c Land Rover van for business and private purpose. His employer also pays the schooling fees of his two children amounting to Rs98,000. They attend Charles Telfair University. Mr. Paul contributes Rs2,000 monthly in an education plan for his two children. Calculate the income tax liability of Mr. Paul for 2013. (5 Marks) Mr Paul has been appointed as agent of Co Z a registered foreign branch in Mauritius, and he has approached you to advise him on his obligation and responsibility as an appointed agent in Mauritius. (5 marks) Mr Lewin is a sole trader engaged in the manufacturing of plastic bags and his income statement for the year ended 31 December 2016 is as follows: Rs Details INCOME Turnover Profit on sale of Office Equipment Interest from Bank Total Income EXPENSES General expenses Repairs & Renewals Legal and accountancy charges Subscriptions and donations Salaries and Wages Travelling Depreciation Rent & Rates Total Expenses PROFIT BEFORE TAX Notes 1. General expenses include the following: Entertaining Staffs Entertaining Suppliers Staff Welfare party Penalty for late filing of tax return Rs 12,000 8,000 18,000 8,000 636,480 115,000 98,000 8,000 210,250 60,000 20,000 8,000 Rs 2,662,500 52,650 18,000 2,680,500 (1,155730) 1,524,770 2. Repairs & Renewals Decorating his private residence during Divali festival Renovations to his house Renovations to his business premises Debt collection Service Audit and accountancy fees Attorney fees for the purchase of a residential land 3. Legal and accountancy charges are made up as follows Rs 14,000 58,000 20,000 R$ 21,250 Business Premises- Cost Business Premises TWDV 18,000 53,000 4. Subscriptions and donations include donation to political party amounting to Rs 5,500. 5. Salaries and Wages include remuneration paid to his gardener and watchmen of his private residence amounting to Rs 34,000 and Rs 26,000 respectively. 6. The tax written down value of the business assets are as follows: Rs 500,000 360,000 122,000 155,000 Office equipment TWDV Motor vehicles TWDV 7. Office equipment which was acquired in October 2012 amounting to Rs 95,400 was disposed of at Rs 75,680 in November 2015. 8. Quarterly Current Payment System (CPS) returns were filed and tax paid as follows: a) Quarter ended 31 Mar 2014 Quarter ended 30 Jun 2014 Quarter ended 30 Sep 2016 9. Mr Lewin paid interest of Rs 46,788 to the Mauritius Commercial Bank on a loan raised in August 2013 to finance the costs of his only house. b) Rs 10. The two children of Lewin are above 18 years of age and are attending full time course at DCDM business school where he had paid annual costs of Rs 55,000 for each child. Required c) 5,000 5,000 5,000 You are required to compute Mr Lewin 's Tax liability when he files his return in December 2016 while his wife stays at home to take care of the house and look after their children. (30 Marks) Mr. Paul earns R$800,000 p.a. and his wife earns Rs90,000 p.a. Mr. Paul's employer provides him with a 2500c.c Land Rover van for business and private purpose. His employer also pays the schooling fees of his two children amounting to Rs98,000. They attend Charles Telfair University. Mr. Paul contributes Rs2,000 monthly in an education plan for his two children. Calculate the income tax liability of Mr. Paul for 2013. (5 Marks) Mr Paul has been appointed as agent of Co Z a registered foreign branch in Mauritius, and he has approached you to advise him on his obligation and responsibility as an appointed agent in Mauritius. (5 marks)

Answer rating: 100% (QA)

a You are required to compute Mr Lewin s Tax liability when he files his return in December 2016 whi... View the full answer