Pompous Ltd. is a General trade Company whose headquarters are in China, but it has a branch
Question:
Pompous Ltd. is a General trade Company whose headquarters are in China, but it has a branch registered in Uganda. The Ugandan branch is headed by Kim, a Chinese. It has the following financial information for the Financial Year 2018/2019: Net Profit/Loss for the Financial Year 2017/2018 (10,000,000) Asset Register as of 1st July 2018.
Class I | 2,000,000 |
Class II | 12,000,000 |
Class III | 9,000,000 |
Class IV | 5,000,000 |
Trading Account For the Period ended 30th June 2019
Opening Stock | 100,000,000 |
Purchases | 200,000,000 |
Sales | 600,000,000 |
Closing Stock | 50,000,000 |
Profit and Loss Account For the Year ended
Rent | 24,000,000 |
Depreciation | 5,000,000 |
Pay Roll
General Manager salary General Manager's drivers (2) | 4,000,000= per month 150,000 per month each |
General Manager's Benefits Lunch (provided to all staff) 300,000 per month Accommodation (House) Company pays rent of 300,000 per month for it The General Manager has an Official car Other transactions during the Financial year 2018/2019 Bought a Company Toyota Corona to be used by the General Manager to transport his children to school and other domestic needs at 20 million shillings Sold the old computer worth UGX 1million and replaced it with a new one at a cost of UGX 8 million. Bought a 70-seater Isuzu bus at UGX 60million. Old office worth 2 million was auctioned off and replaced with a new and better furniture at a cost of shs8million. Required: a) Establish Pompous Ltd.'s Asset Register as of 1st July 2019. b) Compute the Income-tax Pompous Ltd. will pay to URA on its own accord and the PAYE it will remit on behalf of the General Manager and his drivers. c) If Pompous Ltd. made a total loss of USD 6,000,000 in its overall business (all branches combined), how does this affect its tax liability in Uganda?
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr