Roy Edwards is a resident individual. During the year of assessment 2014 he had income from various sources as follows:

-Trade carried on in Jamaica $2,850,000

-Rental income from property in Cayman - $ 1,700,000

The profit from his trading activities in Jamaica was arrived at after taking into account the following: Depreciation $ 50,000

Salary for Roy $1,200,000

Wages for Roy's staff $ 40,000

Utilities $ 190,000

Interest paid on funds borrowed to effect shop improvements $25,000

( a ) Advise Roy Edwards about his income tax liability for 2014. Indicate any additional information that would be needed to give correct advice .

(b ) Would your answer in ( a ) be different if Roy Edwards was a non- resident individual and he lived in Jamaica for 5 months during the year and he received 50 of his property income in Jamaica ? Explain .

Answer rating: 100% (QA)

a To advise Roy Edwards on his income tax liability for the year 2014 as a resident individual in Jamaica we need to consider the income he earned fro... View the full answer