Sunil Lutchmedial is a resident of Trinidad and Tobago and employed with First Class Ltd, a Trinidad

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Question:

Sunil Lutchmedial is a resident of Trinidad and Tobago and employed with First Class Ltd, a Trinidad and Tobago resident company which has as its primary business undertakings the supply of computer software and solutions, as a technician.

First Class Ltd operates in 3 branches located in Curepe, Pt. Lisas and Pt. Fortin. Sunil however works mainly from home in San Juan where he operates a trouble shooting desk and responds exclusively to clients and staff of First Class Ltd either through emails or phone calls. In the event that he cannot deal with the particular trouble shooting issue online he would have to visit the client or branch of First Class Ltd to attend to such problem. He keeps a log of his work-related travels and has the necessary invoices in support of the expenditure he has incurred for such for the 2021 year of income and to which no reimbursement was given to him by First Class Ltd. These may be summarized as follows:

Home to Various Clients $10,000 (ONLY IN RESPONSE TO TROUBLE SHOOTING ISSUES)

Various Clients to Home $7,500

Home to Various Branches of First Class Ltd $5,000 (ONLY IN RESPONSE TO TROUBLE SHOOTING ISSUES)

Various Branches to Home $4,500

His compensation package for his employment and statutory deductions made by his employer for the 2021 year of income is as follows:

- Salary $25,000 per month

- Annual Vacation Grant $20,000

- Usage of a company owned motor vehicle which was acquired on the 1st January, 2020 and made available for his personal use from that day onwards. The vehicle cost $250,000 and he is solely responsible for all fuel and maintenance costs for the vehicle. The motor vehicle is classified within Class B of the Wear and Tear Pools.

- A loan granted on the 1st May, 2021 for $80,000 at the rate of 3% per annum payable in 3 years. The proceeds of the loan were utilized in offsetting the tuition fees for his son who is pursuing a degree in engineering at a Canadian university. The cost of the tuition fees, boarding and books for his son which he incurred in the 2021 year of income amounted to $110,000. The central bank repo rate as at 31st December 2020, 1st May 2021 and 31st December, 2021 were 5%, 2.5% and 4% respectively.

- He has made weekly National Insurance contributions of $138.10 and his employer has made weekly contributions on his behalf of $276.20. He also has made contributions to an approved deferred annuity plan of $2,500 per month.

- PAYE deductions made by his employer amounted to $56,791 with respect to the 2021 year of income.

He has also provided you with the following additional information:

- He acquired his residential property on 1st March, 2020 at a cost of $1,200,000 which was financed by a mortgage with a term of 15 years and for which he paid mortgage interest for the 2021 income year of $20,000. He is a first-time home owner and the property is jointly owned with his wife. They have agreed to split any special tax concessions which may arise on the acquisition of this property equally.

- He has paid membership fees to the Society of Information Technology Professionals of $2,000 during the 2021 year of income.

- He acquired solar water heating equipment during the 2021 year of income at a cost of $24,000.

REQUIRED:

A. With reference to the applicable statutory provisions and case law discuss whether he may be entitled to a deduction for any aspect of the travelling expenditure he has incurred and for the membership fees he has paid to the Society of Information Technology Professionals for the 2021 year of income.

B. Compute his Income Tax Liability for the 2021 year of income and determine if he has a income tax payable or refundable.