The summary of the financial statement of New Frontier Limited for 2020 is as follows:

Gross Sales $40,000,000.00

Cost of Sales $30,500,000.00

Operating Expenses $7,550,000.00

• New Frontier Limited is the owner of Upper Generation Plaza and receives rental income per month of $110,000.00.
• The Company has an affiliate in the UK and receives dividends quarterly of $850,000.00
• The rental expenses for 2020 was $1,570,000.00
• Capital allowance on machinery was calculated at $550,000.00
• Donations were given to an approved charity to the tune of $750,000.00
• Total taxes that were withheld for specified services that they provided amounted to $65,500.00 (3% withheld at source).
• Interest Income gross amounted to 2,000,000.00 and tax deducted at source was at 5%.
• Losses being carried from 2019 is $10,500,000.00.
• Total estimated income tax paid during 2020 was $60,000.00
• The company is entitled to ETC in the amount of 354,000.00
• New Frontier Limited is considered a MSME and would benefit from the income tax credit.
• New Frontier Limited has decided to increase their chargeable income for 2021 by $1 million. This is due to the expected increase in the Jamaican economy brought on by the vaccination of citizens from COVID-19.

Required

Prepare the Income Tax Return (IT02) for 2020 for New Frontier Limited and Estimated Income Tax return (IT07) for 2021.

Answer rating: 100% (QA)

There is a refund of 69500 for 2020 on IT02 of New Frontier Limit... View the full answer