$$ Your Co$.$ was established in $2010$ as a listed corporation in Kuwait. Below is the year$-$end financial position as of $2018.$

Financial Position at $31/12/2018$

Kuwaitis Dinars $(000)$

Liabilities & Equity Assets

$2000$ Capital $500$ Buildings

Reserves: $400100$ Accumulated Deprecation

$300$ Statutory $1000$ Machinery

$300$ Voluntary $850150$ Accumulated Depreciation

$300$ Pension Provision $200$ Furniture

$100$ Retained Earnings $15050$ Accumulated Depreciation

$1000$ Foreign Investment

$200$ Receivables

$400$ Inventory

$3000$ Total $3000$ Total

Net income for the period is Kd $1\mathrm{.}67$ million. The inspections have revealed the following $($KD$)$:

$1.$ The company has received government subsidies totaling $150,000$ against custom duties for commodities that are tax$-$exempt. The company has not included this amount in income as it is out of its commercial operation.

$2.$ equipment was bought on $26$ March $2018$ costing $5000$ and the whole amount was incurred on the period expenses, despite that $10\%$ annual depreciation is allowed by the tax resolutions.

$3.$ The year revenues included the following reverted reserves:

a$.$ Against securities devaluation $50000.$

b$.$ Against tax liability $15000.$

c$.$ Against Zakat liability $7500.$

d$.$ Pensions and remuneration $48400.$

e$.$ For doubtful accounts $2\%$ of reported receivables.

$4.$ Tax liability for the year $2017$ was $53980,$ the company paid $42\%$ on January $2018.$ The record shows that the remaining amount is to be added to $2018$ taxable income.

$5.$ Inventory turnover for the year was as such.

a$.$ Beginning balance $2,000$ units @ $10$ Kd$.$

b$.$ First quarter purchases $4,000$ units @ $12$ Kd$.$ While sales $3000$ units.

c$.$ Second quarter purchases $5,000$ units @ $15$ Kd$.$ While sales $4000$ units.

d$.$ Third quarter purchases $6200$ units @ $16\mathrm{.}25$ Kd$.$ While sales were $5160$ units.

e$.$ Fourth quarter purchases $7,150$ units @ $21\mathrm{.}8$ Kd$.$ While sales $8640$ units.

The company used FIFO until May $10$th$,2018,$ when management decided to change to LIFO. The market value of ending inventory is estimated to be $17900$ Kd$.$

$6.$ The company has a loan to a local bank of $27890$ Kd with a flat interest rate of $7\mathrm{.}5\%$ for $3\mathrm{.}5$ years. The company amortized the loan and the related cost of capital in full on the $7$th of Nov. $2018.$

$7.$ Treasury shares that were sold in the open market on June $2$nd$,2018,$ for $420$ fils per share. These shares were carried over since July $14$th$,2012,$ at a par value of $105$ fils which includes a premium of $5$ fils. Reported income from this sale was $210$ fils.

$8.$ As per the company policies, transfer prices have embedded a $5\%$ profit margin among internal units of the company. The total volume of such transactions exceeded $1\mathrm{.}15$m during the year.

$9.$ Contingent liability provisions for court disputes are estimated to be proportionated to $0\mathrm{.}90$ of reported income, yet to be aggregated within extraordinary items. Usually, tax authorities allow for such provision upon materiality and occurrence comparable to the cash basis.

$10.$ An amount of KD $17375$ has been retrieved from contracted projects dated May $2016.$ The amount was disclosed in $2016$ as held for settlement.

$11.$ Dues of foreign suppliers based on FOB shipping have over and above handling commissions of $0\mathrm{.}35\%$ one basis point of shipments. The company used to add it up as freight$-$in expenses. On numerous incidences, the tax inspector declined this item from operating expenses resulting in further disputes, until resolved as only half of the total is allowed. The company's shipments are estimated to be KD $604,802$ for $2018.$

$12.$ Booked gains from diluted ownership securities in a catalyst subsidiary have not been reported yet, even though the audited financial contained a sum of Kd $36890$ gains from the same.

$13.$ Paid$-$in capital has been issued with a $0\mathrm{.}5\%$ premium on the outstanding sum of Kd $2\mathrm{.}25$m$.$ The capital has been received with the premium in full by March $2018.$ The tax declaration did not reflect this transaction as recommended by the auditor to be shifted to next financial year for solvency matters.

Required:

$1.$ Prepare the tax declaration of the company for the year ending $2018.$ If the tax rate is based on a flat rate of $32\%$ on taxable income exceeding $100,000$ kd$,$ what is the tax liability of the year?

$2.$ Assume a progressive tax rate is enforced by an incremental $4\%$ on every Kd $50,000,$ a start$-$up percentage of $12\%.$

$3.$ If$,$ the company has the freelance to choose to be imposed according to a regressive tax rate of $28\%$ and then reduced by $3\mathrm{.}5\%$ for every Kd $100,000$ following the first half million, would it be worth considering?

$4.$ What is the tax rate if the starting rate is $14\%$ increased by $6\%$ bracketing of Kd $30,000?$