Your Supervisor in the Accounting Department has given you the assignment to prepare tax return for the company. You have been provided with the relevant financial information for the task below. Extract of the income statement for the year ended 30 June 2022

P P

Receipts from clients of 700,000

Interest received from bank 134,000

BSB fixed deposit interest of 10,000

Dividends received from local company investments of 55,000

899,000

Amortisation of non-current assets 266,000

Depreciation charges 340,250

Rent paid 150,000

General expenses 450,000

Salaries and wages 236,445 (992,695)

Net loss (93,695)

Additional Information

General expenses included the expenses below:

P

General provision for bad debts 215,000

Traffic offense fines 2,575

Staff Christmas party 10,925

Donations to political parties 37,500

Cost of company branded t-shirts given to staff 4,500

Provision for bad debts on specific customers 40,055

Cost of registration for trademark 24,800

Labour dispute legal costs 11,300

VAT late payment penalty and fine 2,510

Application fees for trade license 1,500

Motor expenses for Managing Director’s car 7,100

Another general cost 91,500

1) The capital allowances on non-current assets were correctly calculated at P140,000

2) The Managing Director uses the company’s luxury SUV for his private (100%)

Required to compute:

Chargeable income for the company for the year ended 30 June 2022 (12 marks)

Tax payable for the year ended 30 June 2022 (2 marks)

Explain the tax relief available to a company for business losses incurred (3 marks)

What is meant by Self-Assessment Tax (SAT), explain how it is administered by the Commissioner of Taxes.

Answer rating: 100% (QA)

a Chargeable income for the company for the year ended 30 June 2022 Receipts from clients of 700000 ... View the full answer