Question

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Posted on Sep 06, 2024

1- Is Gulf Corp. obligated to pay Zakat or Tax for the fiscal year 2022, explain the reasons. 2- Calculate the Zakat amount due for

1- Is Gulf Corp. obligated to pay Zakat or Tax for the fiscal year 2022, explain the reasons.

2- Calculate the Zakat amount due for the year 2022 (if applicable) using growth method.

3- Explain the different types of penalties under Saudi Taxation system based on your understanding of module 5, then calculate how much is the penalty that gulf company is obligated to pay to ZATCA (if applicable)?

4- Calculate the Tax amount due for the year 2022 (if applicable).

5- Is Gulf Company obligated to pay advance payments of tax during the next fiscal year 2023?

Explain.

\begin{tabular}{|c|c|c|c|} \hline & & \begin{tabular}{l} mpany \\ t Statement \\ ended 2022 \end{tabular} & \\ \hline & Note NO. & 2022 & 2021 \\ \hline & & SAR & SAR \\ \hline Assets & & & \\ \hline Non current Assets & & & \\ \hline Net book value of PP \& E & 8 & 10.959 .102 & 8.301 .309 \\ \hline Spare Parts & 8b & 390.595 & 402.693 \\ \hline Land & 8c & 4.736 .000 & 4.736 .000 \\ \hline Total non current assets & & 16.085 .697 & 13.440,002 \\ \hline Current assets & & & \\ \hline Cash and cash equivalent & 3 & 667.682 & 332.128 \\ \hline Account receivables-net & 4 & 10.383 .964 & 10.644 .378 \\ \hline Inventory & 5 & 298.638 & 297.437 \\ \hline Receivables from related parties & 6 & . & 1.302 \\ \hline prepaid expenses & 7 & 68.609 & 346.616 \\ \hline Total current assets & & 11,418,893 & 11,621.861 \\ \hline Total assets & & 27.504,590 & 25.061.863 \\ \hline Equity and Liabilities & & & \\ \hline Equity & & & \\ \hline Share Capital & 12 & 6.000 .000 & 6.000 .000 \\ \hline Statutory Reserve & & 3.000 .000 & 3.000 .000 \\ \hline Retained earning & & 3.815 .673 & 3.440 .137 \\ \hline Total Equity & & 12.815,673 & 12,440,137 \\ \hline Non current liabilities & & & \\ \hline Long term loan & 9 & 1.180 .963 & . \\ \hline Warranty Provision & & 250.000 & 250.000 \\ \hline Provision for end of service benefits & 11 & 1.049 .951 & 1.118 .754 \\ \hline Total non current Liabilities & & 2.480,914 & 1.368 .754 \\ \hline Current liabilities & & & \\ \hline Current portion of long term loan & 9 & 1.805 .595 & 688.320 \\ \hline Account payable & & 8.490 .708 & 8.563 .197 \\ \hline Payables to related parties & 6 & 234.504 & 89.369 \\ \hline other current payables and provisions & 10 & 1.677,196 & 1.912 .086 \\ \hline Total current liabilities & & 12. 208,003 & 11.252.972 \\ \hline Total Liabilities & & 14,688,917 & 12.621,726 \\ \hline Total Equity and Liabilities & & 27,504,590 & 25.061,863 \\ \hline \end{tabular} Gulf Company Income Statement For the year ended 2022 \begin{tabular}{|c|c|c|} \hline & \multicolumn{2}{|c|}{\begin{tabular}{l} Gulf Company \\ Cash flow statements \\ For the year ended 2022 \end{tabular}} \\ \hline & \multirow[t]{2}{*}{2022} & 2021 \\ \hline & & SAR \\ \hline \multicolumn{3}{|l|}{ Cash flow from Operation } \\ \hline Net income & 4.365 .451 & 4. 223.612 \\ \hline \multicolumn{3}{|l|}{ Adjust for: } \\ \hline Depreciation for Fixed Assets & 2.092 .915 & 1.869 .028 \\ \hline Used Spare parts & 791.676 & 995.731 \\ \hline Provision of end of service benefits & 178.397 & 174.493 \\ \hline Gain from selling Fixed Assets & (41.000) & - \\ \hline \multicolumn{3}{|l|}{ Changes in } \\ \hline Account receivables & 260.414 & (1.078.756) \\ \hline Inventory & (1.201) & (52.964) \\ \hline Account receivables from related parties & 1.302 & 4.586 \\ \hline Prepaid expenses & 278.007 & (263.700) \\ \hline Account payable & (72.489) & 1.248170 \\ \hline Payables to related parties & 145.135 & (5.118) \\ \hline other current payables and provisions & (784,668) & (721.579) \\ \hline Paid end of service benefit & (247,200) & (41,982) \\ \hline Net cash generated from operating activities & 6.966 .739 & 6.351 .521 \\ \hline \multicolumn{3}{|l|}{ Cash flow from Investing Activities } \\ \hline Addition to Fixed Assets & (4.750.708) & (1.994.609) \\ \hline Addition to Spare parts & (779.578) & (1.007.983) \\ \hline Proceeds from selling Fixed assets & 41.000 & = \\ \hline Net Cash Used in Investing Activities & (5.489.286) & (3.002.592) \\ \hline \multicolumn{3}{|l|}{ Cash flow from Financing Activities } \\ \hline Loans & 2.298 .238 & (1.619.960) \\ \hline Dividend Paid & (3. 440,137) & (2.953.212) \\ \hline Net Cash Used in Financing Activities & (1,141,899) & (4,573,172) \\ \hline Net change in Cash and Cash Equivalents & 335.554 & (1.224.243) \\ \hline Beginning Cash and Cash equivalent & 332.128 & 1.556 .371 \\ \hline Ending Cash and Cash Equivalent & 667.682 & 332.128 \\ \hline \end{tabular} Duna thans it AThele Provision for End of servicre ben Share eapital Shart capial ef SAR 6, 000, 000 is split efually between tea partaner. Lases Beckham- British toenparr-Share percentage 50 s. Cont of Sales: This includes th General Administration expen "The shool exsenses are paid to internutional seboal located in the Kingdome of Saud Arabia The Compary submatsed the 2022 tar declaration on March 30 , 2623 \begin{tabular}{|c|c|c|c|} \hline & & \begin{tabular}{l} mpany \\ t Statement \\ ended 2022 \end{tabular} & \\ \hline & Note NO. & 2022 & 2021 \\ \hline & & SAR & SAR \\ \hline Assets & & & \\ \hline Non current Assets & & & \\ \hline Net book value of PP \& E & 8 & 10.959 .102 & 8.301 .309 \\ \hline Spare Parts & 8b & 390.595 & 402.693 \\ \hline Land & 8c & 4.736 .000 & 4.736 .000 \\ \hline Total non current assets & & 16.085 .697 & 13.440,002 \\ \hline Current assets & & & \\ \hline Cash and cash equivalent & 3 & 667.682 & 332.128 \\ \hline Account receivables-net & 4 & 10.383 .964 & 10.644 .378 \\ \hline Inventory & 5 & 298.638 & 297.437 \\ \hline Receivables from related parties & 6 & . & 1.302 \\ \hline prepaid expenses & 7 & 68.609 & 346.616 \\ \hline Total current assets & & 11,418,893 & 11,621.861 \\ \hline Total assets & & 27.504,590 & 25.061.863 \\ \hline Equity and Liabilities & & & \\ \hline Equity & & & \\ \hline Share Capital & 12 & 6.000 .000 & 6.000 .000 \\ \hline Statutory Reserve & & 3.000 .000 & 3.000 .000 \\ \hline Retained earning & & 3.815 .673 & 3.440 .137 \\ \hline Total Equity & & 12.815,673 & 12,440,137 \\ \hline Non current liabilities & & & \\ \hline Long term loan & 9 & 1.180 .963 & . \\ \hline Warranty Provision & & 250.000 & 250.000 \\ \hline Provision for end of service benefits & 11 & 1.049 .951 & 1.118 .754 \\ \hline Total non current Liabilities & & 2.480,914 & 1.368 .754 \\ \hline Current liabilities & & & \\ \hline Current portion of long term loan & 9 & 1.805 .595 & 688.320 \\ \hline Account payable & & 8.490 .708 & 8.563 .197 \\ \hline Payables to related parties & 6 & 234.504 & 89.369 \\ \hline other current payables and provisions & 10 & 1.677,196 & 1.912 .086 \\ \hline Total current liabilities & & 12. 208,003 & 11.252.972 \\ \hline Total Liabilities & & 14,688,917 & 12.621,726 \\ \hline Total Equity and Liabilities & & 27,504,590 & 25.061,863 \\ \hline \end{tabular} Gulf Company Income Statement For the year ended 2022 \begin{tabular}{|c|c|c|} \hline & \multicolumn{2}{|c|}{\begin{tabular}{l} Gulf Company \\ Cash flow statements \\ For the year ended 2022 \end{tabular}} \\ \hline & \multirow[t]{2}{*}{2022} & 2021 \\ \hline & & SAR \\ \hline \multicolumn{3}{|l|}{ Cash flow from Operation } \\ \hline Net income & 4.365 .451 & 4. 223.612 \\ \hline \multicolumn{3}{|l|}{ Adjust for: } \\ \hline Depreciation for Fixed Assets & 2.092 .915 & 1.869 .028 \\ \hline Used Spare parts & 791.676 & 995.731 \\ \hline Provision of end of service benefits & 178.397 & 174.493 \\ \hline Gain from selling Fixed Assets & (41.000) & - \\ \hline \multicolumn{3}{|l|}{ Changes in } \\ \hline Account receivables & 260.414 & (1.078.756) \\ \hline Inventory & (1.201) & (52.964) \\ \hline Account receivables from related parties & 1.302 & 4.586 \\ \hline Prepaid expenses & 278.007 & (263.700) \\ \hline Account payable & (72.489) & 1.248170 \\ \hline Payables to related parties & 145.135 & (5.118) \\ \hline other current payables and provisions & (784,668) & (721.579) \\ \hline Paid end of service benefit & (247,200) & (41,982) \\ \hline Net cash generated from operating activities & 6.966 .739 & 6.351 .521 \\ \hline \multicolumn{3}{|l|}{ Cash flow from Investing Activities } \\ \hline Addition to Fixed Assets & (4.750.708) & (1.994.609) \\ \hline Addition to Spare parts & (779.578) & (1.007.983) \\ \hline Proceeds from selling Fixed assets & 41.000 & = \\ \hline Net Cash Used in Investing Activities & (5.489.286) & (3.002.592) \\ \hline \multicolumn{3}{|l|}{ Cash flow from Financing Activities } \\ \hline Loans & 2.298 .238 & (1.619.960) \\ \hline Dividend Paid & (3. 440,137) & (2.953.212) \\ \hline Net Cash Used in Financing Activities & (1,141,899) & (4,573,172) \\ \hline Net change in Cash and Cash Equivalents & 335.554 & (1.224.243) \\ \hline Beginning Cash and Cash equivalent & 332.128 & 1.556 .371 \\ \hline Ending Cash and Cash Equivalent & 667.682 & 332.128 \\ \hline \end{tabular} Duna thans it AThele Provision for End of servicre ben Share eapital Shart capial ef SAR 6, 000, 000 is split efually between tea partaner. Lases Beckham- British toenparr-Share percentage 50 s. Cont of Sales: This includes th General Administration expen "The shool exsenses are paid to internutional seboal located in the Kingdome of Saud Arabia The Compary submatsed the 2022 tar declaration on March 30 , 2623