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2. Mr. Omar Ali Al Abri is a successful sole trader of software & hardware equipment business in Musannah. He has recently hired an accountant

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2. Mr. Omar Ali Al Abri is a successful sole trader of software & hardware equipment business in Musannah. He has recently hired an accountant to reconcile and prepare financial reports so that he can have a closer look at the performance of his firm. Another important aspect of hiring an accountant was to prepare tax returns, so that he could avoid getting fines and punishments from the tax authorities in Oman. You are an expert in the field of tax and hence are approached by Mr. Omar and his accountant to scrutinize transactions and calculate the correct tax liability of his firm. You are furnished with details of his firm and on enquiry, the accountant declares that during the month of June 2019, Mr. Omar and his family travelled to Singapore on a summer vacation and spends OR 3,500 towards it. Director General for Taxation has raised an objection towards including this amount in business travelling expenses and deducted it as an indirect expense. You also find out that the accountant has overvalued closing stock by OR 2,500 and undervalued opening stock by OR 1,500 for the current fiscal year. During the year the company accounts show expenses related to salaries at 15,000, stationary worth 2,500, donations of 9,000, travelling expenses of 11,000 in the year, paid 4,000 towards insurance and other miscellaneous expenses amounted 20,000. The accountant has created a provision for bad and doubtful debts at OR 2,000 in order to further reduce the income of the firm. Revenues from business operations during the year amounted to OR 466,000 and the company spent OR 315,000 on purchase of goods required for business operations. The company reported expenses related to salaries at 15,000, stationary worth 2,500, donations of 9,000, travelling expenses of 11,000 in the year, paid 4,000 towards insurance and other miscellaneous expenses amounted 20,000. The accountant has created a provision for bad and doubtful debts at OR 2,000 in order to further reduce the income of the firm. Revenues from business operations during the year amounted to OR 466,000 and the company spent OR 315,000 on purchase of goods required for business operations. The company reported expenses related to goods sold at OR 316,000 and also reported a closing stock of OR 125,000 as of December 2019. The accountant has also expensed a patent of OR 30,000 that was purchased on 1st October 2019. The life of the said patent being 5 years

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