A large taxable entity in Oman is doing a Cement Manufacturing business.

The following is the Profit & Loss Account for the year ended 31^st December 2019.

Particulars	OMR	OMR
Sales		124,000
Cost of goods sold		(74,800)
Gross Profit		49,200
Deemed business income
Bad debts recovered		2800
Total Income		52,000
Operating expense
Provision for depreciation	1,000
Depreciation on building	2,400
Cost of permanent building	35,000
Bad debts	800
Business promotion expense	10,000	(49,200)
Net Profit as per account		2,800

Bad debts were allowed by the Income tax authority. 40% of business promotion expenses were not allowed by the income tax authority. The company had previous year loss of OMR 44,000 in 2015. These losses are not yet adjusted. ANSWER QUESTION NO 44 TO 48

Question 44

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Tax treatment of bad debts recovered of OMR 2800 for the tax year 2019 is

a.

To be ignored while computing taxable income for the tax year 2019

b.

To be deducted from net profit while computing taxable income for the tax year 2019

c.

To be deducted from taxable profit for the tax year 2020

d.

To be added along with net profit while computing taxable income for the tax year 2019

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Question 45

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Provision for depreciation of OMR 1,000 which was charged on the profit and loss account will be a

a.

Non-deduction expense

b.

Taxable @ 3%

c.

Deductible expense

d.

Exempted income

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Question 46

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Which of the following tax treatment will be correct in regards to Business Promotion expenses as per Oman taxation law?

a.

OMR 10,000 will be deducted as a deductible expenses

b.

OMR 4,000 will be deducted as a deductible expenses

c.

OMR 4,000 will be added as a non-deductible expenses

d.

OMR 6,000 will added as a non-deductible expenses

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Question 47

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Which of the following treatment is true in regards to taxable income/(loss) for the tax year 2019 was

a.

Taxable Loss of OMR 200 cannot be carried forward since the company does not meet the criteria

b.

Taxable loss of OMR 200 to be Carried Forward and adjusted against the future profit of 2020

c.

Taxable income OMR 43,800

d.

Taxable loss of OMR 1000 cannot be carried forward since the company does not meet the criteria

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Question 48

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The tax treatment of depreciation on permanent building as per Oman taxation law is ( Rate of tax on permanent building was 4%)

a.

OMR 1400 is a deductible expense

b.

OMR 2000 is non-deductible expense

c.

OMR 1000 is non-deductible expense

d.

OMR 1400 is non-deductible expense