ACCA$-$ TAXATION $-$ QUESTION $1(20$ marks$)$

The following information is given regarding Mr$.$ Paul $($self$-$employed$)$ and his wife Mary for the year

ended $31\mathrm{.}12\mathrm{.}2018.$

b$.$ Depreciation for the vear

c$.$ Car expenses

They all relate to the BMW private salon car

d$.$ Salaries

Salaries and contributions not paid in $2018$ were $3,000$

Mary

Income during $2018$

a$.$ Gross rent $20,000$ from individual for renting shop acquired in $2002$ for $150,000$ including cost of

land $50,000.$

In $2018$ she paid $3,000$ interest for loan taken to buy the shop.

b$.$ Gross bank interest $10,000$

c$.$ Gross dividend income from listed company in Cyprus $2,000$

d$.$ Profit of $60,000$ on plot disposal $($proceeds $100,000)$

e$.$ In $2018$ Mary paid personal life insurance premium of $6,000(100,000$ amount assured$)$

Required

i$.$ Calculate income tax payable by Paul for $2018($ignore personal allowances$)(10$ marks$)$

ii$.$ Calculate income tax payable by Mary for $2018(7$ marks$)$

iii. Calculate special contribution for defense payable by Mary for $2018(3$ marks$)$