Case 3 You are a Tax Director in the following situations: a) A client of the firm has enquired about how to treat the income of Oliver Martin and Erica Ferguson who both provide services to AGL Limited. The client indicates that she is unsure of the type of employment and how to account for the income tax for each person. The client provided Tamika with the following information: Oliver Martin Oliver Martin provides accounting services for the company. He uses his own computer. He works from the company's premises Monday to Wednesday only. He is paid at the end of each month. To obtain his payment he must provide the company with an invoice detailing the days worked. He is paid a daily rate of $30,000 for 8 hours of work. He determines his own time of work. Tasks are assigned to Oliver by the Head of Reporting & Finance. He reports directly to the Head of Reporting & Finance. Oliver is not entitled to vacation leave, sick leave, and he does not a participate in the company's pension plan. There is no restriction on Oliver's ability to provide services to other persons. Erica Ferguson Erica is an on-call machine technician. She repairs the company's machines in the factory. She uses her own tools. For each machine serviced a flat fee is paid monthly. Erica is also paid separately for repairs. Each month she provides a report to the Operation Manager for the work done as well as her invoice for payment. One term in Erica's contract indicates that she is expected to dedicate all her time to AGL Limited. She is provided with a lunch card which she uses to obtain lunch at the company's canteen. She also obtains medical and pension benefits. Required (i) Provide guidance to Tamika on the factors she should consider in determining the type of employment. (6 marks) (ii) Based on your own assessment advice on type of employment for each person, advise Tamika on the correct way she should account for each person's income tax. (6 marks (b) ABC Juice Limited manufactures and sells juice locally in St. Lucia and in the Caribbean. The business is VAT registered with tax authorities in St. Lucia. The company has recorded the following transactions in January 2020: Sales to local customers - $1,500,000 (VAT inclusive) Sales to local customers - $1,200,00 (VAT exclusive) - Sales to exempt suppliers - $100,000 Export Sales - $700,000 Purchases $800,000 (VAT inclusive) Purchases $600,000 (VAT exclusive) Value of Imports of $60,000. VAT paid at Customs $18,000 Prior month adjustment relating to volume discounts - Reduction in Output Tax of $6,000. Calculate the VAT payable/refundable for January 2020? (13 marks) Total (25 marks)