Determine the Fiji income tax liability of the persons in the following scenarios.

Our interest is in the process rather than the final figure.

Use the terminology found in the Fiji ITA and refer to all relevant sections.

All facts concern 2016 unless stated otherwise.

Questions could contain irrelevant information.

(1) X is a male and a resident of Fiji. He has a wife and three young children. The wife is not employed and has no independent source of income.

X is currently studying as a mature age student at USP. X has a number of sources of income for the year 2016. He has a scholarship, two part-time jobs and some investments. Further details appear hereunder. All income is derived from sources in Fiji.

Scholarship 5,000

Job one salary 15,000

Job two salary 15,000

Rental income 6,000

Dividends from FMF Ltd 4,000

Interest on loan to Friend 500

Interest on Westpac account 170

The above figures are gross figures.

Additional information.

The rental income derives from a house that X inherited from Uncle. X leased the property to Tenant. In 2016 X expended $900 in maintenance work on the property.

During the year X made a donation of $600 to the Fiji Red Cross.

The company FMF is listed on the South Pacific Stock Exchange.

(2) Xco is a Fiji company. Xco conducts three separate businesses; a car rental business; a food catering business; a tour services business. These businesses are structured as separate divisions with a general manager for each business. Aside from its three businesses, Xco is also the parent company of Fco and Tco. Fco is a Fiji company and Tco is a Tonga company. Xco derives income in 2015 and 2016 as detailed below. All figures are quoted in FJD. Dividends paid by Tco are subject to a 10% withholding tax in Tonga. There is no Double Taxation Treaty between Tonga and Fiji.

2015

car rental business profit 25,000

food catering business loss (55,000)

tour services business profit 10,000

dividends from Fco 25,000

dividends from Tco nil

2016

car rental business loss (10,000)

food catering business loss (10,000)

tour services business profit 60,000

dividends from Fco 25,000

dividends from Tco 5,000

Re Xcos foreign sourced income read s.60.

(3) S is a resident of Samoa where she is employed in the Samoan public service. S previously lived in Fiji and has retained several Fiji investments. S is a partner in the firm Suva Office Properties. The firm Suva Office Properties owns a number of commercial buildings in Suva which the firm rents out. S also owns bonds issued by Fijico. Further details appear hereunder. All figures are quoted in FJD.

public service job 20,000

interest on bonds issued by Fijico 1,000

share of partnership profits 22,000