DUE DATE: AUGUST 1, 2022 QUESTION ONE Apple Magic has been in business for many years preparing accounts to 31 December each year. Th e company has always calculated and paid provisional income tax on the due dates. At the start of t he tax year 2018, the company estimated the provisional taxable profits to be K1,200,000. Provision al income tax was calculated correctly and paid on the appropriate due dates. At the end of the tax year 2018 , the actual final taxable profit was K 1,500,000. The company calculated the balance of in come tax for the tax year 2018 and also calculated the provisional taxable profit for the tax year 20 19 of K2,100,000 in January 2019. In late January 2019, a fire gutted the company's main warehouse and destroyed propert y worth millions of Kwacha. Following the disaster, the company experienced a strain on its cash resources and as a result, started facing challenges in carrying enough inventori es to meet sales demand, leading to a reduction in sales volume. The company therefore revised the provisional taxable business profit for the tax year 2019 from the original esti mate of K2,100,000 to K1,600,000. As a result of the poor liquidity position, the company experienced after the fire disaster, t he provisional income tax for the quarter ended 31 March 2019, was paid on 9 July 2019 and the return of provisional income for the tax year 2019 was submitted on that date. T he provisional income tax for the quarter ended 30 June 2019 was paid on 9 September 2019, whilst the balance of income tax for the tax year 2018 was paid on 20 September 2019 with the self-assessment income tax return for the tax year 2018 also being submit ted on 20 September 2019. Cash flow problems were fully resolved after 20 September 2019 and the directors are no w confident that all the outstanding taxes thereafter, will be paid promptly on the relevan t due dates. You should assume that the income tax rates for the tax year 2019 apply throughout and t hat the Bank of Zambia discount rate is 14% per annum. Required: a) Advise Apple Magic Ltd of the amounts of penalties and interest c harged on overdue taxes on all payments made up to and includin g 20 September 2019. (10 marks) b) Identify the dates when tax returns were submitted late and calcul ate the amounts of penalties for late submission of those returns. (10 marks)