For year ended 2014 December 31, Jamjar Limited, a fruit preserving company, has a profit before tax of $50M after charging/ the following:

$

Depreciation 960,000

Interest expense 4,800,000

Legal fees 3,600,000

Audit fees 2,400,000

Interest income (6,600,000)

Foreign travel 1,400,000

Bad debts 2,520,000

Donations 800,000

Additional information:

i. Legal fees are as follows:

Expenses relating to an increase in share capital - $1 200 000

Expenses in respect of the recovery of debts - $1 000 000

Expenses relating to defence of a tax (GCT) matter - $1 400 000

ii. Bad debts of advances totalling $600 000 to a salesman who had left Jamjar, Rocky Limited, a debtor for $340 000 and $1 580 000 being a percentage of sales deemed to be bad

iii. Included in revenue is dividend income received after 2013 April 01 (net of 15% tax deducted) of $20 000 and a refund of income tax of $900 000 in respect of 2007

iv. Interest payable at 2013 December 31 was $1 400 000 and at the end of the current year, 2014, is $1 120 000

v. Gross interest of $1 600 000 receivable at 2013 December 31 was received in 2014 and at the end of the current year interest receivable is $3.4M

vi. Net profit on the disposal of fixed assets during the year was $300 000 and is included in income

vii. Capital allowances are as follows:

Initial allowance $ 360 000

Annual allowance $1 880 000

Balancing allowance $ 300 000

Balancing charge $ 240 000

viii. Jamjar paid an estimated tax of $3.6M during 2014

ix. Tax deducted at source from interest income during the year was $1 140 000

x. The company has a tax loss brought forward of $24.56M

xi. Included in foreign travel is $620 000 for the managing directors family.

Required:

Compute the income tax liability for Jamjar Limited for the year of assessment, 2014, with notes, including case laws and the relevant sections of the Income Tax Act of Jamaica, where applicable.