FULL TAX CO Full Tax Co. is incorporated and tax resident in Barbados. The audited financial statements for Full Tax Co. for year-end December 31, 2020 show an accounting profit after tax of $13,500 after charging the following:

Depreciation $5,300

Tax $1,500

Property Tax $10,000

Interest expense $15,000

Preference dividends of $40,000

Legal fees $110,000

Insurance of $75,000

Bad debts $4,000

Foreign Travel $1,500

Repairs and Maintenance $50,000

General expenses $60,000

Other Information

1. Property Tax of $6,000 was paid for the property on which the companys factory is located; $3,000 for the office premises and $1,000 for the directors home

2. The insurance was paid for the factory and office premises.

3. The interest of $5,000 was payable at the companys financial year-end.

4. The bad debt expense is a percentage of debtors at year-end

5. The company paid interim ordinarily dividends totaling $10,000

6. Repairs and maintenance include motor vehicle repairs of $30,000 and redoing the office floor; changing it floor wooden flooring to porcelain titles.

7. Included in the companys total assessable income is exempt income of $30,000. $6,500 relates to expenses incurred in earning this exempt income.

8. Legal fees comprise expenses in respect of recovery of debts, $20,000. Expenses in relation to the purchase of a new subsidiary $50,000. Expenses in related to the increase private share capital, $40,000 of a subsidiary company located in Jamaica.

9. Foreign travel expense was a vacation package for the purchasing of marketing managers (who met with the companys clients) and his family plane tickets.

10. General expenses include $12,000 for the school fees of the directors son. 11. During the year Full Tax Co. invested $10,000 in the Enterprise Growth Fund. A certificate was obtained to support this investment.

11. During the year the company obtained an internationally recognized environmental certification. Expenditure incurred to obtain this certificate was $20,000. The company obtained a grant

from the government to fund this expenditure.

12 During the year full tax company invested $10,000 in the Enterprise growth fund. A certificate was obtained t support this investment.

13. The capital allowances have been calculated at $13,550

Calculate the Corporation tax liability of full tax co. Using the Barbados Income tax act or any other relevant document explain the treatment of the items included or omitted from the income tax computation. The tax rates for general business in Barbados applies.

Assume capital allowances rate of 5% p.a. for building.

Please note all amounts are in Barbadian currency