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Karen has been unemployed for several years, after getting married. In 2019 she decides to go back into the job market. These are her particulars.
Karen has been unemployed for several years, after getting married. In 2019 she decides to go back into the job market. These are her particulars.
- She gets a job as marketing Manager at the Riviera casino in San Ignacio. She gets a basic salary of $3,000 per month. She is also entitled to an end of year bonus calculated as follows: .25¢ for every gambler who entered the casino on weekends during the year. She started working April 1, 2019, and received the bonus at year’s end.
- She decided to rent her house in Belmopan for $5,000 per month, when she began working. The tenant paid her $50,000 on the spot.
- The records showed that during the period April to December 2019, forty-eight thousand gamblers entered the casino on weekends.
- She won Sunday jackpot in May 2019 and received $12,000. However, she had to pay a friend named Dean $1,000 for ‘giving her the rake’.
- A guest at the hotel and casino assaulted her. She was not off duty. She sued and the guest had to pay her $6,500 in November 2019.
- She arranged with her bosses to get the franchise to operate a restaurant in the hotel. The restaurant operated from June to November 2019, when it was closed by the health authorities. To avoid a scandal, the Hotel and Casino paid the fine assessed. The gross earnings from the restaurant during this period were $120,000.
- She received $1,000 in interest from her savings at First Caribbean, in July 2019.
- She was asked to serve on the Social Security Board from July 1, 2019, to June 30, 2020. She was paid 12,000 for her entire year of service on July 1, 2020.
- She receives a pension from the Public Service Union. The amount is $300 per month. She has been getting this pension from 2018, until present.
- She donates $4,000 to the Girl Scouts and $1,000 to the Vision Inspired by the People political party, in 2019.
Assume a rate of Income Tax of 25% of chargeable income
Assume a rate of Business Tax of 6% on all income subject to Business Tax.
Required:
For the year 2019, compute Karen’s:
- Total Income subject to Personal Income Tax
- Total Income Subject to Business Tax
- Total Exempt Income
- Chargeable Income for Personal Income Tax
- Amount of Business Tax payable using a 6% rate
- Amount of Income Tax payable using a 25% rate on Chargeable Income
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