MODULE: Mauritian Taxation

Mr. Paul is married and has a son aged 4 years old. His wife is not working and has no income. His total income from employment for the year ended 30 June 2018 is as follows:

Income from employment in Mauritius Rs 1,200,000

Mr. Paul also owns a building which he rents out. His rental income for the year ended 30 June 2018 amounts to Rs400,000. Maintenance expenditure of the building for the year ended 30 June 2018 amounts to Rs100,000.

Required:

i. Compute the chargeable income and income tax liability of Mr Paul based on the information given above. (10 marks)

ii. Would your answer to (i) change if you were informed that Mr Paul is a resident for tax purposes but the total income he is receiving from the employment has been directly transferred to a bank in the UK. Justify your answer. (5 marks)