Ncwala Plc is a company engaged in manufacturing. The company was incorporated, and commenced its operations in 2005. In January 2019, the directors estimated the provisional taxable profit for the company for the tax year 2019 to be K15,600,000. However the Directors revised the provisional taxable profit to K10,200,000 in February 2019 following the loss of a major customer to one of the companys major competitors The company made a profit before tax, as per accounts, of K14,288,200 for the year ended 31 December 2019. The profit figure of K14,288,200 was arrived at after taking into account the following items: (1) Investment income which included rental income of K136,000 (gross), Treasury bill interest of K34,000 (net), dividends K62,000 (net), and copyright royalties of K36,000 (gross). Withholding tax in each case was paid on the appropriate due dates. (2) Profit on sale of office equipment of K32,500. The office equipment had a net book value of K57,500 and an income tax value of K40,000. It was sold for K90,000. (3) Wages and salaries of K24,605,000. Included in this figure is an annual salary for the Chief Executive Officer (CEO) of K680,000, employees pension benefits of K1,340,000 and employees funeral grants of K340,000. The company has accommodated the CEO in a company owned house which currently has a market value of K1, 200,000 (4) Entertainment expenses which included K34, 500 incurred in entertaining major customers, K16, 500 incurred on entertaining employees at the end of year party and K9, 500 incurred on a special dinner for the companys major suppliers. (5) Professional and legal fees which included the following: Legal fees in connection with an issue of K1 preference shares 23,500 Legal fees for trade debt collection 26,400 Legal fees for recovery of loans from former employees 16,500 Legal fees in connection with an action brought against a Supplier for breach of contract 32,000 Fees in connection with acquisition of new lease of business Premises 16,800 Accountancy, audit and taxation fees 420,000 535,200 (6) Bad debts expenses which included trade debts written off K280,000, decrease in specific provision K46,000, increase in general provision K18,500, loans to former employees written off K88,000 and trade debts previously written off now recovered K75,000. (7) Miscellaneous expenses which included: Distribution expenses 709,400 Depreciation of tangible non-current assets 287,600 Amortisation of intangible assets of 54,000 Advertising 26,600 Gifts to employees (Food hampers costing K200 each) 8,000 Gifts to customers (Ncwala Plc branded coffee mugs costing K30 each) 6,000 1,091,600 Additional information: (i) Buildings At 1 January 2019, the company held buildings which were constructed and brought into use in the previous tax year (i.e. the tax year 2018) at a total cost of K2,500,000. This comprised land with a cost of K500,000, general offices of K180,000, staff canteen with a cost of K120,000 and factory building with a cost of K1,700,000. (ii) Implements, plant and machinery On 1 January 2019, the Income Tax Values of implements, plant and machinery were as follows: Mitsubishi Canter Van (Original cost K120,000) 90,000 Pool car (original cost K80,000) 16,000 Office equipment (original cost K80,000) 40,000 During the year ended 31 December 2019, the following purchases and disposals of assets took place: Date Cost/(Proceeds) 4 March 2019 Purchased Toyota Hilux van (single cab) 150,000 14 June 2019 Purchased Jeep Grand Cherokee motor car 280,000 16 July 2019 Purchased Toyota Fortuner motor car 270,000 18 August 2019 Purchased new manufacturing equipment 650,000 12 October 2019 Sold office equipment (90,000) 20 December 2019 Sold pool car (25,000) The pool car was used in the operations of the marketing department but it had private use of 25% by the companys Marketing Manager and had a cylinder capacity of 1,800 cc. The Jeep Grand Cherokee motor car is the Managing Directors personal to holder motor car and it has a cylinder capacity of 3,000 cc. The Toyota Fortuner motor car is the Finance Directors personal to holder motor car and it has a cylinder capacity of 2,600 cc. Required: (a) State the date when Ncwala Plc was required to submit the return of provisional income tax in respect of the tax year 2019 and explain the consequences of submitting the return late. (3 marks) (b) Compute the amount of the provisional income tax paid by the company during the tax year 2019, stating the due date for each instalment. (4 marks) (c) Calculate the following values for Ncwala Plc for the tax year 2019: (i) The capital allowances on buildings (6 marks) (ii) The capital allowances on implements, plant and machinery (8 marks) (d) Compute the final taxable business profit after capital allowances for Ncwala Plc for the tax year 2019. (12 marks) (e) Compute the Income tax payable by the company for the charge year 2019. (7 marks)