Question 1

Resident Tax

This information relates to Mr. Krishna Ram for financial year 2020.

Mr. Kumar for the past 44 years has lived in Suva. He is employed as a Professor Local University and earns salary of $240,000. He is a member of Fiji National Provident Fund.

As part of his employment contract

He gets gratuities of $15000 each year.

He is an adjunct professor in one of the overseas university for which he has voluntary resigned and received Voluntary payments of $10000.

receives interest Income from BSP bank for his fixed deposit $5000, interest withholding tax deducted (certificate shows) $500.

receives royalties for his publication and scientific research published A* ranked Journals. Each month he receives $2500 for his contributions.

received Lump-sum payment of $3000 from a local company who engaged in a scientific research.

has also invested in Fijian Holding unit trust and receives Dividend income of $1000 per six month.

has spent $20000 towards holiday in Laucala islands for relaxation & holiday.

Required:

Calculate the Income tax for Mr. Ram for the 2020 using the Fiji Income Tax Act 2015.