QUESTION 2 (12 MARKS)

The following information relates to Uncle G, a carpenter for CARPS partnership: Taxable income from employment N$400 000 Income from sales of woodwork N$100 000 PAYE deducted from employment income N$ 54 000 Contributions to an approved retirement annuity is 10% of income from employment.

REQUIRED: 1. Calculate the correct amount to be deducted as PAYE and indicate the date on which the payment of PAYE should reach the Revenue office. (5) 2. Calculate the 2nd provisional tax payment if no 1st payment has been made. Assume a PAYE of N$54 000. Uncle G would like to pay the minimum acceptable amount. (7)