Question 5

Imlie is a Fiji resident and is running a sole trader distribution business. She earned net profit of $238000 in 2020. She also has a flat for rent and received $8000 rent in 2020. Imlie applied for government grant and received $5000 loan. The repayments will start from 2021 with 2% interest per annum.

She continued as an employer to contribute 10% towards employees FNPF. ( i.e Employee contribution 5%, employer contribution- 10%). The total wages paid amounted to $55000

Imlie send four employees for training on marketing with accredited training provider and paid the training cost of $4000.

Moreover, Imlie donated $60000 to Ba football association and got the donation registered with National sports commission.

i) Calculate the total Income for Imlie? (3marks)

ii) Calculate the total deductions for Imlie? (5 marks)

iii) Calculate the total taxes to be paid by Imlie for the year 2020 (2 marks)

Use the reference percentage and rates from form B (2020) Source-Fiji Revenue and Customs Service to answer question 5