SA Construction Limited currently operates in Trinidad. The company is considering setting up another location in either Barbados or Jamaica. The Projected Income Statement for 2003 is as follows: Income Sales Interest Income Dividend Income Other Income (exempt) Expenses 20,000 7,000 Repairs & Maintenance 1,500 Legal & professional fees (2) 8,000 Salaries 30,000 Bad debts (3) Other Expenses (4) Taxation 3.000 20,000 2,250 USD 90,000 2,500 6,000 2,000 Notes 1. All Interest was paid. There was no accrued interest at year end. 2. Professional fees consist of Audit and accountancy fees Legal fees recollection of bad debts Cost of setting up business in the selected location $3.600 $2,000 $900 Architect's fee for designing a warehouse that has not yet been constructed $1,500 3. The Bad Debts expense represents a debt which was outstanding for 270 days. 4. Other expenses include $1,000 for expenses paid on behalf of another company owned by SA Construction Limited, $600 for fines and penalties, $1,500 for course Sees of the directors, and expenses relating to exempt income. 5. Capital Allowances of $15,000 was projected. 6. Estimated Tax of $700 was paid to the relevant Tax Authority. 7. Assume Exchange Rates: J$ 150: 1 USD and TTS 6:1 USD Required Part A i. From a corporate tax perspective, in which country would it be more tax beneficial to operate? Ignore Employment Tax Credits, Corporate tax Credits available in Jamaica and other similar credits in Barbados) (6 marks). Explain two main reasons why expenses may not be deductible for income tax/corporation tax purposes. (4 marks) What other factors, if any, should be considered when setting up operations in these countries? (2 marks) it. Discuss the two (2) other taxes that should be considered when setting up operations in either Jamaica or Trinidad. (4 marks) (answer for one country only) Identify two (2) documents that must accompany the Corporation Tax return when it is filed. (a marks)