Sylvia Charles, was born in Trinidad and educated at UWI St. Augustine. She had been an Engineer in the sugar belt with Caroni Limited and moved to Barbados in 2014 to take up a position with a sugar factor in that country. During 2019, she visited Trinidad and Guyana several times as a consultant. She was paid $18,000(TT) but did not transfer any of the money to Barbados as she has elderly relatives to take care of in Trinidad. She received $200,000 (G) and this was remitted to Barbados. She has 3 children, aged 6, 5 and 2. Her husband, a Barbadian is a civil servant.

Sylvia earns $170,000 per year from the sugar factory; she is provided with a car that cost $90,000 when purchased new in 2016 and the accommodation provided by the factory would normally rent for $1500 per month. She pays a nominal rent of $500 per month. She has paid $6,420 in National Insurance contributions and $1,200 in subscriptions to the Professional Engineers Association, as well as $4,400 to a registered retirement plan. She has a covenant with the Barbados Association for the Disabled, a registered charity, and gives them $100 per month.

She own shares in public companies in Barbados and Trinidad and received dividends of $12,000 (BDD) and $10,000(TT) for the year. The Trinidad dividends are not remitted. Sylvia invested in a fishing boat with her husband in 2018 which cost $300,000. They have an arrangement with a fisherman in Oistins to operate it. The arrangement is that the fisherman takes 40% of what he catches and the Charles provide the diesel. For 2019 fish sales were $135,000. They spent $36,000 for the year on diesel. The Charles use the boat several times during the summer holidays for family outings and Sylvia reports 50% of the income on her tax return.

REQUIRED:

1. Calculate the tax payable by Sylvia for the year 2019. [15 marks]

(Assume exchange rates of $1.00 (TT) = $0.30 (BDD) and $1(G) = $0.0096(BDD)

Extract from Barbados Revenue Authority website:

Commencement Date and Rates of Tax Effective July 1, 2019. The following rates will apply to Personal Income Tax:

Taxable Income Rate of Tax Up to and including $50,000 12.5% Over $50,000 33.5%