Tax Tables Use the following tax tables to answer your questions, where necessary. Rates of tax from 2016/2017 tax years Resident companies On taxable income Standard rate 22% Manufacturing company rate 15% Non-resident companies Standard rate 30% Resident individuals P0 P36,000 Nil P36,001 P72,000 Nil + 5% of excess over 36 000 P72,001 P108,000 P1,800 + 125% of excess over 72 000 P108,001 P144,000 P6,300 + 1875% of excess over 108 000 Over P144,000 P13,050 + 25% of excess over 144 000 Capital gains individuals P0 P18,000 Nil P18,001 P72,000 P0 + 5% of excess over 18 000 P72,000 P108,000 P2,700 + 12.5% of excess over 72 000 P108,000 P144,000 P7,200 + 18.75% of excess over 108 000 Over P144,000 P13,950 + 25% of excess over 120 000 Capital gains companies Net aggregate gains are taxable at the company rates of tax. Tax on Foreign dividend 15% Basis of valuation of benefits Value added tax (VAT) rate 12% Individuals vehicle benefit Vehicle cost Employee benefit Fuel cost adjustment P1 - P50 000 P2 500 P1 000 P50 001 - P100 000 P5 000 P2 000 P100 001 - P150 000 P7 500 P3 000 P150 000 - P200 000 P10 000 P4 000 Benefit on the excess of P200 000 is 15% thereof with a maximum fuel cost adjustment of P5 000. Individuals housing benefit: If rated: 10% of the propertys rateable value prorated by occupation and reduced by any contribution made by the employee. If not rated: Gross floor area x P250 per sq metre x 8% for a standard building The benefit is prorated by period of use and reduced by any contribution made by the employee. Individuals furniture benefit 10% of furniture cost in excess of P15, 000 pro - rated by usage. Tax Tables Use the following tax tables to answer your questions, where necessary. Rates of tax from 2016/2017 tax years Resident companies On taxable income Standard rate 22% Manufacturing company rate 15% Non-resident companies Standard rate 30% Resident individuals P0 P36,000 Nil P36,001 P72,000 Nil + 5% of excess over 36 000 P72,001 P108,000 P1,800 + 125% of excess over 72 000 P108,001 P144,000 P6,300 + 1875% of excess over 108 000 Over P144,000 P13,050 + 25% of excess over 144 000 Capital gains individuals P0 P18,000 Nil P18,001 P72,000 P0 + 5% of excess over 18 000 P72,000 P108,000 P2,700 + 12.5% of excess over 72 000 P108,000 P144,000 P7,200 + 18.75% of excess over 108 000 Over P144,000 P13,950 + 25% of excess over 120 000 Capital gains companies Net aggregate gains are taxable at the company rates of tax. Tax on Foreign dividend 15% Basis of valuation of benefits Value added tax (VAT) rate 12% Individuals vehicle benefit Vehicle cost Employee benefit Fuel cost adjustment P1 - P50 000 P2 500 P1 000 P50 001 - P100 000 P5 000 P2 000 P100 001 - P150 000 P7 500 P3 000 P150 000 - P200 000 P10 000 P4 000 Benefit on the excess of P200 000 is 15% thereof with a maximum fuel cost adjustment of P5 000. Individuals housing benefit: If rated: 10% of the propertys rateable value prorated by occupation and reduced by any contribution made by the employee. If not rated: Gross floor area x P250 per sq metre x 8% for a standard building The benefit is prorated by period of use and reduced by any contribution made by the employee. Individuals furniture benefit 10% of furniture cost in excess of P15, 000 pro - rated by usage.

France Brain runs two businesses Xcessstationery and Excel Art. He sold Excel Art and running only Xcess Stationery. He had produced the following details for the year ended 30 June 2020. Income P P Revenue 2,964,151 Cost of sales (2,194,790) 769,361 Sales proceeds - Excel Art (Including a Plant and Machinery at P130,000) 590,000 Insurance Claim 5,728 Shares proceeds 152,470 Refund of loan from a friend 100,000 1,617,559 Expenses Vehicle maintenance 33,619 Purchase of shares in G4 Securities 43,130 Rent 57,054 Water Bill 39,255 Salary for France Brain 72,000 Wages 356,410 Donation 13,000 Bad debts 14,000 Purchase of a Van 98,500 (726,968) NET PROFIT 890,591 Additional Information 1. The following balances of fixed assets were given as on 30 June 2019. P & M Vehicles Total Cost 305,726 353,240 658,966 Capital allowance (75,160) (121,318) (196,478) 230,566 231,922 462,488 The plant and machinery that formed a part of sale of Excel Art had a cost of P179,000 and capital allowance at 30 June 2019 was P78,500. 2. France s other source of income; Income (P) WHT (P) Interest 7646 765 Dividend 3360 252 Commission 4434 443 Required a. Calculate capital allowances for the year ending 30 June 2020 (3 marks) b. Calculate Balancing gain/charge on disposal of P $ M (2 marks) c. Calculate Frances chargeable income for the year ending 30 June 2020 (15 marks) d. Calculate his taxable income for the same year (5 marks)