The Inland Revenue Department will only tax the gains on the financial assets when realised. Fines, penalties and entertainment expenses are not deductible for tax purposes. Dividend income received is net of taxes. Assume a tax rate of 28%. . Expenses are classified in the Statement of Comprehensive Income by nature. . Included in the contributed equity is an amount of $1,230,000 representing capital contribution of ordinary shares at $2.50 per share that were issued during the year ended 31 December 2012. Required