Task 2: Muscat Shipping LLC Company operates business in Sultanate of Oman and has registered with Muscat Securities Market. According to the Income Tax Act RD No 9/2017 of Chapter IV, Article (112) the establishment must pay Capital gain tax of 15%. The firm had disposed-off the following assets during the year ending 31" December 2019, Asset Date of Purchase Cost (Omani Rials) Sale Proceeds 18,000 15,500 Furniture & Fixtures Motor vehicles Permanent Building Equipment & Tools Heavy equipment 01/09/2018 01/07/2017 01/11/2010 01/06/2018 (Omani Rials) 16,000 8,000 1,350,000 140,000 19,000 1,400,000 150,000 01/09/2018 25,000 Required: 1. As a qualified accountant, calculate capital gains tax payable by Muscat Shipping LLC for the year ended 31st December 2019. 2. Discuss and elaborate on the provisions concerning to the disposal of capital assets according to Sultanate of Oman's Income Tax Law. Task 3: Owing rapid decline in oil prices in Gulf Countries, governments are looking to expand the tax bracket whereby there are plans to levy Value Added Tax along with direct tax. Both type of taxes has their own benefits and shortcomings. Required: Briefly discuss benefits and drawbacks of both direct and indirect Tax. What are the main characteristics of an effective tax system? 1. 2. Question 4 There are different types of challenges faced by the governments when it comes to tax collections, Tax Evasion and Avoidance are among them. Required: Compare and contrast between tax evasion and tax avoidance. APPENDIX 1: Depreciation rates applicable for Tax year 2019/2020. 4% 5% 15% Permanent Buildings First Class buildings Prefabricated buildings Bridges, platforms, pipelines, permanent way, and railway lines Heavy equipment, Tractors, digging equipment, and any other similar heavy equipment Motor vehicles 10% 33.33% 33.33% 3 Furniture and fixtures 33.33% 15% 15% Aircraft and ships Other equipment and tools Hospital buildings and educational establishments Scientific research equipment 100% 100% GUIDELINES