Tropical Paradise Limited owns a franchise of restaurants on a Caribbean island. An analysis of the financial accounts for the year ended 31 October 2019 was as follows: Gross profit from restaurant sales $ 14, 721,000 Other Income Capital Gain from sale of property 343,000 Interest on Government debenture 65,000 Dividends received from local companies 92,000 Bank deposit interest 21.200 521,200 15, 242, 200 Less Electricity 138,700 Depreciation (1) 148,000 Wages & Salaries 1,245,350 Directors' fees 700,960 Advertising 40,500 Postage, telephone and stationery 104,500 Loan interest payable 35,000 Professional fees (2) 136,400 Miscellaneous expenses (3) 36,300 Subscriptions and donations (4) 14,000 Travel and entertainment (5) 50,000 Franchise fee 500.000 3,149,710 NET INCOME $12,092.490 Figures in brackets refer to notes: (1) Depreciation charged is $50,000 more than the wear and tear allowances allowed by Inland Revenue (2) Professional fees: Audit and accountancy 60,000 Cost of successful tax appeal 1,000 Legal fees re collection of bad debts 3,600 Cost of defending action by a former employee for sexual harassment 25,000 Architect's fee for designing a new Warehouse which was not used 46,800 $ 136,400 (3) Miscellaneous expenses Expense accounts for overseas sales persons 24,500 Christmas gifts to office staff by owners 11.800 S 36,300 1,200 (4) Subscriptions and donations Subscriptions to local newspapers Donation to owner's alumni university Overseas Contribution to local football team 7,000 5,800 $ 14,000 (5) Travel and entertainment Travel by owners to conference in Miami for restaurant owners 5,000 Entertainment of overseas travel agents 3,000 Purchase of new bus to transport staff 30,000 Maintenance and upkeep of staff bus 12.000 $ 50,000 (a) Calculate the corporation tax assessable and payable if these restaurants are located in Jamaica, Trinidad or St Lucia (Select only 1 country) [15 marks As part of the calculation, indicate as a note why any item in the financial accounts has been excluded. (You must indicate which country you have selected) Corporation tax rates Jamaica 30% Trinidad 25% St Lucia 30% (b) Identify 5 documents that must accompany the corporation tax return when it is filed. Tropical Paradise Limited owns a franchise of restaurants on a Caribbean island. An analysis of the financial accounts for the year ended 31 October 2019 was as follows: Gross profit from restaurant sales $ 14, 721,000 Other Income Capital Gain from sale of property 343,000 Interest on Government debenture 65,000 Dividends received from local companies 92,000 Bank deposit interest 21.200 521,200 15, 242, 200 Less Electricity 138,700 Depreciation (1) 148,000 Wages & Salaries 1,245,350 Directors' fees 700,960 Advertising 40,500 Postage, telephone and stationery 104,500 Loan interest payable 35,000 Professional fees (2) 136,400 Miscellaneous expenses (3) 36,300 Subscriptions and donations (4) 14,000 Travel and entertainment (5) 50,000 Franchise fee 500.000 3,149,710 NET INCOME $12,092.490 Figures in brackets refer to notes: (1) Depreciation charged is $50,000 more than the wear and tear allowances allowed by Inland Revenue (2) Professional fees: Audit and accountancy 60,000 Cost of successful tax appeal 1,000 Legal fees re collection of bad debts 3,600 Cost of defending action by a former employee for sexual harassment 25,000 Architect's fee for designing a new Warehouse which was not used 46,800 $ 136,400 (3) Miscellaneous expenses Expense accounts for overseas sales persons 24,500 Christmas gifts to office staff by owners 11.800 S 36,300 1,200 (4) Subscriptions and donations Subscriptions to local newspapers Donation to owner's alumni university Overseas Contribution to local football team 7,000 5,800 $ 14,000 (5) Travel and entertainment Travel by owners to conference in Miami for restaurant owners 5,000 Entertainment of overseas travel agents 3,000 Purchase of new bus to transport staff 30,000 Maintenance and upkeep of staff bus 12.000 $ 50,000 (a) Calculate the corporation tax assessable and payable if these restaurants are located in Jamaica, Trinidad or St Lucia (Select only 1 country) [15 marks As part of the calculation, indicate as a note why any item in the financial accounts has been excluded. (You must indicate which country you have selected) Corporation tax rates Jamaica 30% Trinidad 25% St Lucia 30% (b) Identify 5 documents that must accompany the corporation tax return when it is filed
