Mr
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Mr. Richard Allen, the director of the hotel, has also requested that your firm assist with the preparation of his 2020 income tax computation. He provided you with the following information: a) Gross salary $7,000,000 per year. b) He was provided with a company car on 1 January 2019. Cost $3,000,000. c) As part of his compensation, he receives a meal allowance of $5,000 per week. d) The company also pays his son school fees for $80,000 per term. (assume 3 terms) e) Rest Well did not deduct any NIS, NHT, Education Tax or PAYE at source. f) Income from the rental of his personal investment property was $500,000. Expenses was $450,000. Capital allowance for this property was $80,000.
Prepare the income tax computation for Richard Allen. Advise him of his statutory obligations (NIS, NHT, Education Tax & PAYE).
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Answer:
| MR.RICHARD ALLEN | |
| GROSS SALARY PER YEAR | 7,000,000.00 |
| MEAL ALLOWANCE $5000 PER | |
| WEAK | |
| MEAL ALLOWANCE FOR THE YEAR | 240,000.00 |
| SONS SCHOOL FEES | 240,000.00 |
| RENT RECEIVED OF PERSONNEL | 500,000.00 |
| PROPERTY | |
| EXPENSES | 450,000.00 |
| TAXABEL INCOME | 7,530,000.00 |
| INCOME TAX 30% | 2,259,000.00 |
| LESS-CAPTAL ALLOWANCE | 80,000.00 |
| INCOME TAX PAYABEL | 2,179,000.00 |
