SA Construction Limited currently operates in Trinidad. The company is considering setting up another location in either

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Sa Construction Limited Currently Operates In Trinidad The Company Is Considering Setting Up Another Location In Either 1 (57.52 KiB) Viewed 34 times

SA Construction Limited currently operates in Trinidad. The company is considering setting up another location in either Barbados or Jamaica. The Projected Income Statement for 2023 is as follows: USD Income Sales 90,000 2,500 Interest Income Dividend Income Other Income (exempt) 6,000 2,000 Depreciation Interest Expenses (1) Repairs & Maintenance Legal & professional fees (2) Salaries Bad Bad debts (3) 20,000 Other Expenses (4) Taxation 2,250 Notes 1. All Interest was paid. There was no accrued interest at year end 2. Professional fees consist of: • Audit and accountancy fees $3,600 Legal fore collection of bad debts Cost of setting up business in the selected location $2,000 $900 $1,500 • Architect's fee for designing a warehouse that has not yet been constructed 3. The Bad Debts expense represents a debt which was outstanding for 270 days. 4. Other expenses include $1,000 for expenses paid on behalf of another company owned by SA Construction Limited, $600 for fines and penalties, $1,500 for course Sees of the directors, and expenses relating to exempt income. 5. Capital Allowances of $15,000 was projected. 6. Estimated Tax of $700 was paid to the relevant Tax Authority. 7. Assume Exchange Rates JS 150: 1 USD and TT$ 6:1 USD Required Part A i. From a corporate tax perspective, in which country would it be more tax beneficial to operate? Ignore Employment Tax Credits, Corporate tax Credits available in Jamaica and other similar credits in Barbados) (6 marks) i Explain two main reasons why expenses may not be deductible for income tax/corporation tax purposes. (4 marks) What other factors, if any, should be considered when setting up operations in these countries? (2 marks) it Discuss the two (2) other taxes that should be considered when setting up operations in either Jamaica or Trinidad. (4 marks) (answer for one country only) 1. Identify two (2) documents that must accompany the Corporation Tax return when it is filed. (2 marks) 20,000 7,000 1,500 8,000 30,000 3.000