Kwame Lee has been made redundant from a managerial position in an oil company in Trinidad where he had worked for the p
Posted: Wed May 04, 2022 7:12 am
Kwame Lee has been made redundant from a managerial position in
an oil company in Trinidad where he had worked for the past fifteen
years. His plan is to go into private practice as an environmental
engineer consultant working in Trinidad and the Eastern Caribbean
countries.
Initially, he was unsure whether he should operate as a sole
proprietor, incorporate a company in which he will be the sole
director; or operate in partnership with a former school friend.
However, he was advised that a partnership would be the best
structure.
Kwame intends to employ staff and invest excess cash from the
business in purchasing stocks/shares. The stocks/shares will be
purchased by the partnership but will be held in trust for Kwame
and his children.
Required Prepare a letter to Kwame advising him of:
(a) The advantages and disadvantages of operating as a
partnership.
(b) How the partnership will be taxed and the responsibilities
of each partner.
(c) How the income from the stock/shares will be treated.
(d) The direct taxes and indirect taxes that he will need to
consider, the tax filing obligations which he is required to
fulfill for compliance, the powers of the Revenue Authority and his
responsibility as a taxpayer
an oil company in Trinidad where he had worked for the past fifteen
years. His plan is to go into private practice as an environmental
engineer consultant working in Trinidad and the Eastern Caribbean
countries.
Initially, he was unsure whether he should operate as a sole
proprietor, incorporate a company in which he will be the sole
director; or operate in partnership with a former school friend.
However, he was advised that a partnership would be the best
structure.
Kwame intends to employ staff and invest excess cash from the
business in purchasing stocks/shares. The stocks/shares will be
purchased by the partnership but will be held in trust for Kwame
and his children.
Required Prepare a letter to Kwame advising him of:
(a) The advantages and disadvantages of operating as a
partnership.
(b) How the partnership will be taxed and the responsibilities
of each partner.
(c) How the income from the stock/shares will be treated.
(d) The direct taxes and indirect taxes that he will need to
consider, the tax filing obligations which he is required to
fulfill for compliance, the powers of the Revenue Authority and his
responsibility as a taxpayer