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Relying on principles laid down in case laws and the relevant provisions of the Mauritius Income Tax Act 1995, advise on the tax liability of the persons in the following instances:
(a) Rs 20 000 and a tailored suit was given by Zaad Ltd, an advertising agency, as a Christmas gift to each advertising agent of Zaad Ltd to maintain a feeling of happiness and loyalty towards the company. A payment of Rs 15 000 was also done to each advertising agent as a reimbursement of an annual subscription to a private club at which the advertising agents meet prospective customers of Zaad Ltd.
(b) Mr. Roger, a professional volleyball player who has played various tournaments received a signing fee of Rs 50 000 on joining the national volleyball team of Mauritius and Rs 100 000 was given to him by his volleyball association in recognition of the victory of Mauritius at the recent Indian Ocean Island Games.
(c) Mrs Jane, an employee of AB Partners and Consultants, an accountancy firm, was expected to take the ACCA professional examinations to qualify as a chartered accountant. On successful completion of the qualifying examinations, Mrs Jane was given a cash award of Rs 25 000 by AB Partners and Consultants.
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