Reference no: EM133088094

Question - The summary of the financial statement of New Frontier Limited for 2020 is as follows:

Gross Sales $40,000,000.00

Cost of Sales $30,500,000.00

Operating Expenses $7,550,000.00

New Frontier Limited is the owner of Upper Generation Plaza and receives rental income per month of $110,000.00.

The Company has an affiliate in the UK and receives dividends quarterly of $850,000.00

The rental expenses for 2020 was $1,570,000.00

Capital allowance on machinery was calculated at $550,000.00

Donations were given to an approved charity to the tune of $750,000.00

Total taxes that were withheld for specified services that they provided amounted to $65,500.00 (3% withheld at source).

Interest Income gross amounted to 2,000,000.00 and tax deducted at source was at 5%.

Losses being carried from 2019 is $10,500,000.00.

Total estimated income tax paid during 2020 was $60,000.00.

The company is entitled to ETC in the amount of 354,000.00.

New Frontier Limited is considered a MSME and would benefit from the income tax credit.

New Frontier Limited has decided to increase their chargeable income for 2021 by $1 million. This is due to the expected increase in the Jamaican economy brought on by the vaccination of citizens from COVID-19.

Required - Compute the Jamaican Income Tax Return (IT02) for 2020 for New Frontier Limited and Estimated Jamaican Income Tax return (IT07) for 2021.