ACC308: Tutorial – Tax Avoidance

Instructions:

1. You may attempt this tutorial in a group of 2, 3, or 4 students. You have the option to do
the tutorial questions individually
2. Please ensure the group members' name and ID number is stated in your submission
3. The weighting for the assessment is 6% towards the coursework
4. The due date for the assessment is 10th June 2020
5. Submission mode: upload a copy on Moodle link AND email to riazm@unifiji.ac.fj

PowerHouse Limited is a registered company in Fiji. For the year ending 31st December
2018, the company’s income tax assessed was $160,000 and allowable foreign tax credit was
$10,000. Furthermore, withholding tax credit was $30,000. In the 2019 financial period, the
advance tax instalments were $45,000 in June, $5,000 in September and $32,000 in
December. However, the actual tax payable in the 2019 financial year is $90,000.

REQUIRED:

1. Compute the Late Payment Penalty for each instalment of the 2019 financial period.
[5 marks]
2. Compute the Adjusted Late Payment Penalty for each instalment of the 2019 financial
period. [5 marks]

Answer these questions with reference to the appropriate Income Tax Act’s section(s).

Good Luck