Group Assignment 2014
TAXATION
Fall semester 2014
Lecturer: Ms. Le Phuong Thao, MBA
Group Assignment
Due date: 1 pm Thursday 25 Dec 2014
A soft copy must be submitted via BB, a hard copy must be handed to the lecturer in class.
Son Ha is a Vietnamese joint stock company in the field of manufacturing and selling silver products.
The company is seeking your assistance with regard to their corporate income tax (CIT) for the year ended 31 December 2014.
Son Ha’s financial statements for the year 2014
Note
VND million
Sales revenue
1
800,000
Cost of sales
2
(540,000)
Gross profit
260,000
Selling and distribution expenses
3
(120,000)
General and administration expenses
4
(80,000)
Operating profit
60,000
Financial expenses
5
(100,000)
Financial income
6
23,000
Other non-operating income
7
8,000
Net Loss
(9,000)
Note 1: Of which
Sales to TopAmerica of 1,000 units at a price of 500,000/unit (the normal sale price is 650.000/unit). In return, TopAmerica provide Son Ha an interest free loan of VND 1b for the whole year, otherwise Son
Ha has to borrow from Sacombank at the rate of 10%/year
Note 2: Of which
VND12,000 million is 12 months depreciation charges of the new factory (the factory was completed on 30.9.14, but the company decides to make a full year charge for 2014)
VND200million is depreciation charge of a machine purchased on Jan 1, 2014 by installments.
Annual payment is 400million in 3 years. Lump sum purchase price is 990 million. The useful life under circular 45 is 6 years.
Note 3: of which:
VND300 million accrued bonus for employees of Sale Department as reward for their excellent performance in the year 2014. The bonus is clearly stated in the labour contracts signed between the company and employees. Of VND300 million, VND 100 million will be paid at Lunar New
Year 2015 and the rest will be paid at the Labour Day 2015. There was not any provision made in 2014 for salary fund.
Payment of medical insurance premium for Sale Director VND 100 million
Fall semester 2014
Lecturer: Ms. Le Phuong Thao, MBA
Group Assignment
Due date: 1 pm Thursday 25 Dec 2014
A soft copy must be submitted via BB, a hard copy must be handed to the lecturer in class.
Son Ha is a Vietnamese joint stock company in the field of manufacturing and selling silver products.
The company is seeking your assistance with regard to their corporate income tax (CIT) for the year ended 31 December 2014.
Son Ha’s financial statements for the year 2014
Note
VND million
Sales revenue
1
800,000
Cost of sales
2
(540,000)
Gross profit
260,000
Selling and distribution expenses
3
(120,000)
General and administration expenses
4
(80,000)
Operating profit
60,000
Financial expenses
5
(100,000)
Financial income
6
23,000
Other non-operating income
7
8,000
Net Loss
(9,000)
Note 1: Of which
Sales to TopAmerica of 1,000 units at a price of 500,000/unit (the normal sale price is 650.000/unit). In return, TopAmerica provide Son Ha an interest free loan of VND 1b for the whole year, otherwise Son
Ha has to borrow from Sacombank at the rate of 10%/year
Note 2: Of which
VND12,000 million is 12 months depreciation charges of the new factory (the factory was completed on 30.9.14, but the company decides to make a full year charge for 2014)
VND200million is depreciation charge of a machine purchased on Jan 1, 2014 by installments.
Annual payment is 400million in 3 years. Lump sum purchase price is 990 million. The useful life under circular 45 is 6 years.
Note 3: of which:
VND300 million accrued bonus for employees of Sale Department as reward for their excellent performance in the year 2014. The bonus is clearly stated in the labour contracts signed between the company and employees. Of VND300 million, VND 100 million will be paid at Lunar New
Year 2015 and the rest will be paid at the Labour Day 2015. There was not any provision made in 2014 for salary fund.
Payment of medical insurance premium for Sale Director VND 100 million