Calculate the new instalment rate based on these figures

Assignment Help Financial Accounting

Reference no: EM133561149

Question: A PAYG instalment payer can vary the PAYG instalments if they believe that their circumstances have changed and that they might be paying too little or too much. Consider the following scenario, the rates are examples only and do not reflect current tax rates. The ATO has calculated the businesses rate to be 18.75% based on an income from the previous assessable period of $90,000. The instalment income for the first quarter (1 July to 30 September) was $21,000 and the second quarter (1 October to 31 December) was $15,000. The business has paid PAYG for the first two quarters of the year based on this rate but sales have dropped dramatically and expected income for the year is anticipated to be around $60,000. They have calculated their estimated income tax to be $8,900.

a) Calculate the new instalment rate based on these figures. To find the new rate, divide the estimated tax by the estimated annual income. $8900 / $60000 = 14.83%

b) Calculate how much the business paid in the first two instalments. 36,000 x 18.75% = 6750

c) Calculate the variation credit that can be claimed and explain why it can be claimed. Show the calculations.

Reference no: EM133561149

Questions Cloud

What type of consumer involvement is required in choosing : What type of consumer involvement is required in choosing an airline ticket? Describe the consumer purchase decision process as it relates to purchasing

Compute the weighted average number of shares : Compute the weighted average number of shares outstanding during the year and Compute the basic earnings per share for 2007. (Round to the nearest penny.

Analyze the objective portion of the note : Analyze the objective portion of the note. List additional information that should be included in the documentation.

How could a business improve its cash flow : How could a business improve its cash flow to ensure sufficient funds are available to meet taxation obligations? Conduct independent research as needed

Calculate the new instalment rate based on these figures : Calculate the new instalment rate based on these figures. To find the new rate, divide the estimated tax by the estimated annual income. $8900 / $60000 = 14.83%

Find three marketing-based csr examples : Watch the below video on the 17 Goals of Sustainable Development and find three marketing-based CSR examples of how corporations are actively addressing these

Write a paper over a relevant maternal-infant nursing topic : Write a paper over a relevant maternal-infant nursing topic that is addressed by a Healthy People 2030 objective. Healthy People 2030 objectives.

Discuss any relevant insights gained : Explain how the event aligns with or challenges these concepts, and discuss any relevant insights gained. Write a concise summary 1 full paragraph

What exactly would you say to attract gender-diverse : What exactly would you say to attract gender-diverse employees? Create a presentation (around 7-8 slides) that you would use in a hiring presentation.

User Account

All Pages