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A Victorian business has a turnover of $3 million and a net profit before tax of $300,000 as at 30 June 2020.
Problem 1: Using 2019/2020 tax rates, you are required to calculate the income tax payable if the business is:
a) A private company
b) A sole trader
c) A 2 person partnership
d) The business anticipates it will grow its profit by 7% per annum for the next 3 years. Identify the profit at the end of the 3rdyear and explain with your reasons which structure you would use.
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