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(a) Briefly explain the purpose of provisional tax and state the RIT threshold for provisional tax. (b) What is the consequence of underestimating provisional tax?
(a) Briefly explain the purpose of provisional tax and state the RIT threshold for provisional tax.
(b) What is the consequence of underestimating provisional tax?
(c) When is the ratio option suitable and how is it calculated?
(d) When is the estimation options suitable?
(e) A company chooses to use the standard method to calculate its 2019 provisional tax. The companys residual income tax for the 2018 income year is $100,000. Calculate the 2019 provisional tax and provisional tax instalments.
(a) Briefly explain the purpose of provisional tax and state the RIT threshold for provisional tax.
(b) What is the consequence of underestimating provisional tax?
(c) When is the ratio option suitable and how is it calculated?
(d) When is the estimation options suitable?
(e) A company chooses to use the standard method to calculate its 2019 provisional tax. The companys residual income tax for the 2018 income year is $100,000. Calculate the 2019 provisional tax and provisional tax instalments.
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
978-0078025587
