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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 company’s residual income tax for the 2018 income year is $100,000. Calculate the 2019 provisional tax and provisional tax instalments.
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a Provisional tax is not a separate tax from income tax It is a method of paying the income tax liability in advance to ensure that the taxpayer does not remain with a large tax debt on assessment Pro...
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
