Assignment Problem Two - 1 (Individual Tax Instalments) The following table contains information for Gladys Nite for the three years ending December 31, 2019. The Tax Payable column is her combined federal and provincial Tax Payable. The amounts in the columns titled Case One, Two and Three are the amounts withheld by her employer in three independent cases. Tax Payable Case One Case Two Case Three 2017 $18,880 $14,480 $19,280 $15,280 2018 20,320 19,720 14,880 16,160 2019 (Estimated) 21,760 18,640 18,560 19,440 Required: A. For each of the three cases: indicate whether instalments are required for the 2019 taxation year. Show all of the calculations required to make this decision; in those cases where instalments are required, indicate the amount of the instalments that would be required under the approach used in the CRA's instalment reminder; and in those cases where you have calculated the instalments required under the CRA's instalment reminder approach, indicate whether there is a better approach and, if so, calculate the required instalments under that approach. B. For those Cases where instalments are required, indicate the dates on which the payments will be due. During the following year ending January 31, 2018, the federal Tax Payable was $215,567. While final figures are not available at this time, it is estimated that federal Tax Payable for the year ending January 31, 2019 will be $203,345. Required: A. Calculate the instalment payments that are required for the year ending January 31, 2019 under each of the alternative methods available. Indicate which of the alternatives would be preferable. B. If the Company did not make any instalment payments towards its 2019 taxes payable, and did not file its corporate tax return or pay its taxes payable on time, indicate how the interest and penalty amounts assessed against it would be determined (a detailed calcula- tion is not required). Assignment Problem Two - 1 (Individual Tax Instalments) The following table contains information for Gladys Nite for the three years ending December 31, 2019. The Tax Payable column is her combined federal and provincial Tax Payable. The amounts in the columns titled Case One, Two and Three are the amounts withheld by her employer in three independent cases. Tax Payable Case One Case Two Case Three 2017 $18,880 $14,480 $19,280 $15,280 2018 20,320 19,720 14,880 16,160 2019 (Estimated) 21,760 18,640 18,560 19,440 Required: A. For each of the three cases: indicate whether instalments are required for the 2019 taxation year. Show all of the calculations required to make this decision; in those cases where instalments are required, indicate the amount of the instalments that would be required under the approach used in the CRA's instalment reminder; and in those cases where you have calculated the instalments required under the CRA's instalment reminder approach, indicate whether there is a better approach and, if so, calculate the required instalments under that approach. B. For those Cases where instalments are required, indicate the dates on which the payments will be due. During the following year ending January 31, 2018, the federal Tax Payable was $215,567. While final figures are not available at this time, it is estimated that federal Tax Payable for the year ending January 31, 2019 will be $203,345. Required: A. Calculate the instalment payments that are required for the year ending January 31, 2019 under each of the alternative methods available. Indicate which of the alternatives would be preferable. B. If the Company did not make any instalment payments towards its 2019 taxes payable, and did not file its corporate tax return or pay its taxes payable on time, indicate how the interest and penalty amounts assessed against it would be determined (a detailed calcula- tion is not required)
