Question 8b

Hunniford Heating Limited had a total gross income for the year ended 31 March 2023 of $473,625. All of its income is subject to GST. The companys residual income tax for the 2023 tax year was $52,099. The company, which is registered for GST and files its GST returns two-monthly, has opted to pay its 2024 provisional tax using the GST ratio method. Hunniford Heating Limiteds taxable supplies for the two months ended 31 May 2023 were $84,368 and for the two months ended 31 July 2023 were $79,442.

Task

i. Calculate Hunniford Heating Limiteds GST ratio for the 2024 tax year.

ii. Calculate the amount of the companys first two instalments of provisional tax for 2024 and state the due dates for payment.