Calculate John's income tax liability for the year ended 31 March 2022 You may use the...

 

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Calculate John's income tax liability for the year ended 31 March 2022 You may use the following table of tax rates: Taxable Income Up to $14,000 Tax rate (excluding ACC earner's levy) $14,001 to $48,000 17.5% $70,001 to $180,000 10.5% $48,001 to $70,000 30% Over $180,000 33% 39% (from 1 April 2021) Tax in this band $1,470 $5.950 $6.600 $36,300 Cumulative total $1,470 $7,420 $14,020 $50,320 Salary from school Gross rents Interest from ANZ Bank Dividends from XYZ Company Ltd Interest from Melbourne Bank (NZ$) TOTAL $77,321 $32,100* $5,456 $9.694 $8,960 $133,531 $18,060 ** $1,818 $1,694 $1,573 $896 PAYE deducted by employer*** RWT deducted by bank Imputation Credits attached RWT deducted by company Aust tax deducted by bank *Rents are gross, allowable deductions for the year total $12,100 **John paid provisional tax during the year of $5,400 in three instalments ***In addition to PAYE John's employer deducted Accident Compensation earner's levy totalling $773 Also John has received as an inheritance from his late grandfather 5000 shares in Air New Zealand Limited. On the date of receipt, 1 October 2021, these shares were valued at 78 cents each. No dividends have been paid on these shares. Calculate John's income tax liability for the year ended 31 March 2022 You may use the following table of tax rates: Taxable Income Up to $14,000 Tax rate (excluding ACC earner's levy) $14,001 to $48,000 17.5% $70,001 to $180,000 10.5% $48,001 to $70,000 30% Over $180,000 33% 39% (from 1 April 2021) Tax in this band $1,470 $5.950 $6.600 $36,300 Cumulative total $1,470 $7,420 $14,020 $50,320 Salary from school Gross rents Interest from ANZ Bank Dividends from XYZ Company Ltd Interest from Melbourne Bank (NZ$) TOTAL $77,321 $32,100* $5,456 $9.694 $8,960 $133,531 $18,060 ** $1,818 $1,694 $1,573 $896 PAYE deducted by employer*** RWT deducted by bank Imputation Credits attached RWT deducted by company Aust tax deducted by bank *Rents are gross, allowable deductions for the year total $12,100 **John paid provisional tax during the year of $5,400 in three instalments ***In addition to PAYE John's employer deducted Accident Compensation earner's levy totalling $773 Also John has received as an inheritance from his late grandfather 5000 shares in Air New Zealand Limited. On the date of receipt, 1 October 2021, these shares were valued at 78 cents each. No dividends have been paid on these shares.

Answer rating: 100% (QA)

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