(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 t...

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 ...

(a) Briefly explain the purpose of provisional tax and state the RIT threshold for provisional tax. (b)...

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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?

(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.

Posted Date: Sep 19, 2021 09:55 PM

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(a) Briefly explain the purpose of provisional tax and state the RIT threshold for provisional tax. (b)...

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Expert Answer:

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... View the full answer

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