All amounts are in New Zealand dollars and GST$-$exclusive unless otherwise stated.

Please answer the question following NZ tax law.

Jana Sderberg is a tax resident of New Zealand who is employed as a policy analyst by a government agency in Wellington.

In the income year ended $31$ March $2024,$ Jana received the following taxable income:

A gross salary of $$130,000$ from her job as a policy analyst, with PAYE of $$33,820$ deducted $($net of ACC levies$).$

A gross dividend of $$22,500$ from a New Zealand resident company, which was fully imputed. No RWT was withheld on this dividend.

Foreign sourced interest income of $$37,500,$ for which Jana has correctly calculated she is entitled to a foreign tax credit of $$3,750.$

Jana has therefore correctly calculated her net income for the year ended $31$ March $2024$ as $$190,000.$ She has not paid any provisional tax for the income year ended $31$ March $2024.$ Jana has losses carried forward from a prior year of $$50,000$ from a failed partnership venture.

 

 

Required:

$($a$)$ Calculate Jana's terminal tax payable$/($refundable$)$ for the income year ended $31$ March $2024.$ Show all workings.

$($b$)$ Briefly explain the result of this calculation for Jana.

  

Answer rating: 100% (QA)

Janas Net Salary is Gross Salary Payee 130000 33000 97000 Tax can be computed as 33630 30... View the full answer