Incorporate public company tax calculation

Crazy Jones Ltd has made the following profit or loss for the past 3 years:

2014: Net loss before tax: $150000

2015: Net income before tax: $90000

2016: Net income before tax: $110000

Company tax rate is 30%.

Suppose Crazy Jones is solely owned by Mr David Jones. Crazy Jones decided to pay $100000 dividend to David Jones. Calculate the tax payable under

(i) Classical tax system and

(ii) dividend imputation system. Assume that there is no tax threshold and Mr David Jones is subject to 45%. Determining an individual's tax payable from various income sources

Mr Julian incurred the following transactions during the financial year ending 30 June 2020.

Profit from Fusion cuisine partnership business $5340.90

Gross salary from his work as Food shop manager: $52000

PAYG summary shows that he paid $4200 tax during the year.

He received dividend from his shares at Telstra: $2450 (Includes franking credit).

There has been work related expenses of $3500 which is deductible for tax purpose.

Calculate tax payable/receivable for Mr Beck for the financial year ending 30 June 2020. Please use the income tax rates given in the appendix

Taxable income	Tax on this income
0 - $18,200	Nil
$18,201 - $37,000	19c for each $1 over $18,200
$37,001 - $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 45c for each $1 over $180,000

Answer rating: 100% (QA)

Answer Crazy Jones Ltd Tax Calculation i Classical Tax System 2014 Net loss before tax 150000 No tax ... View the full answer