The client PAYG details are available in the appendix document PAYG Instalment. Undertake the following details: Calculate
Question:
The client PAYG details are available in the appendix document ‘PAYG Instalment’. Undertake the following details:
- Calculate the new installment rate based on these figures.
- Calculate how much the business paid in the first two installments.
- Calculate the variation credit that can be claimed and describe why they can claim a variation credit. Describe what calculations are being made at each step.
appendix: PAYG Instalment
A PYAG installment payer can vary the PAYG installments if they believe that their circumstances have changed and that they might be paying too little or too much.
The ATO has calculated the business rate to be 18.75% based on an income from the previous assessable period of $90,000. The installment income for the first quarter (1 July to 30 September) was $21,000 and the second quarter (1 October to 31 December) was $15,000.
The business has paid PAYG for the first quarters of the year based on this rate but sales have dropped dramatically and expected income for the year is anticipated to be around $60,000. They have calculated their estimated income tax to be $8,900.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill