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Guidance on preparing a statement to reconcile net profit with taxable income. It covers topics such as adding back certain expenses, deducting allowable deductions, and calculating the net tax payable by the company. The document also discusses the sources of advice and guidance that can be consulted for income tax-related issues. Likely useful for university students studying accounting, taxation, or finance-related subjects, as it covers practical applications of reconciling financial statements and calculating tax liabilities.
Typology: Exams
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Note- Please show all workings where necessary and you may use additional space Please write your workings/explanations and answers in Blue cells
Net Profit per Financial Report Amount $ Net Profit ADD BACK: Tax Withheld USA 4, Provisions for Customer Warranty Claims 30, ATO Penalties 4, Accounting Depreciation @ accounting rate 60,
Warranty Expenses 11,000. Depreciation Tax 56,535.
Tax on Taxable Income $ 160965 Less PAYG 50,000. Less FITO - 3,300.
Additional Working FITO Tax on 189165@27.5% = 52,020. Less: Tax on (189165-(8000+4000)@27.5% = 48720. Foreign income + Tax Withheld = 8000+4000. Tax offset available $3300 (52020.375 -
Tax on Taxable Income $
below s (if any) 48720.375)
Write your Reasons or Workings (if applicable) Enter amount here $ As given in the statement (^) 130, 4, 30, 4, 60, 228,500. (90000+98000)30%+(90015%)
Note- Please show all workings where necessary and you may use additional spa Please write your workings/explanations and answers in Blue cells
Net Profit per Financial Report Net Profit ADD BACK: Capital Loss on sale of shares
LESS: (if any) Fully franked Dividends
Tax on Taxable Income $ - 55500 PAYG Installment Full Franked Credits Distribution from Unit
Carried Losses (if any) loss carried forward - 2021 loss carried forward - 2022
Capital Losses (if any)
capital loss on sale of shares
Fully Frank Dividends = 7000 Company tax rate = 30% 3000 (7000/(1-0.3))- 7000
Amount $ Write your Reasons or Workings (if applicable) Enter amount here $ as per statement (^) (58,500.00) 10,000.00 10,000. (48,500.00) 7,000.00 7,000. 7,000. (55,500.00)
Workings (if any) Amount (80,000.00) (48,500.00) (128,500.00) Workings (if any) Amount ce below
Part C On behalf of Tax on Medicare Levy Low Income Tax Offset On behalf of Tax on Medicare Levy Low Income Tax Offset On balance Tax on Medicare Levy Low Income Tax Offset Total tax payable by the trustee
Presently Entitled Legal Disability Sections of Act Who is Assessed Yes No s97 Beneficiary Yes Yes s98 Trustee No Yes s98 Trustee Yes No s97 Beneficiary Yes No s97 Beneficiary No Yes s98 Trustee Show your workings (^) $ 16800 * 15% 16800 * 2%
(19% x ($16800)) 3,192. (700.00) $2,492. (19% x ($16800)) 16800 * 2%
space below
Amount Distributed 50400 16800 16800 16800 8400 16800 10000 136000
Note- Please show all workings where necessary and you may use additional space below Please write your workings/explanations and answers in Blue cells
Receipt Items Receipt Amount $ Gross fees 610, Gross Bank interest 1, Total Assessable Income Deductible Expense items Deductible Amount $ Int on Over draft 7,000. Other overheads (deductible) 168,000. Wages to employees 250,000. Employees superannuation 10,000. Lease of Equipment 45,000. Interest on Loan - Robert 10,000. Depreciation 34,000. Total Deductible Expenses
Adjusted Net Income Amount $ Gross income (^) 611,000. Deductible Expenses (^) 524,000. Adjusted Net Income
Write your Reasons or Workings Enter Claimable amount $ 610,000. 1,000. 611,000. Workings (show clearly) Enter Claimable amount $ 7,000. 168,000. 250,000. 10,000. 45,000. 10,000. 34,000. 524,000. 87, Workings (show clearly) Enter amount $ 611,000. (524,000.00) 87,000.