Tax Computation of Individual - Desklib Online Library

Tax Computation of Individual
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Name of the student
Topic-
University Name
TABLE OF CONTENT

Tax Computation of Individual
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S
memo....................................................................................................................................................1
Computation of the Net income of the Rachel......................................................................................1
Commutation of the net income after deducting all the expenses.......................................................4
Taxable income for the Rachel IN 2017.................................................................................................6
Net income of Roland............................................................................................................................9
Computation of the Net income of Roland..........................................................................................10
Computation of the taxable income for Roland..................................................................................11
Computation of the Tax of the Roland................................................................................................12
REFERENCES........................................................................................................................................14

Running Head: Tax Computation of Individual
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MEMO
To Mr. and Mrs. Sorter
Addresses
Date-
Dear Sir/ Madam
The income tax is the amount of tax payable by the individual on his earning to the
government. However, the government has issued tax slab rate for the individuals which
reflects the percentage of tax charged on the certain amount.
Each and every individual in Canada needs to report their total income for the
previous year in the assessment year. There are several deductions and tax allowances are
given by the government to them.
Each and every person who is having earning below $ 46605 is exempt to pay tax to
government. Individual having income more than $ 46605 will be liable to pay tax as per the
legal liabilities and laws (Nerudová, & Solilová, 2018).
Description of the payment of tax
Individual will be exempt to pay tax on his earning till $ 46605.
After that the tax will be charged @ 15% on his next $ 46605 earning.
After that rest of his income till following $ 46605 will be charged @ 20.5%.
Even after, if individual is having earning more than that, he will be charged with the
income tax rate of 29% on the next $61,353 (Nicholls, et al. 2018).
Rest of his/ her all income will be charged with the rate of 33% if total income
exceeds $205,842
 Ronald needs to pay income tax of $ 7,463.00 to government
 Rachel has to pay income tax of $ 55242 to government
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Running Head: Tax Computation of Individual
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COMPUTATION OF THE NET INCOME OF THE RACHEL
Calculation of Total income of Rachel
Income from employment
Business revenue from legal practice $
4,11,000.00
Total income from employment $
4,11,000.00
Income from Investments
Capital Gains $
12,750.00
Eligible Dividends $
11,500.00
Interest income $
6,300.00
Total investment income $
30,550.00
Income from RRSP
Additionally contribution $
14,500.00
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