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5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Limited 1 Name of the student- Topic- Tax analysis of Freedom Insurance Group Limited 5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Li

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Corporate Accounting (HI5020)

   

Added on  2020-05-28

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Tax analysis of Freedom Insurance Group Limited 5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Limited 1 Name of the student- Topic- Tax analysis of Freedom Insurance Group Limited University name Answer to question-1 3 Answer to question-2 4 Answer to question no-3 4 Answer to question no-4 5 Answer to question no-5 7 Answer to question no-6 7 Answer to question no-7 8220 References 10 Appendix 11 . Answer to question-1 After evaluating the annual report of Freedom Insurance Group Limited, it

5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Limited 1 Name of the student- Topic- Tax analysis of Freedom Insurance Group Limited 5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Li

   

Corporate Accounting (HI5020)

   Added on 2020-05-28

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RUNNING HEAD: Tax analysis of Freedom Insurance Group Limited 1Name of the student-Topic- Tax analysis of Freedom Insurance Group LimitedUniversity name
5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Limited 1 Name of the student- Topic- Tax analysis of Freedom Insurance Group Limited 5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Li_1
Tax analysis of Freedom Insurance Group Limited2Table of ContentsAnswer to question-1.............................................................................................................................3Answer to question-2.............................................................................................................................4Answer to question no-3........................................................................................................................4Answer to question no-4........................................................................................................................5Answer to question no-5........................................................................................................................7Answer to question no-6........................................................................................................................7Answer to question no-7........................................................................................................................8References...........................................................................................................................................10Appendix.............................................................................................................................................11.
5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Limited 1 Name of the student- Topic- Tax analysis of Freedom Insurance Group Limited 5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Li_2
Tax analysis of Freedom Insurance Group Limited3Answer to question-1After evaluating the annual report of Freedom Insurance Group Limited, it is analysed thatequity capital of company is accompanied by mainly three parts (Freedom Insurance GroupLimited, 2017).Contributed equity of businessReserveDistributable profit of business.It is observed that contributed capital is the paid up capital which divulges which stakeholders had given to company. Retained earnings or reserve is kept to strengthen the financial position of business (McLaren, Appleyard and Mitchell, 2016).Retained earnings of company has gone down by AUD $ 923 million as it has invested itsreserve in its business with a view to diversify its business. It is evaluated that company has also retained earning with a view to increase the business efficiency. Equity (Amount in million)20152016Contributed equity 8416810Reserve688500Retained earning77914769Total equity 168956079
5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Limited 1 Name of the student- Topic- Tax analysis of Freedom Insurance Group Limited 5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Li_3
Tax analysis of Freedom Insurance Group Limited4Answer to question-2The total amount of tax expenses of Freedom Insurance Group Limited in 2016 is AUD $2086 million which is 62% higher as compared to last year tax payment. This tax expenseshas increased due to the increase in its overall turnover and profit of company. Particular(AUD $ in million)20162017Income tax expenses 20861314However, Freedom Insurance Group Limited has increased the tax deducabile expenses suchas increase in its overall interest expense. It will help Freedom Insurance Group Limited toreduce its tax payment eventually. Answer to question no-3 After evaluating the annual report of company, it is considered that tax expenses shown in theincome statement is not the same amount of tax rate times. Freedom Insurance GroupLimited has paid AUD $ 2086 million tax in 2016 which covers the entire deferred taxamount and other tax implications. On the other hand, tax rate times of Freedom InsuranceGroup Limited is calculated by using accounting income *30% tax rate, i.e. AUD $ 5125million*30%. This amount would be AUD$ 15375. However, there are following reasons forthe differences in tax recording of tax in income statement and computing of the tax amountby using tax rate times. The treatment for computation of the tax payment in financial statement is based ontthe tax rules and regulations while, tax rate times is computed on the net profitcalculated on the basis of accounting rules and regulations.
5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Limited 1 Name of the student- Topic- Tax analysis of Freedom Insurance Group Limited 5 RUNNING HEAD: Tax analysis of Freedom Insurance Group Li_4

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