Taxation Income assignment
Added on 2021-04-21
7 Pages1171 Words35 Views
|
|
|
TAXATIONTABLE OF CONTENT
SMEMO.......................................................................................................................................1Net income of Rachel.................................................................................................................2Taxable income of Rachel for the year 2017.............................................................................3Federal tax..................................................................................................................................3Net income of Rolando..............................................................................................................4Taxable income of Rolando for the year 2017...........................................................................4Federal tax..................................................................................................................................5REFERENCES...........................................................................................................................6
MEMOToMR and Mrs sorterSub: Summary of the net tax returnsIntroductionTax is a global obligation imposed on an individual or a group of individuals for the incomeearned by them in a particular financial year. Tax is levied on the employment incomewhether working as an employee of a company or owning a business as a self-employed arerequired in paying the tax on various rates applicable to different kind of individuals. In thecurrent case business income of Mr. Roland and Mrs. Rachel is used to ascertaining theamount of total tax levied on their income (Kaden, Grussu, Ning Tax & Veraart, (Eds.)2018). A Rachel and Rolando life in Canada that means Canadian taxation rules andregulations is used to ascertain their tax liability for the year 2017. Rachel and Roland bothare self-employed who runs their business separately for which they have to pay the taxamount.Tax summaryTax is separately calculated for both the clients such as Rachel and Rolando as their businessincome earned separately from each other. The first talk about Rachel’s income, Rachel is alawyer by profession who earned legal revenues of $411000 as business revenue. Investmentincome of Rachel includes capital gains of $12750, eligible dividends of $11500 and interestincome of $6300 which in total accounts for $30550. RRSP contribution of the client is$5700 which is a different amount of the additional contribution of $14500 and un-deductedcontribution of $8800. 50% of the spouse pension income of $2300 is credited in the accountof Rachel which in total her total income accounts for $449550. In ascertaining the amount ofnet income, all the expenses incurred in a business and the personal expenses of the client isconsidered to know the net income of Rachel for the year are $223938.6 which includesdeductions of RRSP worth of 20880 which is 18% of the earned income of $116000, totalasset acquisition cost of $28000, cost of operating is $113000. In determining the taxableincome of Rachel, non-capital loss of $82385 and a capital gain of $12750 is deducted todetermine the taxable income of $128803 on which tax is payable of $47341.63 which isrounded off to $47342.Now talking about the tax of another client that is Mr Roland, Whose total income includesIncome from employment worth of $71936 which have various components such as salary of$66500, RPPC of $4600 and EI premium worth of $836. There is no income frominvestments of the client and RRSP income of the client worth of $1000 which created thetotal income of $72936 (Arnold, 2018). Net income of Roland is $48906.71 which includesvarious deductions deducted from the total income worth of $8640 as a RRSP deduction,Pension amount of $4100, cost of vehicle worth of $5689.286 which is ascertain byconsidering the personal km run by Roland, hotel cost of $2800 and food cost of $930 whichin total amounts to $3730 is forfeited as an employer gives a total allowance of $3800. So thetotal deduction is worth of $24029.29 to ascertain the amount of net income of worth$48906.71. Tax applicable on the taxable income of Mr Roland is $7501 along with the CPPcontribution of $2564 and union dues of $460 which increases the federal tax of Mr Rolandto $10525. Tax of Rachel is $47342 which is $36817 more than her spouse Rachel is due toless deduction deducted from the income of Rachel needs to control its earnings of the year.Yours AffectionatelyTax consultant1
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Tax Computation of Individual - Desklib Online Librarylg...
|15
|1174
|331
Tax Computation of Individual - Deskliblg...
|14
|1143
|95
Income Statement Assignmentlg...
|12
|2404
|41
Questions on Taxation 2022lg...
|4
|256
|51
Canadian Tax Principles on deskliblg...
|9
|652
|210
Indirect Tax Assessment Act 1997lg...
|8
|2184
|326