Explain further the steps in determining the income tax. Use the space provided for your answer. Step 1 is to identity the taxpaying party or "entity to which the tax computation formula applies. Step 2 is to determine the taxpayer's "gross income". Step 3 is to determine the expenses and certain other items that can be "deducted" in computing the taxpayer's "taxable income". Step 4 is to apply the appropriate "tax rate" to the taxpayer's taxable income to find the "tax due". Step 5 is to subtract any applicable "tax credits/payments" from the taxpayer's tax due in finding the "tax payable". Step 6 is to increase the tax by "penalties and interests" to obtain the "total amount payable".

Explain further the steps in determining the income tax. Use the space provided for your answer. Step 1 is to identity the taxpaying party or "entity to which the tax computation formula applies. Step 2 is to determine the taxpayer's "gross income". Step 3 is to determine the expenses and certain other items that can be "deducted" in computing the taxpayer's "taxable income". Step 4 is to apply the appropriate "tax rate" to the taxpayer's taxable income to find the "tax due". Step 5 is to subtract any applicable "tax credits/payments" from the taxpayer's tax due in finding the "tax payable". Step 6 is to increase the tax by "penalties and interests" to obtain the "total amount payable".

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Determine the business tax applicable for the following independent assumptions. Put a check mark on the applicable law. Put the applicable tax rate.
1.Explain the intake process to completing a tax return. using the form 13614-c, w2's, form 1099-R, Form SSA-1099, form 1099-c, Form W-2G, Form 1098-T Just explain for to process this thing all together.
Which of the following statements are correct? i. A VAT invoice should be pre-numbered and must show the: - Words “Tax Invoice” (shown prominently) ii. A VAT invoice should display the total amount of the consideration and the VAT. iii. A VAT invoice should display the name and address of the registered taxpayer to whom the taxable supply is made. iv. A VAT invoice should display the date of the taxable supply. a. All of the above b. i, ii and iv c. i only d. i, and iii
TRUE OR FALSE?? The Commissioner can estimate the income and expense of a taxpayer.
TRUE OR FALSE? Tax assessments made by the BIR must be in writing containing the law and facts as the basis for assessment.
Question 1: Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with a suitable example. Question 2: Will the existence of unused tax losses always lead to the recognition of deferred tax assets? Explain your answer with suitable example. Question 3: Do the liabilities and assets that are generated by using the 'balance sheet method' of accounting for tax appear to be consistent with the definition and recognition criteria of assets and liabilities promulgated within the Conceptual Framework? Question 4: Under what conditions can deferred tax assets be offset against deferred tax liabilities? Question 5: Critically examine the disclosures made by an Australian Securities Exchange (ASX) listed company in its latest financial statements and associated notes regarding income tax issues. While every company will have unique tax matters and position, your discussion should highlight the following: Identify the income tax expense (income) shown in…
Why is the income taxpayable not the same as income tax expense? please answer in your own words.
Which statement is true: An extraordinary item must meet which of the following three criteria? a. Unusual and measurable, shown net of income tax. b. Infrequent and unusual, shown net of income tax. c. Foreseeable and material, shown net of income tax. d. Substantial and measurable, shown net of income tax.
1.Determine the business tax applicable for the following independent assumptions. Put a check mark on the applicable law. Put the applicable tax rate. Situation OLD LAW TRAIN LAW CREATE LAW GS/GR does not exceedP1,919,500 and the taxpayer isVAT-registered GS/GR exceed P1,919,500 andthe taxpayer is VAT-registered GS/GR exceed P1,919,500 and the taxpayer is not VAT-registered GS/GR does not exceedP3,000,000 and the taxpayer isVAT-registered GS/GR exceed P3,000,000 andthe taxpayer is VAT-registered GS/GR exceed P3,000,000 and the taxpayer is not VAT-registered GS/GR does not exceedP3,000,000 and the taxpayer isnot VAT-registered; taxpayeropted to use 8% preferentialincome tax on individuals Cooperatives Self-Employed andProfessionals with AnnualGross Sales/Gross Receipts notexceeding P500,000
Briefly explain the precise difference between a refundable vs. a nonrefundable tax credit. Provide one or two examples of each category.
1. What is AGI deduction? 2. What are the types of filing status? 3. What are the three general test a qualifying person must meet to be a dependent of the tax payer?
Which of the following statements are correct? i. A VAT invoice should be pre-numbered and must show the: - Words “Tax Invoice” (shown prominently) ii. A VAT invoice should display the total amount of the consideration and the VAT. iii. A VAT invoice should display the name and address of the registered taxpayer to whom the taxable supply is made. iv. A VAT invoice should display the date of the taxable supply. a.All of the above b.i, ii and iv c.i, and iii d.i only