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Florence is employed by Sparkling Drinks Limited and earns a salary of $40,000 per month. Her taxable benefits are: housing accommodation $30,000 per month; company car $65,000 (cost $750,000 six years ago, 60% private use).   During the year of assessment 2013 on her building society savings account, Florence earned $1,500 interest gross from which $375 withholding tax was deducted.  She also earned $3,000 interest gross on a bank fixed deposit (withholding tax $750).  For the period January to December 2013 Florence paid $83,172 by PAYE. Note NIS is 2.5% of total emoluments Income tax threshold is $507,312   Calculate the balance of tax due from Florence to the Inland Revenue Department for the year of assessment 2013

Florence is employed by Sparkling Drinks Limited and earns a salary of $40,000 per month. Her taxable benefits are: housing accommodation $30,000 per month; company car $65,000 (cost $750,000 six years ago, 60% private use).   During the year of assessment 2013 on her building society savings account, Florence earned $1,500 interest gross from which $375 withholding tax was deducted.  She also earned $3,000 interest gross on a bank fixed deposit (withholding tax $750).  For the period January to December 2013 Florence paid $83,172 by PAYE. Note NIS is 2.5% of total emoluments Income tax threshold is $507,312   Calculate the balance of tax due from Florence to the Inland Revenue Department for the year of assessment 2013

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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  1. Florence is employed by Sparkling Drinks Limited and earns a salary of $40,000 per month. Her taxable benefits are: housing accommodation $30,000 per month; company car $65,000 (cost $750,000 six years ago, 60% private use).

 

During the year of assessment 2013 on her building society savings account, Florence earned $1,500 interest gross from which $375 withholding tax was deducted.  She also earned $3,000 interest gross on a bank fixed deposit (withholding tax $750).  For the period January to December 2013 Florence paid $83,172 by PAYE.

Note

  • NIS is 2.5% of total emoluments
  • Income tax threshold is $507,312

 

Calculate the balance of tax due from Florence to the Inland Revenue Department for the year of assessment 2013

 

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