Ontario Tax 2023 Ontario Surtax 2021 From Το Rate From To Rate $0 $45,142 5.05% $0 $5,315 0% $49,231 $90,287 9.15% $5,315 $6,802 20% $98,463 $150,000 11.16% $6,802 Infinity 56% $150,000 $220,000 12.16% $220,000 Infinity 13.16%
Ontario Tax 2023 Ontario Surtax 2021 From Το Rate From To Rate $0 $45,142 5.05% $0 $5,315 0% $49,231 $90,287 9.15% $5,315 $6,802 20% $98,463 $150,000 11.16% $6,802 Infinity 56% $150,000 $220,000 12.16% $220,000 Infinity 13.16%
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 25P: LO.2 Oak Corporation has the following general business credit carryovers. If the general business...
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Question
We know that there exists both provincial tax and surtax in Ontario. The provincial tax
brackets and the surtax rates are provided below:
Part A: How much income results in paying $5,315 as provincial tax? How much income
leads to a $6,802 provincial tax?
Part B: Since the presence of surtax makes the tax system unnecessarily complicated,
we decide to eliminate it. However, we don’t want to reduce the amount of tax that the
provincial government collects. Using the two thresholds in Part A, as a result of
eliminating surtax, how would you change the provincial tax table such that each
individual pays the same amount of tax as before elimination of surtax? Note that number
of tax brackets and the tax rate in each bracket would be modified. Assume there is no
tax credit.
brackets and the surtax rates are provided below:
Part A: How much income results in paying $5,315 as provincial tax? How much income
leads to a $6,802 provincial tax?
Part B: Since the presence of surtax makes the tax system unnecessarily complicated,
we decide to eliminate it. However, we don’t want to reduce the amount of tax that the
provincial government collects. Using the two thresholds in Part A, as a result of
eliminating surtax, how would you change the provincial tax table such that each
individual pays the same amount of tax as before elimination of surtax? Note that number
of tax brackets and the tax rate in each bracket would be modified. Assume there is no
tax credit.
Transcribed Image Text:Ontario Tax 2023
Ontario Surtax 2021
From
Το
Rate
From
To
Rate
$0
$45,142
5.05%
$0
$5,315
0%
$49,231
$90,287
9.15%
$5,315
$6,802
20%
$98,463
$150,000
11.16%
$6,802
Infinity
56%
$150,000
$220,000 12.16%
$220,000
Infinity
13.16%
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