Transcription 19/11/2025, 9:14:56 PM

Notes

**ACCY6103 FINAL EXAM — TARGETED REVISION GUIDE (Using Your Slides Only)** --- **Q1 — PAYMENT OF TAXES, TAX ADMINISTRATION & PENALTIES (20 marks)** **1. Provisional Tax / Terminal Tax Calculations + Due Dates (6 marks)** *Provisional Tax* • Paid progressively during the year (usually 3 installments). - March balance date installments: o P1: 28 August o P2: 15 January o P3: 7 May *Residual Income Tax (RIT)* = Income tax liability – tax credits (PAYE, RWT, ICs, overseas credits, trustee tax) *Methods of calculating provisional tax:* 1. **Standard uplift method:** • Current year provisional tax = 110% of the year-before RIT. 2. **Estimate method:** • Must be fair and reasonable. • Must revise if estimate becomes unreasonable. 3. **GST ratio method:** • Based on % of GST taxable supplies. • Designed for fluctuating/declining income. • For small taxpayers (<$5m turnover) using cloud software. • Based on year-to-date profit in the accounting system. *Terminal Tax* • Final balance after subtracting provisional tax from RIT. • Due dates listed in Schedule 3 (the teacher will provide Part A extract during th...