1. The company is named Houzit Pty Ltd, it is a retailer for home wares. It is a growing business. It has 15 stores in Brisbane area. It has 150 staff members. It is registered with ASIC. As per the review of financial structure of this company the report below has been made.
Identify the current statuary requirements for tax compliance and list and calculate the tax liabilities for houzit pty ltd under taxation legislation .
Supernnuation is 9%of wages .
Payroll tax is 4.75% of wages and salries.
Workers compensation is 2% of wages and salries.
Company tax is 30% of net profit before tax for each quarter. Liabilities | 2009/10 | 2010/11 | Current Liabilities | | | Trade creditors | 780,000 | 679000 | GST Paid | 934,125 | 987,626 | Superannuation payable | 100,000 | 120,000 | Luxury car tax payable | 20,920 | | Income tax payable | 364,795 | | Total current liabilities | 1,860,400 | | Mastercard | 17,800 | 14,860 | Bank loans | 1,608,459 | 1,508,459 | Total liabilities | - | 3,387,904 | Long term liabilities | - | - |
GST: Goods and service tax is a value added tax of 10% in most services and goods, it is imposed on most of the transactions but refunded later with certain process. Fringe benefit tax: this tax is applied to most non cash benefits that an employed provides. It is imposed on the employer. Payroll tax: it is a tax paid by employers to government. It is calculated as per the wages and salaries. It is different in different states in Australia. PAYG Withholding: pay as you go withholding is a way of paying ones tax in a year should one be an employee. Income tax: it’s a most important revenue stream in Australia. Income tax is imposed in earnings. 2.
* Company must be registered as per the corporation Act 2001