Overview

HTML Wrap

class	section group

HTML
<span data-swiftype-index="true">

HTML Wrap

class	col span_3_of_5

Using the provisional tax calculator

The provisional tax calculator allows you to calculate and compare your client’s provisional tax amounts using the standard and estimation calculation methods for a given year.

The information displayed includes:

amounts used to calculate the provisional tax for the applicable calculation method
certain fields, identified by a box where you can enter amounts that affect the calculations, e.g., voluntary payments and estimates.
a list of historical calculations, showing the most recent calculations saved for each calculation method
a comment box where you can enter free form comments.

When you open the provisional tax calculator, the latest tax information for the selected client is displayed. At the top of the

screen

window, there are five radio buttons, one for each of the calculation methods:

Standard (2 year prior)
This method calculates provisional tax due based on the residual income tax (RIT) from the year before last.

Standard (1 year prior)
This method calculates provisional tax due based on the RIT from last income year’s tax return.

Estimate
This method ignores prior tax returns and calculates provisional tax due based on the estimates you enter into the calculator.

You can enter either:

an estimate of Taxable income and Tax credits

OR

an Estimate of the provisional tax to be paid.

Enter
For the Advised IRD on date, enter the date you advised the IRD that you will 'll be paying an estimate as the Advised IRD on date. If this field is not set, Tax Manager will assume you have not notified the IRD that you will be paying an estimate.

Ratio method
This method is used for clients using the ratio method and does not calculate provisional tax.

Standard (current year)
This method calculates provisional tax due based on the RIT from current income year’s tax return.

UI Text Box

type	note

In certain cases, a calculation method is not relevant for the client’s situation and you

will not be able to

can't select it. For example, you

cannot

can't select Standard (2 year prior) if last year’s income tax return has been filed.

By selecting different calculation methods and entering different estimates, you can use the provisional tax calculator to evaluate the provisional tax payable in different scenarios.

UI Expand

expanded	true
title	To use the provisional tax calculator

Click Provisional tax calculator on the Tasks bar on

Go to any of the following Tax Manager

screens

windows:
- Summary view
- Transactions view
- Tax notice details view.
On the TASKS bar, click Provisional tax calculator. The Provisional Tax Calculation

window opens,

window appears with the most recently-saved calculation method selected

by default

.

Select from the available radio buttons to

To see the results of the selected calculation method, select from the available radio buttons.
Enter any voluntary amounts or estimates that affect the calculation.
When you

have

've decided which calculation you want to use for this client, ensure that the relevant radio button is selected and click OK.

The provisional tax calculator closes and any changes for the selected calculation method are saved to the history table.

UI Text Box

type	note

To see the updated information on the Tax Manager Summary view,

you need to

close and reopen Tax Manager.

Page tree

Versions Compared

Old Version 1

New Version 2

Key

Related topics

Was this information helpful?

Why not?

How would you improve this page?

Thanks! Anything you'd like to add?

Overview

Working with Tax Manager

Managing Tax Notices using the Tax Notice page

Other topics