Individual income tax return guide 2011 - Inland Revenue Department
Individual income tax return guide 2011 - Inland Revenue Department
Individual income tax return guide 2011 - Inland Revenue Department
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56<br />
IR 3 INDIVIDUAL RETURN GUIDE<br />
Payment options<br />
You have three options for paying provisional <strong>tax</strong>—the standard option<br />
“S”, the estimation option “E” or the ratio option “R”.<br />
Standard option<br />
Under this option, your 2012 provisional <strong>tax</strong> is your <strong>2011</strong> RIT (if it is more<br />
than $2,500) less 5%.<br />
Note<br />
If you think your <strong>income</strong> for 2012 will be more than your <strong>2011</strong><br />
<strong>income</strong>, you can make voluntary payments over and above the<br />
amount you have to pay under the standard option.<br />
Use this worksheet to calculate your 2012 provisional <strong>tax</strong><br />
using the standard option “S”<br />
Copy your RIT from Box 34A of your<br />
<strong>return</strong> to Box 1.<br />
Multiply Box 1 by 0.05 (5%).<br />
Print your answer in Box 2.<br />
Subtract Box 2 from Box 1.<br />
Print your answer in Box 3.<br />
1<br />
2<br />
3 00<br />
Box 3 is your 2012 provisional <strong>tax</strong>.<br />
Copy it to Box 37B of your <strong>return</strong> and print “S” in Box 37A.<br />
Divide the amount in Box 3 by 3 to get the amount you must pay for each<br />
instalment. Record this on page 61.<br />
If your filing your <strong>return</strong> after 28 August, your instalment amounts may<br />
be different.<br />
Estimation option<br />
Anyone can estimate provisional <strong>tax</strong>. If you expect your 2012 RIT to be<br />
lower than your <strong>2011</strong> RIT, estimating will keep you from paying more<br />
than you have to.<br />
If you choose to estimate, your estimate must be fair and reasonable at<br />
the time you make it and at each instalment date.<br />
You can be charged a penalty and/or interest if you don’t take reasonable<br />
care when you estimate your provisional <strong>tax</strong>.