Tax credit and Transposition error: Difference between pages

Revision as of 13:07, 14 August 2013

1. A simple error of data entry when two digits in a number are reversed (transposed).

When two adjacent digits are transposed the error will always be divisible by 9.

For example: If 3,460 should be 3,640 the difference is 180 (3,640-3,460=180) 180/9 = 20.

2. Similar errors with non-numerical data. For example ABC entered wrongly as ACB.

@@ Line 1: / Line 1: @@
 .
+A simple error of data entry when two digits in a number are reversed (transposed).
-A reduction in a tax liability, directly reducing the net amount of tax payable.
+When two adjacent digits are transposed the error will always be divisible by 9.
-For example, the tax credit under the 'imputation system' which wholly or partially imputes to the shareholders some of the corporation tax paid by companies on the income out of which dividends are paid.
+For example:
+If 3,460 should be 3,640
-In some circumstances a net amount of tax repayable, resulting from certain types of tax credit, can be refunded to the taxpayer in cash.
+the difference is 180 (3,640-3,460=180)
+/9 = 20.
 .
+Similar errors with non-numerical data.
-Less commonly, a smaller indirect reduction in a tax liability, by way of a deduction from the net taxable profits.
+For example ABC entered wrongly as ACB.
-.
-''UK personal tax''.
-A payment from the UK tax authorities to an individual with childcare responsibilities, low income, or both.
 == See also ==
-* [[Credit]]
+* [[Double counting]]
-* [[Credit relief]]
-* [[Expense relief]]
-* [[Deductions]]
-* [[Dividend]]
-* [[Foreign tax credit]]
-* [[Imputation system]]
-* [[Income Tax]]
-* [[Tax relief]]
-[[Category:Accounting,_tax_and_regulation]]