GENC3003 Week 4 Journal

From part 2-Unit 8a, the pie chart illustrates that most of the taxation is from individual income. After reading “calculating tax”, it can be found if taxable income is over 180,000, almost half of the income will hand to government for taxation. So how can we avoid tax or minimize the tax? Income splitting is a way to avoid this. I asked my boss about the tax, his wife is an accountant, so she told me how to avoid the tax. Annually, accountant will calculate the business’s profit and the amount of the tax. Then, the accountant will tell the business man how to minimize his taxation in an implicit way, such as changing a new car, which means to promote consumption in some extent.