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A common tax scenario
Message
From
23/05/2012 00:41:58
 
 
To
22/05/2012 22:50:18
General information
Forum:
ASP.NET
Category:
Other
Environment versions
Environment:
VB 9.0
OS:
Windows 7
Network:
Windows 2003 Server
Database:
MS SQL Server
Application:
Web
Miscellaneous
Thread ID:
01544104
Message ID:
01544109
Views:
54
Total Tax divided by the ratio of the Federal tax to total tax = Federal Tax
Total Tax divided by the ratio of Province tax = Province tax

In formula:
74.88 / (Federal rate / (Federal Rate + (Province rate +(Province rate x Federal Rate))) = 25
74.88 / (Province rate / (Federal Rate + (Province rate +(Province rate x Federal Rate))) = 49.88

In other words, for federal
74.88 / (.05 / (.05 + (.095+(.095 x .05))) = 25, or
74.88 / (.05 / (.05+.(.095+ 00475)) = 25, or
74.88 / (.05 / (.05 + .09975) = 25, or
74.88 / .(05/.14975) = 25, or
74.88 / .3338898164 = 25

For Province, it would be
74.88 / (.095 / (.05 + (.095+(.095 x .05))) = 49.88

HTH



>Here is a common tax scenario that we have seen in many applications. There is a federal tax, which we apply on an amount and then we add on top of this total a province/state tax.
>
>Lets take the example of Quebec province. Presently, they are bound to 5% federal tax and 9.5% provincial tax. So, if the amount if 500.00$, we obtain 25.00$ for the federal tax and 49.88$ for the provincial tax. (500.00$*5%*9.5%=574.88$)
>
>In a given application, someone has decided to include the total of both taxes in the same field. So, basically, taking the above example, the tax field would then be 74.88$.
>
>So, in that application, we do not have a field for the federal tax, we do not have a field for the provincial tax and I do not even have the amount which contributed to give this 74.88$ tax. From the 74.88$ amount, I then need to reverse the process and extrapolate the 25.00$ federal tax and the 49.88$ provincial tax.
>
>This should be a simple formula but I just can't find it.
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