Tradepal Tax Calculator — Calculating External Tax Positions

The Tradepal AI Tax Calculator allows you to calculate tax positions for an entity without using the entity’s personalized Tradepal Tax Center.

Unlike the Tax Engine, which continuously calculates the tax position of your own Tradepal account from your recorded transactions, the Tax Calculator is designed for external or standalone tax calculations.

This makes it useful for accountants, tax professionals, tax officials, businesses, and individuals who have the required financial information and want to calculate a tax position for an entity.

What Can You Use the Tax Calculator For?

The Tax Calculator can be used when you already have the financial information required to perform a tax calculation.

For example, an accountant may receive information from a client and use the Tax Calculator to determine the client’s applicable tax position without requiring the client’s transactions to be recorded in Tradepal.

Depending on the tax type, the information required may include:

• Revenue or income.
• Business expenses.
• Losses.
• Allowable deductions.
• Employee salaries.
• Other relevant income information.
• Other information required for the selected tax calculation.

The exact information required depends on the type of tax being calculated.

Tax Types Available

The Tax Calculator currently supports the following tax calculations:

Personal Income Tax (PIT)

Use the PIT calculator to calculate the applicable personal income tax position based on the individual’s relevant income, deductions, and other required information.

Pay As You Earn (PAYE)

Use the PAYE calculator to calculate applicable employee-related tax based on the required salary and employment information.

Company Income Tax (CIT)

Use the CIT calculator to calculate the applicable company tax position based on relevant company revenue, expenses, losses, deductions, and other required information.

Capital Gains Tax (CGT)

The CGT calculator can be used to calculate a capital gains tax position where the required information about the asset, acquisition, disposal, gains, losses, and other applicable information is available.

Tax Calculator vs Tax Engine

The Tax Calculator and Tax Engine serve different purposes.

Tax Engine

The Tax Engine is your personalized, continuously updated tax portfolio. It uses information already recorded in your Tradepal account and updates your tax position as your financial records change.

Tax Calculator

The Tax Calculator is a standalone calculation tool. You provide the required information manually, and Tradepal calculates the tax position based on the information supplied.

For example, an accountant could use the Tax Calculator to calculate the tax position of a client who does not have their financial records stored in Tradepal.

How to Access the Tax Calculator

You can access the Tax Calculator directly from the Tradepal dashboard.

To open it:

Dashboard → Quick Actions → Tax Calculator

Select Tax Calculator from the Dashboard Quick Actions.

The Tax Calculator page will then allow you to select the tax type you want to calculate and provide the required information.

[Screenshot: Dashboard Quick Actions showing the Tax Calculator option]

How to Calculate a Tax Position

The general process is:

Open Tax Calculator → Select tax type → Provide required information → Calculate → Review result → Export document

First, select the type of tax you want to calculate.

Tradepal will then present the information required for that particular calculation.

Enter the available financial information carefully and ensure that the figures are accurate before performing the calculation.

After providing the required information, select the option to calculate the tax.

The Tax Calculator will process the information and present the resulting tax position.

[Screenshot: Tax Calculator tax type selection]

Providing Accurate Information

Because the Tax Calculator is based on information you provide manually, the accuracy of the result depends on the accuracy of the information entered.

Before calculating, make sure that:

• Revenue figures are correct.
• Expenses are correctly recorded.
• Losses are accurately reported.
• Deductions are applicable and properly supported.
• Salary information is accurate when calculating PAYE.
• Other required figures are complete.
• The correct tax type has been selected.

An incorrect input can produce an incorrect calculated position.

The Tax Calculator does not automatically know the financial activities of the external entity being calculated unless you provide the required information.

Reviewing the Calculated Tax

After the calculation is completed, review the result carefully.

The result provides a structured view of the calculated tax position based on the information supplied.

Depending on the selected tax type, the calculation may show relevant values such as:

• Revenue or income.
• Allowable expenses.
• Losses.
• Deductions.
• Taxable amount.
• Applicable tax.
• Final calculated tax position.

[Screenshot: Completed tax calculation result]

Reviewing the calculation before exporting the result allows you to confirm that the information and resulting figures are appropriate for the purpose for which the calculation is being performed.

Exporting the Tax Calculation

Tradepal allows you to export a completed tax calculation as a document.

This can be useful when the calculated tax position needs to be:

• Kept as a record.
• Shared with a client.
• Reviewed by an accountant.
• Provided to a tax professional.
• Submitted to an appropriate legal or regulatory body where applicable.
• Used for other legitimate administrative purposes.

After completing the calculation, use the available export option to generate the tax document.

[Screenshot: Tax calculation export option]

The exported document contains the relevant information from the calculation so that it can be retained or shared as required.

Example Use Cases

Accountant Calculating a Client’s Tax

An accountant has a client’s revenue, expenses, deductions, and other required information but the client’s financial records are not maintained in Tradepal.

The accountant can open:

Dashboard → Quick Actions → Tax Calculator

They can select the appropriate tax type, enter the client’s information, calculate the tax position, review the result, and export the calculation as a document.

Company Calculating Its CIT Position

A company has information about its revenue, expenses, losses, and allowable deductions.

The user can select CIT, provide the required information, and calculate the company’s tax position.

The resulting calculation can then be exported for record keeping or further review.

Calculating PAYE

An employer or other authorized user can provide the required employee salary and related information and use the PAYE calculator to determine the applicable PAYE position.

Calculating CGT

Where the required acquisition and disposal information is available, the user can use the CGT calculator to calculate the relevant capital gains tax position.

Tax Calculator Is Different From Your Tax Center

It is important to understand that using the Tax Calculator does not replace the personalized Tax Center.

If you are calculating taxes for your own Tradepal account based on transactions recorded in Tradepal, your Tax Center provides your personalized tax position.

If you are calculating the tax position of another entity or performing a standalone calculation using information supplied separately, use the Tax Calculator.

This distinction allows Tradepal to support both:

• Personalized automated tax monitoring through the Tax Center.
• Manual external tax calculations through the Tax Calculator.