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Question 22N.3.HL.TZ0.2a.v

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Date November 2022 Marks available [Maximum mark: 2] Reference code 22N.3.HL.TZ0.2a.v
Level HL Paper 3 Time zone TZ0
Command term Calculate Question number a.v Adapted from N/A
a.v.
[Maximum mark: 2]
22N.3.HL.TZ0.2a.v

Table 4 shows the income tax rates in Turkey for 2020.

Table 4

Beycan resides in Turkey and earns TL955 000 annually.


[Source: Crowe, 2020. Practical Tax Turkey 2020 [online] Available at: https://www.bcct.org.tr/wp-content/uploads/202011-
Crowe-Practical-Tax-Summary-November2020.pdf [Accessed 29 September 2021]. Source adapted.]

(a.v)

Using information from Table 4, calculate the additional income tax Beycan would pay if the Turkish government decided to increase the marginal tax rate for incomes over TL600 001 to 55 %, as it has been in Austria since 2016.

[2]

Markscheme

355 000 × 0.55 - 355 000 × 0.40 [or, 355 000 × 0.15) [1]

Any valid working is sufficient for [1].

TL 53 250 [1]

OR

354 999 × 0.55 - 354 999 × 0.4 = 195 249.45 - 141 999.60 = 53 249.65

OR

354 999 × 0.15 = 53 249.85


Responses may also take the approach of calculating the initial and the final tax paid

Initial tax paid = 22*0.15 + 27*0.2 + 131*0.27 + 420*0.35 +355*0.4 = 333.07

Final tax paid = 22*0.15 + 27*0.2 + 131*0.27 + 420*0.35 +355*0.55 = 386.32 [1]

Any valid working is sufficient for [1].

Change = 386.32 - 333.07 = TL53 250 [1]

For full marks to be awarded the response must provide valid working and include correct units.

Examiners report

Generally well-answered. Some candidates performed the complete tax calculation, calculating the tax paid before and after the change of rate rather than multiplying 355 000 (or 349 999) by 0.15. Although this was perfectly acceptable the approach led to a range of errors in multiplication/addition.

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