Tax and Reverse Tax

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Atreides - 25 Jan 2006 07:06 GMT

I've made a function that works out that tax payable on an annual income.
However, I can't seem to find an analytical method to go backwards (i.e. work
out the gross income from the net income) without using GoalSeek.

Is there a way to implement GoalSeek automatically? Perhaps using a macro?

Thanks for your time,

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Crowbar - 25 Jan 2006 14:50 GMT

=A1/117.5%

I don't know what your tax value you are using but this type of calculation
will deduct 17.5% from the value in cell A1.

I.e.

Cell A1 = 100

the cell that you have this calculation in will say 85.10638 which is 17.5%
OF 100 not on top off?

Am I close or miles aways???

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Atreides - 27 Jan 2006 02:55 GMT

Sorry Crowbar, you're not that close.. :)

The tax I'm working out is for an income, using several tax brackets. That
is, no tax on the first $6000, 17% for the next $15600, 30% on the next
$30400 and so on.

Because the function is not linear, it's hard to implement the reverse
function (i.e. working out the gross income from the net income.

This can be done using the GoalSeek tool, where the computer iteratively
varies the gross income until the net income is the given value. Then the
required gross income can be found. However this requires a manual call of
the GoalSeek tool.

Is there some way to implement this (probably using a Macro, although
perhaps not?) so that a function called GROSS(NET) will return the gross
income equivalent of a given net income?

Thanks for your time,
Atreides

> =A1/117.5%
>
[quoted text clipped - 9 lines]
>
> Am I close or miles aways???

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