question 1 gross income mr makubu is a south african resident who owns a panel beating mot
Connected book
Book Title:
Author(s):
Edition:
ISBN:
Edition:
More summaries for
Exempt Income
Special Deductions
Prohibited Deductions
All for this textbook (10)
Written for
University of South Africa (Unisa)
LML4804 - Tax Law
All documents for this subject (34)
1
review
By: thoriprecious • 1 year ago
Not related to the actual exam paper
Seller
Follow
LLBExampacksAndTutorials
Reviews received
Content preview
Tutors you can trust. Voted “BEST
SELLING” memos for the year 2021/2022.
LML4804
Tax Law
PORTFOLIO MEMO
SEMESTER 1 - 2023
UNIQUE NUMBER: -
Due Date: - 1st June - 2nd June 2023
Includes Footnotes and/or Bibliography
QUESTION PREVIEW
FULLY REFERENCED WITH
FOOTNOTES & A BIBLIOGRAPHY
WORD DOCUMENT AVAILABLE!
DISTINCTION GUARANTEED!!!
Disclaimer
Extreme care has been used by our Tutors to draft this document, however the contents are provided “as is” without any representations
or warranties, express or implied. This document is to be used for comparison, research and reference purposes ONLY. No part of this
document may be reproduced, resold or transmitted in any form or by any means without prior written permission from the Author. –
LLB EXAMPACKS & TUTORIALS.
Mr Makubu is a South African resident who owns a panel beating (motor vehicle
repair) business, His-Way Mechanics, in Pretoria. On 13 January 2023, Mr Makubu
entered into a contract with Mr Naidoo whereby Mr Makubu was to purchase parts
needed for the repair of vehicles in his business in Pretoria. The agreement
provided that Mr Naidoo would be paid R10 000 upon conclusion of the contract
and R30 000 upon delivery of parts. Mr Naidoo was paid the R10 000 on 13 January
2023 and the balance was paid when the parts were delivered on 15 March 2023.
Mr Sithole worked as a motor mechanic for His-Way Mechanics for 10 years. In 2020
His- Way Mechanics engaged in a retrenchment exercise as part of the general
policy to reduce their staff due to continuing poor performance of the business. As
a result, Mr Sithole was retrenched on 30 November 2022. Mr Sithole received R500
000 upon retrenchment as compensation for the termination of his employment.
He was also paid R15 000 in respect of a restraint of trade, in terms of which he
was prohibited from engaging in any motor mechanic services and activities in and
around Pretoria for two years after termination of his employment.
WHAT IS REQUIRED OF YOU:
With reference to relevant authorities, answer the following questions for
2022/2023 year of assessment:
(a) Explain whether Mr Naidoo should include both amounts of R10 000 and the
balance of R30 000 in his gross income for 2022/2023 year of assessment. [8
marks]
(b) Does the lump sum payment received in respect of termination of services
form part of Mr Sithole’s gross income? [5 marks]
(c) Does any payment received in respect of a restraint of trade form part of Mr
Sithole’s gross income? [2 marks]
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LLBExampacksAndTutorials. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $22.08. You're not tied to anything after your purchase.
