TAX3701 Assignment 2 (HELP !) Semester 2 2023 - DUE 18 September 2023
11 views 0 purchase
Course
Taxation of Business Activities
Institution
University Of South Africa (Unisa)
Book
Fundamentals of South African Income Tax
your comprehensive guide to completing Assignment 2 for the TAX3701 course in Semester 2, 2023. It provides detailed instructions, explanations, and examples to help you tackle the assignment successfully. And if you ever feel like procrastinating, just remember, even Dr. Malinga can't dance his wa...
Tirisano (Pty) Ltd (“Tirisano”) is a South African resident company that specialises in
the production of aluminium. The aluminium is sold mainly to aluminium window and
door frame manufacturers as well other aluminium products manufacturers. The
company is registered as a category B vendor for Value-Added Tax (VAT) purposes.
1 | Page
, TAX3701/2023 / Semester 2
To calculate the normal tax liability of Tirisano (Pty) Ltd for the year of assessment ending on 31
March 2023, we will start with the profit before tax amount of R4,103,270 and then make
adjustments based on the provided information.
1. Cost of Sales Adjustment:
Include the opening inventory at market value: R540,000
Exclude the closing inventory at market value: -R530,000
Adjusted Cost of Sales = R1,310,000 + R540,000 - R530,000 = R1,320,000
Please find More Answers and Guides on Page 7
The company makes only taxable supplies. The South African Revenue Service (SARS)
considers Tirisano’s manufacturing process as an approved process of manufacture.
Tirisano is not a Small Business Corporation as defined and its financial year ends on 31
March every year.
All amounts exclude VAT, unless stated otherwise.
The profit before tax for the financial year ended 31 March 2023 amounted to R4 103
270, before considering the following information:
1. Cost of sales:
The cost of sales amount taken into account in calculating the profit before tax figure
above, was determined as follows:
R
Opening inventory @ cost 480 000
Purchases 1 450 000
Closing inventory @cost (620 000)
Cost of sales 1 310 000
The following information relating to trading stock was not considered in the calculation
of the cost of sales above:
R
Opening inventory @Market value 540 000
Closing inventory @Market Value 530 000
2 | Page
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 MyStudyBudd. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.91. You're not tied to anything after your purchase.
