TAX2601 ASSESSMENT 5 SEM 1 OF 2024 EXPECTED SOLUTIONS
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Course
TAX2601 (TAX2601)
Institution
University Of South Africa (Unisa)
THIS DOCUMENT CONTAINS TAX2601 ASSESSMENT 5 SEM 1 OF 2024 EXPECTED SOLUTIONS. USING IT CORRECLTY AS A GUIDE AND FOR PREP PURPOSES WILL HELP YOU SCORE MORE THAN 75%
OSCAR THE TUTOR
oscardiura@gmail.com
0737560989
for FAC MAC ECS DSC TAX QMI FIN
INV BNU STA tutorials
OSCAR THE TUTOR
oscardiura@gmail.com
0737560989
for FAC MAC ECS DSC TAX
QMI FIN
INV BNU STA tutorials
OSCAR THE TUTOR
oscardiura@gmail.com
0737560989
for FAC MAC ECS DSC TAX QMI FIN
INV BNU STA tutorials
Taxable income of Solcom (Pty) Ltd for the year ended29 Feb 2024
Taxable income 7,960,000.00
Purchases(imports) (2,760,000.00)
, Opening stock on 1 March 2023 @ lowe of cost/realiasable value(ias2) (s
22(2)) (1,720,000.00)
Closing stock on 28 February 2024 @ cost price including import duties6
(s 22(1)) 785,000.00
Rent paid(300000) (300,000.00)
Section 23H prohibits a section 11(a) deduction in situations where an
expense is incurred in one tax year but the
benefits (of the expenditure) are not enjoyed in full during the year.
However, this section does not apply where all the goods or services
(which would be subject to the section) are supplied within six months
of the year-end or the benefits are enjoyed within the same period, Rent
was prepaid for 7 months,and the balance woul be used in 5 months
which is within 6 months.
Insuarance contract A
Since Solcom paid the premium for the entire year upfront on December
1, 2023, and the insurance company went into liquidation in January
2024, Solcom can claim a tax deduction for the unexpired portion of the
premium.(2/12*265000) (44,166.67)
unused portion: Solcom can claim a deduction for the portion of the
premium related to the unexpired coverage(10/12*265000) (220,833.33)
Insuarance contract B(294000*2/12) (49,000.00)
Insuarance contract B:prepaid portion(294000-49000), Payment for
services provided more than six months
after year of assessment – exceeds R100 000; (1)
therefore no deduction of pre-paid portion
Salaries and wages (832,000.00)
Pension fund contributions:Contribution to employee’s pension fund (s
11(l))
(R75000, limited to 10% x R832000) (75,000.00)
Loan made to an employee:(not previously included in income;
therefore, not
– deductible) -
Extention of patent Section 11(gB)(285000*4/12) (95,000.00)
TRAFFIC FINES( Section 23(o) specifically prohibits the deduction of
fines, bribes, unlawful kickbacks
or penalties due to unlawful activities. ) 35,000.00 -
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