Case
MANCOSA Taxation 2a case study example
- Course
- Institution
This is the case study i did in my semester and i hope it will benefit you. Please leave a review.
[Show more]
Seller
Follow
athidikana803
Content preview
Case StudyBachelor of Commerce in Financial Management;
PROGRAMME
Bachelor of Commerce in Accounting
MODULE Taxation for Individuals
YEAR Two (2)
INTAKE January 2024 Semester 1
MARKS 30
, QUESTION 1 [20 MARKS]
Sam Sithole is a resident of the Republic. He is 47 years old and is married in community of property.
The following information relates to the 2023 year of assessment for Sam and his wife, Meg.
Income from a South African source:
- A salary of R550 000 from his employer, a motor manufacturing company.
- He does part-time academic work for a private higher education college and earned an income of R110 000 as part of his business income
for the year of assessment.
- Net rentals of R90 000 was earned from a bachelor flat in Margate.
- Interest of R34 000 was earned from various short-term investments.
Income from a South African source for Meg:
- Rent received from an out-house on their property amounted to R60 000.
Sam made contributions of R6 500 per month to a medical scheme on behalf of himself, his wife and child. He paid R48 000 qualifying medical
expenses for the year. His employer contributed R40 000 to the medical scheme during the year.
Required:
Calculate Sam Sithole’s normal tax liability for the 2023 year of assessment.
QUESTION 2 [10 MARKS]
Danny Zuma operates a security business in Inanda, Kwazulu-Natal. He seeks advice on whether the following expenses and losses are
deductible in terms of the general deduction formula:
1. One of Danny’s vans, with a tax value of R180 000 on the date, was hijacked when the driver was returning after havingtransported a
team of guards to a client’s business premises in Springfield. The van was not insured.
2. One of Danny’s guards was badly bitten by one of the guard dogs while on duty. The court granted the guard compensation amounting
to R30 000 on 25 April 2023 which Danny duly paid on 30 April 2023.
3. Three of Danny’s team leaders attended a two-day training workshop in Midrand, Johannesburg on the latest security techniques, at
a cost of R16 000 per person.
Required:
Determine with reference to tax cases (case law) whether the expenses/losses above [1-3] are deductible in terms of the general deduction
formula.
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 athidikana803. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.87. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now