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COMMISSIONER JAY
, TAX3701 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2024 (798141) - DUE 13 September 2024
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QUESTION 1 (35 marks, 63 minutes)
Tau Steelworks (Pty) Ltd (Tau) is a South African company
manufacturing a range of steel products used in building
construction for the local and the export market. The company is
not a small business corporation as defined and is also registered
as a VAT vendor with the South African Revenue Service (SARS).
The company’s process of manufacturing has been approved by
SARS and its financial year ends on 29 February 2024. All
amounts exclude VAT unless specifically stated otherwise. The
accountant presented you with the following information for the
2024 financial year: 1. The total sales amounted to R. Included in
this amount is an amount of R17 500 related to export sales made
to a client from Germany. On 25 February 2024 Tau received a
letter from a German attorney, representing the German client,
that the German client has filed for liquidation and was finally
liquidated on 7 March 2024. 2. The cost of sales comprised the
following: R Opening stock Purchases Closing stock () Cost of
sales The market value of the opening stock on 1 March 2023
was R and the market value of the closing stock on 29 February
2024 was R. 3. Tau paid the following employee related expenses
for the 2024 tax year: • Salaries and wages – R. • Contributions to
a pension fund for all employees – R195 200. • An annuity of R52
500 to Mrs. Dorcas Mabete, the wife an employee who died
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