TAX2601 Assignment 3 (COMPLETE ANSWERS) Semester 2 2024 - DUE 2 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanation
TAX2601 Assignment 3 (COMPLETE ANSWERS) Semester 2 2024 - DUE 2 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations.
TAX2601 Assignment 3 (COMPLETE ANSWERS) Semester 2 2024 - DUE 2 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations.
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University of South Africa
Principles of Taxation
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, TAX2601 Assignment 3 (COMPLETE ANSWERS)
Semester 2 2024 - DUE 2 September 2024 ; 100% TRUSTED
Complete, trusted solutions and explanations.
QUESTION 1 (12 marks) Easy Elevators (Pty) Ltd’s (“EE”)
core business is the maintenance of elevators in residential and
commercial buildings in the Gauteng region. It has service
agreements with each of its customers and in terms of these, a
monthly maintenance fee of R15 000 is payable on or before the
seventh (7th) day of each month before that month’s service
occurs. EE is a company incorporated in South Africa and its
year of assessment ends on 31 March. One of EE’s customers
paid an amount of R45 000 into EE’s bank account on 7 March
2024. This amount is for the maintenance service fees in respect
of the following three months i.e. March 2024 to May 2024. EE
was informed by the customer that the building’s caretaker
decided to pay three months’ fee upfront as he would be out of
the country for an extended period and wanted to ensure the
maintenance of the elevators would continue as usual during this
time. REQUIRED MARKS Discuss whether the receipt of the
R45 000 maintenance service fee would constitute gross income
of Easy Elevators (Pty) Ltd as defined in the Income Tax Act 58
of 1962 for the year of assessment ending 31 March 2024. List
all the gross income definition requirements, discuss each one
and briefly refer to case law to strengthen your argument. 12 4
TAX2601/2024/Semester 2/Assessment 3
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