Summary

Summary TAX 3702 LATEST NOTES.

0 purchase

Course
TAX 3702

Institution
University Of South Africa

TAX 3702 LATEST NOTES. Table of Contents 1. Taxation: The big picture ................................................................................... 8 1.1 Background to Taxation .............................................................................................. 8 1.2 Section su...

[Show more]

Preview 4 out of 163 pages

View example

Uploaded on June 16, 2022
Number of pages 163
Written in 2021/2022
Type Summary

tax 3702 latest notes

Excellentstudyresources001 Member since 3 year 1037 documents sold

TAX 3702 LATEST
NOTES.

,Table of Contents
1. Taxation: The big picture ................................................................................... 8
1.1 Background to Taxation .............................................................................................. 8
1.2 Section summaries and areas of focus ......................................................................... 8
1.2.1 Discussion questions ................................................................................................. 8
1.2.2 Calculation questions ................................................................................................ 9
2. Writing the exam ............................................................................................... 9
2.1 Examination technique and style of testing ................................................................. 9
2.2 How to use the legislation handbook in Taxation ...................................................... 10
3. Study day programme and suggested approach ............................................... 10
4. Examinable Pronouncements: ITC 2020 ............................................................ 12
Course Notes ....................................................................................................... 33
1. Gross income, exempt income and income ...................................................... 33
1.1 Introduction ............................................................................................................. 33
1.2 Case law ................................................................................................................... 33
1.2 Residence and source ............................................................................................... 34
1.2.1 Residents ................................................................................................................. 34
1.2.2 Source ..................................................................................................................... 34
1.2.3 Possible relief from double taxation ....................................................................... 35
1.4 Amount, in cash or otherwise ................................................................................... 36
1.5 Received .................................................................................................................. 36
1.5.1 Possible relief in respect of amounts received in advance ..................................... 37
1.6 Accrued .................................................................................................................... 37
1.6.1 Possible relief in respect of amounts accruing in advance of receipt .................... 37
1.7 Excluding receipts or accruals of a capital nature ....................................................... 38
1.8 But including… the special inclusions ........................................................................ 39
1.9 Exempt income and income ...................................................................................... 39
2. General deduction and specific deductions ...................................................... 40
2.1 Introduction ............................................................................................................. 40
2.2 The trade requirement ............................................................................................. 40
2.3 In the production of the income ................................................................................ 41
2.4 Expenditure and loss ................................................................................................ 41
2.5 Actually incurred ...................................................................................................... 41

,3.11 Trading stock – final notes ...................................................................................... 47
4. Capital allowances, recoupments and disposal allowances ............................... 47
4.1 Overview ................................................................................................................. 47
4.2 Recoupments and disposal allowances ..................................................................... 47
4.3 Disposal allowances – section 11(o) .......................................................................... 48
4.4 Recoupments – section 8(4) ...................................................................................... 48
4.5 Proceeds on disposal not accrued or not determinable – sections 24M and 20B ......... 49
4.6 The specific capital allowances ................................................................................. 50
4.6.1 Section 11(e) – movable assets ............................................................................... 50
4.6.2 Section 12C – plant and machinery ........................................................................ 50
4.6.3 Section 12E – small business assets ........................................................................ 51
4.6.4 Section 12N – government land and buildings ....................................................... 51
4.6.5 Section 13 – industrial buildings ............................................................................. 52
4.6.6 Section 13quin – commercial buildings .................................................................. 52
4.6.7 Section 13sex – residential units ............................................................................. 53
4.7 General .................................................................................................................... 53
4.8 Repairs – section 11(d) ............................................................................................. 53
5. Capital gains tax .............................................................................................. 54
5.1 Introduction ............................................................................................................. 54
5.2 The inclusion of capital gains .................................................................................... 54
5.3 Asset ........................................................................................................................ 54
5.4 Disposal ................................................................................................................... 55
5.5 Proceeds .................................................................................................................. 55
5.6 Base cost .................................................................................................................. 56
5.7 Primary residence..................................................................................................... 57
5.8 Assets acquired before 1 October 2001 ..................................................................... 58
5.9 Proceeds exceed expenditure or expenditure cannot be determined ......................... 58
5.10 Proceeds do not exceed expenditure....................................................................... 59
5.11 CGT and foreign currency ........................................................................................ 61
5.12 Roll-over relief – Part IX .......................................................................................... 61
5.13 Attribution of capital gains – Part X ......................................................................... 62
5.14 Withholding tax on sale of immovable property by non-residents ............................ 63
6. Value-added tax .............................................................................................. 63
6.1 VAT payable ............................................................................................................. 63
6.2 VAT imposition ......................................................................................................... 63
6.3 Imported goods ........................................................................................................ 64

, 7.2.1 Attribution rules – married persons ....................................................................... 69
7.2.2 Attribution rules – minor children .......................................................................... 71
7.3 Gross income ........................................................................................................... 71
7.4 Allowances and advances – section 8(1) .................................................................... 71
7.4.1 Travel allowance ..................................................................................................... 71
7.4.2 Subsistence allowance ............................................................................................ 73
7.4.3 Other allowances .................................................................................................... 73
7.5 Exemptions .............................................................................................................. 74
7.5 Deductions against income ....................................................................................... 74
7.6 Deductions specific to individuals ............................................................................. 75
7.6.1 Pension, provident and retirement annuity fund contributions – section 11F ...... 75
7.6.2 Donations – section 18A ......................................................................................... 76
7.7 Tax tables ................................................................................................................. 77
7.8 Rebates .................................................................................................................... 77
7.8.1 Normal tax rebates ................................................................................................. 77
7.8.2 Medical scheme fees tax credit – section 6A .......................................................... 78
7.8.3 Additional medical expenses tax credit – section 6B .............................................. 78
7.9 Methods of collection ............................................................................................... 78
8. Fringe benefits ................................................................................................. 78
8.1 Overview ................................................................................................................. 78
8.2 Types of fringe benefits – paragraph 2 of the Seventh Schedule ................................. 79
8.2.1 Acquisition of asset for no or inadequate consideration – paragraph 2(a) ............ 79
8.2.2 Right of use of asset – paragraph 2(b) .................................................................... 81
8.2.3 Right of use of motor vehicle – paragraph 2(b) ...................................................... 81
8.2.4 Meals, refreshments, and meal and refreshment vouchers – paragraph 2(c) ....... 82
8.2.5 Residential accommodation – paragraph 2(d)........................................................ 83
8.2.6 Free or cheap services – paragraph 2(e) of the Seventh Schedule ......................... 84
8.2.7 Low interest loans – paragraph 2(f) ........................................................................ 85
8.2.8 Subsidies – paragraph 2(g) and (gA) ....................................................................... 85
8.2.9 Payment of employee debts or release of obligation to pay debt – paragraph 2(h)85
8.2.10 Contribution to Benefit Fund – paragraph 2(i) ..................................................... 86
8.2.11 Incurral of Medical Services Costs – paragraph 2(j) .............................................. 86
8.2.12 Insurance policy payments – paragraph 2(k) ........................................................ 86
8.2.13 Pension, provident and retirement annuity fund contributions – paragraph 2(l) 87
8.2.14 Benefits granted to Relatives of Employees – paragraph 16 ................................ 87
8.3 VAT on fringe benefits .............................................................................................. 87

9. Employees’ tax ................................................................................................ 87

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 EFT, 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 this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Excellentstudyresources001. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R56,83. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69411 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 15 years now

Start selling

Summary

Summary TAX 3702 LATEST NOTES.

Document information

Subjects

Written for

Seller

Reviews received

Content preview