TAX2601 Assessment 6 Distinction Review
This document serves as a guide to help reflect on my review of Assessment 6 for Tax2601 due on the 14th of June 2023. This is purely for reflection purposes and shows my decisions on the answers to the assessment as well as the marks I obtained for each an...
Dashboard / My courses / TAX2601-23-S1 / TAX2601 Home Page / Assessment 6
Started on Monday, 12 June 2023, 6:54 PM
State Finished
Completed on Monday, 12 June 2023, 9:27 PM
Time taken 2 hours 33 mins
Marks 72.00/95.00
Grade 75.79 out of 100.00
Question 1
Complete
Mark 3.00 out of 3.00
Assume the following taxpayer information: The taxpayer is a South African manufacturing company (not a small business corporation as
defined) with a 31 March 2023 year of assessment. Calculate the adjusted proceeds for the disposal of the machine BELOW.
a. R94 000
b. R229 000
c. R135 000
d. R605 000
,Question 2
Complete
Mark 1.00 out of 1.00
MENU
Bhekisizwe (Pty) Ltd is a property management company that manages rental properties on behalf of its clients, i.e rental is collected from
Dashboard
the / My
tenants and courses
paid over to/ the
TAX2601-23-S1 / TAX2601
company’s clients Home
(the owners ofPage / Assessment 6
the properties).
The following are the company’s receipts for the year of assessment ending 31 January 2023:
1. The interest earned is from investment with a local bank.
2. Bhekisizwe received dividends from the shares held in ABC (Pty) Ltd.
3. The rentals received were from properties owned by Bhekisizwe’s clients.
Assume that the company is not a micro business or a small business corporation. Which one of the following statements is incorrect with
regard to interest received by Bhekisizwe (Pty) Ltd?
a. The interest was received in favour of Bhekisizwe (Pty) Ltd.
b. The interest received is not capital in nature.
c. The interest will be included in Bhekisizwe (Pty) Ltd’s gross income but R23 800 will be exempt.
d. The interest is an amount received in cash or otherwise.
Question 3
Complete
Mark 1.00 out of 1.00
Which one of the following statements is incorrect regarding small business corporations?
a. The gross income of the entity must be less than R20 million for the year of assessment.
b. The entity qualifies for a 100% allowance in respect of manufacturing plant and machinery.
c. A small business corporation does not pay Dividends tax.
d. The shareholders of the entity cannot hold shares or an interest in any other company unless it is permitted shareholdings.
, Question 4
Complete
Mark 1.00 out of 1.00
MENU
Bhekisizwe (Pty) Ltd calculated its taxable income for the 2023 year of assessment ended 31 March 2023 to be R1 400 000. The basic amount
Dashboard
(last assessed/ for
My2021)
courses
is R1/ 700
TAX2601-23-S1 / TAX2601
000. It has made Home Page
a first provisional tax/payment
Assessment 6 000. What will the second provisional tax
of R238
payment be in respect of the 2023 year and by when must it be paid? (Assume the company is not a small business corporation nor a micro
business.)
a. R154 000, payable by 28 February 2023
b. R476 000, payable by 28 February 2023
c. R221 000, payable by 31 March 2023
d. R140 000, payable by 31 March 2023
Question 5
Complete
Mark 2.00 out of 2.00
Ngwenya (Pty) Ltd buys stock in bulk in order to take advantage of bulk discounts. On 28 February 2022, Ngwenya (Pty) Ltd had a closing
stock on hand at the warehouse, valued at R2 200 000. During the 2023 year of assessment the company sold trading stock for R2 700 000.
Due to some financial constraints, the company did not buy any trading stock during the 2023 year of assessment and had closing stock
valued at R380 000 on 28 February 2023. Assume the cost and market value is the same. Calculate Ngwenya (Pty) Ltd's taxable income for
the year of assessment ending on 28 February 2023.
a. R(880 000)
b. R4 520 000
c. R2 700 000
d. R880 000
Question 6
Complete
Mark 1.00 out of 1.00
Which one of the following is not true of a micro business?
a. A micro business is taxed at a very low rate.
b. A micro business is taxed on a turnover basis.
c. A micro business is not required to keep a record of expenses.
d. A micro business is taxed on a receipt basis and the accrual basis.
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