Exam (elaborations)
TAX2601 Assignment 3 Semester 2 2023
- Course
- Principles of Taxation
- Institution
- University Of South Africa
TAX2601 Assignment 3 Semester % TRUSTED workings, explanations and solutions. For assistance call or us on .
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Content preview
TAX2601ASSIGNMENT 3 SEMESTER 2 2023
, TAX2601 Assignment 3 Semester 2 2023
DUE DATE : 4 September 2023
QUESTION 1
PART A
Health Harmony (Pty) Ltd (“HH”) is a company offering various health and wellness services
and sells health supplements. The company is situated in Johannesburg and its financial
year ends on 31 March 2023. HH owns a 25% shareholding in another company specialising
in organic juices, OJuicy (Pty) Ltd (“OJuicy”). HH is not a small business corporation as
defined in section 12E the Income Tax Act. The company accountant calculated the
preliminary taxable income as R6 785 000. You may assume that this amount is correctly
calculated, however, the items listed below still needs to be taken into account: The following
information is provided: Notes R Calculated taxable income 6 785 000 Dividends received 1
50 000 Rental income 2 ? Inventory 3 ? Marketing expense 4 90 000 Patents & related costs
5 95 000 Bad debts 6 71 000 Restraint of trade 7 1 000 000 Notes: 1. Dividends received
OJuicy declared and paid dividends to its shareholders on 15 March 2023. HH’s 25% share
of the gross dividend amounted to R50 000. (You may ignore dividends tax). 2. Rental
income & improvements A lease agreement was entered into on 1 July 2022 between a
personal trainer (a natural person) and HH whereby the trainer will pay R15 000 monthly rent
to use office space in HH’s property from 1 July 2022. In terms of the agreement, the trainer
needed to make improvements to the space for an amount of R100 000. The improvements
were all effected by the trainer and brought into use by 31 January 2023 at a cost of R130
000.
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 LIBRARYpro. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R49,68. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
56326 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now