Exam (elaborations)
TAX3701 Assignment 2 Semester 2 (Answers) - Due: 18 October 2023
- Institution
- University Of South Africa (Unisa)
TAX3701 Assignment 2 Semester 2 (Answers) - Due: 18 October 2023
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TAX3701ASSIGNMENT 2 (SEMESTER 2)
DUE DATE: 18 OCTOBER 2023
Written Assignment Submission Guidelines:
Please ensure that your assignment is submitted electronically through the myUnisa platform no later than
18 OCTOBER 2023. Kindly note that fax or email submissions will not be accepted.
NB: Assignment submitted to the lecturer(s) through email will not be considered.
QUESTION 1 (40 Marks)
REQUIRED Marks
Calculate the normal tax liability of Tirisano (Pty) Ltd for the year of assessment
ending on 31 March 2023. Start your answer with the profit before tax amount of
R4 103 270.
40
Provide brief reasons where amounts have a nil effect on profit before tax.
Tirisano (Pty) Ltd will always elect any option available to legally minimise its
normal tax liability.
Ignore dividends tax
ANSWER:
To calculate the normal tax liability of Tirisano (Pty) Ltd for the year of assessment ending on 31 March 2023,
we'll start with the profit before tax amount of R4,103,270 and make the necessary adjustments for tax
purposes. Let's go through each of the adjustments step by step:
1. Cost of Sales:
• The market value of opening inventory is not considered for tax purposes. Therefore, it has a nil
effect on profit before tax.
• The market value of closing inventory is not considered for tax purposes. Therefore, it also has a nil
effect on profit before tax.
2. Learnership Agreements:
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