Exam (elaborations)
TAX2601 Assignment 6 2024
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- University Of South Africa (Unisa)
TAX2601 Assignment 6 2024
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Dashboard CalendarDashboard / Courses / UNISA / 2024 / Semester 1 / TAX2601-24-S1 / TAX2601 Home Page / Assessment 6
Started on Wednesday, 22 May 2024, 11:05 PM
State Finished
Completed on Wednesday, 22 May 2024, 12:09 PM
Time taken 1 hour 3 mins
Marks 94.51/95.00
Grade 98.16 out of 100.00
Which or the following is correct with regards to Partnerships?
a. A partnership is a separate legal enity and is a separate taxpayer.
b. A partner's tax liability is calculated by using the tax tables of the partnership.
c. A partnership pays taxes for the partners in the business a s it is a business on its own.
d. A partner in a partnership is assessed separately from tire partnership.
Ngwcnya (Pty) Ltd leases a one-bedroom flat in Durban for a one-year period from 1 August 2022 to 31 July 2023
tor its employees who must travel from other locations to work in Durban tor extended periods of time. The
company paid the annual rental of R 120 000 in advance on I August 2022. How much is deductible by Ngwcnya
(Pty) Ltd in determining its taxable income for the year of assessment ended 28 February 2023.
a. R nil
b. R70 000
c. R50 000
R120 000
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 base cost for purposes of
capital gains tax for the office building BELOW. Assume paragraph 26 of the Sth Schedule applies.
Information pertaining t o office building:
Events Date Amount
Sold - p r o c e e d s 30 October 2022 R 3 0 0 0 000
Purchased - c o s t price 1 June 2 0 0 1 R 1 8 0 0 000
Valuation costs t o determine m a r k e t
value a s a t 1 O c t o b e r 2 0 0 1 1 March 2002 R 25 000
M a r k e t value 1 October 2001 R 1 450 000
Time apportionment b a s e c o s t 1 October 2001 R 1 396 998
2 0 % rule value 1 October 2001 R 5 9 5 000
Tax value a t d a t e o f sale R 1 800 000
a. RI 450 000
b. R I 475 000
c. R I 825 000
d. R ] 800 000
Which of the following is true with regards to a company'.’
a. A company is not a separate legal entity and is not a separate taxpayer from its shareholders.
b. The term company includes a foreign partnership as these are businesses
, c. A company is a separate legal entity and is a separate taxpayer from its shareholders.
Question 4
d. The term company exclude a close corporation and cooperatives
Complete
Marie 1 .00 out of
1.00
V Flag quest ion
Question 5 Assume the following taxpayer information: The taxpayer is a South African manufacturing company (not a small
Complete business corporation as defined) with a 31 March 2023 year of assessment. Calculate the recoupment on the
disposal of the machine BELOW.
M ark 3 .00 out of
3.00 Information pertaining to manufacturing machine:
F I Lil ll Events Date Amount
Sold 30 December 2022 R 735 000
Purchased 1 August 2020 R 440 000
Tax value at date of sale R 88 000
a. R352 000
b. R647 000
c. R295 000
d. R2O7 000
Questiun 6 Bhekisizwc (Pty) Ltd is a property management company that manages rental properties on behalf of its clients, i.c
Camp letc rental is collected from the tenants and paid over to the clients of the company (the owners of the properties).
Mark LOO out of Calculate the normal tax liability of Bhekisizwc < Pty) Ltd for the year of assessment ended 3 1 January 2023
1.00 assuming the gross income of the company is R654 200. it has incurred tax deductible expenditure of R317 400 and it
is not a small business corporation or a micro business.
V FJjg qucsi h m i
R94 304
R90 936
R336 800
d. R183 176
Question 7 Tlte year of assessment of Bhekisizwc (Pty) Ltd ends on 31 December. O n which date docs the company have to
Complete make its first provisional tax payment for the 2023 year of assessment?
M ark 1.00 out of
i.txi □. 30 June 2023.
T 1 Lie question b. 31 December 2023.
c. 31 December 2022.
d. 30 June 2022.
Question 8 Ngwenya (Pty) Ltd in December 2022, sponsored a national weightlifting championship with branded equipment
Complete (displaying their logo) worth R240 000. How much can Ngwenya (Pty) Lid deduct from its income for the year of
assessment ended 28 February 2023.
M ark 2.00 out of
2.00
a. R24 000
V El questfcori!
b. R240 000
c. R 120 000
d. R nil
Question 9 Ngwenya (Pty) Ltd advertises its prtHlucis on television. It pays a premium once a year. O n I July 2022 it paid R880
Complete (KM) for advertisements that will be aired until 30 June 2023. How much is deductible by Ngwenya (Pty) I id in
determining it's taxable income for the year of assessment ended 28 February 2023.
Mark 2.00 out of
2.00
a. R nil
F Flag question
b. R586 667
c. RIOOOOO
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Distribution of this document is illegal extra per year?
, d. R88O (XX)
Question I 0 On 3 1 October 2021 Ubuntu (Pty) Ltd acquired and brought into use a new (unused) manufacturing machine for
Complete R690 000. On 1 December 2022. the company incurred moving costs of R70 (XX) to get tin? machine moved from its
Johannesburg branch to its Durban branch Calculate the total capital allowance to be claimed by Ubuntu (Pty) Ltd
Marti 0.00 out of
on the machine for the 2023 year of assessment ending 28 February. Assume Ubuntu (Pty) Ltd is not a Small
2.00
Business Corporation, as defined in the Act.
V Llggjjjigmou
a. R304 000
b. R 152 000
c. R161 333
d. R 180 000
Question 1 1 Bhekisizwe I Pty) Lid’s year of assessment ends on 28/29 February. The company must make a second provisional
Complete payment for the 2023 year of assessment
Mark J .00 out of What is the latest date on which this payment must be made'.’
1.00
V Flap quc.il km a. 31 August 2022.
b. 2 8 February’ 2022.
c. 3 1 August 2023.
d. 2 8 February 2023.
Question I 2 On 1 February’ 2022, Ubuntu (Pty) Ltd acquired a new machine for R2 100 000. The machine w a s brought into use
Conip lete the same day in a process of manufacture. The machine was totally destroyed during a flash flood after heavy rains
in December 2022. The insurance company indemnified Ubuntu to an amount of R1 950 (MX) on I February 2023.
Mark 2.00 out of
Calculate any recoupment or scrapping allowance for Ubuntu (Pty) Ltd on this machine for the 2023 year of
2.00
assessment ending 28 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as defined in the Act.
F hLs.qy tioii
a. R I 530 000 recoupment
b. R l 950 000 recoupment
c. R ] 110 000 recoupment
d. Rd 50 000) scrapping allowance
Question 1 3 Bhekisizwe (Pty) Lid would like to know if they qualify as a small business corporation. You are provided with the
Complete following information. The gross income for the 2020 (their first year of trade) was R1.7 million. Grace and Joy (two
sisters) and Bhek (Ply) Ltd are the only shareholders of lhe company. Joy owns 5 INM) shares in a company listed on
Mark 1.00 out of
the Johannesburg Slock Exchange. The company lias no investment income.
1.00
O n what grounds does Bhekisizwe (Pty) Ltd not qualify as a small business corporation?
F Flaggucsttcm
a. Bhekisizwe (Pty) Ltd is a company.
b. Bhek (Pty) Ltd is a shareholder.
c. The company has no investment income.
d. Joy owns shares in a listed company.
Question 1 4 Ngwcnya (Pty) Ltd insures its trading assets on an annual basis. It pays a premium once a year that covers the
Complete period from 1 October to 30 September. O n 1 October 2022 it paid R 150 000 a s a premium on the insurance cover
of its trading assets to 30 September 2023. Hew much is deductible by Ngwcnya (Pty) Ltd in determining it’s taxable
Mark 2.00 out ol
income for the year of assessment ended 28 February 2023,
2.00
V’ Flag ques t ion
a. R 100 000
b. R62 500
c. R150 000
d. R nil
Question 1 5 Assume the folkwing taxpayer information: The taxpayer is a South African manufacturing company (not a small
Complete business corporation as defined) with a 31 March 2023 year of assessment. Calculate .the '20% rule” with regards toWant to earn $1.236
Distribution of this document is illegal extra per year?
,M ark 0.00 out of establishing a valuation date value as al I October 2001 for purposes of capital gains tax for the factory BELOW.
3.00
r kjag ustisa
Information pertaining to factory building:
Events Date Amount
Sold - proceeds 30 October 2022 R 3 000 000
Adjusted proceeds 30 October 2022 R 1 092 000
Purchased - cost price 1 June 2001 R 1 800 000
Improvements to the factory 1 June 201 1 R 180 000
Market value 1 October 2001 R 1 300 000
Tax value at date of sale R 72 000
Capital allowances claimed until sold -
on original factory building R 1 800 000
Capital allowances claimed until sold -
only on improvements to factory R 108 000
a. RI82 400
b. R585 060
c. R204 000
d. R 160 800
Question 16 Bhckisizwe Trust trades in rental properties and has taxable income of R582 (XX) for the 2023 year of assessment.
Complete Calculate the tax liability of the trust for tire 2023 year of assessment.
Mark 1.00 out of
1.00 a. R162 960
I ' lue q ues t ion b. R 104 760
c. R261 900
d. R157 140
Question 17 A tire occurred at Ngwenya (Pty) Ltd’s warehouse on 15 September 2022. trading stock with a value of R58O 000
Comp Jete was destroyed. On 20 January 2023, the insurance company aw arded the company R310 000 for the loss of this
trading stock. How much can Ngwenya (Pty) Ltd deduct for tax purposes relating to the insured stock for the year
M ark 2 00 out of
of assessment ended 28 February 2023.
2.00
V f- laj’.questivti
a. Rnil
b. R3IOOOO
c. R580 000
d. R270 000
Question 18 Ngwenya (Pty) Ltd manufactures vehicles. During the year of assessment the company incurred the following costs
Comp Jete to manufacture one vehicle: Production costs - R2 950 000 Testing costs to get the vehicle roadworthy = R94 000
Delivery truck traffic fine - womout windshield w ipers R1 800 Transportation costs to the warehouse = R28 000
M a r k 2.00 out of
2.00
What is the cost of this trading stock item for valuation purposes?
V I- lag quest ton
R3 044 000
R3 073 800
R3 072 000
R2 978 000
Ngwenya (Pty) Ltd incurred some research and development costs. The research and development was approved
by the Minister of Science and Technology under section I ID(9) on 30 June 2022. The following expenses relating to
this research were incurred during the 2023 year of assessment: Computer equipment purchased for R I 500 (XI0 was
brought into use on 1 September 2022 for the purposes of this research. Research consumables for this project were
purchased on 3 1 May 2022 for an amount of R39O 000. Salaries of R800 000 were paid to research personnel on 3 1
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Distribution of this document is illegal extra per year?
, December 2022. Calculate the amount deductible for tax purposes with regards to the consumables expense for the
Question 19 year ended 28 February 2023.
Complete
M ark 2.00 out of a. R585 000
2-00
b. R 195 000
V EJagqi.ie.slion
c. Rnil
d. R390 000
Question 20 Ngwenya (Pty) Ltd has a 28 February 2023 year end. fhe company made the following special payments during the
Comp letc 2023 year of assessment: I ) R50 (N>0 pension annuity payment payable for life to Lelo Shlali a former employee w h o
retired three years a g o a s a result of old age. 2 ) R60 000 payment payable annually for the next 1 0 years to Shaba
M ark 2.00 out l>1
La la who won the lotto a n d ceased working. 3) R 1 0 0 000 annuity payable annually to Sally Shange, a dependant of a
2.00
former employee, Ricky Shange who deceased on 1 October 2022. Calculate the amount that is deductible by
Flaw question Ngwenya for tax purposes for the 2023 year of assessment.
a. R210 000
b. R 5 0 000
c. R 100 000
d. R 150 000
Question 21 Ngwenya (Pty) Ltd incurred some r e s e a r c h and development costs. The research a n d development was approved
Complete by the Minister of Science and Technology under section 11D(9) on 30 June 2022. The following expenses relating to
this research were incurred during the 2023 year of assessment: Computer equipment purcltascd for R1 400 000 was
Mark 2.00 out ul
brought into use on 1 September 2022 for the purposes of this research. R e s e a r c h consumables for this project were
2.00
purchased on 3 1 M a y 2022 for a n amount of R38O 000. Salaries of R75O 000 w e r e paid to research assistants on 3 1
V E JilgJllKSltSlD December 2022. Calculate the allowance that Ngwenya (Pty) Lid c a n claim for tax purposes with regards to the
salaries expense for the year ended 28 February 2023.
a. Rnil
h. R75O 000
c. R l 125 000
d. R375 000
Question 22 Ngwenya (Pty) Lid made the following donations during the 28 February 2023 year of assessment: Paint supplies
Complete valued al R90 000 were donated to a childrens orphanage (u registered public benefit organisation). A t year-end
Ngwenya (Pty) Ltd is in possession of a section 18A receipt for this donation and the orphanage had pa inted their
M ark 2.00 out o f
2.00
premises with the donated paint. R25 000 c a s h to a local home shelter. A t the time the donation was made, the home
shelter was waiting to be registered a s a public benefit organisation. At year-end Ngwenya ( P t y ) Ltd was not in
I lai; q u e s t i o n possession of a section 18A receipt for this donation. What wrill the donations deduction be for Ngwenya (Pty7 ) Ltd
assuming they had a taxable income of R750 000 before taking the above into account?
a. R90 000
b R nil
c. R 115 000
d. R75 000
Question 23 Which one of the following Ls not true of a micro business?
Complete
M ark 0.00 out o f a. A micro business is taxed a t a very low rate.
1.00
b. A micro business is taxed on a receipt basis and the accrual basis.
V Has .question
C. A micro business Ls not required to keep a record of expenses.
d. A micro business is taxed on a turnover basis.
Ngwenya (Pty) Ltd buys stock in bulk in order to take advantage of bulk discounts. On 2 8 February 2022. Ngwenya
i Pty) Ltd h a d a closing stock on hand at the warehouse, valued a t R2 100 000. During the 2023 year of a s s e s s m e n t
the company sokl trading stock for R2 600 000. 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 R350 000 on 28 February 2023.
Assume l h e cost a n d market value Ls t h e same. Calculate Ngwenya (Pty) Ltd's taxable income for the year of
assessment ending on 28 February 2023. earnLibrary | haatmylater@gmail.com Want to earn $1.236
Distribution of this document is illegal extra per year?
,Question 24 R(850 000)
Complete R.2 600 000
M ark 2.00 o u t of R850 000
2.00
d. R4 350 000
V ElilS 51IH?'>1 H f.n
Question 25 Ngwenya t Pty ) Ltd has a 28 February 2023 year end. Tito company made die following payments during tlic 2023
Complete year of assessment: I ) R50 000 annual annuity for life to Mrs Zikakila. a dependant of a former employee, Mr
Zikalala, who retired due Io old age in 2020, 2) R4O (XX) annual annuity for life to a former employee, Mrs Swarts
M ark 2 00 our of
2.00
who retired after being diagnosed with a terminal illness. Calculate the amount that is deductible for the 2023 year of
assessment.
V F lag q ues t urn
R nil
R50 000
R40 000
d. R90 OCX)
Question 26 Assume the following taxpayer information: The taxpayer is a South African manufacturing company (not a small
Complete business corporation as defined) with a 31 March 2023 year of assessment. Calculate the adjusted proceeds for the
disposal of the machine BELOW.
M ark 3.00 out of
3.00 Information pertaining to manufacturing machine:
V FkigjJiHFsJtpn Events Date Amount
Sold 3 0 October 2022 R 705 0 0 0
Purchased 1 June 2020 R 510 000
Tax value at date of sale R 510 000
a. R5 10 000
b. R705 000
c. R 195 000
d. R315OOO
Question 27 Ngwcnya (Pty) Ltd acquired trading stock from Costly Limited for no consideration on 10 January 2023. This trading
Complete stock had cost Costly Limited R122 000 and had a market value of R130 000 on the date of tlic donation. Ngwcnya
sold this trading stock for R160 (XX) during February 2023. Calculate Ngwcnya (Pty) Ltd's taxable income for tlx?
M ark 2.00 out of
2023 year of assessment ended 28 February 2023.
2.00
V Hau question
a. R 130 000
b. R30 000
c. R 160 000
d. R38 000
Question 28 Assume the following taxpayer information: The taxpayer is a South African manufacturing company (not a small
Complete business corporation as defined) with a 31 March 2023 year of assessment. Calculate the adjusted proceeds for die
disposal of the machine BELOW.
Mark 3.00 o u t of
3.00 Information pertaining to m a n u f a c t u r i n g m a c h i n e :
Events Date Amount
V Flan question
Sold 30 October 2 0 2 2 R 705 000
Purchased 1 April 2020 R 5 1 0 000
R e c o u p m e n t (before limited to capital allowances previously claimed) R 603 000
R e c o u p m e n t (limited to capital allowances previously claimed) R 400 000
a. R7O5 000
b. R3O5 000
C. R 195 000
d. R 102 000
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,Question 29 Assume the following taxpayer information: The taxpayer is a South African manufacturing company (not a small
Complete business corporation as defined) with a 31 March 2023 year of assessment. Calculate the base cost for purposes of
capital gains tax for the machine BELOW:
M ark 3.00 out o f
3.00 information pertaining to manufacturing machine:
V E13S.qU< t_ion Events Date Amount
Sold 30 October 2022 R 850 000
Purchased 1 June 2020 R 420 000
improvements to the machine 1 September 2021 R 77 000
Repairs to the machine 1 February 2023 R 27 000
Total capital allowances claimed until sold R 387 333
a. R32 667
b. R 109 667
c. R82 667
d. R 136 667
Question 30 O n 1 February 2020. Ubuntu (Pty) l td acquired a new non-manufacturing asset for R3d0 00(1. The asset was
Comp lele brought into use immediately. On 30 April 2022 the asset was sold for R50 (X)() cash. Calculate any recoupment or
scrapping allowance for Ubuntu (Pty.) Ltd on this machine for the 2023 year of assessment ending 28 February.
M ark 2 .00 out o f
2.00
Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in the Act. In terms of B biding Ge neral
Ruling No. 7. an acceptable write-off period for this asset would be three (3) years.
V Flitg question
a. R(25 000) scrapping allowance
b. R( 125 000) scrapping allowance
c. R50 000 recoupment
d. R25 (MX) recoupment
Question 3 1 Which of the following statements about turnover tax is incorrect?
Complete
Mark 1.00 out of a. Qualifying turnover only refers to receipts and not to amounts accrued.
1.00
b. Any natural person, company, trust or close corporation with a qualifying turnover of less than R1 million
V Flag quest ton may elect to be taxed on the turnover tax system.
c. Taxable turnover includes cash receipts not of a capital nature from carrying on bussiess activities in the
Republic of South Africa.
d. A company and a close corporation is disqualified as a micro business if the year of assessment ends on a
date other than rhe last day of February.
Question 32 Ngwenya (Pty) Ltd had closing trading stock with a value of R 1 200 000 at the end of the company's year of
C omp lete assessment on 28 February 2022. The trading slock was sold by the company for R I 400 000 during its 2023 year of
assessment ended 28 February 2023. Calculate taxable income of Ngwenya (Pty) Ltd for 2023 year of assessment.
M ark 2 00 out o f
2.00
V FJ.agqLi. iH?rt
a. R200 00(1
b. R I 200 000
c. R(200 000)
d. R I 400 000
Question 33
Bhckisizwc CC is a start-up company established by two sisters. It started trading on 1 July 2022 and have a year of
C omp lete assessment ending on 28 February 2023. The sisters make bread and crackers which arc suitable for diabetics and
M ark 0.00 out of sell them at various food markets in tire Gauteng region over weekends. They recently started selling their products
1.00 in a well-known supermarket. Additional information:
V" F lag que-Hl ion Total receipts for the period from turnover R540 000
Capital receipts (from the sale of equipment not included in total receipts) R28 000
Taxable turnover R554 000
Taxable income R275 300
Assume Bhckisizwc CC qualifies as a micro business. What would its tax liability be for the 2023 year of
assessment?
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, a. R 74 331
b. RNil
c. R2 730
d. R2 450
Question 34 Bhekisizwe CC is a start-up company established by two sisters. It started trading <>n I July 2022 and have a year of
Complete assessment ending on 28 February 2023. The sisters make bread and crackers which arc suitable for diabetics and
sell diem at various food markets in the Gauteng region over weekends. They recently started selling their products
M ark 0.00 out of
1.00
in a well- known supermarket. Additional information:
Total receipts for the period from turnover R540 000
V ElstevnuaiJiaQ
Capital receipts (from the sale of equipment not included in total receipts) R28 000
Taxable turnover R554 000
Taxable income R275 300
Bhekisizwe CC would like to determine if it qualifies as a micro business. What is (he qualifying turnover proportional
limit for Bhektiizwe CC for the 2023 year of assessment?
R1 000 000
R54O 000
R666 667
R554 (XX)
Question 35 Ngwenya (Pty) Ltd and its employees contribute to a medical scheme on an annual basts. On I January 2023 it
Complete contributed R210 000 to the medical scheme. This R2 10 000 was its contribution for the 2023 CALENDAR year.
How much is deductible by Ngwenya (Pty) Ltd tn determining it's taxable income for the year of assessment ended
Mark 0.00 out of
2.00
28 February 2023.
V 1 l.n:que.slK>R
a. R2I0 000
b. R ml
R100 000
d. R35 000
Question 3 6 Which one of the following arc disqualified from registering as a micro business?
Complete
M ark i.OO out of a. Trusts
1.00
b. Companies
V H ; !l?.qu<s.l.ton
c. Close corporations
d. Sole traders
Question 3 7 Ngwenya (Pty) Ltd incurred some research and development costs. The research and development was approved
Comp lelc by the Minister of Science and Technokigy under section 1 ID(9) on 30 June 2022. The following expenses relating to
this research were incurred during the 2023 year of assessment: Compute r equipment purchased for R1 400 000 was
M a r k 2,00 m i t of
2.00
brought into use on 1 September 2022 for the purposes of this research. Research consumables for this project were
purchased on 31 May 2022 for an amount of R36O 000. Salaries of R75O ODO were paid to research assistants on 31
T" Flay quest km December 2022. Calculate the allowance that Ngwenya (Pty) Ltd can claim tor tax purposes with regards to the
computer equipment for the year ended 28 February 2023.
R700 000
R233 333
R42O 000
R2 100 000
Question 3 8 Ngwenya (Pty) Ltd imports trading stock from Brazil The cost of the trading stock is the equivalent of R4 000 000,
C oinp lete shipping costs arc R8D 000, insurance costs are R4O 000 and customs and excise duties are R4(X) 000. The trading
slock was received al the warehouse by the end of its 2023 year of assessment. Calculate the value of trailing stock
M ark 2.00 out of
for the year of assessment ended 28 February 2023.
2.00
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Distribution of this document is illegal extra per year?
,V F I . i l question a. R4 OHO 000
b. R4 120 000
c. R4 000 000
d. R4 520 000
Question 3 9 Assume the following taxpayer information: The taxpayer is a South African manufacturing company (not a small
(. omplcte business corporation as defined) with a 3 1 March 2023 year o f assessment. Calculate the net capital gain/(kws) for
the current year of assessment taking the information BELOW into account.
M a r k 3.00 out of
3.00
Information pertaining to assets disposed of during the year:
V Flue question
Adjusted Cost Base Capital
Events Date disposed of Proceeds
proceeds price cost gainZ(loss)
Machine 1 - disposed 31 October 2022 57 000 39 400 44 000 28 400 ?
Machine 2 - disposed 15 February 2023 17 500
Building - disposed 01 August 2022 (22 500)
Note: There is an assessed capital loss from 2022 year of assessment of R57 000.
a. R(49 000)
b. R(51 000)
c. R(5 000)
d. R6 000
Question 4 0 Ngwenya ( Pty) Ltd during the 28 February 2023 year of assessment, had the following two transactions occur which
Comp lete the financial accountant asks you what the tax implications arc: Transaction 1: Ngwenya purchased trading stock
during the current year of assessment at a cost of R30 000. This stock was given for no consideration to a homeless
Mark 2.00 out of
shelter The shelter is not a registered PHO. The stuck had a market value of R45 (MN). Transaction 2: Trading stock
2.00
(specific items) were purchased for an amount of R1 35 (MX) during the year of assessment. None of this trading
V Ekususlkn stock were sold and at year-end after the auditors' stock take, these specific items had a market value of R70 000.
Which amounts need to be deducted or added in calculating Ngwenya (Pty) Ltd's taxable income for the 2023 year
of assessment with regards to transaction 1 and 2.
a. Transaction 1: R30 000 Transaction 2 R70 000
b. Transaction 1: R15 000 Transaction 2 R(135 000)
c. Transaction 1:R15 000 Transaction 2 R(65 000)
d. Transaction 1: R30 <>(M) Transaction 2 R 135 IXM)
Question 4 1 Which of the following is true with regards to companies?
Complete
Mark 1,00 out of a. Companies arc taxed at the applicable normal tax rate of 27% for years of assessment ending on 31 March
1.00 2023.
F Flag quest ion b. Companies arc not owned by shareholders in that company.
c. Companies arc not separate legal entities and they arc not separate taxpayers
d. Company profits are added to the shareholders' income for the year.
Question 4 2 Ngwenya (Pty) Ltd had the following bad debts as at 28 February 2023: Bad debts - relating to trade debtors -
Complete Namibian located customers R71 (MX) Bad debts - relating to trade debtors - South African located customers
R 157 000 Bad debts - relating to loans made to former employees - R20 800 (including interest charged on the hans
.Mark 2.00 out of
of R2 400) Calculate the amount that Ngwenya (Pty) Ltd can deduct for lax purposes with regards to the bad debts
2.00
it has incurred during the year of assessment ending on 28 February 2023.
F FlugMUsslilM
a. R228 000
b. R23O 400
c. R 157 000
d. R248 800
Question 4 3 Assume the following taxpayer information: The taxpayer is a South African manufacturing company (not a small
Complete business corporation as defined) with a 31 March 2023 year of assessment. Calculate the taxable capital gain loss)earn $1.236
Distribution of this document is illegal extra per year?
, for (he current year of assessment taking the BELOW information into account.
Information pertaining to a s s e t s d i s p o s e d of during t h e y e a r :
Capital
Events D a t e d i s p o s e d of
gain/(loss)
Machine 1 - disposed 21 October 2022 R 65 000
Machine 2 ~ disposed 15 February 2 0 2 3 R 7 500
Building - disposed 18 August 2 0 2 2 R 22 500
Note: There i s a n assessed capital loss from t he 2022 year of assessment of R 5 7 000.
R76 000
b. R38 000
R30 400
d. R 12 400
During the 2023 year of assessment ending 28 February 2023, Ngwcnya (Pty) Ltd moved to new premises. Tlie total
cost of this move was R33 0t)0, made up as follows: moving of its shop equipment - R17 5(H) moving of aD its trading
stock - R 15 500 What is the effect of these expenses to trading stock?
a. No amount is added Io or deducted from trading stock
b. R 15 500 is added to the value of trading stuck
c. R33 000 is added to the value of trading stock
d. R15 500 is deducted from the value of trading stock
Which one of the following statements is (rue for a partnership?
a. The individual partners are the taxpayers.
b. A partnership is a legal relationship be tween at k*ast 20 people.
c. A partnership is a separate legal entity.
d. A partnership is a separate taxpayer.
Bhekisizwe (Pty) Ltd had a taxable income of R765 976 for the 2020 year of assessment and the date of the
assessment w as 14 December 2020. The company's 2021 tax assessment was Issued on 3 March 2022 and
reflected a taxable income of R896 123. The actual calculated taxable income for the 2022 year of assessment was
R976 754. Bhekisizwe (Ply) Ltd is not a small business corporation as defined and the company has a September
year end. On or before which date must the first provisional tax payment be made to SAKS for the 2022 year of
assessment?
a. 01 April 2022.
b. 28 February 2022.
c. 31 March 2022.
d. 30 September 202 I.
Assume the follow ing taxpayer information: 1 he taxpayer is a South African manufacturing company (not a small
business corporation as defined) with a 3 I March 2023 year of assessment. Calculate the tax value of the machine
BELOW.
Information pertaining to manufacturing machine:
Events Date Amount
Sold 30 October 2022 R680 000
Purchased 1 June 2020 R450 000
Recoupment (before limited to capital allowances previously claimed) R590 000
a. R90 000
b. R nil
c. R 140 000
d. R36O 000
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