Exam (elaborations)
TAX2601 Assignment 6 2024
- Institution
- 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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, 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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