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TAX2601 Assignment 5 (ANSWERS) Semester 1 2023 (701094)

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TAX2601 Assignment 5 (ANSWERS) Semester 1 2023 (), Whats app 0 for private documents from R99. QUESTION 1 (30 marks) You are a junior tax consultant at Easy Tax, a firm performing accounting and tax related services for its clients. You are currently assigned to the client SA Metals (Pty) Ltd (�...

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  • 14 de mayo de 2023
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, Table of Contents:


1. Question 1: Calculate the normal tax liability of SA Metals (Pty) Ltd for the year of assessment
ending 31 March 2023.
- Taxable income and deductions
- Explanation of taxable and non-deductible amounts
- Calculation of normal tax liability


2. Question 2: Discuss whether the receipt of the R10 000 deposit would constitute gross income
of Siyahamba (Pty) Ltd as defined in the Income Tax Act 58 of 1962 for the year of assessment
ending 31 March 2023.
- Requirements for income to be considered gross income
- Analysis of the deposit received by Siyahamba (Pty) Ltd
- Reference to relevant case law


3. Question 3: Calculate the normal tax liability for Funky Pants (Pty) Ltd for the year of
assessment ended 28 February 2023.
- Calculation of taxable income
- Calculation of normal tax liability


4. Explanation of Funky Pants (Pty) Ltd's eligibility as a micro business.
- Requirements for qualifying as a micro business
- Evaluation of Funky Pants (Pty) Ltd's compliance with the eligibility criteria


5. Advantages and disadvantages of registering as a micro business versus a small business
corporation for Funky Pants (Pty) Ltd.
- Benefits of micro business registration
- Comparison with small business corporation registration
- Recommendation for Funky Pants (Pty) Ltd's registration choice

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