LML4804 Assignment 1 (COMPLETE ANSWERS) Semester 2 2024 - DUE 26 August 2024 ; 100% TRUSTED Complete, trusted solutions and explanations.
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August 2024
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Silke on South African Income Tax
LML4804 Assignment 1 (COMPLETE ANSWERS) Semester 2 2024 - DUE 26
August 2024 ; 100% TRUSTED Complete, trusted solutions and explanations.
QUESTION 01 (Gross-income) 1.1 Freedom Movement Party (FMP) is a
newly established political party which was registered to contest 2024
National and Provisional elections. It concluded a contract with Green Print
Media House (Pty) Ltd (GP Media House). In terms of the contract, GP Media
House had to print 3000 3D posters on behalf of FMP depicting the image of
its leader for its campaign. GP Media House was also expected to air FMP
political advertisements through its media partners on radio stations and
television. On April 2024, FMP paid a deposit of R150 000 and undertook to
pay the remainder amount on 30 June 2024. After the conclusion of national
elections, FMP reviewed its performance on the national elections and noted
that it did not accumulate enough votes it hoped for. A report from the external
service provider appointed by FMP to investigate its poor performance,
concluded that FMP did not reach large audience. On August 2024, FMP
wrote a letter to GP Media House notifying the company that it will no longer
pay the outstanding amount to GP Media House and it also considered its
options to sue the company for its failure to honour the contractual obligations
between the parties. As part of the contractual obligation between the parties,
FMP learned that GP Media house failed to air its political adverts on radio
station and television according to the agreed dates. It transpired that FMP
political advert was only aired on radio station and television a day prior the
date of the national elections. GP Media House referred the matter to court to
demand the outstanding amount owed by FMP. The matter was set down for
hearing for 05 October 2024. WHAT IS REQUIRED OF YOU? With reference
to tax law and case decision, discuss whether the deposit paid and the
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