Started on Monday, 2 October 2023, 12:41 PM
State Finished
Completed on Monday, 2 October 2023, 2:14 PM
Time taken 1 hour 33 mins
Marks 28.00/35.00
Grade 80.00 out of 100.00
Question 1 Bhekisizwe (Pty) Ltd is a property management company that manages rental properties on behalf of its clients,
Complete i.e rental is collected from the tenants and paid over to the clients of the company (the owners of the properties).
M ark 1.00 out of The following are the receipts of the company for the year of assessment ending 31 January 2023:
1.00
Fees for property management services R600 000
Rentals (1) R6 329 000
Notes:
1.The rentals received were from properties owned by the clients of Bhekisizwe (Pty) Ltd. Assume Bhekisizwe
(Pty) Ltd received an asset (worth R35 000) from one of its clients in payment for services rendered (i.e. the
client did not pay cash, but paid by giving an asset).
Which court case should be considered in determining whether the asset worth R35 000 received by Bhekisizwe
(Pty) Ltd will constitute gross income as defined?
a. CIR v Visser 8 SATC 271.
b. CIR v Butcher Bros (Pty) Ltd 13 SATC 21 (A) 1944.
c. CIR v Peoples Stores (Walvis Bay) (Pty) Ltd 52 SATC 9.
d. Geldenhuys v CIR 14 SATC 419 (A) 1947.
,Question 2 The following are the transactions of Bhekisizwe for the current year of assessment ended 28 February 2023:
Complete
Gross income R945 764
M ark 1.00 out of
Deductions and allowances R667 865
1.00
What is Bhekisizwe's normal tax liability for the 2023 year of assessment, assuming this is a micro business where
the gross income is equal to the taxable turnover?
a. R27 246
b. R6 072
c. R12 523
d. R111 160
Question 3 Ngwenya (Pty) Ltd made a restraint of trade payment of R1 200 000 to a retiring director, Mr Msomi, on 1
Complete September 2022. Mr Msomi was restrained from competing with the company for four years from the date of the
payment. This payment will be included in Mr Msomi's gross income for his 2023 year of assessment. Calculate
M ark 1.00 out of
how much will be deductible by Ngwenya (Pty) Ltd for the year of assessment ending 28 February 2023.
1.00
a. R150 000
b. R400 000
c. R300 000
d. R200 000
, Question 4 Which of the following is incorrect with regards to Small Business Corporations (SBCs)?
Complete
M ark 1.00 out of a. The SBCs' shareholders should be natural persons for the entire year of assessment.
1.00
b. None of the SBCs' shareholders or members are allowed to hold any shares of any other company,
unless it is a permitted shareholding.
c. The SBCs' income should not exceed R20 million for the year of assessment
d. The SBCs' income should not exceed R10 million for the year of assessment
Question 5 Bhekisizwe (Pty) Ltd is registered as a micro business and has compiled the following financial information for the
Complete current year of assessment:
Cash sales to customers R850 000
M ark 1.00 out of
Investment income R15 000
1.00
Proceed on sale of business vehicle R210 000
Operating costs of business R320 000
Repairs & maintenance business vehicle R3 000
Calculate Bhekisizwe (Pty) Ltd's taxable turnover for the 2023 year of assessment.
a. R850 000
b. R970 000
c. R955 000
d. R1 075 000
State Finished
Completed on Monday, 2 October 2023, 2:14 PM
Time taken 1 hour 33 mins
Marks 28.00/35.00
Grade 80.00 out of 100.00
Question 1 Bhekisizwe (Pty) Ltd is a property management company that manages rental properties on behalf of its clients,
Complete i.e rental is collected from the tenants and paid over to the clients of the company (the owners of the properties).
M ark 1.00 out of The following are the receipts of the company for the year of assessment ending 31 January 2023:
1.00
Fees for property management services R600 000
Rentals (1) R6 329 000
Notes:
1.The rentals received were from properties owned by the clients of Bhekisizwe (Pty) Ltd. Assume Bhekisizwe
(Pty) Ltd received an asset (worth R35 000) from one of its clients in payment for services rendered (i.e. the
client did not pay cash, but paid by giving an asset).
Which court case should be considered in determining whether the asset worth R35 000 received by Bhekisizwe
(Pty) Ltd will constitute gross income as defined?
a. CIR v Visser 8 SATC 271.
b. CIR v Butcher Bros (Pty) Ltd 13 SATC 21 (A) 1944.
c. CIR v Peoples Stores (Walvis Bay) (Pty) Ltd 52 SATC 9.
d. Geldenhuys v CIR 14 SATC 419 (A) 1947.
,Question 2 The following are the transactions of Bhekisizwe for the current year of assessment ended 28 February 2023:
Complete
Gross income R945 764
M ark 1.00 out of
Deductions and allowances R667 865
1.00
What is Bhekisizwe's normal tax liability for the 2023 year of assessment, assuming this is a micro business where
the gross income is equal to the taxable turnover?
a. R27 246
b. R6 072
c. R12 523
d. R111 160
Question 3 Ngwenya (Pty) Ltd made a restraint of trade payment of R1 200 000 to a retiring director, Mr Msomi, on 1
Complete September 2022. Mr Msomi was restrained from competing with the company for four years from the date of the
payment. This payment will be included in Mr Msomi's gross income for his 2023 year of assessment. Calculate
M ark 1.00 out of
how much will be deductible by Ngwenya (Pty) Ltd for the year of assessment ending 28 February 2023.
1.00
a. R150 000
b. R400 000
c. R300 000
d. R200 000
, Question 4 Which of the following is incorrect with regards to Small Business Corporations (SBCs)?
Complete
M ark 1.00 out of a. The SBCs' shareholders should be natural persons for the entire year of assessment.
1.00
b. None of the SBCs' shareholders or members are allowed to hold any shares of any other company,
unless it is a permitted shareholding.
c. The SBCs' income should not exceed R20 million for the year of assessment
d. The SBCs' income should not exceed R10 million for the year of assessment
Question 5 Bhekisizwe (Pty) Ltd is registered as a micro business and has compiled the following financial information for the
Complete current year of assessment:
Cash sales to customers R850 000
M ark 1.00 out of
Investment income R15 000
1.00
Proceed on sale of business vehicle R210 000
Operating costs of business R320 000
Repairs & maintenance business vehicle R3 000
Calculate Bhekisizwe (Pty) Ltd's taxable turnover for the 2023 year of assessment.
a. R850 000
b. R970 000
c. R955 000
d. R1 075 000
