TAX2601/201/1/2016
Tutorial letter 201/1/2016
Principles of Taxation
TAX2601
Semester 1
Department of Taxation
QUESTIONS AND SUGGESTED
SOLUTIONS
ASSIGNMENT 3
Bar code
, 2
Dear Student
This tutorial letter contains assignment 3, which are the questions and updated solutions for a
previous exam paper. This assignment is not compulsory; however, it will assist you in your
preparation for the exam. The solution for Assignment 1 will be provided in tutorial letter 202
and the solution for assignment 2 will be provided in tutorial letter 203.
Best wishes for your preparation for the exam.
Kind regards
TAX2601 Lecturers
Telephonic contact with lecturers:
The lecturers who are available to
assist you are:
Prof AP Swanepoel
Ms MSI Wentzel 012 429 4133
Ms C Cass (this is a hunting line – you will need to let it
Ms C Stedall ring so that the exchange can find a free
Mr A Swanepoel extension)
Mr M van Dyk
Ms H van der Merwe
Ms E Doussy
Ms I Kretzschmar
Departmental cell phone number: 079 365 1124
(semester 1)
E-mail contact with lecturers: (semester 2)
Course contact tab on myUnisa
Fax numbers: (Department of Taxation) 012 429 4902 or 012 429 4443
, 3 TAX2601/201
This assignment is based on an examination paper. This is a self-
assessment assignment.
These are the instructions that will also appear on your examination paper. Read
them now and make sure that you understand what we require from you. We
also suggest that you try to do this assignment like a proper examination, under
examination conditions, to see how much you know and what you need to spend
time on.
This paper consists of seven (7) pages plus the annexures (pp i – ii).
IMPORTANT INSTRUCTIONS:
1. All amounts exclude VAT unless stated otherwise.
2. All persons mentioned are residents of the Republic of South Africa unless stated other-
wise.
3. SARS = South African Revenue Service
The answering of this paper:
1. This paper consists of four (4) questions.
2. Answer all the questions.
3. Start each question on a new (separate) page.
4. Show all workings, where applicable. Where an amount is subject to a limitation, clearly
indicate the application of the limitation. Where any item is exempt from tax or not allow-
able as a deduction, this must be indicated, and a brief reason provided. All amounts must
be rounded to the nearest rand.
5. Please complete the cover page of the answer book in full.
6. You are reminded that answers may NOT be written in pencil.
7. Proposed timetable (try as far as possible not to deviate from this timetable):
Question Topic Marks Minutes
1 Tax liability of a company 30 36
2 Micro business and small business corporation 22 26
3 Provisional tax and capital gains tax 23 28
4 General deduction formula and tax administration 25 30
TOTAL 100 120
Tutorial letter 201/1/2016
Principles of Taxation
TAX2601
Semester 1
Department of Taxation
QUESTIONS AND SUGGESTED
SOLUTIONS
ASSIGNMENT 3
Bar code
, 2
Dear Student
This tutorial letter contains assignment 3, which are the questions and updated solutions for a
previous exam paper. This assignment is not compulsory; however, it will assist you in your
preparation for the exam. The solution for Assignment 1 will be provided in tutorial letter 202
and the solution for assignment 2 will be provided in tutorial letter 203.
Best wishes for your preparation for the exam.
Kind regards
TAX2601 Lecturers
Telephonic contact with lecturers:
The lecturers who are available to
assist you are:
Prof AP Swanepoel
Ms MSI Wentzel 012 429 4133
Ms C Cass (this is a hunting line – you will need to let it
Ms C Stedall ring so that the exchange can find a free
Mr A Swanepoel extension)
Mr M van Dyk
Ms H van der Merwe
Ms E Doussy
Ms I Kretzschmar
Departmental cell phone number: 079 365 1124
(semester 1)
E-mail contact with lecturers: (semester 2)
Course contact tab on myUnisa
Fax numbers: (Department of Taxation) 012 429 4902 or 012 429 4443
, 3 TAX2601/201
This assignment is based on an examination paper. This is a self-
assessment assignment.
These are the instructions that will also appear on your examination paper. Read
them now and make sure that you understand what we require from you. We
also suggest that you try to do this assignment like a proper examination, under
examination conditions, to see how much you know and what you need to spend
time on.
This paper consists of seven (7) pages plus the annexures (pp i – ii).
IMPORTANT INSTRUCTIONS:
1. All amounts exclude VAT unless stated otherwise.
2. All persons mentioned are residents of the Republic of South Africa unless stated other-
wise.
3. SARS = South African Revenue Service
The answering of this paper:
1. This paper consists of four (4) questions.
2. Answer all the questions.
3. Start each question on a new (separate) page.
4. Show all workings, where applicable. Where an amount is subject to a limitation, clearly
indicate the application of the limitation. Where any item is exempt from tax or not allow-
able as a deduction, this must be indicated, and a brief reason provided. All amounts must
be rounded to the nearest rand.
5. Please complete the cover page of the answer book in full.
6. You are reminded that answers may NOT be written in pencil.
7. Proposed timetable (try as far as possible not to deviate from this timetable):
Question Topic Marks Minutes
1 Tax liability of a company 30 36
2 Micro business and small business corporation 22 26
3 Provisional tax and capital gains tax 23 28
4 General deduction formula and tax administration 25 30
TOTAL 100 120
