[TYPE THE COMPANY NAME]
TAX2601 Assignment
1 (COMPLETE
ANSWERS) Semester
1 2026 - DUE 8 April
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
TAX2601 Assignment 1 (COMPLETE
ANSWERS) Semester 1 2026 - DUE 8 April
TAX2601 Assignment 1 (COMPLETE ANSWERS) Semester 1 2026 - DUE 8
April 2026; 100% TRUSTED Complete, trusted solutions and explanations.
QUESTION 1 (13 marks, 16 minutes) Dzindu Properties (Pty) Ltd (Dzindu) is a
South African resident company that builds and sells residential houses in
and around Vhembe (Limpopo Province). The company’s financial year ends
on 30 March. During a severe rainstorm in the area in November 2025, a
river broke its banks and washed away several recently finished houses that
were in the market for sale. The properties were totally destroyed. The
development cost of the destroyed properties amounted to R2 700 000 in
total. On 20 January 2026, Dzindu’s insurance company paid a total amount
of R2 000 000, in full and final settlement, to Dzindu to indemnify the
company for this loss. REQUIRED MARKS Discuss whether the
expenditure/losses above are deductible by Dzindu Properties (Pty) Ltd in
terms of the general deduction formula (section 11(a) read with section 23)
for the year of assessment ending 30 March 2026. (You need to specify
amounts in your discussion.) Note: • You can support the main issue in the
question with relevant case law from the module's prescribed case law. • List
all the requirements of the general deduction formula but note that most
marks are awarded to the discussion of the requirements and the main issue
in the question. 13 QUESTION 2 (13 marks, 16 minutes) Sokhaya Stores (Pty)
Ltd is a company resident in South Africa. The company trades in cleaning
materials. The company is not a small business corporation as defined in the
Income Tax Act. Its financial year ends on 31 March 2026. You have the
following information: Year of assessment Taxable income Date of
assessment 2023 R2 500 000 20 August 2023 2024 R2 900 000 27
September 2025 2025 R3 400 000 10 April 2026 2026 R3 800 000 Estimated
– not yet assessed REQUIRED MARKS a) Calculate the first provisional tax
payment for Sokhaya Stores (Pty) Ltd for its 2026 year of assessment to
ensure that the company does not incur any underestimation penalties. b)
Calculate the second provisional tax payment for Sokhaya Stores (Pty) Ltd
for its 2026 year of assessment to ensure that the company does not incur
any underestimation penalties. Note: • Provide a reason for all the amounts
used, explaining whether they may be used as the basic amount, and specify
any adjustments made (if any) in calculating the basic amount. 9 4
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Page 4 of 6
TAX2601 Assignment
1 (COMPLETE
ANSWERS) Semester
1 2026 - DUE 8 April
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
TAX2601 Assignment 1 (COMPLETE
ANSWERS) Semester 1 2026 - DUE 8 April
TAX2601 Assignment 1 (COMPLETE ANSWERS) Semester 1 2026 - DUE 8
April 2026; 100% TRUSTED Complete, trusted solutions and explanations.
QUESTION 1 (13 marks, 16 minutes) Dzindu Properties (Pty) Ltd (Dzindu) is a
South African resident company that builds and sells residential houses in
and around Vhembe (Limpopo Province). The company’s financial year ends
on 30 March. During a severe rainstorm in the area in November 2025, a
river broke its banks and washed away several recently finished houses that
were in the market for sale. The properties were totally destroyed. The
development cost of the destroyed properties amounted to R2 700 000 in
total. On 20 January 2026, Dzindu’s insurance company paid a total amount
of R2 000 000, in full and final settlement, to Dzindu to indemnify the
company for this loss. REQUIRED MARKS Discuss whether the
expenditure/losses above are deductible by Dzindu Properties (Pty) Ltd in
terms of the general deduction formula (section 11(a) read with section 23)
for the year of assessment ending 30 March 2026. (You need to specify
amounts in your discussion.) Note: • You can support the main issue in the
question with relevant case law from the module's prescribed case law. • List
all the requirements of the general deduction formula but note that most
marks are awarded to the discussion of the requirements and the main issue
in the question. 13 QUESTION 2 (13 marks, 16 minutes) Sokhaya Stores (Pty)
Ltd is a company resident in South Africa. The company trades in cleaning
materials. The company is not a small business corporation as defined in the
Income Tax Act. Its financial year ends on 31 March 2026. You have the
following information: Year of assessment Taxable income Date of
assessment 2023 R2 500 000 20 August 2023 2024 R2 900 000 27
September 2025 2025 R3 400 000 10 April 2026 2026 R3 800 000 Estimated
– not yet assessed REQUIRED MARKS a) Calculate the first provisional tax
payment for Sokhaya Stores (Pty) Ltd for its 2026 year of assessment to
ensure that the company does not incur any underestimation penalties. b)
Calculate the second provisional tax payment for Sokhaya Stores (Pty) Ltd
for its 2026 year of assessment to ensure that the company does not incur
any underestimation penalties. Note: • Provide a reason for all the amounts
used, explaining whether they may be used as the basic amount, and specify
any adjustments made (if any) in calculating the basic amount. 9 4
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