TAX3705 ASSIGNMENT 2 SEMESTER 1 OF 2022
PART A
Question 1
1.1(C) R20 million, because it accrued to the company in terms of the
definition of “gross income” as well as the ruling in CIR v People’s Stores
(Walvis Bay) (Pty) Ltd (52 SATC 9) where the court held that the taxpayer
acquired the right to receive R20 million
1.2(B) R3,4 million, because in Mooi v SIR (35 SATC 1) the court held that the
amount only accrues when all conditions are fulfilled and the right to
receive the money becomes unconditional.
1.3(D) Both (b) and (c).
1.4(B) R8 000, because the accountant only rendered the services for the
month of February
1.5(b) False
1.6(a) True
1.7(b) False
1.8(b) Actually incurred, incurred in the production of income and not of a
capital nature
Question 2.
TAX OPINION
PART A
Question 1
1.1(C) R20 million, because it accrued to the company in terms of the
definition of “gross income” as well as the ruling in CIR v People’s Stores
(Walvis Bay) (Pty) Ltd (52 SATC 9) where the court held that the taxpayer
acquired the right to receive R20 million
1.2(B) R3,4 million, because in Mooi v SIR (35 SATC 1) the court held that the
amount only accrues when all conditions are fulfilled and the right to
receive the money becomes unconditional.
1.3(D) Both (b) and (c).
1.4(B) R8 000, because the accountant only rendered the services for the
month of February
1.5(b) False
1.6(a) True
1.7(b) False
1.8(b) Actually incurred, incurred in the production of income and not of a
capital nature
Question 2.
TAX OPINION
