Started on Saturday, 26 April 2025, 9:04 AM
State Finished
Completed on Saturday, 26 April 2025, 10:26 AM
Time taken 1 hour 22 mins
Grade 34.00 out of 40.00 (85%)
Question 1 Ngwenya (Pty) Ltd contributes to a provident fund for the benefit of its employees.
Complete Contributions amounting to R24 000 000 were paid to the fund during the
Mark 1.00 out of
28 February 2025 year of assessment. How much is deductible for tax purposes by
1.00 Ngwenya (Pty) Ltd for the 2025 year of assessment?
Flag question
a. R24 000 000
b. R 24 000 000 x 27,5% equals R6 600 000
c. R 24 000 000 x 20% equals R4 800 000
d. R 24 000 000 x 10% equals R2 400 000
Question 2 During the 2025 year of assessment ending 28 February 2025, Ngwenya (Pty) Ltd
Complete moved to new premises. The total cost of this move was R31 000, made up as
Mark 1.00 out of
follows:
1.00 -moving of its shop equipment - R16 500
Flag question
-moving of all its trading stock - R14 500
What is the effect of these expenses to trading stock?
a. R14 500 is deducted from the cost price of the trading stock
b. R31 000 is added to the cost price of the trading stock
c. No amount is added to or deducted from the cost price of the trading stock
d. R14 500 is added to the cost price of the trading stock
Question 3 On 1 February 2022, Ubuntu (Pty) Ltd acquired a new non-manufacturing asset for
Complete R280 000. The asset was brought into use immediately. On 30 April 2024 the asset
Mark 1.00 out of
was sold for R50 000 cash. Calculate any recoupment or scrapping allowance for
1.00 Ubuntu (Pty) Ltd on this machine for the 2025 year of assessment ending 28/29
February. Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in
Flag question
the Act. In terms of Binding General Ruling No. 7, an acceptable write-off period for
this asset would be three (3) years.
a. R(20 000) scrapping allowance
b. R20 000 recoupment
c. R(113 333) scrapping allowance
d. R50 000 recoupment
Question 4 Ngwenya (Pty) Ltd manufactures vehicles. During the year of assessment the company
Complete incurred the following costs to manufacture one vehicle:
Mark 1.00 out of
-Production costs = R2 900 000
1.00 -Testing costs to get the vehicle roadworthy = R93 000
-Delivery truck traffic fine - worn-out windshield wipers = R1 700
, Flag question -Transportation costs to the warehouse = R27 000
What is the cost of this trading stock item for valuation purposes?
a. R3 021 700
b. R2 993 000
c. R3 020 000
d. R2 927 000
Question 5 Ngwenya (Pty) Ltd experienced a couple of break-ins at the shop. The company
Complete acquired a watchdog for R8 500. The dog food expense for the watchdog of R11 200
Mark 1.00 out of
were incurred for the 28 February 2025 year of assessment. The watchdog had to
1.00 visit the vet during the 2025 year of assessment at a cost of R1 800. What amount can
Ngwenya (Pty) Ltd deduct in terms of the general deduction formula (section 11(a))
Flag question
with regards to the above costs incurred for the 2025 year of assessment?
a. R13 000
b. R nil
c. R19 700
d. R21 500
Question 6 Ngwenya (Pty) Ltd made a restraint of trade payment of R1 800 000 to a retiring
Complete director, Mr Msomi, on 1 September 2024. Mr Msomi was restrained from
Mark 0.00 out of
competing with the company for four years from the date of the payment. This
1.00 payment will be included in Mr Msomi's gross income for his 2025 year of
assessment. Calculate how much will be deductible by Ngwenya (Pty) Ltd for the year
Flag question
of assessment ending 28 February 2025.
a. R225 000
b. R300 000
c. R450 000
d. R600 000
Question 7 Ngwenya (Pty) Ltd has a 28 February 2025 year end. The company made the
Complete following special payments during the 2025 year of assessment:
Mark 1.00 out of
1) R50 000 pension annuity payment payable for life to Lelo Shlali a former employee
1.00 who retired three years ago as a result of old age.
2) R60 000 payment payable annually for the next 10 years to Shaba Lala who won
Flag question
the lotto and ceased working.
3) R100 000 annuity payable annually to Sally Shange, a dependant of a former
employee, Ricky Shange who deceased on 1 October 2024.
Calculate the amount that is deductible by Ngwenya for tax purposes for the 2025
year of assessment.
a. R50 000
b. R100 000
c. R150 000
, d. R210 000
Question 8 On 31 October 2023, Ubuntu (Pty) Ltd acquired and brought into use a new (unused)
Complete mainframe file server (non-manufacturing asset) for R450 000. On 1 December 2024,
Mark 0.00 out of
the company incurred moving costs of R50 000 to move the asset from its
1.00 Johannesburg branch to its Durban branch. Calculate the total capital allowance to be
claimed by Ubuntu (Pty) Ltd on the asset for the 2025 year of assessment ending
Flag question
28/29 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as
defined in the Act.
a. R175 000
b. R160 000
c. R100 000
d. R115 000
Question 9 Ngwenya (Pty) Ltd incurred the following legal expense during the 2025 year of
Complete assessment ended 28 February 2025:
Mark 1.00 out of
i) R9 000 legal costs for debt collection;
1.00 ii) R26 000 legal costs relating to the drawing up of an agreement to purchase a piece
of land;
Flag question
iii) R51 000 relating to a dispute with a client of Ngwenya (Pty) Ltd who sued the
company for supplying incorrect goods. Ngwenya (Pty) Ltd's lawyers were successful
in defending the company on this matter.
Determine the amount that is deductible by Ngwenya (Pty) Ltd relating to legal fees.
a. R60 000
b. R9 000
c. R35 000
d. R86 000
Question 10 Ngwenya (Pty) Ltd had the following expenses during the 2025 year of assessment:
Complete Bad debts from customers = R74 000
Mark 1.00 out of
Bad debts from a loan to a supplier = R98 000
1.00
Calculate the deduction available for tax purposes to Ngwenya (Pty) Ltd for the 2025
Flag question
year of assessment ending 28 February 2025.
a. Rnil
b. R98 000
c. R74 000
d. R172 000
Question 11 Ngwenya (Pty) Ltd leases a one-bedroom flat in Durban for a one-year period from 1
Complete August 2024 to 31 July 2025 for its employees who must travel from other locations
Mark 1.00 out of
to work in Durban for extended periods of time. The company paid the annual rental
1.00 of R120 000 in advance on 1 August 2024. How much is deductible by Ngwenya
, Flag question (Pty) Ltd in determining its taxable income for the year of assessment ended 28
February 2025.
a. R120 000
b. R70 000
c. R nil
d. R50 000
Question 12 On 1 April 2024, Ubuntu (Pty) Ltd acquired the first floor and one basement parking
Complete level of a commercial building in Cape Town CBD for R7 600 000. This part of the
Mark 1.00 out of
building will be used by Ubuntu for trade purposes. Calculate the capital allowance
1.00 available to Ubuntu (Pty) Ltd on the part of the commercial building they acquired for
the 2025 year of assessment ended 28/29 February. Assume Ubuntu (Pty) Ltd is not a
Flag question
Small Business Corporation, as defined in the Act.
a. R209 000
b. R380 000
c. R Nil
d. R348 333
Question 13 Ngwenya (Pty) Ltd insures its trading assets on an annual basis. It pays a premium
Complete once a year that covers the period from 1 October to 30 September. On
Mark 1.00 out of
1 October 2024 it paid R146 000 as a premium on the insurance cover of its trading
1.00 assets to 30 September 2025. How much is deductible by Ngwenya (Pty) Ltd in
determining it's taxable income for the year of assessment ended 28 February 2025.
Flag question
a. R60 833
b. R100 000
c. R nil
d. R146 000
Question 14 Ngwenya (Pty) Ltd acquired trading stock from Costly Limited for no consideration
Complete on 10 January 2025. This trading stock had cost Costly Limited R100 000 and had a
Mark 1.00 out of
market value of R110 000 on the date of the donation. Ngwenya sold this trading
1.00 stock for R120 000 during February 2025. Calculate Ngwenya (Pty) Ltd's taxable
income for the 2025 year of assessment ended February 2025.
Flag question
a. R110 000
b. R120 000
c. R10 000
d. R20 000
Question 15 Ngwenya (Pty) Ltd imports trading stock from Brazil. The cost of the trading stock is
Complete the equivalent of R4 300 000, shipping costs are R95 000, insurance costs are R55
Mark 1.00 out of
000 and customs and excise duties are R430 000. The trading stock was received at
1.00
State Finished
Completed on Saturday, 26 April 2025, 10:26 AM
Time taken 1 hour 22 mins
Grade 34.00 out of 40.00 (85%)
Question 1 Ngwenya (Pty) Ltd contributes to a provident fund for the benefit of its employees.
Complete Contributions amounting to R24 000 000 were paid to the fund during the
Mark 1.00 out of
28 February 2025 year of assessment. How much is deductible for tax purposes by
1.00 Ngwenya (Pty) Ltd for the 2025 year of assessment?
Flag question
a. R24 000 000
b. R 24 000 000 x 27,5% equals R6 600 000
c. R 24 000 000 x 20% equals R4 800 000
d. R 24 000 000 x 10% equals R2 400 000
Question 2 During the 2025 year of assessment ending 28 February 2025, Ngwenya (Pty) Ltd
Complete moved to new premises. The total cost of this move was R31 000, made up as
Mark 1.00 out of
follows:
1.00 -moving of its shop equipment - R16 500
Flag question
-moving of all its trading stock - R14 500
What is the effect of these expenses to trading stock?
a. R14 500 is deducted from the cost price of the trading stock
b. R31 000 is added to the cost price of the trading stock
c. No amount is added to or deducted from the cost price of the trading stock
d. R14 500 is added to the cost price of the trading stock
Question 3 On 1 February 2022, Ubuntu (Pty) Ltd acquired a new non-manufacturing asset for
Complete R280 000. The asset was brought into use immediately. On 30 April 2024 the asset
Mark 1.00 out of
was sold for R50 000 cash. Calculate any recoupment or scrapping allowance for
1.00 Ubuntu (Pty) Ltd on this machine for the 2025 year of assessment ending 28/29
February. Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in
Flag question
the Act. In terms of Binding General Ruling No. 7, an acceptable write-off period for
this asset would be three (3) years.
a. R(20 000) scrapping allowance
b. R20 000 recoupment
c. R(113 333) scrapping allowance
d. R50 000 recoupment
Question 4 Ngwenya (Pty) Ltd manufactures vehicles. During the year of assessment the company
Complete incurred the following costs to manufacture one vehicle:
Mark 1.00 out of
-Production costs = R2 900 000
1.00 -Testing costs to get the vehicle roadworthy = R93 000
-Delivery truck traffic fine - worn-out windshield wipers = R1 700
, Flag question -Transportation costs to the warehouse = R27 000
What is the cost of this trading stock item for valuation purposes?
a. R3 021 700
b. R2 993 000
c. R3 020 000
d. R2 927 000
Question 5 Ngwenya (Pty) Ltd experienced a couple of break-ins at the shop. The company
Complete acquired a watchdog for R8 500. The dog food expense for the watchdog of R11 200
Mark 1.00 out of
were incurred for the 28 February 2025 year of assessment. The watchdog had to
1.00 visit the vet during the 2025 year of assessment at a cost of R1 800. What amount can
Ngwenya (Pty) Ltd deduct in terms of the general deduction formula (section 11(a))
Flag question
with regards to the above costs incurred for the 2025 year of assessment?
a. R13 000
b. R nil
c. R19 700
d. R21 500
Question 6 Ngwenya (Pty) Ltd made a restraint of trade payment of R1 800 000 to a retiring
Complete director, Mr Msomi, on 1 September 2024. Mr Msomi was restrained from
Mark 0.00 out of
competing with the company for four years from the date of the payment. This
1.00 payment will be included in Mr Msomi's gross income for his 2025 year of
assessment. Calculate how much will be deductible by Ngwenya (Pty) Ltd for the year
Flag question
of assessment ending 28 February 2025.
a. R225 000
b. R300 000
c. R450 000
d. R600 000
Question 7 Ngwenya (Pty) Ltd has a 28 February 2025 year end. The company made the
Complete following special payments during the 2025 year of assessment:
Mark 1.00 out of
1) R50 000 pension annuity payment payable for life to Lelo Shlali a former employee
1.00 who retired three years ago as a result of old age.
2) R60 000 payment payable annually for the next 10 years to Shaba Lala who won
Flag question
the lotto and ceased working.
3) R100 000 annuity payable annually to Sally Shange, a dependant of a former
employee, Ricky Shange who deceased on 1 October 2024.
Calculate the amount that is deductible by Ngwenya for tax purposes for the 2025
year of assessment.
a. R50 000
b. R100 000
c. R150 000
, d. R210 000
Question 8 On 31 October 2023, Ubuntu (Pty) Ltd acquired and brought into use a new (unused)
Complete mainframe file server (non-manufacturing asset) for R450 000. On 1 December 2024,
Mark 0.00 out of
the company incurred moving costs of R50 000 to move the asset from its
1.00 Johannesburg branch to its Durban branch. Calculate the total capital allowance to be
claimed by Ubuntu (Pty) Ltd on the asset for the 2025 year of assessment ending
Flag question
28/29 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as
defined in the Act.
a. R175 000
b. R160 000
c. R100 000
d. R115 000
Question 9 Ngwenya (Pty) Ltd incurred the following legal expense during the 2025 year of
Complete assessment ended 28 February 2025:
Mark 1.00 out of
i) R9 000 legal costs for debt collection;
1.00 ii) R26 000 legal costs relating to the drawing up of an agreement to purchase a piece
of land;
Flag question
iii) R51 000 relating to a dispute with a client of Ngwenya (Pty) Ltd who sued the
company for supplying incorrect goods. Ngwenya (Pty) Ltd's lawyers were successful
in defending the company on this matter.
Determine the amount that is deductible by Ngwenya (Pty) Ltd relating to legal fees.
a. R60 000
b. R9 000
c. R35 000
d. R86 000
Question 10 Ngwenya (Pty) Ltd had the following expenses during the 2025 year of assessment:
Complete Bad debts from customers = R74 000
Mark 1.00 out of
Bad debts from a loan to a supplier = R98 000
1.00
Calculate the deduction available for tax purposes to Ngwenya (Pty) Ltd for the 2025
Flag question
year of assessment ending 28 February 2025.
a. Rnil
b. R98 000
c. R74 000
d. R172 000
Question 11 Ngwenya (Pty) Ltd leases a one-bedroom flat in Durban for a one-year period from 1
Complete August 2024 to 31 July 2025 for its employees who must travel from other locations
Mark 1.00 out of
to work in Durban for extended periods of time. The company paid the annual rental
1.00 of R120 000 in advance on 1 August 2024. How much is deductible by Ngwenya
, Flag question (Pty) Ltd in determining its taxable income for the year of assessment ended 28
February 2025.
a. R120 000
b. R70 000
c. R nil
d. R50 000
Question 12 On 1 April 2024, Ubuntu (Pty) Ltd acquired the first floor and one basement parking
Complete level of a commercial building in Cape Town CBD for R7 600 000. This part of the
Mark 1.00 out of
building will be used by Ubuntu for trade purposes. Calculate the capital allowance
1.00 available to Ubuntu (Pty) Ltd on the part of the commercial building they acquired for
the 2025 year of assessment ended 28/29 February. Assume Ubuntu (Pty) Ltd is not a
Flag question
Small Business Corporation, as defined in the Act.
a. R209 000
b. R380 000
c. R Nil
d. R348 333
Question 13 Ngwenya (Pty) Ltd insures its trading assets on an annual basis. It pays a premium
Complete once a year that covers the period from 1 October to 30 September. On
Mark 1.00 out of
1 October 2024 it paid R146 000 as a premium on the insurance cover of its trading
1.00 assets to 30 September 2025. How much is deductible by Ngwenya (Pty) Ltd in
determining it's taxable income for the year of assessment ended 28 February 2025.
Flag question
a. R60 833
b. R100 000
c. R nil
d. R146 000
Question 14 Ngwenya (Pty) Ltd acquired trading stock from Costly Limited for no consideration
Complete on 10 January 2025. This trading stock had cost Costly Limited R100 000 and had a
Mark 1.00 out of
market value of R110 000 on the date of the donation. Ngwenya sold this trading
1.00 stock for R120 000 during February 2025. Calculate Ngwenya (Pty) Ltd's taxable
income for the 2025 year of assessment ended February 2025.
Flag question
a. R110 000
b. R120 000
c. R10 000
d. R20 000
Question 15 Ngwenya (Pty) Ltd imports trading stock from Brazil. The cost of the trading stock is
Complete the equivalent of R4 300 000, shipping costs are R95 000, insurance costs are R55
Mark 1.00 out of
000 and customs and excise duties are R430 000. The trading stock was received at
1.00
