[TYPE THE COMPANY NAME]
LML4804 PORTFILIO
(COMPLETE
ANSWERS) Semester
2 2025 - DUE 14
October 2025
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)
LML4804 PORTFILIO (COMPLETE ANSWERS)
Semester 2 2025 - DUE 14 October 2025
Course
Tax Law - LML4804 (LML4804)
Institution
University Of South Africa (Unisa)
Book
South Africa Business Law Handbook Volume 1 Strategic Information and
Basic Laws
LML4804 PORTFILIO (COMPLETE ANSWERS) Semester 2 2025 - DUE 14
October 2025; 100% TRUSTED Complete, trusted solutions and explanations
Ensure your success with us..
QUESTION 1 (GROSS INCOME) After retiring from playing professional
hockey, Lentumetse applied for a liquor licence on 04 April 2023 in order to
start a liquor business in Bopcity (Pretoria, Gauteng). Although Lentumetse
only received her licence on 08 July 2023, she had already commenced
trading in April 2023 under the name Lentumetse’s Pub. On 23 January 2024,
Lentumetse’s Pub earned a profit of R420 000. Noticing the success of the
business, her friend Kgopotso advised her to join Events Support Club
(“ESC”). When a person becomes a member of the ESC, their name is added
to the list of distributors which supply organisations, companies or
individuals hosting events or functions with liquor on credit. The distributor
will then receive payment within three months after the hosting of such
event or function by such organisation, company or individual. On 15
December 2024, Lentumetse’s Pub (as a member of the ESC), supplied liquor
worth R400 000 to Date & Wedd Event Organisers (Date & Wedd). After Date
& Wedd had hosted a successful high-profile celebrity marriage during
December 2024, it paid only R250 000 to Lentumetse’s Pub on 28 February
2025 from the total invoice of R400 000. However, Date & Wedd refused to
pay the balance owing to a dispute related to the quantum of liquor that was
supplied by Lentumetse’s Pub. On 29 April 2025, the outstanding balance of
R150 000 was paid after the dispute was resolved as it was proven that
Lentumetse’s Pub had indeed supplied the correct amount of liquor to Date
& Wedd. Lentumetse’s frustrations began when the business was not able to
generate quick profit as a result of selling liquor on credit. In order to
increase her business profit margins, she came up with an idea to invite a
top local DJ to perform at her pub on the last Saturday of every month. She
charges each person an entrance fee of R50. During July 2025, Lentumetse’s
Pub made a whopping profit of R1,5 million. However, the community raised
, complaints against Lentumetse’s Pub. Two of the complaints were that
Lentumetse’s Pub sells alcohol to children under the age of 18 and also that
the pub operated until 05:00 in the morning. The Liquor Board and South
African Police Service (“SAPS”) investigated the complaints, and the
investigations revealed that Lentumetse’s Pub sold alcohol to children under
the age of 18 years and that Lentumetse’s Pub operated outside regulated
hours. Further to the investigations, the police also discovered that
Lentumetse’s Pub sold prohibited and illegal substances such as dagga and
drugs. Lentumetse’s Pub liquor licence was terminated, and Lentumetse, as
the owner, was subsequently arrested. WHAT IS REQUIRED OF YOU: 1.1
Discuss in which tax year/s the income received by Lentumetse’s Pub in
January 2024, February 2025 and April 2025 will fall into and motivate your
answer with reference to relevant applicable legal principles. [10] 1.2 Advise
Lentumetse’s Pub on whether it will be liable for income tax on the income
received from charging entrance fee. Also, advise whether it will be liable for
income LML4804 OCT/NOV EXAM 2025 tax on the profit received from the
sale of prohibited and illegal substances such as drugs and dagga. [5] SUB-
TOTAL FOR QUESTION 2 [15 marks]
This question requires an analysis of Gross Income in South African tax law, specifically
focusing on the timing of income recognition and the taxability of income from illegal activities.
The tax years in South Africa run from 1 March to the last day of February of the following
year.
1.1 Tax Year of Income Recognition
The income received by Lentumetse's Pub in January 2024, February 2025, and April 2025 falls
into the following tax years:
Date of Receipt/Earning Amount Tax Year
January 2024 (Profit) R420,000 2024 Tax Year
February 2025 (Payment) R250,000 2025 Tax Year
April 2025 (Balance) R150,000 2026 Tax Year
Export to Sheets
Relevant Legal Principles
The determination of the tax year into which income falls is governed by the definition of "gross
income" in Section 1 of the Income Tax Act No. 58 of 1962 (the Act).
January 2024 (R420,000 Profit)
Tax Year: 2024 Tax Year (1 March 2023 to 29 February 2024).
LML4804 PORTFILIO
(COMPLETE
ANSWERS) Semester
2 2025 - DUE 14
October 2025
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)
LML4804 PORTFILIO (COMPLETE ANSWERS)
Semester 2 2025 - DUE 14 October 2025
Course
Tax Law - LML4804 (LML4804)
Institution
University Of South Africa (Unisa)
Book
South Africa Business Law Handbook Volume 1 Strategic Information and
Basic Laws
LML4804 PORTFILIO (COMPLETE ANSWERS) Semester 2 2025 - DUE 14
October 2025; 100% TRUSTED Complete, trusted solutions and explanations
Ensure your success with us..
QUESTION 1 (GROSS INCOME) After retiring from playing professional
hockey, Lentumetse applied for a liquor licence on 04 April 2023 in order to
start a liquor business in Bopcity (Pretoria, Gauteng). Although Lentumetse
only received her licence on 08 July 2023, she had already commenced
trading in April 2023 under the name Lentumetse’s Pub. On 23 January 2024,
Lentumetse’s Pub earned a profit of R420 000. Noticing the success of the
business, her friend Kgopotso advised her to join Events Support Club
(“ESC”). When a person becomes a member of the ESC, their name is added
to the list of distributors which supply organisations, companies or
individuals hosting events or functions with liquor on credit. The distributor
will then receive payment within three months after the hosting of such
event or function by such organisation, company or individual. On 15
December 2024, Lentumetse’s Pub (as a member of the ESC), supplied liquor
worth R400 000 to Date & Wedd Event Organisers (Date & Wedd). After Date
& Wedd had hosted a successful high-profile celebrity marriage during
December 2024, it paid only R250 000 to Lentumetse’s Pub on 28 February
2025 from the total invoice of R400 000. However, Date & Wedd refused to
pay the balance owing to a dispute related to the quantum of liquor that was
supplied by Lentumetse’s Pub. On 29 April 2025, the outstanding balance of
R150 000 was paid after the dispute was resolved as it was proven that
Lentumetse’s Pub had indeed supplied the correct amount of liquor to Date
& Wedd. Lentumetse’s frustrations began when the business was not able to
generate quick profit as a result of selling liquor on credit. In order to
increase her business profit margins, she came up with an idea to invite a
top local DJ to perform at her pub on the last Saturday of every month. She
charges each person an entrance fee of R50. During July 2025, Lentumetse’s
Pub made a whopping profit of R1,5 million. However, the community raised
, complaints against Lentumetse’s Pub. Two of the complaints were that
Lentumetse’s Pub sells alcohol to children under the age of 18 and also that
the pub operated until 05:00 in the morning. The Liquor Board and South
African Police Service (“SAPS”) investigated the complaints, and the
investigations revealed that Lentumetse’s Pub sold alcohol to children under
the age of 18 years and that Lentumetse’s Pub operated outside regulated
hours. Further to the investigations, the police also discovered that
Lentumetse’s Pub sold prohibited and illegal substances such as dagga and
drugs. Lentumetse’s Pub liquor licence was terminated, and Lentumetse, as
the owner, was subsequently arrested. WHAT IS REQUIRED OF YOU: 1.1
Discuss in which tax year/s the income received by Lentumetse’s Pub in
January 2024, February 2025 and April 2025 will fall into and motivate your
answer with reference to relevant applicable legal principles. [10] 1.2 Advise
Lentumetse’s Pub on whether it will be liable for income tax on the income
received from charging entrance fee. Also, advise whether it will be liable for
income LML4804 OCT/NOV EXAM 2025 tax on the profit received from the
sale of prohibited and illegal substances such as drugs and dagga. [5] SUB-
TOTAL FOR QUESTION 2 [15 marks]
This question requires an analysis of Gross Income in South African tax law, specifically
focusing on the timing of income recognition and the taxability of income from illegal activities.
The tax years in South Africa run from 1 March to the last day of February of the following
year.
1.1 Tax Year of Income Recognition
The income received by Lentumetse's Pub in January 2024, February 2025, and April 2025 falls
into the following tax years:
Date of Receipt/Earning Amount Tax Year
January 2024 (Profit) R420,000 2024 Tax Year
February 2025 (Payment) R250,000 2025 Tax Year
April 2025 (Balance) R150,000 2026 Tax Year
Export to Sheets
Relevant Legal Principles
The determination of the tax year into which income falls is governed by the definition of "gross
income" in Section 1 of the Income Tax Act No. 58 of 1962 (the Act).
January 2024 (R420,000 Profit)
Tax Year: 2024 Tax Year (1 March 2023 to 29 February 2024).
