Tax3761

Oct/Nov 2020 – Mock exam paper TAX3761 Taxation of Business Activities and Individuals QUESTION 1 (30 marks, 54 minutes) This question comprises two independent parts, namely Part A and Part B. PART A (22 marks, 39 minutes) Barika (Pty) Ltd (“Barika”) is a recruitment agency, specialising in locating young entrepreneurs in rural areas. Their main business focus on Gauteng and the surrounding areas. The company is a small business corporation as defined in the Income Tax Act and its ...

PLEASE NOTE: 1. The mark you obtained for this assignment will form 20% of your year mark for this module. Your year mark will contribute 30% to your final mark. 2. Please follow the instructions in the required part of the question(s) carefully to ensure that you obtain the maximum marks for this assignment. Please note that only certain subsections of this assignment may be marked. 3. All subsections of the assignment must be answered. 4. All calculations must be shown. 5. This assignm...

ASSIGNMENT 2: TAX3761 QUESTION 1 (80 marks, 144 minutes) Gift (45 years old) and Portia (40 years old) are married in community of property. They have two minor children that are still in school. Gift is a South African resident and has been working as a sales representative for the past 20 years, for Organic Production and Distribution, a South African company that produces and distributes organic materials to farmers and nurseries, to enhance the growth process of crops, trees and plants....

SOLUTION: MOCK EXAM – OCT/NOV 2020 QUESTION 1 (30 marks) PART A (22 marks) Calculation of the normal tax liability of Barika (Pty) Ltd for the 2019 year of assessment. R R Service fees 1 890 000 Advertising (s11(a)) (23 000) (1) Salaries (s11(a)) (500 000) (1) Restraint of trade (s11(cA)) Lesser of: R400 000/2 or R400 000/3 (133 333) (2) Bad debts (s11(i)) (8 000) (1) Debtor allowance previous year (s11(j)) (R18 000 x 25%) 4 500 (1) Debtor allowance current year (s11(j)) (R25 000 ...

QUESTION 1 (30 marks, 54 minutes) This question comprises two independent parts, namely Part A and Part B. PART A (22 marks, 39 minutes) Barika (Pty) Ltd (“Barika”) is a recruitment agency, specialising in locating young entrepreneurs in rural areas. Their main business focus on Gauteng and the surrounding areas. The company is a small business corporation as defined in the Income Tax Act and its financial year ends on the last day of December. Barika is a registered VAT vendor making o...

TAX3761 VAT_N Tax (inclusive) on the consumption of goods or services in SA (14%) 1. The Basics 1.1 Introduction: Each time consumer purchases goods or services (G or S) from vendor in SA, pays price that includes VAT.  Indirect tax (consumer pays, entity collects + gives to SARS) & direct cost to final consumer (can’t claim back from SARS)  Charged on usage  Registered vendors may claim VAT as Input Tax in certain circumstances  Based on subtractive or credit input metho...