, Normal Tax Liability Calculation for KG Manufacturing (Pty) Ltd
Year of Assessment Ended: 28 February 2026
Description Workings & Reasons Amount (R)
Gross Income
Sales Includes R22 500 bad debt, fully taxable as it accrued during the year. 15 875 278
Interest received Fully taxable (s10(1)(i) exemption only applies to natural persons). 6 258
Foreign dividends Fully included in gross income. 63 690
Closing stock The lower of cost (R2 625 871) or market value (R2 631 250) must be
2 625 871
(s22(1)) included.
Doubtful debts prior
Reversal of 2025 s11(j) allowance included in income. 20 150
year
VAT excl cost (R862 .15) = R750 000. 2025 s12E(1A) 50% allowance
Recoupment: Stolen
was R375 000. Tax base = R375 000. Recoupment = Proceeds (R540 000) - 165 000
truck
Tax base (R375 000).
Year of Assessment Ended: 28 February 2026
Description Workings & Reasons Amount (R)
Gross Income
Sales Includes R22 500 bad debt, fully taxable as it accrued during the year. 15 875 278
Interest received Fully taxable (s10(1)(i) exemption only applies to natural persons). 6 258
Foreign dividends Fully included in gross income. 63 690
Closing stock The lower of cost (R2 625 871) or market value (R2 631 250) must be
2 625 871
(s22(1)) included.
Doubtful debts prior
Reversal of 2025 s11(j) allowance included in income. 20 150
year
VAT excl cost (R862 .15) = R750 000. 2025 s12E(1A) 50% allowance
Recoupment: Stolen
was R375 000. Tax base = R375 000. Recoupment = Proceeds (R540 000) - 165 000
truck
Tax base (R375 000).
