TAX2601 ASSIGNMENT 5 SEMESTER 1 ( DUE 15--MAY--2023)

TAX2601

ASSESSMENT 5

SOLUTIONS

SEMESTER 1



DUE DATE 15 MAY 2023


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, REQUIRED MARKS
Calculate the normal tax liability of SA Metals (Pty) Ltd for
the year of assessment ending 31 March 2023. Start your
answer with the taxable income of R12 653 000 and
provide brief reasons where amounts are not taxable or 30
not deductible.SA Metals has elected the section 11(o)
scrapping allowance, where applicable. Ignore all capital
gains tax consequences.



QUESTION 1 POSSIBLE ANSWER:



Calculation of the normal tax liability of SA METALS (Pty)Ltd for the year of assessment
ending 31 march 2023

Tax income
12653000.00
Manufacturing machine S10 7500000.00
COST
Capital allowances year 2022( 0.4 (300000.00) 300000.00
* 750000)



Manufacturing machine RT4 450000.00
COST
Capital allowances year 2021 (0.4 (180000.00)
* 450000)
Capital allowances year 2022 (0.2 (90000.00)
* 450000)



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