Module: Assessment number: Due date: Assessment criteria
TAX2601 3 2 September 2024 This assessment covers learning
(Semester 2) 22h00 (10 PM) units 3 – 5.
ASSESSMENT 3 INFORMATION:
Question 1 12
Question 2 12
Question 3 11
Total 35 marks
QUESTION 1 (12 marks)
Easy Elevators (Pty) Ltd’s (“EE”) core business is the maintenance of elevators in residential and commercial
buildings in the Gauteng region. It has service agreements with each of its customers and in terms of these,
a monthly maintenance fee of R15 000 is payable on or before the seventh (7th) day of each month before
that month’s service occurs. EE is a company incorporated in South Africa and its year of assessment ends
on 31 March.
One of EE’s customers paid an amount of R45 000 into EE’s bank account on 7 March 2024. This amount
is for the maintenance service fees in respect of the following three months i.e. March 2024 to
May 2024. EE was informed by the customer that the building’s caretaker decided to pay three months’ fee
upfront as he would be out of the country for an extended period and wanted to ensure the maintenance of
the elevators would continue as usual during this time.
REQUIRED MARKS
Discuss whether the receipt of the R45 000 maintenance service fee would constitute
gross income of Easy Elevators (Pty) Ltd as defined in the Income Tax Act 58 of 1962 for
the year of assessment ending 31 March 2024. 12
List all the gross income definition requirements, discuss each one and briefly refer to
case law to strengthen your argument.
TAX2601 3 2 September 2024 This assessment covers learning
(Semester 2) 22h00 (10 PM) units 3 – 5.
ASSESSMENT 3 INFORMATION:
Question 1 12
Question 2 12
Question 3 11
Total 35 marks
QUESTION 1 (12 marks)
Easy Elevators (Pty) Ltd’s (“EE”) core business is the maintenance of elevators in residential and commercial
buildings in the Gauteng region. It has service agreements with each of its customers and in terms of these,
a monthly maintenance fee of R15 000 is payable on or before the seventh (7th) day of each month before
that month’s service occurs. EE is a company incorporated in South Africa and its year of assessment ends
on 31 March.
One of EE’s customers paid an amount of R45 000 into EE’s bank account on 7 March 2024. This amount
is for the maintenance service fees in respect of the following three months i.e. March 2024 to
May 2024. EE was informed by the customer that the building’s caretaker decided to pay three months’ fee
upfront as he would be out of the country for an extended period and wanted to ensure the maintenance of
the elevators would continue as usual during this time.
REQUIRED MARKS
Discuss whether the receipt of the R45 000 maintenance service fee would constitute
gross income of Easy Elevators (Pty) Ltd as defined in the Income Tax Act 58 of 1962 for
the year of assessment ending 31 March 2024. 12
List all the gross income definition requirements, discuss each one and briefly refer to
case law to strengthen your argument.
