Tax3701 Assessment 2 Sem 1 Of 2025 Expected Answers

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TAX3701 ASSESSMENT 2 SEM 1 2025 EXPECTED SOLUTIONS


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+27737560989
for FAC MAC ECS DSC TAX QMI FIN INV BNU STA tutorials




QUESTION 1
INCOME/RECEIPTS NOTE AMOUNT
Sales to South African customers 1,575,000.00
Less bad debts (13,200.00)
1,561,800.00
Vat at @ 15%(1561800*15/115) 203,713.04

, Sales to customers in Germany (Sales to Germany: Zero-rated,
no output VAT.) -
Receipt from Naidoo Attorneys(Bad debt recovery increases
output VAT)(18,975 * 15/115) 2,475.00

Interest received on investments ( Interest received: Exempt,
no output VAT.)
-
Insurance payment received (Insurance payment: Not a supply,
no output VAT) -
Rent received (Rental of commercial property is
taxable(15%*75500) 11,325.00
Total Output VAT 217,513.04
EXPENSES/PAYMENTS MADE
Bank charges (bank services are exempt)
Interest paid to AZN Bank
Steel sheets purchases for South African suppliers 950,350.00
less: damaged goods with a tax credit note (15,250.00)
935,100.00

Vat on (Steel sheets purchase-damaged goods)(15%*935100)
140,265.00
New single cab bakkie purchased from a registered VAT vendor,
single cab bakkie (considered a commercial vehicle)(425,500
*15/115) 55,500.00

Steel cutting machine purchased (Purchased from non-vendor
..No VAT charged, so no input VAT.) -

A new coffee machine purchased for the canteen(15%*25,750 )
3,862.50
Steel products imported from Italy
Cost 275,350.00
surcharges 15,180.00
290,530.00