[TYPE THE COMPANY NAME]
TAX2601 Assignment
1 (COMPLETE
ANSWERS) Semester
1 2025 - DUE 7 April
2025
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
TAX2601 Assignment 1 (COMPLETE
ANSWERS) Semester 1 2025 - DUE 7 April
2025
Course
Principles of Taxation (TAX2601)
Institution
University Of South Africa (Unisa)
Book
Fundamentals of South African Income Tax
TAX2601 Assignment 1 (COMPLETE ANSWERS) Semester 1 2025 - DUE 7
April 2025; 100% TRUSTED Complete, trusted solutions and explanations.
Ensure your success with us...
Mr Xhumalo lives in Gqeberha, South Africa. He manufactures and sells
various grass baskets and placemats from a street stall. Due to the high
demand for his products, he concluded a sales agreement with a well-known
houseware retailer in South Africa. In terms of the agreement, the retailer
will purchase R25 000 worth of products from Mr Xhumalo on 15 February
2025 on credit. The goods must be manufactured and delivered by 15 March
2025, with payment scheduled for 31 March 2025. The agreement clearly
states that Mr Xhumalo will only become entitled to payment once he has
delivered the goods. Mr Xhumalo’s accountant is uncertain in which year of
assessment the R25 000 must be declared for tax purposes and contacted
you for advice. REQUIRED MARKS Discuss whether the R25 000 of the sale
will constitute gross income in the hands of Mr Xhumalo for the 2025 year of
assessment. Note: • You can support the main issue in the question with
relevant case law from the module's prescribed case law. 12
To determine whether the R25,000 from the sale of the grass baskets and placemats will
constitute gross income in the hands of Mr. Xhumalo for the 2025 year of assessment, we must
refer to the principles of gross income under South African tax law, particularly the Income Tax
Act, No. 58 of 1962.
Definition of Gross Income:
TAX2601 Assignment
1 (COMPLETE
ANSWERS) Semester
1 2025 - DUE 7 April
2025
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
TAX2601 Assignment 1 (COMPLETE
ANSWERS) Semester 1 2025 - DUE 7 April
2025
Course
Principles of Taxation (TAX2601)
Institution
University Of South Africa (Unisa)
Book
Fundamentals of South African Income Tax
TAX2601 Assignment 1 (COMPLETE ANSWERS) Semester 1 2025 - DUE 7
April 2025; 100% TRUSTED Complete, trusted solutions and explanations.
Ensure your success with us...
Mr Xhumalo lives in Gqeberha, South Africa. He manufactures and sells
various grass baskets and placemats from a street stall. Due to the high
demand for his products, he concluded a sales agreement with a well-known
houseware retailer in South Africa. In terms of the agreement, the retailer
will purchase R25 000 worth of products from Mr Xhumalo on 15 February
2025 on credit. The goods must be manufactured and delivered by 15 March
2025, with payment scheduled for 31 March 2025. The agreement clearly
states that Mr Xhumalo will only become entitled to payment once he has
delivered the goods. Mr Xhumalo’s accountant is uncertain in which year of
assessment the R25 000 must be declared for tax purposes and contacted
you for advice. REQUIRED MARKS Discuss whether the R25 000 of the sale
will constitute gross income in the hands of Mr Xhumalo for the 2025 year of
assessment. Note: • You can support the main issue in the question with
relevant case law from the module's prescribed case law. 12
To determine whether the R25,000 from the sale of the grass baskets and placemats will
constitute gross income in the hands of Mr. Xhumalo for the 2025 year of assessment, we must
refer to the principles of gross income under South African tax law, particularly the Income Tax
Act, No. 58 of 1962.
Definition of Gross Income:
