TAX2601 EXAM PACK
TAX2601
EXAM PACK
,UNIVERSITY EXAMINATIONS
Oct/Nov 2021
TAX2601
Principles of Taxation
100 Marks
Duration 2 Hours
(plus 60 minutes for upload)
,This paper consists of nine (9) pages plus the annexure (p i).
IMPORTANT INSTRUCTIONS:
1. All amounts exclude VAT unless stated otherwise.
2. All persons mentioned are residents of the Republic of South Africa unless stated otherwise.
3. SARS = South African Revenue Service
The answering of this paper:
1. This paper consists of four (4) questions.
2. Answer all the questions.
3. Start each question on a new (separate) page.
4. Write your student number on the top of each page.
5. Show all workings, where applicable. Where an amount is subject to a limitation, clearly indicate the
application of the limitation. Where any item is exempt from tax or not allowable as a deduction, this must
be indicated, and a brief reason provided. All amounts must be rounded to the nearest Rand.
6. Proposed timetable (try as far as possible not to deviate from this timetable):
Question Topic Marks Minutes
1 Income tax liability of a company 25 30
2 Income tax liability of a small business corporation 25 30
3 Capital gains tax 25 30
4 Provisional tax payments and gross income definition 25 30
- Additional time for upload of your answer file in pdf - 60
TOTAL 100 180
, Honesty Declaration:
By submitting my exam solution, I declare that:
• I know what plagiarism is, that plagiarism is wrong and that disciplinary steps can be taken against me if I
am found guilty of plagiarism;
• This exam solution, submitted by myself, is my own work;
• I have not assisted any other student in any manner, and I have not had the assistance of any other
person, in completing this exam;
• I know that if I am found to be in violation of this declaration, I will receive 0% for this examination.
Please note: You do not have to sign the declaration. By clicking the honour pledge when submitting your
answer file, you automatically declare that you adhere to all the above with regards to this specific
examination.
Submission instructions:
The exam paper will remain available throughout the examination session.
Commence the submission (uploading) of your answers as soon as you have completed the assessment,
do not wait for the session to conclude.
You MUST start uploading your answer file at 13:00 (2 hours after the start of the exam session) at the
latest, to allow enough time for any delays in the process. Cut-off time for submission is 14:00.
You have to submit your answers in ONE PDF FILE – ensure ALL your pages are in one file.
The file name of your pdf document must be in the following format:
Student number, space, TAX2601. For example: 33445566 TAX2601.
Go back to the link where you downloaded your examination paper myExams.
Follow the instructions on the screen.
QUESTION 1 (25 marks, 30 minutes)
GoSolar (Pty) Ltd (GoSolar) is a South African company that manufactures solar panels for commercial
and residential use, in an industrial area of Johannesburg. The company’s year of assessment ends on
31 March 2021. It is not a small business corporation as defined in the Income Tax Act.
Since the company’s accountant is unfamiliar with tax matters, they have requested your assistance to
calculate the tax liability of the company. The company has provided you with a list of items relating to
TAX2601
EXAM PACK
,UNIVERSITY EXAMINATIONS
Oct/Nov 2021
TAX2601
Principles of Taxation
100 Marks
Duration 2 Hours
(plus 60 minutes for upload)
,This paper consists of nine (9) pages plus the annexure (p i).
IMPORTANT INSTRUCTIONS:
1. All amounts exclude VAT unless stated otherwise.
2. All persons mentioned are residents of the Republic of South Africa unless stated otherwise.
3. SARS = South African Revenue Service
The answering of this paper:
1. This paper consists of four (4) questions.
2. Answer all the questions.
3. Start each question on a new (separate) page.
4. Write your student number on the top of each page.
5. Show all workings, where applicable. Where an amount is subject to a limitation, clearly indicate the
application of the limitation. Where any item is exempt from tax or not allowable as a deduction, this must
be indicated, and a brief reason provided. All amounts must be rounded to the nearest Rand.
6. Proposed timetable (try as far as possible not to deviate from this timetable):
Question Topic Marks Minutes
1 Income tax liability of a company 25 30
2 Income tax liability of a small business corporation 25 30
3 Capital gains tax 25 30
4 Provisional tax payments and gross income definition 25 30
- Additional time for upload of your answer file in pdf - 60
TOTAL 100 180
, Honesty Declaration:
By submitting my exam solution, I declare that:
• I know what plagiarism is, that plagiarism is wrong and that disciplinary steps can be taken against me if I
am found guilty of plagiarism;
• This exam solution, submitted by myself, is my own work;
• I have not assisted any other student in any manner, and I have not had the assistance of any other
person, in completing this exam;
• I know that if I am found to be in violation of this declaration, I will receive 0% for this examination.
Please note: You do not have to sign the declaration. By clicking the honour pledge when submitting your
answer file, you automatically declare that you adhere to all the above with regards to this specific
examination.
Submission instructions:
The exam paper will remain available throughout the examination session.
Commence the submission (uploading) of your answers as soon as you have completed the assessment,
do not wait for the session to conclude.
You MUST start uploading your answer file at 13:00 (2 hours after the start of the exam session) at the
latest, to allow enough time for any delays in the process. Cut-off time for submission is 14:00.
You have to submit your answers in ONE PDF FILE – ensure ALL your pages are in one file.
The file name of your pdf document must be in the following format:
Student number, space, TAX2601. For example: 33445566 TAX2601.
Go back to the link where you downloaded your examination paper myExams.
Follow the instructions on the screen.
QUESTION 1 (25 marks, 30 minutes)
GoSolar (Pty) Ltd (GoSolar) is a South African company that manufactures solar panels for commercial
and residential use, in an industrial area of Johannesburg. The company’s year of assessment ends on
31 March 2021. It is not a small business corporation as defined in the Income Tax Act.
Since the company’s accountant is unfamiliar with tax matters, they have requested your assistance to
calculate the tax liability of the company. The company has provided you with a list of items relating to
