TAX3704
Assignment 2
Semester 2
2024 - DUE 17
September
2024
[Type the document subtitle]
[Pick the date]
[Type the company name]
, Exam (elaborations)
TAX3704 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2024 - DUE 17 September 2024
Course
Tax Administration (TAX3704)
Institution
University Of South Africa (Unisa)
Book
Handbook on Tax Administration
TAX3704 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 17
September 2024 ; 100% TRUSTED Complete, trusted solutions and
explanations.. Ensure your success with us..
Question 1: (35 marks) Background information Your best friend Ntato Hill
called you and asked for assistance regarding an audit SARS is conducting
on her husband, Jack’s business. The following information may or may not
be relevant. • Jack Hill is 70 years old and runs a business (as sole proprietor)
that manufactures spare parts for industrial machinery. He was in a serious
motor vehicle accident in April 2022 and was discharged from the hospital
only in March 2023. After his accident, Jack’s wife appointed an accountant to
take over Jack’s financial responsibilities and an engineer to assist in the
factory. • The newly appointed accountant prepared the financial statements
for the 2022 financial year and submitted a return on behalf of Jack before the
deadline of 21 January 2023. • The return submitted by the accountant states
that the business made a loss of R200 000. In the past 25 years, the business
always made taxable profits. The SARS risk engine flagged Jack as a risk
case, and the audit commenced after Jack had been given the required
notice. Observation You decide to make notes relating to the risks associated
with the audit Risks There is a possibility that the newly appointed accountant
did not disclose all the income earned by the business. SARS may issue an
estimated assessment. Jack may be unable to pay his outstanding tax debt.
REQUIRED MARKS (a) Explain to Jack what statutory powers are granted to
a senior SARS official under a request for relevant material. Refer to
applicable tax legislation. 10 (b) Describe to Jack what the burden of proof
means in terms of section 102 of the TAA and who carries the burden, SARS
or the taxpayer. 9 (c) Explain whether SARS may issue an estimated
Assignment 2
Semester 2
2024 - DUE 17
September
2024
[Type the document subtitle]
[Pick the date]
[Type the company name]
, Exam (elaborations)
TAX3704 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2024 - DUE 17 September 2024
Course
Tax Administration (TAX3704)
Institution
University Of South Africa (Unisa)
Book
Handbook on Tax Administration
TAX3704 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 17
September 2024 ; 100% TRUSTED Complete, trusted solutions and
explanations.. Ensure your success with us..
Question 1: (35 marks) Background information Your best friend Ntato Hill
called you and asked for assistance regarding an audit SARS is conducting
on her husband, Jack’s business. The following information may or may not
be relevant. • Jack Hill is 70 years old and runs a business (as sole proprietor)
that manufactures spare parts for industrial machinery. He was in a serious
motor vehicle accident in April 2022 and was discharged from the hospital
only in March 2023. After his accident, Jack’s wife appointed an accountant to
take over Jack’s financial responsibilities and an engineer to assist in the
factory. • The newly appointed accountant prepared the financial statements
for the 2022 financial year and submitted a return on behalf of Jack before the
deadline of 21 January 2023. • The return submitted by the accountant states
that the business made a loss of R200 000. In the past 25 years, the business
always made taxable profits. The SARS risk engine flagged Jack as a risk
case, and the audit commenced after Jack had been given the required
notice. Observation You decide to make notes relating to the risks associated
with the audit Risks There is a possibility that the newly appointed accountant
did not disclose all the income earned by the business. SARS may issue an
estimated assessment. Jack may be unable to pay his outstanding tax debt.
REQUIRED MARKS (a) Explain to Jack what statutory powers are granted to
a senior SARS official under a request for relevant material. Refer to
applicable tax legislation. 10 (b) Describe to Jack what the burden of proof
means in terms of section 102 of the TAA and who carries the burden, SARS
or the taxpayer. 9 (c) Explain whether SARS may issue an estimated
