LML4804
OCTOBER
NOVEMBER
PORTFOLIO
(COMPLETE
ANSWERS)
Semester 2
,2024 - DUE 25
October 2024
[Type the document subtitle]
[Pick the date]
[Type the company name]
, Exam (elaborations)
LML4804 OCTOBER NOVEMBER PORTFOLIO
(COMPLETE ANSWERS) Semester 2 2024 - DUE 25
October 2024
Course
Tax Law (LML4804)
Institution
University Of South Africa (Unisa)
Book
Income Tax in South Africa
LML4804 OCTOBER NOVEMBER PORTFOLIO (COMPLETE ANSWERS)
Semester 2 2024 - DUE 25 October 2024; 100% TRUSTED Complete, trusted
solutions and explanations Ensure your success with us...
QUESTION 1 (TAX ADMINISTRATION AND TAX AVOIDANCE) The Tax
Administration Act 28 of 2011 (TAA) empowers the Commissioner for the
South African Revenue Service (the Commissioner) to conduct audits on
taxpayers. The Commissioner has, over the years, announced that the South
African Revenue Service (SARS) will conduct audits on all taxpayers that
enjoy a certain lifestyle. Most recently, the Commissioner announced that
taxpayers who buy certain premium-brand goods would be subjected to
audits. In doing so, SARS is upholding its commitment to keep a close eye on
the so-called High-Net-Worth (HNW) taxpayers. A HNW taxpayer is defined
as a person whose estate is worth more than R50 million. Following the above
statement, SARS announces in the press that it will be conducting lifestyle
questionnaires on all wealthy taxpayers who are members of the Vintage
Club. The Vintage Club receives a notice from SARS demanding information
about the names and personal details of its members. WHAT IS REQUIRED
OF YOU: The club approaches you for advice regarding SARS’ notice. Advise
the club in terms of the existing law. [15] SUB-TOTAL FOR QUESTION 1 [15
marks] QUESTION 2 (GROSS INCOME) 2.1 Kamogelo is a South African tax
resident and an attorney trading as a sole proprietor in Seshego, in the
province of Limpopo. She has a policy of not doing any work for her clients
unless they have deposited money into her trust account. Accordingly, at the
end of the 2022/23 year of assessment, Kamogelo had an amount of R175
000 in her trust account for the work she still had to do. Despite this policy,
OCTOBER
NOVEMBER
PORTFOLIO
(COMPLETE
ANSWERS)
Semester 2
,2024 - DUE 25
October 2024
[Type the document subtitle]
[Pick the date]
[Type the company name]
, Exam (elaborations)
LML4804 OCTOBER NOVEMBER PORTFOLIO
(COMPLETE ANSWERS) Semester 2 2024 - DUE 25
October 2024
Course
Tax Law (LML4804)
Institution
University Of South Africa (Unisa)
Book
Income Tax in South Africa
LML4804 OCTOBER NOVEMBER PORTFOLIO (COMPLETE ANSWERS)
Semester 2 2024 - DUE 25 October 2024; 100% TRUSTED Complete, trusted
solutions and explanations Ensure your success with us...
QUESTION 1 (TAX ADMINISTRATION AND TAX AVOIDANCE) The Tax
Administration Act 28 of 2011 (TAA) empowers the Commissioner for the
South African Revenue Service (the Commissioner) to conduct audits on
taxpayers. The Commissioner has, over the years, announced that the South
African Revenue Service (SARS) will conduct audits on all taxpayers that
enjoy a certain lifestyle. Most recently, the Commissioner announced that
taxpayers who buy certain premium-brand goods would be subjected to
audits. In doing so, SARS is upholding its commitment to keep a close eye on
the so-called High-Net-Worth (HNW) taxpayers. A HNW taxpayer is defined
as a person whose estate is worth more than R50 million. Following the above
statement, SARS announces in the press that it will be conducting lifestyle
questionnaires on all wealthy taxpayers who are members of the Vintage
Club. The Vintage Club receives a notice from SARS demanding information
about the names and personal details of its members. WHAT IS REQUIRED
OF YOU: The club approaches you for advice regarding SARS’ notice. Advise
the club in terms of the existing law. [15] SUB-TOTAL FOR QUESTION 1 [15
marks] QUESTION 2 (GROSS INCOME) 2.1 Kamogelo is a South African tax
resident and an attorney trading as a sole proprietor in Seshego, in the
province of Limpopo. She has a policy of not doing any work for her clients
unless they have deposited money into her trust account. Accordingly, at the
end of the 2022/23 year of assessment, Kamogelo had an amount of R175
000 in her trust account for the work she still had to do. Despite this policy,
