TAX3701 – Taxation: Assignment 2
Due Date: 20 April 2025
Instructions:
Instructions:
1. Answer ALL questions.
2. Show all calculations and reference relevant sections of the Income Tax Act.
3. Round all amounts to the nearest Rand unless otherwise stated.
4. Submit via the official portal by 20 April 2025.
Question 1: Gross Income Inclusion
Mr. Maseko, a South African resident, received the following amounts during the 2024/2025 year of assessment:
- Salary: R480,000
- Interest from a South African bank: R28,000
- Lottery winnings: R100,000
- Rental income from a flat he owns: R72,000
Required:
(a) Calculate Mr. Maseko’s gross income for the 2025 year of assessment.
(b) Briefly explain why each amount is either included or excluded in gross income.
Question 2: General Deduction Formula
Ms. Zulu runs a sole proprietorship. Her financial records for the 2024/2025 tax year include the following:
- Advertising expenses: R15,000
- Fines for traffic violations: R2,000
- Donations to a registered PBO: R12,000
- Depreciation on delivery vehicle: R18,000
Required:
Discuss the deductibility of the above expenses with reference to the general deduction formula and any specific inclusions/
Due Date: 20 April 2025
Instructions:
Instructions:
1. Answer ALL questions.
2. Show all calculations and reference relevant sections of the Income Tax Act.
3. Round all amounts to the nearest Rand unless otherwise stated.
4. Submit via the official portal by 20 April 2025.
Question 1: Gross Income Inclusion
Mr. Maseko, a South African resident, received the following amounts during the 2024/2025 year of assessment:
- Salary: R480,000
- Interest from a South African bank: R28,000
- Lottery winnings: R100,000
- Rental income from a flat he owns: R72,000
Required:
(a) Calculate Mr. Maseko’s gross income for the 2025 year of assessment.
(b) Briefly explain why each amount is either included or excluded in gross income.
Question 2: General Deduction Formula
Ms. Zulu runs a sole proprietorship. Her financial records for the 2024/2025 tax year include the following:
- Advertising expenses: R15,000
- Fines for traffic violations: R2,000
- Donations to a registered PBO: R12,000
- Depreciation on delivery vehicle: R18,000
Required:
Discuss the deductibility of the above expenses with reference to the general deduction formula and any specific inclusions/
