4.3

4.4

You are required to determine in whose hands the R450 000 will be taxable.

Mr Vimba Guluva purchased a watchdog after experiencing a number of burglaries at his business premises. He paid R5 000 for the bull terrier. It costs him R250 a month to feed his watchdog. During the 2019 year of assessment, he also paid R50 for the dog's licence and paid the veterinary surgeon's account of R1 550 for treating the dog after it was stabbed by an intruder.

You are required to state, with supporting reasons, the extent to which the expenditure as incurred by Vimba Guluva would be deductible from income.

On 30 June 2022 Ubuntu Construction (Pty) Ltd estimates that its taxable income for its 2023 year of assessment is R1 100 000. The company has already paid their first provisional tax amount of R126 000.

You are required to calculate the amount of Ubuntu Construction (Pty) Ltd's second provisional tax payment if this payment was based on the estimate of

R1 100 000.