$5.$ Rapid Track Limited $$ fines

Speedy Rodrigues, an employee of Rapid Track Limited, incurred numerous

fines for both speeding and parking offenses while using the company car.

Rapid Track Limited settled these fines amounting to R$15000.$

$6.$ Adrian Brave $$ patent

Upon Adrian Brave's return from a cricket tour to the West Indies, he spent

R$7000$ to register a patent for a modified chest guard he had developed. During

the tour, he improvised a chest guard by attaching sponges to a standard one

to protect himself from the West Indian fast bowlers. It proved to be effective

and his patent application was approved in South Africa.

$7.$ Village Homes $($Pty$)$ Ltd $$ interest

Village Homes $($Pty$)$ Ltd $($Village Homes$)$ bought a block of flats from a

developer with the intention of earning income in the form of rentals. Village

Homes has a February year$-$end. On $1$ February $2023,$ Village Homes borrowed

R$9000000$ at $10\%$ a year to finance the purchase of the block of flats. During

the $2024$ year of assessment interest of R$900000$ was incurred. The flats were

let to tenants from $1$ March $2023.$With reference to the general deduction formula, section $11($a$)$ of the Income Tax Act,

briefly and separately discuss the deductibility and the value of all the expenses.$$ Specify the sections that apply in cases where the provision of a special

deduction overrules the provisions of the general deduction formula.

$$ Ignore any capital gains tax and VAT implications