5 TAX3701 May / June 2019 QUESTION 2 (10 marks, 18 minutes) C-web Ltd is a company that sells electronic devices online The company is not a small business corporation as defined in the Income Tax Act its financial year ends on the last day of March C-web Ltd estimated a taxable income of R1 340 000 on 1 March 2019 for the 2019 year of assessment The 2017 year of assessment was assessed on 31 December 2017 with a taxable income of R1 150 000 and the 2018 year of assessment was assessed on 25 September 2018 with a taxable income of R1 280 000 The actual taxable income for the 2019 year of assessment was correctly calculated as R1 560 000 on 30 June 2019 C-Web Ltd was not liable for any capital gains tax during either its 2017 or 2018 years of assessment REQUIRED MARKS Calculate all the provisional tax payments (including the third provisional payment) which C-web Ltd is required to make as per the Income Tax Act for the 2019 year of assessment without being liable for any interest or penalties 10 Indicate on which date each of the provisional tax payments should be made by C-web Ltd to avoid paying penalties and interest [TURN OVER] 5 TAX3701 May / June 2019 QUESTION 2 (10 marks, 18 minutes) C-web Ltd is a company that sells electronic devices online The company is not a small business corporation as defined in the Income Tax Act its financial year ends on the last day of March C-web Ltd estimated a taxable income of R1 340 000 on 1 March 2019 for the 2019 year of assessment The 2017 year of assessment was assessed on 31 December 2017 with a taxable income of R1 150 000 and the 2018 year of assessment was assessed on 25 September 2018 with a taxable income of R1 280 000 The actual taxable income for the 2019 year of assessment was correctly calculated as R1 560 000 on 30 June 2019 C-Web Ltd was not liable for any capital gains tax during either its 2017 or 2018 years of assessment REQUIRED MARKS Calculate all the provisional tax payments (including the third provisional payment) which C-web Ltd is required to make as per the Income Tax Act for the 2019 year of assessment without being liable for any interest or penalties 10 Indicate on which date each of the provisional tax payments should be made by C-web Ltd to avoid paying penalties and interest [TURN OVER]