ANNEXURE E: FORMATIVE ASSESSMINT $1($FA$1)$

Question $4$

$(14$ marks$)$

a$)$ Athabile is running business as a sole proprietor and use a vehicle for business purposes. He attended a SARS seminar where he learnt that he might be entitled to deduct the vehicle costs that relates to business expenses in terms of the general deduction formula.

Required

Outline eight $(8)$ traveling expenses that Athabile will be entitled to deduct in terms of the general deduction formula.

$(8$ marks$)$

b$)$ Athabile approached you to advise him in his collection of debts, he was taxed on the money that he never received from his clients. He has asked you, in terms of S$11($i$)$ when bad debt may be deducted?

$(6$ marks$)$