Cape Town Footwear (Pty) Ltd ("Cape Town Footwear" or "the company") is a company resident in South Africa. It specializes in the manufacture of footwear and operates from a facility located in Cape Town. The company does not qualify as a small business corporation. The Commissioner is satisfied that Cape Town Footwear engages in a manufacturing process. For the year ended 28 February 2023, a taxable profit of R13,155,000 was calculated, before considering the following items (Value Added Tax (VAT) is to be ignored): 1. Dividends Received and Interest Paid: Throughout the year, the company took out loans to invest in dividend yielding shares. It received gross dividends of R25,000 during the 2023 year of assessment. Interest paid on these loans amounted to R2,000 for the year. These dividends and interest payments have not been accounted for in the R13,155,000 taxable profit. 2. Trading Stock: Trading stock valuations were as follows: At 1 March 2022: R900,000 At 28 February 2023: R1,050,000 2. Bad Debts: A trade debtor who owed R27,000 went into liquidation, and the amount is deemed irrecoverable. This debt was written off as bad. 3. Restraint of Trade Payment: The company's sales manager resigned to explore other opportunities