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DTN ( Pty ) Ltd ( DTN ) is the fourth largest cellular network industry in South Africa, providing call and data services to customers
DTN Pty Ltd DTN is the fourth largest cellular network industry in South Africa, providing call and data services to customers around the country as well other African countries. It has an extensive customer base, which has been created over the past few years. The current financial year ends on June DTN is a registered VAT vendor and all amounts exclude VAT unless otherwise stated. The following information relates to DTNs activities for the current financial year: Gross income from SA customers amounts to Rincluding VAT while sales from customers outside SA amounted to Rincluding VAT DTNs employees belong to the companys pension fund and medical aid fund. DTN contributes to these funds on behalf of the employees. During the year, contributions on behalf of the employees to the pension fund amounted to R and to the medical aid fund R DTNs total remuneration approved by the Commissioner is R The financial manager, Miss Rhodes, resigned on July To prohibit her from trading in direct competition to DTN the company paid her an amount of R as compensation for his restraint of trade for the following years. The full amount was included in Miss Rhodes income on his income tax return. Legal fees to the amount of R were incurred. This was made up of R for the collection of outstanding trade debtors and R in respect of employee remuneration claims. Note: employee remuneration is deductible for purposes of this question. Penalties and interest paid to SARS amounted to R in respect of the current year of assessment. Bad debts written off consist of R in respect of a loan to an employee and R in respect of trade debtors. The following prepaid expenditure was incurred: Rental of the switchboard system for head office for the period July to January was including VAT Deposit for the purchase of a motor car that will be delivered on June amounted to Insurance paid for the vehicle above was Rincluding VAT for the period June to May A patent was purchased for R on May and a trademark was renewed at a cost of R An employee with a disability as defined and an NQF level qualification entered into a twoyear learnership agreement with DTN on April The employee continued with the learnership agreement until March when he successfully completed it Provisional tax of R was paid for the year. REQUIRED Calculate the tax liability of DTN Pty Ltd for the year of assessment ended June Where an amount does not affect the taxable income calculation, provide a brief reason.
DTN Pty Ltd DTN is the fourth largest cellular network industry in South Africa, providing call and
data services to customers around the country as well other African countries. It has an extensive
customer base, which has been created over the past few years. The current financial year ends on
June DTN is a registered VAT vendor and all amounts exclude VAT unless otherwise
stated.
The following information relates to DTNs activities for the current financial year:
Gross income from SA customers amounts to Rincluding VAT while sales from
customers outside SA amounted to Rincluding VAT
DTNs employees belong to the companys pension fund and medical aid fund. DTN contributes to
these funds on behalf of the employees. During the year, contributions on behalf of the employees to
the pension fund amounted to R and to the medical aid fund R DTNs total
remuneration approved by the Commissioner is R
The financial manager, Miss Rhodes, resigned on July To prohibit her from trading in
direct competition to DTN the company paid her an amount of R as compensation for his
restraint of trade for the following years. The full amount was included in Miss Rhodes income on
his income tax return.
Legal fees to the amount of R were incurred. This was made up of R for the
collection of outstanding trade debtors and R in respect of employee remuneration claims.
Note: employee remuneration is deductible for purposes of this question.
Penalties and interest paid to SARS amounted to R in respect of the current year of
assessment.
Bad debts written off consist of R in respect of a loan to an employee and R in
respect of trade debtors.
The following prepaid expenditure was incurred:
Rental of the switchboard system for head office for the period July to January was
including VAT
Deposit for the purchase of a motor car that will be delivered on June amounted to Insurance paid for the vehicle above was Rincluding VAT for the period June to
May
A patent was purchased for R on May and a trademark was renewed at a cost of
R
An employee with a disability as defined and an NQF level qualification entered into a twoyear learnership agreement with DTN on April The employee continued with the learnership
agreement until March when he successfully completed it
Provisional tax of R was paid for the year.
REQUIRED
Calculate the tax liability of DTN Pty Ltd for the year of assessment ended June
Where an amount does not affect the taxable income calculation, provide a brief reason.
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