Issue 3: A donation of R50 000 cash was made by JCF to Tshwane Child Welfare Organisation (a registered public benefit organization). The accountant has not dealt with this donation yet and needs to finalise the taxable income calculation.

REQUIRED a) State the requirement for JCF (Pty) Ltd to be able to claim a deduction in respect of the donation in the taxable income calculation for the 2023 year of assessment?

b) Assume JCF (Pty) Ltd is allowed to claim a donation deduction for tax purposes and the taxable income is correctly calculated to be R589 000 before this deduction. Calculate the tax deduction that JCF (Pty) Ltd can claim for the donation in their 2023 taxable income calculation. MARKS 1 3

c) Calculate the income tax liability of JCF (Pty) Ltd for the 28 February 2023 year of assessment, by using the taxable income amount after taking the donation deduction into account.