Please assist with questions 1 - 30 with explanations especially from Q26 onwards. Thank you.

QUESTION 1 When interpreting the wording used in the Income Tax Act, the application of the contra fiscum rule may be necessary. What does this mean? The court will apply the interpretation that is more favourable to SARS. (2) The court will apply the interpretation that places the bigger burden on the taxpayer. (3) The court will apply the interpretation that places the smaller burden on the taxpayer. (4) The court will apply the interpretation that is fair for both SARS and the taxpayer. QUESTION 2 In South Africa, taxpayers are taxed on a residence basis. What does this mean? All South African residents are taxpayers. (2) People are taxed according to the area in which they reside. (3) Non-residents do not pay any tax in South Africa. Residents are taxed on all income they eam, from anywhere in the world.QUESTION 3 Which interpretation rules are binding on SARS and taxpayers? (1) Binding class rulings (2) Binding general rulings (3) The opinion of SARS (4) Interpretation notes QUESTION 4 Which one of the following statements is true for the Alternative Dispute Resolution process? (1) SARS has to accept the taxpayer's interpretation then the dispute will be resolved. (2) The taxpayer has to accept SARS's interpretation then the dispute will be resolved. (3) SARS does not keep a register of disputes settled through this process as all cases are unique. (4) The process may be used to settle any dispute that relates to a dispute on interpretation of facts. QUESTION 5 Which one of the following statements is true relating to legal precedent? (1) A decision by the High Court is binding on the Supreme Court of Appeal. (2) A decision by the Tax Court is binding on the High Court. (3) A decision by the Tax Court is binding on the Supreme Court of Appeal. (4) A decision by the Supreme Court of Appeal is binding on the High Court. QUESTION 6 Which one of the following best depicts the taxable income calculation framework? (1) Deductions and allowances less income plus taxable capital gain. (2) Income less deductions and allowances plus taxable capital gain. (3) Income less taxable capital gain. (4) Deductions and allowances less taxable capital gain. QUESTION 7 What does the following statement mean: "the burden of proof vests with the taxpayer"? (1) It is the taxpayer's responsibility to calculate his own tax payable. (2) It is the taxpayer's responsibility to prove that the assessment is incorrect. (3) It is the taxpayer's responsibility to prove that he submitted his tax return. (4) It is the taxpayer's responsibility to notify SARS of his change in address.QUESTION 8 What does the understatement penalty not relate to? (1) Payment of incorrect amount to SARS. (2) Shortfall paid in respect of a penalty. (3) Omission or incorrect statement in the return. (4) Default in rendering a return. QUESTION 9 Neo has a refund of R600 outstanding for five months from SARS for the 2021 year of assess- ment. SARS credited her account with R6 interest, and she now has a total refund of R606 owed to her by SARS. She wants to know if the interest credit is an error. (1) The interest credit is an error as SARS does not pay interest on outstanding refunds. (2) The interest credit is not an error as SARS pays interest on outstanding refunds so Neo is entitled to the interest. (3) SARS will reverse the interest credit and only pay Neo the R600 refund owed to her. (4) SARS only charges interest on outstanding accounts and does not pay interest on out- standing refunds. QUESTION 10 Which one of the following statements does not apply to the understatement penalty calculation? (1) The understatement penalty percentages are not the same for each offence. (2) If more than one behaviour applies, SARS will add the understatement penalty table per- centages together. (3) The understatement penalty percentage is applied only to the shortfall of the tax. (4) The maximum tax rate applicable to the taxpayer is used. QUESTION 11 Which one of the following statements is true for the requirements of the Tax Administration Act ("TAA") with regards to the conduct of tax practitioners? (1) Not all tax practitioners are required to be registered as tax practitioners. (2) All persons have 21 business days to register as a tax practitioner from when they first provide the advice. (3) The TAA does not deal with the recognition of controlling bodies. (4) Not all tax practitioners are required to be registered with a recognised controlling body.QUESTION 12 Which one of the following statements is true for a partnership? (1) A partnership is a separate taxpayer. (2) A partnership is a separate legal entity. (3) The individual partners are the taxpayers. (4) A partnership is a legal relationship between at least 20 people. QUESTION 13 Which of the following entities do not fall within the definition of a company for income tax pur- poses? (1) Close corporations (2) Co-operatives (3) South African public entities (4) Foreign farmers QUESTION 14 Which one of the following is not a tax levied on the transfer of property? (1) Value-added tax (2) Capital gains tax (3) Donations tax (4) Estate duty QUESTION 15 Which one of the following statements is correct with regards to companies? A company is a separate taxpayer. (2) A company is not a separate legal entity. (3) The company's profit is added to the shareholders' income from other sources to determine their taxable income. (4) A company cannot register for income tax because it is not a person who has to pay tax to SARS. QUESTION 16 The tax rate is the rate that is applied to the taxable income of the company to calculate the tax liability. What is the current tax rate for companies in South Africa? (1) 18% (2) 40% (3) 33% (4) 28%QUESTION 17 What is the tax that the company has to pay over to SARS on the distribution of the company's profits to the shareholders? (1) Income tax (2) Value added tax (3) Dividends tax (4) Capital gains tax QUESTION 18 Mosa is a 38-year-old nurse. She heard in the budget speech during February 2021 that the individual tax rates will increase by 1%. She wants to know when this new rate will take effect. (1) Immediately, with effect from 1 March 2021. (2) With effect from 1 April 2021. (3) In the following year of assessment (2023). (4) With effect from 28 February 2022. QUESTION 19 Which one of the following companies will automatically be classified as a public company for tax purposes? (1) A close corporation (2) A public benefit organisation (3) A small business corporation (4) A private company QUESTION 20 Why is it necessary to identify small business corporations for tax purposes? (1) Small business corporations are exempt from provisional tax. (2) Small business corporations pay tax at a lower rate. (3) Small business corporations are exempt from VAT. (4) Small business corporations do not have to pay tax. QUESTION 21 Kakhulu Vibes (Pty) Lid is a small business corporation based in Soweto. The company recently acquired a machine that is used in the process of manufacture and started using it immediately. How much of the cost of the machine can the company claim as a capital allowance in the first year of assessment? (1) 100% (2) 50% (3) 40% (4) 20%QUESTION 22 Which one of the following are disqualified from registering as a micro business? (1) Sole traders (2) Companies (3) Trusts (4) Close corporations QUESTION 23 Which one of the following would be included in the calculation of qualifying turnover in deter- mining whether a business qualifies to register as a micro business? (1) Total receipts from sales of trading stock. (2) Total debtors at the date of registration. Total receipts from the sale of the factory building used for the business. (4) Total receipts from certain Government grants and Government scrapping payments. QUESTION 24 Which one of the following statements does not apply to trusts? (1) A trust is a separate legal entity and therefore a separate taxpayer. (2) A trust is taxed at a fixed rate of 45%. (3) Profits earned can be held in the trust or distributed to beneficiaries. (4) The distribution amount depends on the beneficiaries of the trust. QUESTION 25 What is the method used by SARS to collect tax due to them from salaried taxpayers? (1) Capital gains tax (2) Employees tax (3) Turnover tax (4) Dividends tax The following information relates to questions 26 to 29 (round off all your calculations to the nearest rand): Lucky Bread CC is a start-up company established by two sisters. It started trading on 1 July 2020 and have a year of assessment ending on 28 February 2021. The sisters make bread and crackers which are suitable for diabetics and sell them at various food markets in the Gauteng region over weekends. They recently started selling their products in a well-known supermarket.Additional information: R Total receipts for the period 540 000 Capital receipts (from the sale of equipment - not included in total receipts) 28 000 Taxable turnover 554 000 Taxable income 275 300 QUESTION 26 Lucky Bread CC would like to determine if it qualifies as a micro business. What is the qualifying turnover limit for Lucky Bread CC for the 2021 year of assessment? (1) R1 000 000 (2) R554 000 (3) R540 000 (4 R666 667 QUESTION 27 Assume Lucky Bread CC qualifies as a micro business. What would its tax liability be for the 2021 year of assessment? (1) R1 652 (2) R77 084 (3) Rnil (4) R2 730 QUESTION 28 Assume Lucky Bread CC does not qualify as a micro business. Which one of the following state- ments would cause it not to qualify as a small business corporation? (1) If the year of assessment does not end on 28/29 February. (2) If the CC's gross income for the year of assessment exceeds R20 million. (3) If all the shareholders of the CC are natural persons. (4) If one of the members of the CC holds a permitted shareholding in a listed company.QUESTION 29 Assume Lucky Bread CC does not qualify as a small business corporation. What would its tax liability be for the year of assessment ending 2021? R14 116 (2) R77 084 (3) R151 200 R155 120 QUESTION 30 The following information relates to a company with a 31 March year-end. 2019 assessment received on 20 January 2020, reflecting assessed taxable income of R760 000. 2020 assessment received on 21 September 2020, reflecting assessed taxable income of R650 000. Which one of the following amounts must be used as the 'basic amount in order to determine the first provisional tax payment for the 2021 year of assessment? (1) R650 000 (2) R760 000 (3) R881 600 (4) R820 800