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Pluto Ltd made a restraint of trade payment of R260 000 to a retiring executive, Mr Goofy was restrained from competing with the company for
Pluto Ltd made a restraint of trade payment of R260 000 to a retiring executive, Mr Goofy was restrained from competing with the company for 2 years from date of payment. Pluto Ltds financial year ends on the last day of February. Goofy will be taxed on this amount. What is the amount that will be deducted by the company for the restraints of trade for the 2023 year of assessment?
a. R260 000
b. R130 000
C.86 667
d. R216 667
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