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QUESTION 4 ( 2 5 4 . 1 On I June 2 0 2 1 , CD Ltd obtained an exclusive right for a period

QUESTION 4
(25
4.1 On I June 2021, CD Ltd obtained an exclusive right for a period of 4 years to sell a particular skincare range in the Gauteng Region. The cost of the right was R80000 payable in 4 instalments?
Discuss the deductibility of the R80000 with reference to the General Deduction Formula for the 2023 year of
assessment.
Marks)
4.2 Ben is a sole proprietor of Stationers 4U, sells stationery in Cape Town. The current financial year ends on 28 February 2023. The following information relates to the business activities:
Profit before tax of R375875, before taking the following information into account:
Bad debts written off consist of the following:
Trade debtors ,R10000
Loan to employee X R15000
Employee x has left the employment and there is no trace of him.
Penalties and interest of R6000 paid to SARS relating to late submissions of tax returns.
Legal Fees to the amount of R40000 was incurred for the following:
Collection of outstanding trade debtors
R20000
Court cases regarding employee claims
R15000
Legal Appeal to SARS
R 5000
Prepaid expenditure:
Deposit of R15000 for the purchase of 3 computers in April 2023.
Rental of R45000 paid for a security system that will be used for the period 1 March 2023-30 September 2023.
Amy, manager of Stationers 4U, decided to retire early. She was paid R225000 over 2 years.
REQUIRED:
Calculate the taxable income for the 2023 Year of Assessment after taking into account the deductions?
Marks)
ANNEXURE FOR QUESTION 3
Years of assessment ending on any date between 1 April 2022 and 30 March 2023:
\table[[Taxable Income (R),Rate of Tax (R)],[1-91250,0% of taxable income],[91251-365000,7% of taxable income above 91250],[365001-550000,19163+21% of taxable income above 365000],[550001 and above,58013+28% of the amount
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