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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
On I June CD Ltd obtained an exclusive right for a period of years to sell a particular skincare range in the Gauteng Region. The cost of the right was R payable in instalments?
Discuss the deductibility of the R with reference to the General Deduction Formula for the year of
assessment.
Marks
Ben is a sole proprietor of Stationers U sells stationery in Cape Town. The current financial year ends on February The following information relates to the business activities:
Profit before tax of R before taking the following information into account:
Bad debts written off consist of the following:
Trade debtors
Loan to employee X R
Employee has left the employment and there is no trace of him.
Penalties and interest of paid to SARS relating to late submissions of tax returns.
Legal Fees to the amount of R was incurred for the following:
Collection of outstanding trade debtors
R
Court cases regarding employee claims
R
Legal Appeal to SARS
R
Prepaid expenditure:
Deposit of R for the purchase of computers in April
Rental of R paid for a security system that will be used for the period March September
Amy, manager of Stationers U decided to retire early. She was paid R over years.
REQUIRED:
Calculate the taxable income for the Year of Assessment after taking into account the deductions?
Marks
ANNEXURE FOR QUESTION
Years of assessment ending on any date between April and March :
tableTaxable Income Rate of Tax R of taxable income of taxable income above of taxable income above and above, of the amount
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