question 5

15 Marks 27 minutes Question 5 The following is an extract from the fixed Asset register of Star Manufacturrers (Pty) Ltd. Star Manufacturers year of assessment ends on 30 June each year. DATE OF ACQUISITION ASSET COST PRICE Office Building Factory Building 1 July 2017 1 January 2017 1 March 2016 1,300,000 2,500,000 Machine A 105,000 1 January 2018 1 July 2014 Machine B 150,000 Furniture & Fittings 84,000 Page 9 of 15 Required: Calculate the applicable deductions for the years of assessment 2017 and 2018. Table 1: Individual tax rate table 10 Income Bracket NS 0- N$ 50,000 N$ 50,001- NS 100,000 N$ 100,001- N$ 300,000 N$ 300,001- NS 500,000 N$ 500,001- N$ 800,000 N$ 800,001- N$ 1,5 mill. Above N$ 1,5 million Tax calculation NIL (No tax) 18 % of amount above N$ 50,000 N$ 9,000 25% of amount above N$ 100,000 N$ 59,000+28% of amount above N$ 300,000 N$ 115,000+30% of amount above N$500,000 N$ 205,000+32% of amount above N$ 800,000 N$ 429,000+37% of amount above N$ 1,5 mill