QUESTION FIVE Tandoori Spices CC is a resident of the republic. It carries on the business of producing and selling curry powders. Its financial year ends on the last day of February. Until 1 March 2017 Tandoori Spices CC sold its products through: A stall at the Durban Indian Market, a well-known tourist attraction in central Durban, and A chain of stores selling spices in most towns in the province. Garam Masala, the sole member of Tandoori Spices CC caused it to stop supplying its trading stock to the chain of stores. She believed that having its trading stock sold at the stores owned by the chain of stores distracted from the selling of its trading stock in its own shop. Tandoori Spices CC therefore entered into an agreement with the chain of stores (a resident of the Republic and trading as a public company) to the effect that it would not sell Tandoori Spices CC's trading stock for a period of five years commencing on 1 March 2017. In return for being unable to sell Tandoori Spices CC's trading stock for a period of five years, Tandoori Spices CC compensated it by awarding it R90 000. Jane Cinnamon and Daisy Dhania were employed by Tandoori Spices CC to mix its spices. After a disagreement with Garam Masala, both Jane Cinnamon and Daisy Dhania left its employment. Garam Masala was concerned that they would be employed by a competitor of Tandoori Spices CC and entered into the following two agreements: An agreement with Jane Cinnamon to the effect that she would not work for another spice producer for a period of four years commencing on 1 March 2017. In return for being unable to work for another spice producer for a period of four years, Tandoori Spices CC compensated her by awarding her R300 000 An agreement with Daisy Dhania to the effect that she would not work for another spice producer for a period of two years commencing on 1 March 2017. In return for being unable to work for another spice producer for a period of two years, Tandoori Spices CC compensated her by awarding her R150 000 Required Determine the amounts that Tandoori Spices CC will be able to deduct in the determination of its taxable income for its 2018 year of assessment for the above three 'restraint payments it incurred. QUESTION FIVE Tandoori Spices CC is a resident of the republic. It carries on the business of producing and selling curry powders. Its financial year ends on the last day of February. Until 1 March 2017 Tandoori Spices CC sold its products through: A stall at the Durban Indian Market, a well-known tourist attraction in central Durban, and A chain of stores selling spices in most towns in the province. Garam Masala, the sole member of Tandoori Spices CC caused it to stop supplying its trading stock to the chain of stores. She believed that having its trading stock sold at the stores owned by the chain of stores distracted from the selling of its trading stock in its own shop. Tandoori Spices CC therefore entered into an agreement with the chain of stores (a resident of the Republic and trading as a public company) to the effect that it would not sell Tandoori Spices CC's trading stock for a period of five years commencing on 1 March 2017. In return for being unable to sell Tandoori Spices CC's trading stock for a period of five years, Tandoori Spices CC compensated it by awarding it R90 000. Jane Cinnamon and Daisy Dhania were employed by Tandoori Spices CC to mix its spices. After a disagreement with Garam Masala, both Jane Cinnamon and Daisy Dhania left its employment. Garam Masala was concerned that they would be employed by a competitor of Tandoori Spices CC and entered into the following two agreements: An agreement with Jane Cinnamon to the effect that she would not work for another spice producer for a period of four years commencing on 1 March 2017. In return for being unable to work for another spice producer for a period of four years, Tandoori Spices CC compensated her by awarding her R300 000 An agreement with Daisy Dhania to the effect that she would not work for another spice producer for a period of two years commencing on 1 March 2017. In return for being unable to work for another spice producer for a period of two years, Tandoori Spices CC compensated her by awarding her R150 000 Required Determine the amounts that Tandoori Spices CC will be able to deduct in the determination of its taxable income for its 2018 year of assessment for the above three 'restraint payments it incurred
