Monate Foods (Pty) Ltd is a company operating as a food truck restaurant permanently located outside a soccer stadium in Johannesburg. The company was started by two brothers. The company was incorporated on 1 April 2021 with the two brothers as the only shareholders. They don’t hold other investments or shareholdings. The first year of assessment ends on 28 February 2022.
The brothers asked you for assistance regarding some tax matters relating to their company as they know you are studying TAX2601 at Unisa.
You are provided with the following information:
Income and expenses for the period 1 April 2021 to 28 February 2022:
Item
Amount
Notes
Receipts
- Cash sales
R765 000
Sales to daily customers in the area
- Sales on credit
R27 400
Sales to a company in the area that made use of the food truck service on 15 February 2022 for a corporate event. They have not yet paid the invoice at year end.
- Sale of a capital asset
R24 000
The amount was received when a mini freezer asset was sold on 4 November 2021.
TAX2601/2022/Semester 2/Assessment 3
4
Item
Amount
Notes
Expenses:
- Operating expenditure
R557 400
All tax-deductible running costs of the food truck restaurant.
- Interim tax payment
R7 000
Paid on 31 August 2021
REQUIRED:
MARKS
2.1
Determine if Monate Foods (Pty) Ltd will qualify as a microbusiness considering all the relevant requirements and conclude.

2.2
Calculate the tax amount payable at the end of the 2022 year of assessment, assuming Monate Foods (Pty) Ltd qualifies as a microbusiness.
Note: You must address each receipt and expense amount and provide a brief reason for amounts that you think must not be taken into account in your calculation.