Trading losses in any period can be carried back and set off against profits in the previous 12-month period, and any unrelieved losses should be _____.

Select one:

a. Carried back

b. Carried forward to set against profits in future years

c. Set off against capital gains

d. Set off against capital gains in the next tax year

An entity makes a taxable profit of R500,000 and pays corporate income tax at 25%. The entity pays a dividend to its shareholders. A shareholder receiving R5,000 dividends then pays the standard personal income tax rate of 15% on the dividend, paying a further R750 tax. The tax system could be said to be:

Select one:

a. An Imputation system

b. A split rate system

c. A classical system

d. A partial imputation system

The tax gap is the difference between:

Select one:

a. When a tax payment is due and the date it is actually paid

b. The amount of tax due to be paid and the amount actually collected

c. The tax due calculated by the entity and the tax demanded by the tax authority

d. The date when the entity was notified by the tax authority of the tax due and the date the tax should be paid