UBL Family Day. Youth Day. Women's Day Heritage Day- SOUTH AFRICAN SCHO All provinces have same so School Starts 11 (13) Jan 7 Apr 6 Jul 28 Sep TAX3112 2021 supp Exam Question 1 Clothing Corporation (Pty) Lid is a resident company with a January year end. The tax rate applicable to normal tax for Clothing Corporation (Pty) Lid is 28%. The following information is for VAT): provided for the year of assessment ending 31 March 2021 (all amounts have been adjusted Sales (gross income) R1 500 500 95 000 Dividends accrued (note 1) Income 1 595 500 652 500 Less: allowable deductions for tax purposes (175 000 Less: dividends declared (note 2) (200 000) Less: prepaid normal tax 568 000 Retained income for year Notes 1) The following dividends accrued to Clothing Corporation (Pty) Lid: R50 000 from a resident company (gross income but exempt in terms of section 10) accrued on 20 October 2020. This amount was set off against the STC liability of the company during the dividend cycle ending 31 October 2020. R45 000 from a resident company (gross income but exempt in terms of section 10) accrued on 15 December 2020. This amount may be set off against the STC liability of the company. 2) A dividend declared is not an allowable deduction for normal tax purposes. The previous dividend cycle ended 30 October 2020. The STC liability was paid before 30 November 2011 and ends on the dividend declaration date. The R100 000 dividend was declared on 15 February 2012. 3) On 31 March 2021 the company declared a R75 000 dividend. The dividend cycle starts on 16 February 2021 and ends on the dividend declaration date. YOU ARE REQUIRED TO: 1) Calculate the normal tax liability and the amount due/refundable to Clothing Corporation (Pty) Lid for the year ended 31 March 2021