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Taxation 3A Assignment 2023

This 3-page document provides instructions for an individual assignment for a Taxation 3A module. It includes 3 questions worth a total of 50 marks. Question 1 is worth 12 marks and involves calculating any VAT implications for an insurance payout. Question 2, worth 30 marks, requires calculating the VAT reconciliation amount from various rental income and expense transactions. Question 3, worth 8 marks, requires advising on the tax deductibility and planning for costs to repair and convert part of a factory building into offices. Students must submit typed, referenced answers in the correct format, and attach a plagiarism report.

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33 views5 pages

Taxation 3A Assignment 2023

This 3-page document provides instructions for an individual assignment for a Taxation 3A module. It includes 3 questions worth a total of 50 marks. Question 1 is worth 12 marks and involves calculating any VAT implications for an insurance payout. Question 2, worth 30 marks, requires calculating the VAT reconciliation amount from various rental income and expense transactions. Question 3, worth 8 marks, requires advising on the tax deductibility and planning for costs to repair and convert part of a factory building into offices. Students must submit typed, referenced answers in the correct format, and attach a plagiarism report.

Uploaded by

Codyxanss
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 5

Programme BACHELOR OF COMMERCE IN ACCOUNTING

Module TAXATION 3A
Module Code TAX310/410
NQF Level 7
Credits 10
Assessment Type Individual Assignment
Semester 1
Due Date 07 April 2023

Total marks 50
Pass mark 50%
Weighting 10%
Examiner FREDDY MALATJI
Moderator MUNYARADZI TSATSA

This Question paper consists of 05 pages including the cover page.

INSTRUCTIONS:
Read the following instructions CAREFULLY:
1. Assignments must be presented in the correct format. Your assignment should be typed –
Arial font 12; 1.5 spacing; Justified (ctrl + J))
2. Ensure that your details and the name of your campus are clearly indicated on the cover page
of your assignment.
3. Please note that it is your responsibility to retain copies of your assessments
4. Use the Harvard method of Referencing for citing your sources.
5. Use current research sources, preferably not older than five years.
6. A CheckforPlagiarism report MUST be attached to each assignment submission.
7. It is in your own interest to present your work neatly.

Taxation 3A Individual Assignment Page 1 of 5


Damelin©
QUESTION 1 (12 marks)
Beauty Pageant (Pty) Ltd sells slimming products to beauty salons and health spas. Ten
months ago, a newly appointed sales lady, employed to market a new range of fat burning
products, disappeared along with a motor car (as defined) belonging to Beauty Pageant
(Pty) Ltd and a boot full of fat burning products. All attempts to trace this sales lady have
failed. The insurance company finally decided to pay out R119 200, calculated as follows:
• R85 000 for the motor car and
• R34 200 for the fat burning products that were stolen.
These amounts comprise the full and final settlement of Beauty Pageant (Pty) Ltd’s claim in
respect of the above.
1.1 Briefly discuss (with calculations where applicable) whether there are any (12)
VAT implications for Beauty Pageant (Pty) Ltd on the R119 200 payment
received from the insurance company.

QUESTION 2 (30 marks)


Rand Braam Properties Ltd (a VAT vendor) operates as a property management company.
The company manages a block of flats that are situated in Braamfontein, and which are used
for both residential and the letting of business office space (mixed use property). During the
year of assessment 2021 the following transactions took place in its normal business
operations:
§ An amount of R90 000 was received for the tenants of the residential flats.
§ Rental received on the leased office space amounted to R57 500.
§ Advertising relating to the office space was R5 600 and for the residential flats
amounted to R8 000.
§ Salaries and wages for staff was R180 000.
§ Repairs and maintenance expenditure for residential flats was R20 000 and for the
business office space was R11 200.
§ Audit fees incurred by the company amounted to R4 000.
§ Two computers operated in relation to this business activity in Braamfontein were
purchased at a cost of R16 000.
§ Office expenses relating to the business office space amounted to R500.
§ Amount paid for cleaning the business offices was R10 000.

2.1. You are required to calculate VAT reconciliation amount resulting from the (30)
above transactions. “NB” All amounts are VAT inclusive where applicable.

Taxation 3A Individual Assignment Page 2 of 5


Damelin©
QUESTION 3 (08 marks)
Kena Kelly Properties Limited has been approached by an existing tenant of one of its
factory buildings, to repair the building (which is in desperate need of repair) and at
the same time to convert a section of it into offices.

3.1 You are required to advise Kena Kelly Properties Limited if the costs incurred (08)
will be deductible in the determination of its taxable income and to give it what
you consider may be some useful tax-planning advice relating to the proposed
building operation.

∞End of Question Paper∞

Taxation 3A Individual Assignment Page 3 of 5


Damelin©
Individual Assignment
Cover Sheet

Student’s name

Student number
Name of
Campus
Year of Study Semester

Programme
Module
Module Name
Code
Lecturer
Date
Due date submitted

KEEP A COPY
Please note that it is your responsibility to retain copies of your assessments.

A CheckforPlagiarism report MUST be attached to each assignment submission.

Taxation 3A Individual Assignment Page 4 of 5


Damelin©
DECLARATION BY STUDENT

I, the undersigned declare that:


• I have retained a copy of this assessment.
• I understand what plagiarism is and are aware of the Damelin’s policy in this
regard.
• The work hereby submitted is my original work, gathered and utilised to fulfil the
requirements of this assignment except for source material explicitly
acknowledged.
• I have not used work previously produced by another student or any other persons
to hand in as my own.
• I have not allowed, and will not allow, anyone to copy my work with the intention
of passing it off as their own work.

Signature of Student Date

Taxation 3A Individual Assignment Page 5 of 5


Damelin©

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