FACULTY OF

ACCOUNTING AND INFORMATICS

DEPARTMENT OF
AUDITING AND TAXATION

DIPLOMA: TAXATION (DITAX1)

Study Guide

2024

MODULE / SUBJECT TITLE: Taxation 301

MODULE / SUBJECT CODE: TAXA301
SAQA CREDITS: 12 credits

This module was revised on: February 2024

Revised by: C Ronald
Name of Lecturer : Mrs. C Ronald
Office : DC 1211J
Campus location : Ritson Rd.
Telephone : 031-3735602
E-Mail : [email protected]
Consultation times with Lecturer: -----------------------

Head of Department : Dr. A. Moodley

Programme coordinator : Mrs. M Mutanda
Campus location : Ritson
Room number : DC 1211A
Telephone : 031 3735310
Departmental Secretary / Programme secretary : Ms PR Khumalo

Contact details : 031 3735310 / [email protected]

Lectures :3

Tutorials : 1 [Subject to the availability of tutors

Lecture Venue : per timetable available from

https://timetable.dut.ac.za/finder.html
Tutorial Venue : To be announced
Duration : one hour lectures
Relevant Policies and rules:

Page 2 of 12
Template updated by CQPA & approved by AEM 20 April 2017
1. Welcome

To our Diploma in Taxation Class.

Well Done!!
You have reached the final year of your Diploma in Taxation journey. This is the third
module in taxation.
This learner guide constitutes the main agreement or “contract” between the subject
facilitator/lecturer and the learner. It provides important information about all aspects
of how the subject will be delivered, the subject content and other pertinent teaching
and learning information.

You also need to keep this study guide as it will be proof to another university of
what you have done if you require a credit from them for another qualification

2. Using your online ThinkLearnZone (Moodle) classroom

All taught subjects/modules have their own online classroom on the
ThinkLearnZone. You can access your classroom at https://tlzprod.dut.ac.za

Click on (Log in) on the top right corner

On the next screen click on “OpenID Connect”

Page 3 of 12
Template updated by CQPA & approved by AEM 20 April 2017
 Use your dut4life email address to sign ([email protected]) and
your email password as your password (Dut + first six digits of your ID no., e.g.
Dut980610. For first-time 2020 students - use $$Dut + first six digits of your ID
no., e.g. $$Dut980610)

Ask your lecturer for guidance or check out “how to log in” from here:
https://www.dut.ac.za/faq-students/

The e-learning website also has contact information for help and technical
assistance https://www.dut.ac.za/elearning-contacts/

You can call the e-learning helpdesk on 031 373 67810 or email them on
[email protected]

Page 4 of 12
Template updated by CQPA & approved by AEM 20 April 2017
3. Introduction to the module

Last year, the taxation of individuals and aspects of Tax Administration were
covered.
In the Semester One this year, the study of taxes as it relates to business
entities are covered. Specifically, Special Deductions, Capital Allowances,
Partnerships and Company Taxes were dealt with.
In the Semester Two, there are two modules, the first covers, Value Added Tax
(VAT), Capital Gains Tax (CGT) for businesses and individuals, General and
Specific Anti- Avoidance.
The second module covers, taxation of small, medium and micro businesses,
taxation of farmers, employees’ tax and provisional tax.

4. Learning outcomes

Learning outcomes Assessment criteria

Foreign Exchange Foreign Exchange Transactions
Transactions  Assets and trading stock acquired in
 Apply the provisions of foreign currency are recorded and
Sections1, 25D and 24I subsequent forex gains and losses
are determined
Trading Stock Trading Stock
 Apply the provisions of  Trading Stock is identified in terms
Section 1, 22 (1) to 22 (5) of Section 1
and 22 (8)  Trading Stock is valued / given an
amount.
 Opening and Closing is
appropriately treated in the Income
Tax calculation of the taxpayer.
 Private use and other non-sale
disposal of trading stock is
identified and recorded
appropriately
Assessed Losses Assessed Losses
 Calculate and correctly treat  Assessed Losses are defined and
an assessed loss for a calculated
taxpayer in terms of Section  Assessed Losses brought forward or
20 incurred in the current year are
appropriately treated.

Special Deductions  Special Deductions

Identify and apply special  Special deductions are stated in
deduction transactions as the following Sections:
stated in Sections :  Sections s 11(a) – General
 11 (a) to Sections11 (w), Deduction Formula
 Section 11 A,  Section 11 (l) – Contribution to
 Section11B, Funds
 Section11C,  Section 11 (lA) – Qualifying Equity
 Section 11D, Shares / Broad Based Employee
 Section 12H, Share Scheme
 Section18A,  Section 11 (m) – Annuities in

Page 5 of 12
Template updated by CQPA & approved by AEM 20 April 2017
  Section 23 B, respect of former partners and
 Section 23E and employees
Section 23 H  Section (w) – Premiums on Key
Man / Person Policies
 Section 11 (cA) - Restraint of
Trade
 Section 12 H – Learnership
Agreements
 Excessive Expenditure relating to
Remuneration (ITC1518 68 SATC
312)
 Section 11 (i) – Bad Debts
 Section 11(j) – Doubtful Debts
 Sectionb11 D – Research and
Development
 Section 11 (gD) – Business
Licences (Telecomm, Petroleum
and Gambling)
 Section 11 (c) – Legal Expenses
 Section 18 A – Donations
Deduction (limited to 10 % of Tax
Income)
 Section 23 B – Double Deductions
 Section 23 H – Prepaid Expenses
 Section 11A – Pre-Trade
Expenses - are identified and
treated appropriately (dis /
allowed).
 are calculated
Capital Allowances Capital Allowances
 Apply knowledge of Sections  12C Special Depreciation Allowance
11 (e) and 12C, Repairs and o Process of manufacture is
Improvements - Section 11 defined
(d), Assets used in o Examples of processes of
generation of renewable manufacture or similar
energy, Section 12 B and processes are identified.
Section 12 U, Research and o Old, new and leased assets are
Development -. (Section11 identified, appropriately costed
D, Section 11 (gB) and and treated
Section 11(gC))  11(e) Wear & Tear Allowance
 Calculate the Section 13, o Section 11 (e) transactions are
Manufacturing, Building identified and assets are valued
Allowances on owned and o Interpretation Note 47 is used
leased buildings to identify assets and
 Calculate the Section 13 determine their write off periods
quin - commercial o The year of assessment of the
building allowances taxpayer is identified.
 Calculate the Section 13 sex o The Section 11 (e) Wear and
and Section 13 sept - Tear Allowance is calculated
residential building  Repairs, maintenance and

Page 6 of 12
Template updated by CQPA & approved by AEM 20 April 2017
 allowances  improvements are identified and
appropriately treated
 Deductions permitted in terms of
Section 12 B and Section 12U are
identified and calculated.
 Residential Building Allowances are
calculated in terms of Section 13,
13 quin, 13sex & 13sept
 Section 11 (gB) – Extensions and
Renewals - Section 11 (gC)
 Section 11 (gC) – Patents, Designs,
Trademarks and
Copyrights
Recoupment / Recoupment and Scrapping
Scrapping  Recoupment or loss on disposal is
Allowances calculated with respect to Sections 11
 Apply the provisions of (o) or 8 (4) (a) or 8 (4)(e)
Section 8(4) (a) and Section
8 (4)(e)
 Apply the provisions of
Section 11(o)
Leased Assets Leased Assets
 Compute rental paid [Section
 Rent paid is identified and computed
11 (a)], lease premiums in terms of Section 11 (a)
[Section 11 (f)] and  Lease Premiums are identified and
leasehold improvements computed in terms of Section 11 (f)
[Section 11 (g)]  Leasehold Improvements are
identified and computed in terms of
Section 11 (g)
Companies and Companies and Close Corporations
Close Corporations  Companies are defined in terms of the
 Compute income tax payable Income Tax Act
 Year of Assessment is determined
 Income Tax payable is calculated in
terms of the prevailing tax rate

Partnerships Partnerships
 Compute the taxable income  Partnership income and deductions
of the partnership and the are identified
tax liability of its individual  Partnership Taxable Income is
partners calculated
 Income and deductions for individual
partners are identified
 Taxable Income and Tax Liability of
individual partners is calculated

Page 7 of 12
Template updated by CQPA & approved by AEM 20 April 2017
5. Learning, teaching and assessment strategies
a) Learning activities

Teaching and Notional Hours No of hours per

Learning Activity per week semester
Contact 3 45
Lectures
Assessments 6
Tutorials 1 15
Self-Study 3.6 54
Total 120

Notional hours are defined as the total time required for an

‘average’ learner to meet and complete the requirements of the
subject (Criteria and Guidelines)

b) Graduate attributes

Students will be required to embrace and be able to apply Tax laws, ethics,
governance and responsible citizenship.
Problem solving, critical evaluation of information, written and visual
communication, system thinking, critical reasoning are amongst the skills a
graduate of the program will be able to exhibit.

c) Assessment

Duly Performance (DP)

Assessment Number Nature of DP weighting
Assessment
Assessment One Written invigilated test 50
Assessment Two Written invigilated test 50
Assessment Three Written invigilated test 50
The average of the two highest marks will be the DP 100%

Please note that a minimum DP of 40% is required in order to

write the final exams

Final Examination Mark

Final Mark Calculation
Duly Performance 40%
Examination Mark 60%
100%

It should be noted that a subminimum of 40% must be achieved on the

actual examination

Page 8 of 12
Template updated by CQPA & approved by AEM 20 April 2017
 d) Activities to promote learning

Learners are encouraged to read from a wide range of

sources preferably before of lectures.
Learner are given tutorials from the prescribed textbook as
well as past exam papers.
The lecture notes are designed to cater for different learning
styles through a visual assessment tasks and aids in exam
preparation.

Prescribed Books:

 Stiglingh, M., Koekemoer, A., van Heerden, L., Wilcocks, J. S.

and P. van der Zwan. 2024. Silke: South African Income Tax
2024 LexisNexis Butterworths Durban

 Mitchell, K and L. D. Mitchell. 2024. Graded Questions on

Income Tax in South Africa 2024, LexisNexis Butterworths
Durban

 Stark, K.and Nare, M. 2024. Tax WorkBook 2024, LexisNexis Butterworths

Durban

Recommended Book

 Bruwer, L., Cass, C., Cucciolillo D., Koekemoer. A., Oosthuizen,

A., and Stedall, C. 2024. A student’s Approach to Income Tax:
Business Activities 2023, LexisNexis Butterworths Durban
 Coetzee, K.; de Hart, K.L.; Koekemoer. A.D., Oosthuizen, A.,
and Stedall, C. 2024. A student’s Approach to Income Tax:
Natural Persons 2023, LexisNexis Butterworths Durban
 Haupt, P and E Haupt. 2024. Notes on South African Income
Tax 2024. Hedron Publishing Cape Town

 You may check for eBook availability of the prescribed textbooks

on the DUT Library website. https://library.dut.ac.za/

e) Library orientation
Our subject librarian is Ms Claire Spershott. Her contact details are
Tel No: 031 3735242
Email: [email protected]
Ms Spershott conducts information literacy classes. This course helps you
become familiar with appropriate referencing methods, provides guidance
on information searches and helps you discern appropriate academic
sources of information.

Page 9 of 12
Template updated by CQPA & approved by AEM 20 April 2017
6. Scheme of work on pages 11 and 12

7. Copyright and plagiarism

The following definition is taken from the DUT Plagiarism Policy. Please see Annexure 1 on
page 13 for the plagiarism declaration

Plagiarism is the submission, by any person or group of persons, without acknowledgement,

of written, visual, or oral material or an idea, originally produced by someone else, purporting
to be one’s own or a group’s own work (Durban University of Technology Rule Book for
Students).
This could include:
 Inaccurate or no acknowledgement of another’s ideas and/or written, visual or oral
material;
 Paragraphs, sentences, a single sentence or significant parts of a sentence from any text
including the Internet, which are copied directly and not enclosed in quotation marks or
appropriately footnoted or referenced (taken in part from Griffith University School of
Environmental Planning: Course Guide 2000);
 Paraphrasing of sentences, paragraphs or themes, i.e. taking a quotation and rewriting or
summarising it in your own words without appropriate references;
 Presenting or reproducing someone’s artefact, art work, designs or experimental results
as your own, without appropriate references;
 Collusion, e.g. another person or group of persons assisting in the production of a work to
be submitted for assessment without the requirement, consent or knowledge of the
assessor;
 Submitting one’s previously assessed or published work for assessment or publication
elsewhere, without appropriate acknowledgement (Curtin University of Technology);
 In the case of collaborative projects, falsely representing the individual contributions of
collaborating persons where individual contributions are to be identified (Curtin University
of Technology).

8. Student support
Student Support Services – located on Steve Biko Campus (services include a clinic and
counselling centre).
HIV /AIDS Unit- is situated at Open House corner of Ritson and Steve Biko Roads
Tutorials-To be announced by your lecturer.
Lecturer Consultation Periods – Ensure that your lecturer provides you with a consultation
times.

9. Work Integrated Learning (WIL), industry, community, and occupation-

related information.
There are no WIL requirements for this subject

10. Quality assurance and enhancement

Lecturer and Subject evaluations are conducted.
The HOD meets with Class Representatives annually

Page 10 of 12
Template updated by CQPA & approved by AEM 20 April 2017
 Week Text Reference (Silke: SA Income Tax 2024) Assessments

1 Revision:
o Gross Income Definition - Chapter Three, Chapter Four
and Chapter Five
o General Deduction Formula - Chapter Six
Tax Implications of Different Types of Enterprises - includes
companies and close corporations]
2 Special Deductions: Chapter 12
o Trading Stock (Chapter 14)
o Assessed Losses (Chapter 13)
o Employee Related Expenses
 Restraint of trade
 Contribution to funds
 Qualifying equity shares
 Annuities in respect of former employees
(partnership)
 Key-Employees insurance policies (partnership)
 Learnership agreements
 Excessive Expenditure relating to Remuneration
Chapter six
3 Special Deductions: Chapter 12
o Legal Expenses
o Bad Debts (partnership)
o Doubtful Debts.
o Donations
o Double Deductions (Section 23B)
o Prepaid Expenses Section 23H Chapter Six
o Pre-Trade Expenses Section 11A Chapter Six)
4 Capital Allowances – Chapter 13 Assessment (13
o Patents, Designs, Trademarks and Copyrights, as March)
well as their Extensions and Renewals (Section11gB
and gC))
o Business Licences (Telecomm, Petroleum and
Gambling) (Section11gD)
5 Capital Allowances – Chapter 13
o Connected Persons
o Repairs and Maintenance (Chapter 12)
o Process of manufacture
o Cost of an Asset
o Section 12C (New assets))
o Section 12C (Used assets)
o Section 11(e) Wear and Tear Allowance
6 Capital Allowances – Chapter 13
o Section 12 B and Section 12U Renewal Energy
o Section 13, Manufacturing Building Section 13
o Allowances on owned and leased buildings ]
o Commercial Building Allowances – Section 13quin
o Residential Building Allowances Section 13 sex and
Section 13 sept residential building allowances
o Sale of low-cost residential units on loan

Page 11 of 12
Template updated by CQPA & approved by AEM 20 April 2017
 7 Capital Allowances – Chapter 13
o Recoupment or loss on disposal is calculated with
respect to Sections 11 (o) or 8 (4) (a) or 8 (4) (b) or
8(4)(e) or 8(4)(k)
o Leased Assets (5.16)
o Rent Paid: Section 11 (a)
o Lease Premiums: Section 11 (f)
o Leasehold Improvements: Section 11 (g)
Foreign Exchange Transaction Chapter 15
Easter
8 Partnerships Chapter 18 Assessment (30 April)
9 Partnerships Chapter 18
10 Partnerships Chapter 18
11 Companies
12 Exam Prep Assessment [Mid-
May]

Semester One Lectures will commence on12 February 2024 and will end on 28 May 2024.
First Term begins on 12 February 2024 and will end on 28 March 2024.
Second Term begins 8 April 2024 and will end 28 May 2024.
Exams begin 3 June 2024

Page 12 of 12
Template updated by CQPA & approved by AEM 20 April 2017