UNIVERSITY OF SOUTH AFRICA (UNISA)
College of Accounting Sciences
⋄
ASSIGNMENT 2
Semester 1 – 2026
⋄
Module Code: TAX3701
Module Name: The Taxation of Business Activities
Assignment No.: Assignment 2
Due Date: 16 April 2026
Semester: Semester 1, 2026
Submitted in partial fulfilment of the requirements for TAX3701
at the University of South Africa.
, UNISA | TAX3701 Assignment 2 – Semester 1 2026
Question 1: Normal Income Tax Liability – Thabo Manufacturing (Pty) Ltd
The calculation below determines the normal income tax liability of Thabo Manufacturing
(Pty) Ltd (“TM”) for the year of assessment ended 31 March 2026. TM is a South African res-
ident company, a registered VAT vendor, and is not a small business corporation as defined
in section 12E of the Income Tax Act 58 of 1962 (“the Act”). All amounts exclude VAT unless
stated otherwise. The tax rate applicable to companies for the 2026 year of assessment is
27%.
Quality Assurance
TM will utilise every permissible deduction to reduce its 2026 income tax liability, as
instructed.
1.1 Gross Income and Taxable Income Computation
Table 1: Normal Income Tax Computation – TM – Year
ended 31 March 2026
Item R R
GROSS INCOME
Sales (Note 1) 27 789 261
Interest from SA banks (Note 15a) 17 780
Dividends – foreign (Note 15c) 145 200
Insurance proceeds – delivery truck (Note 11b) 360 000
Total Gross Income 28 312 241
EXEMPT INCOME
SA dividends – excluded (Note 15b) (114 520)
Income 28 197 721
DEDUCTIONS
Cost of sales (Note 2)
Opening stock 3 785 261
Add: Purchases 15 125 187
Less: Closing stock (4 252 879) (14 657 569)
(Continued on next page)
Page 1 of 13
College of Accounting Sciences
⋄
ASSIGNMENT 2
Semester 1 – 2026
⋄
Module Code: TAX3701
Module Name: The Taxation of Business Activities
Assignment No.: Assignment 2
Due Date: 16 April 2026
Semester: Semester 1, 2026
Submitted in partial fulfilment of the requirements for TAX3701
at the University of South Africa.
, UNISA | TAX3701 Assignment 2 – Semester 1 2026
Question 1: Normal Income Tax Liability – Thabo Manufacturing (Pty) Ltd
The calculation below determines the normal income tax liability of Thabo Manufacturing
(Pty) Ltd (“TM”) for the year of assessment ended 31 March 2026. TM is a South African res-
ident company, a registered VAT vendor, and is not a small business corporation as defined
in section 12E of the Income Tax Act 58 of 1962 (“the Act”). All amounts exclude VAT unless
stated otherwise. The tax rate applicable to companies for the 2026 year of assessment is
27%.
Quality Assurance
TM will utilise every permissible deduction to reduce its 2026 income tax liability, as
instructed.
1.1 Gross Income and Taxable Income Computation
Table 1: Normal Income Tax Computation – TM – Year
ended 31 March 2026
Item R R
GROSS INCOME
Sales (Note 1) 27 789 261
Interest from SA banks (Note 15a) 17 780
Dividends – foreign (Note 15c) 145 200
Insurance proceeds – delivery truck (Note 11b) 360 000
Total Gross Income 28 312 241
EXEMPT INCOME
SA dividends – excluded (Note 15b) (114 520)
Income 28 197 721
DEDUCTIONS
Cost of sales (Note 2)
Opening stock 3 785 261
Add: Purchases 15 125 187
Less: Closing stock (4 252 879) (14 657 569)
(Continued on next page)
Page 1 of 13
