TAX3701 ASSIGNMENT 3 (exam paper)

Dear Student This tutorial letter contains the questions and solutions for an exam paper, assignment 3. This assignment is not compulsory; however, it will assist you in your preparation for the exam. The solution for Assignment 1 will be provided in tutorial letter 202 and the solution for assignment 2 will be provided in tutorial letter 203. Best wishes for your preparation for the exam. Kind regards TAX3701 LECTURERS Telephonic contact with lecturers: (this is a hunting line – you will need to let it ring so that the exchange can find a free extension) The lecturers who are available to assist you are: Prof AP Swanepoel Ms MSI Wentzel Mrs H van der Merwe Ms C Cass Ms C Stedall Mr M van Dyk Ms E Doussy Mr A Swanepoel Ms I Kretzschmar Departmental cell phone number: 079 E-mail contact with lecturers: (semester 1) (semester 2) Course contact tab on myUnisa Fax numbers: (Department of Taxation) or Mrs Suzette Brecher (Departmental secretary): 3 TAX3701/201 This assignment is based on an examination paper. This is a selfassessment assignment. These are the instructions that will also appear on your examination paper. Read them now and make sure that you understand what we require from you. We also suggest that you try to do this assignment like a proper examination, under examination conditions, to see how much you know and what you need to spend time on. IMPORTANT INSTRUCTIONS: Assumptions: 1. All amounts exclude VAT unless stated otherwise. 2. All persons mentioned are residents of the Republic of South Africa unless stated otherwise. 3. SARS = South African Revenue Service The answering of this paper: 1. This paper consists of five (5) questions. 2. All questions must be answered. 3. Each question must be commenced on a new (separate) page. 4. All workings, where applicable, must be shown. Where an amount is subject to a limitation, clearly indicate the application of the limitation. Where any item is exempt from tax or not allowable as a deduction and a short reason should be given. All amounts must be rounded to the nearest Rand. 5. Please complete the cover page of the answer book in full. 6. You are reminded that answ