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4/23/24, 6:01 PM Assessment 4: Attempt review
Question 3
Complete
Mark 1.00 out of 1.00
On 1 February 2024, Ubuntu (Pty) Ltd acquired a new machine for R2 400 000. The machine was brought into use the same
day in a process of manufacture. Calculate the capital allowance to be claimed by Ubuntu (Pty) Ltd on this machine for the
2024 year of assessment ending 29 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as de ned in the
Act.
a. R2 400 000
b. R1 200 000
c. R200 000
d. R Nil
Question 4
Complete
Mark 1.00 out of 1.00
Bhekisizwe CC (not a micro business or a small business corporation as de ned) distributed R63 750 of its pro ts to its
members. What is the income tax consequence for Bhekisizwe CC with respect to the distribution?
a. The close corporation will have to withhold provisional tax of R12 750 and pay it to SARS.
b. No dividends tax is applicable, as a distribution by a close corporation is not a dividend as de ned.
c. The members will have to pay dividends tax of R12 750 to SARS.
d. The close corporation will have to withhold dividends tax of R12 750 and pay it to SARS.
Question 5
Complete
Mark 1.00 out of 1.00
Which one of the following is not included in the de nition of a company?
a. Foreign companies
b. Close corporations
c. Partnership
d. South African charities
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4/23/24, 6:01 PM Assessment 4: Attempt review
Question 6
Complete
Mark 1.00 out of 1.00
Ubuntu (Pty) Ltd acquired a second-hand delivery vehicle at a cost of R60 000 on 1 September 2022 and immediately brought
it into use in its business, for the purpose of making deliveries. The delivery vehicle was used throughout the 2023 and 2024
year of assessment ended 28 February 2023 and 29 February 2024. In terms of Binding General Ruling No. 7, an acceptable
write-off period for this asset would be four (4) years. Calculate the tax value of the delivery vehicle as at 29 February 2024.
Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as de ned in the Act.
a. R37 500
b. R45 000
c. R30 000
d. R52 500
Question 7
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd incurred the following legal expense during the 2024 year of assessment ended 29 February 2024:
i) R10 000 legal costs for debt collection;
ii) R27 000 legal costs relating to the drawing up of an agreement to purchase a piece of land;
iii) R52 000 relating to a dispute with a client of Ngwenya (Pty) Ltd who sued the company for supplying incorrect goods.
Ngwenya (Pty) Ltd's lawyers were successful in defending the company on this matter.
Determine the amount that is deductible by Ngwenya (Pty) Ltd relating to legal fees.
a. R10 000
b. R62 000
c. R89 000
d. R37 000
Question 8
Complete
Mark 1.00 out of 1.00
Bhekisizwe (Pty) Ltd would like to know if they would qualify as a micro business. They received cash amounts relating to
catering services amounting to R445 000 for the period 1 March 2023 to 29 February 2024. Included in this amount is R37
000 received in cash from the sale of some catering equipment.
What is Bhekisizwe (Pty) Ltd’s qualifying turnover for the year ended 29 February 2024?
a. R408 000
b. R124 600
c. R445 000
d. R482 000
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Question 9
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd has a gardening maintenance contract with Green Fingers CC to maintain its corporate headquarters yard.
The terms of the contract are that the contract is paid in advance on an annual basis. Ngwenya (Pty) Ltd made the payment
of R200 000 on 1 January 2024 to cover the period 01 January to 31 December 2024.
Determine the amount that is deductible by Ngwenya (Pty) Ltd for its year of assessment ending 29 February 2024. Assume
this is the only prepayment that was made by Ngwenya (Pty) Ltd for the 2024 year of assessment.
a. R nil
b. R200 000
c. R166 667
d. R33 333
Question 10
Complete
Mark 1.00 out of 1.00
Which one of the following statements is true of a sole trader for income tax purposes?
a. A sole trader is not a separate legal entity.
b. A sole trader is not entitled to deductions and capital allowances.
c. A sole trader is regarded to be a company.
d. The pro ts from the business are not included in the sole trader’s taxable income.
Question 11
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd made a restraint of trade payment of R1 700 000 to a retiring employee, Mr Msomi, on 1 January 2024. Mr
Msomi was restrained from competing with the company for two years from the date of the payment. This payment will be
included in Mr Msomi's gross income for his 2024 year of assessment. Calculate how much will be deductible by Ngwenya
(Pty) Ltd for the year of assessment ending 29 February 2024.
a. R850 000
b. R94 444
c. R566 667
d. R141 667
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Question 12
Complete
Mark 1.00 out of 1.00
The shareholders, directors and members of a close corporation who were in control of or regularly involved in the
management of the overall nancial affairs of the business, will under certain circumstances become personally liable for
which two taxes if the business has failed to pay the tax over to SARS?
a. Employees tax (PAYE) and provisional tax
b. VAT and employees tax (PAYE)
c. Income Tax and VAT
d. Provisional tax and income tax
Question 13
Complete
Mark 1.00 out of 1.00
With regards to micro businesses, which one of the following amounts will not be included in taxable turnover?
a. Revenue amounts from cash sales
b. 100% investment income if the micro business is a company or close corporation
c. 100% investment income if the micro business is a natural person
d. 50% of all receipts of a capital nature from the disposal of assets used mainly for business purposes.
Question 14
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd purchased a trademark called Nix on 1 November 2023 and a patent called Tix on 1 December 2023. The
trademark cost was R740 000 and the cost of the patent was R690 000. Calculate the deduction or allowance available to
Ngwenya (Pty) Ltd for the year of assessment ending 29 February 2024.
a. Trademark R0 Patent R34 500
b. Trademark R12 333 Patent R8 625
c. Trademark R0 Patent R8 625
d. Trademark R37 000 Patent R34 500
Question 15
Complete
Mark 1.00 out of 1.00
Which of the following is incorrect with regards to Sole Traders?
a. A Sole trader is entitled to trading deductions and capital allowances against its trading income.
b. A sole trader is not a separate legal entity apart from the natural person and as such not a separate taxpayer.
c. A sole traders' tax liability is calculated using the tax tables applicable to the sole trader.
d. A sole trader is classi ed as a business and as such are charged tax at a rate of 27%, similar to other business
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Question 3
Complete
Mark 1.00 out of 1.00
On 1 February 2024, Ubuntu (Pty) Ltd acquired a new machine for R2 400 000. The machine was brought into use the same
day in a process of manufacture. Calculate the capital allowance to be claimed by Ubuntu (Pty) Ltd on this machine for the
2024 year of assessment ending 29 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as de ned in the
Act.
a. R2 400 000
b. R1 200 000
c. R200 000
d. R Nil
Question 4
Complete
Mark 1.00 out of 1.00
Bhekisizwe CC (not a micro business or a small business corporation as de ned) distributed R63 750 of its pro ts to its
members. What is the income tax consequence for Bhekisizwe CC with respect to the distribution?
a. The close corporation will have to withhold provisional tax of R12 750 and pay it to SARS.
b. No dividends tax is applicable, as a distribution by a close corporation is not a dividend as de ned.
c. The members will have to pay dividends tax of R12 750 to SARS.
d. The close corporation will have to withhold dividends tax of R12 750 and pay it to SARS.
Question 5
Complete
Mark 1.00 out of 1.00
Which one of the following is not included in the de nition of a company?
a. Foreign companies
b. Close corporations
c. Partnership
d. South African charities
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Question 6
Complete
Mark 1.00 out of 1.00
Ubuntu (Pty) Ltd acquired a second-hand delivery vehicle at a cost of R60 000 on 1 September 2022 and immediately brought
it into use in its business, for the purpose of making deliveries. The delivery vehicle was used throughout the 2023 and 2024
year of assessment ended 28 February 2023 and 29 February 2024. In terms of Binding General Ruling No. 7, an acceptable
write-off period for this asset would be four (4) years. Calculate the tax value of the delivery vehicle as at 29 February 2024.
Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as de ned in the Act.
a. R37 500
b. R45 000
c. R30 000
d. R52 500
Question 7
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd incurred the following legal expense during the 2024 year of assessment ended 29 February 2024:
i) R10 000 legal costs for debt collection;
ii) R27 000 legal costs relating to the drawing up of an agreement to purchase a piece of land;
iii) R52 000 relating to a dispute with a client of Ngwenya (Pty) Ltd who sued the company for supplying incorrect goods.
Ngwenya (Pty) Ltd's lawyers were successful in defending the company on this matter.
Determine the amount that is deductible by Ngwenya (Pty) Ltd relating to legal fees.
a. R10 000
b. R62 000
c. R89 000
d. R37 000
Question 8
Complete
Mark 1.00 out of 1.00
Bhekisizwe (Pty) Ltd would like to know if they would qualify as a micro business. They received cash amounts relating to
catering services amounting to R445 000 for the period 1 March 2023 to 29 February 2024. Included in this amount is R37
000 received in cash from the sale of some catering equipment.
What is Bhekisizwe (Pty) Ltd’s qualifying turnover for the year ended 29 February 2024?
a. R408 000
b. R124 600
c. R445 000
d. R482 000
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Question 9
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd has a gardening maintenance contract with Green Fingers CC to maintain its corporate headquarters yard.
The terms of the contract are that the contract is paid in advance on an annual basis. Ngwenya (Pty) Ltd made the payment
of R200 000 on 1 January 2024 to cover the period 01 January to 31 December 2024.
Determine the amount that is deductible by Ngwenya (Pty) Ltd for its year of assessment ending 29 February 2024. Assume
this is the only prepayment that was made by Ngwenya (Pty) Ltd for the 2024 year of assessment.
a. R nil
b. R200 000
c. R166 667
d. R33 333
Question 10
Complete
Mark 1.00 out of 1.00
Which one of the following statements is true of a sole trader for income tax purposes?
a. A sole trader is not a separate legal entity.
b. A sole trader is not entitled to deductions and capital allowances.
c. A sole trader is regarded to be a company.
d. The pro ts from the business are not included in the sole trader’s taxable income.
Question 11
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd made a restraint of trade payment of R1 700 000 to a retiring employee, Mr Msomi, on 1 January 2024. Mr
Msomi was restrained from competing with the company for two years from the date of the payment. This payment will be
included in Mr Msomi's gross income for his 2024 year of assessment. Calculate how much will be deductible by Ngwenya
(Pty) Ltd for the year of assessment ending 29 February 2024.
a. R850 000
b. R94 444
c. R566 667
d. R141 667
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Question 12
Complete
Mark 1.00 out of 1.00
The shareholders, directors and members of a close corporation who were in control of or regularly involved in the
management of the overall nancial affairs of the business, will under certain circumstances become personally liable for
which two taxes if the business has failed to pay the tax over to SARS?
a. Employees tax (PAYE) and provisional tax
b. VAT and employees tax (PAYE)
c. Income Tax and VAT
d. Provisional tax and income tax
Question 13
Complete
Mark 1.00 out of 1.00
With regards to micro businesses, which one of the following amounts will not be included in taxable turnover?
a. Revenue amounts from cash sales
b. 100% investment income if the micro business is a company or close corporation
c. 100% investment income if the micro business is a natural person
d. 50% of all receipts of a capital nature from the disposal of assets used mainly for business purposes.
Question 14
Complete
Mark 1.00 out of 1.00
Ngwenya (Pty) Ltd purchased a trademark called Nix on 1 November 2023 and a patent called Tix on 1 December 2023. The
trademark cost was R740 000 and the cost of the patent was R690 000. Calculate the deduction or allowance available to
Ngwenya (Pty) Ltd for the year of assessment ending 29 February 2024.
a. Trademark R0 Patent R34 500
b. Trademark R12 333 Patent R8 625
c. Trademark R0 Patent R8 625
d. Trademark R37 000 Patent R34 500
Question 15
Complete
Mark 1.00 out of 1.00
Which of the following is incorrect with regards to Sole Traders?
a. A Sole trader is entitled to trading deductions and capital allowances against its trading income.
b. A sole trader is not a separate legal entity apart from the natural person and as such not a separate taxpayer.
c. A sole traders' tax liability is calculated using the tax tables applicable to the sole trader.
d. A sole trader is classi ed as a business and as such are charged tax at a rate of 27%, similar to other business
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