LML 4804 PORTFOLIO EXAM QUESTIONS WITH CORRECT
ANSWERS LATEST UPDATE
Para 20(1)(e) - ✔✔ Specific provision in Eighth Schedule regarding capital gains.
Para 44 - ✔✔ Definition of 'residence' for capital gains purposes.
Para 45(1)(a) - ✔✔ Criteria for primary residence capital gain exclusion.
Para 46 - ✔✔ Limit on adjacent land for primary residence exclusion.
Para 47 - ✔✔ Criteria for ordinary residency in primary residence.
Tradehold Limited v CSARS - ✔✔ Court case clarifying tax residency and disposals.
Section 8B - ✔✔ Regulation regarding equity shares and residency.
Section 8C - ✔✔ Regulation on equity instruments and vesting.
Valuation Date - ✔✔ Date for assessing asset values for tax purposes.
Maximum Marks - ✔✔ Total score possible for an assessment.
,SARS - ✔✔ South African Revenue Service, tax authority.
Outstanding Payment - ✔✔ Unpaid tax amount due from previous assessment.
Year of Assessment - ✔✔ Tax year for which returns are filed.
Medical Expenses - ✔✔ Costs incurred for healthcare, claimed as deductions.
Interest and Penalties - ✔✔ Additional charges for late tax payments.
Capital Gains Tax (CGT) - ✔✔ Tax on profit from asset disposal.
Asset - ✔✔ Property or right of any nature.
Proceeds - ✔✔ Total amount received from asset disposal.
Disposal - ✔✔ Event of transferring ownership of an asset.
Base Cost - ✔✔ Cost of acquiring or creating an asset.
Qualified Expenditure - ✔✔ Costs that can be added to base cost.
, Holding Costs - ✔✔ Expenses incurred while maintaining an asset.
Eighth Schedule - ✔✔ Legal framework governing CGT in South Africa.
Taxable Capital Gain - ✔✔ Profit subject to taxation after asset sale.
Mr Thalitha - ✔✔ Tax resident involved in CGT scenario.
Construction Costs - ✔✔ Expenses incurred for building improvements.
Sale Price - ✔✔ Amount received from selling an asset.
Emigration - ✔✔ Moving residence to another country.
Lease-with-option-to-buy - ✔✔ Rental agreement with purchase option.
Income Tax Act 58 of 1961 - ✔✔ Legislation governing income tax in South Africa.
Tax Administration Act 28 of 2011 - ✔✔ Regulates tax administration and taxpayer rights.
Objection - ✔✔ Formal disagreement with a tax assessment.
ANSWERS LATEST UPDATE
Para 20(1)(e) - ✔✔ Specific provision in Eighth Schedule regarding capital gains.
Para 44 - ✔✔ Definition of 'residence' for capital gains purposes.
Para 45(1)(a) - ✔✔ Criteria for primary residence capital gain exclusion.
Para 46 - ✔✔ Limit on adjacent land for primary residence exclusion.
Para 47 - ✔✔ Criteria for ordinary residency in primary residence.
Tradehold Limited v CSARS - ✔✔ Court case clarifying tax residency and disposals.
Section 8B - ✔✔ Regulation regarding equity shares and residency.
Section 8C - ✔✔ Regulation on equity instruments and vesting.
Valuation Date - ✔✔ Date for assessing asset values for tax purposes.
Maximum Marks - ✔✔ Total score possible for an assessment.
,SARS - ✔✔ South African Revenue Service, tax authority.
Outstanding Payment - ✔✔ Unpaid tax amount due from previous assessment.
Year of Assessment - ✔✔ Tax year for which returns are filed.
Medical Expenses - ✔✔ Costs incurred for healthcare, claimed as deductions.
Interest and Penalties - ✔✔ Additional charges for late tax payments.
Capital Gains Tax (CGT) - ✔✔ Tax on profit from asset disposal.
Asset - ✔✔ Property or right of any nature.
Proceeds - ✔✔ Total amount received from asset disposal.
Disposal - ✔✔ Event of transferring ownership of an asset.
Base Cost - ✔✔ Cost of acquiring or creating an asset.
Qualified Expenditure - ✔✔ Costs that can be added to base cost.
, Holding Costs - ✔✔ Expenses incurred while maintaining an asset.
Eighth Schedule - ✔✔ Legal framework governing CGT in South Africa.
Taxable Capital Gain - ✔✔ Profit subject to taxation after asset sale.
Mr Thalitha - ✔✔ Tax resident involved in CGT scenario.
Construction Costs - ✔✔ Expenses incurred for building improvements.
Sale Price - ✔✔ Amount received from selling an asset.
Emigration - ✔✔ Moving residence to another country.
Lease-with-option-to-buy - ✔✔ Rental agreement with purchase option.
Income Tax Act 58 of 1961 - ✔✔ Legislation governing income tax in South Africa.
Tax Administration Act 28 of 2011 - ✔✔ Regulates tax administration and taxpayer rights.
Objection - ✔✔ Formal disagreement with a tax assessment.
