CAS3701 Assignment 11 Due 13 September 2024
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CAS3701
ASSIGNMENT 11 2024
QUESTION 1
1. BACKGROUND
LearnCo. Limited (LearnCo.) is a top training provider that offers skills
development training solutions to businesses and government institutions in
South Africa. The company is based in Gauteng, South Africa and has a 30 June
2024 year-end.
LearnCo. offers a wide variety of courses in health and safety, leadership and
managerial skills, occupational health and even on emerging technologies like
machine learning, robotics, coding and artificial intelligence. The company
conducts the training at the client’s workplace premises. LearnCo. Employs 250
facilitators permanently. The facilitators come from a diverse range of fields in
line with the courses offered by the company. The facilitators spend majority of
their time travelling to clients throughout the country and consequently,
LearnCo. incurs a high amount of expenditure related to travel claims.
You have recently been appointed as the Financial Manager (FM) of LearnCo.
The Chief Financial Officer
(CFO) is orientating you about the company and its payroll system. The payroll
system is outlined below.
a) Discuss, with reference to the Income Tax Act and Tax Administration Act,
whether the five non-facilitator employees must be registered as taxpayers.
In line with the provisions of the Income Tax Act, 58 of 1962, and the Tax Administration
Act, 28 of 2011, all employees earning taxable income in South Africa must be
registered for tax purposes. According to the Income Tax Act, a taxpayer is defined as
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