Description
LML4804 Assignment 1 Semester 2 2024 | Due 26 August 2024. All questions were answered with references.
Question 1
Freedom Movement Party (FMP) is a newly established political party which was registered to contest 2024 National and Provisional elections. It concluded a contract with Green Print Media House (Pty) Ltd (GP Media House). In terms of the contract, GP Media House had to print 3000 3D posters on behalf of FMP depicting the image of its leader for its campaign. GP Media House was also expected to air FMP political advertisements through its media partners on radio stations and television. On April 2024, FMP paid a deposit of R150 000 and undertook to pay the remainder amount on 30 June 2024. After the conclusion of national elections, FMP reviewed its performance on the national elections and noted that it did not accumulate enough votes it hoped for. A report from the external service provider appointed by FMP to investigate its poor performance, concluded that FMP did not reach large audience. On August 2024, FMP wrote a letter to GP Media House notifying the company that it will no longer pay the outstanding amount to GP Media House and it also considered its options to sue the company for its failure to honour the contractual obligations between the parties. As part of the contractual obligation between the parties, FMP learned that GP Media house failed to air its political adverts on radio station and television according to the agreed dates. It transpired that FMP political advert was only aired on radio station and television a day prior the date of the national elections. GP Media House referred the matter to court to demand the outstanding amount owed by FMP. The matter was set down for hearing for 05 October 2024.
1.1. With reference to tax law and case decision, discuss whether the deposit paid and the outstanding amount still owed by FMP will be included in the Gross Income of GP Media House.
1.2. Ian and Pogi are South African residents who were part of the cricket players selected to represent their national cricket team for 2023/2024 SA Cricket Tour. Due to the number of cricket matches which the national team has to participate in outside the country, Ian and Pogi ………………..
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