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LML4804 Assignment 3 Semester 2 2024 | Due 25 September 2024. All questions answered.
Question 1
(CAPITAL GAINS TAX) Ms. Kru, a South African resident worked for O Insure (Pty) Ltd (“O Insure”) as a specialist for 15 years. As a result of the Covid-19 pandemic that hit the world, O Insure decided to retrench her team including Ms. Kru. She was given a severance package of R5 million. Ms. Kru is married in community of property to Lolo and they stay in Blue Halley, Pretoria They bought the house in 2011 for R900 000. They also own a holiday house in Hermies, Western Cape which they bought in 2012 for R800 000. The couple also own a BVM X and a Range Sports Car that Ms. Kru bought for Lolo as a graduation present. As a result of the retrenchment, the couple decided to downsize their lifestyle. They therefore embarked on the following transactions: They appointed REX Real Estate agents at a cost of R200 000 to sell the house in Blue Halley for R2,5 million; replaced all bathrooms’ taps with gold plated ones at a cost of R30 000; appointed Fix It (Pty) Ltd (“Fix it”) to fix the leaking swimming pool at a cost of R10 000; They also sold their holiday house in Hermanes for R2 million; They sold Range Sports Car for R1 million; They sold their Kruger Rands for R500 000
1. WHAT IS REQUIRED OF YOU: Without calculating the capital gain of Ms. Kru, discuss the capital gains tax principles applicable in the scenario. Question
2 (TAX AVOIDANCE AND ADMINISTRATION) Phephisi and Carlifonia are married in community of property, and they have three children: Mahlaku aged 20, Mologadi aged 19 and Kabelo aged 17. Phephisi is a well-known businessman who owns a chain of chicken outlets. After deciding to prepare his children for the future, he embarked on the following transaction: he donated R100 000 to each of his children. Mahlaku invested …………..
Marica –
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Nikz55 –
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Sherz –
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senzodlamini –
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Floid891 –
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Elzhan.deyzel –
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Leonie –
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