Name: LSB2605 Assignment 2 Semester 1 Memo | Due 24 April 2025 - StudyPass
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LSB2605 Assignment 2 Semester 1 Memo | Due 24 April 2025

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LSB2605 Assignment 2 Semester 1 Memo | Due 24 April 2025. All questions fully answered. Question 1 1. Joseph runs a printer repair shop as a sole proprietor, where he services and repairs industrial printers for printing companies. His business achieved a turnover of R2 million in the last tax year, which was taxed as income in his hands, and his deductible expenses amounted to R600. He is concerned that he might be paying too much tax and believes that small businesses should not be taxed in the same manner as large businesses, especially as he wishes to spend money on manufacturing assets in the next financial year. 1.1. Discuss the different income tax dispensations available to small in South Africa, including the normal tax rules and turnover tax, and whether there are any requirements that businesses need to comply with. Explain the benefits and limitations of each dispensation and provide guidance on how Joseph can choose the best option for his business. 1.2. Explain whether Joseph will need to register as a vendor for VAT purposes, whether he will need to levy VAT on his goods and services, whether he will be liable to pay VAT over to SARS, and how frequently this must be done.

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LSB2605 Assignment 2 Semester 1 Memo | Due 24 April 2025. All questions fully answered. Question 1 1. Joseph runs a printer repair shop as a sole proprietor, where he services and repairs industrial printers for printing companies. His business achieved a turnover of R2 million in the last tax year, which was taxed as income in his hands, and his deductible expenses amounted to R600. He is concerned that he might be paying too much tax and believes that small businesses should not be taxed in the same manner as large businesses, especially as he wishes to spend money on manufacturing assets in the next financial year. 1.1. Discuss the different income tax dispensations available to small in South Africa, including the normal tax rules and turnover tax, and whether there are any requirements that businesses need to comply with. Explain the benefits and limitations of each dispensation and provide guidance on how Joseph can choose the best option for his business. 1.2. Explain whether Joseph will need to register as a vendor for VAT purposes, whether he will need to levy VAT on his goods and services, whether he will be liable to pay VAT over to SARS, and how frequently this must be done.