TAX2601 ASSIGNMENT 3 SEMESTER 1 2024 (534034) DUE: 08 APRIL 2024💰

R50.00
0 Downloads

TAX2601 ASSIGNMENT 3 SEMESTER 1 2024 (534034)

DUE DATE: 08 APRIL 2024

Buy-a-lot (Pty) Ltd (a South African company) sells various products online and delivers for free. Its year of assessment ends on 31 March 2024 and it operates from offices and warehouses that are located in Johannesburg. Customers must pay the full purchase price of the product on the date that the online order is submitted. The company’s terms and conditions state that if a customer is not satisfied or does not like the product after receipt of the product, he/she can return the product within two weeks after the delivery date and Buy-a-lot (Pty) Ltd will provide a full refund of the purchase price.

Description

TAX2601 ASSIGNMENT 3 SEMESTER 1 2024 (534034) DUE DATE: 08 APRIL 2024

Buy-a-lot (Pty) Ltd (a South African company) sells various products online and delivers for free. Its year of assessment ends on 31 March 2024 and it operates from offices and warehouses that are located in Johannesburg. Customers must pay the full purchase price of the product on the date that the online order is submitted. The company’s terms and conditions state that if a customer is not satisfied or does not like the product after receipt of the product, he/she can return the product within two weeks after the delivery date and Buy-a-lot (Pty) Ltd will provide a full refund of the purchase price. Mrs Khumalo ordered a pair of blue high heel shoes on 25 March 2024 and made an EFT (electronic fund transfer) payment of R900 on the same date. The shoes were delivered on 29 March 2024. Mrs Khumalo realised that the heel was higher than what she expected and decided to return the shoes. She successfully logged a return request online on 31 March 2024. Buy-a-lot (Pty) Ltd processed the return on 2 April 2024 and paid the R900 into Mrs Khumalo’s bank account on the same date.
Buy-a-lot (Pty) Ltd made a provision for product returns of R30 000 on 31 March 2024.

REQUIRED MARKS
a. Discuss whether the R900 sale of the blue high heel shoes will constitute gross income for Buy-a-lot (Pty) Ltd for the 2024 year of assessment. List the requirements of the gross income definition and briefly discuss each requirement using the given information at hand.
Make a brief reference to relevant case law to strengthen your argument.
12

b. Determine whether the R30 000 provision for product returns is deductible by Buy-a-lot (Pty) Ltd for the 2024 year of assessment. List all the requirements of the general deduction formula (section 11(a), read with section 23 of the Income Tax Act), briefly discuss only the requirement(s) that will not be met (i.e. what will cause the expense not to be deductible), if any, and conclude whether Buy-a-lot (Pty) Ltd will be able to deduct the amount of R30 000.

REQUIRED MARKS
a. Calculate the first provisional tax payment that Protea (Pty) Ltd would have made for the 2024 year of assessment. Briefly explain why you selected the basic amount for the provisional tax payment calculation. Also state the date that this payment had to be made at the latest.

b. Calculate the second provisional tax payment that Protea (Pty) Ltd would have made for the 2024 year of assessment. Also state the date that this payment had to be made at the latest.

Reviews

There are no reviews yet.

Only logged in customers who have purchased this product may leave a review.

Description

TAX2601 ASSIGNMENT 3 SEMESTER 1 2024 (534034) DUE DATE: 08 APRIL 2024

Buy-a-lot (Pty) Ltd (a South African company) sells various products online and delivers for free. Its year of assessment ends on 31 March 2024 and it operates from offices and warehouses that are located in Johannesburg. Customers must pay the full purchase price of the product on the date that the online order is submitted. The company’s terms and conditions state that if a customer is not satisfied or does not like the product after receipt of the product, he/she can return the product within two weeks after the delivery date and Buy-a-lot (Pty) Ltd will provide a full refund of the purchase price. Mrs Khumalo ordered a pair of blue high heel shoes on 25 March 2024 and made an EFT (electronic fund transfer) payment of R900 on the same date. The shoes were delivered on 29 March 2024. Mrs Khumalo realised that the heel was higher than what she expected and decided to return the shoes. She successfully logged a return request online on 31 March 2024. Buy-a-lot (Pty) Ltd processed the return on 2 April 2024 and paid the R900 into Mrs Khumalo’s bank account on the same date.
Buy-a-lot (Pty) Ltd made a provision for product returns of R30 000 on 31 March 2024.

REQUIRED MARKS
a. Discuss whether the R900 sale of the blue high heel shoes will constitute gross income for Buy-a-lot (Pty) Ltd for the 2024 year of assessment. List the requirements of the gross income definition and briefly discuss each requirement using the given information at hand.
Make a brief reference to relevant case law to strengthen your argument.
12

b. Determine whether the R30 000 provision for product returns is deductible by Buy-a-lot (Pty) Ltd for the 2024 year of assessment. List all the requirements of the general deduction formula (section 11(a), read with section 23 of the Income Tax Act), briefly discuss only the requirement(s) that will not be met (i.e. what will cause the expense not to be deductible), if any, and conclude whether Buy-a-lot (Pty) Ltd will be able to deduct the amount of R30 000.

REQUIRED MARKS
a. Calculate the first provisional tax payment that Protea (Pty) Ltd would have made for the 2024 year of assessment. Briefly explain why you selected the basic amount for the provisional tax payment calculation. Also state the date that this payment had to be made at the latest.

b. Calculate the second provisional tax payment that Protea (Pty) Ltd would have made for the 2024 year of assessment. Also state the date that this payment had to be made at the latest.

Reviews

There are no reviews yet.

Only logged in customers who have purchased this product may leave a review.

0
    0
    Your Shopping Cart
    Your cart is emptyReturn to Shop