Description
TAX3701 Assignment 02 Semester 02 Solutions – Due Date : 18 October 2023
DOCUMENT PREVIEW
To calculate the normal tax liability of Tirisano (Pty) Ltd for the year of assessment ending on 31 March 2023, we’ll start with the profit before tax amount of R4,103,270 and make the necessary adjustments for tax purposes. Let’s go through each of the adjustments step by step: 1. Cost of Sales: • The market value of opening inventory is not considered for tax purposes. Therefore, it has a nil effect on profit before tax. • The market value of closing inventory is not considered for tax purposes. Therefore, it also has a nil effect on profit before tax.
