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Course 22064

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Ms Ndeitunga receives a subsistence allowance of R2,400 for a four-day business trip within South Africa. Her employer pays for her accommodation. She incurs R500 on meals and incidental costs but does not retain supporting documentation.

Calculate the taxable portion of the allowance.

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An employee receives reimbursement from her employer at a specified rate per kilometre for business travel undertaken in her own vehicle. The employee maintains supporting proof of the expenditure, and the reimbursement relates exclusively to business travel.

Which treatment is most appropriate for the reimbursement described in the course material?

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An asset has an original base cost of R250,000. Wear and tear allowed is R90,000 and a scrapping allowance of R20,000 is granted on disposal. If the proceeds for Capital Gains Tax purposes are R180,000, what is the capital gain or loss?

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Kavango (Pty) Ltd is a registered VAT vendor that makes only taxable supplies. During the tax period, the company incurred the following expenses, inclusive of VAT:

  • Purchased office stationery for R11,500.

  • Paid for client entertainment at a restaurant amounting to R5,750.

  • Purchased goods for resale for R23,000.

Assume all suppliers are registered VAT vendors, valid tax invoices were obtained, and no exceptions to the general input tax restrictions apply. Which statement correctly describes the input tax deductions available to Kavango (Pty) Ltd?

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Ms Amutenya purchased a vehicle for R150,000, inclusive of VAT but excluding finance charges. She received a travel allowance of R42,000 for the year and travelled 30,000 km, of which 9,000 km related to business travel. 

Assume the vehicle was used for the full year. What is the taxable portion of the travel allowance using deemed costs?

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Mr Hamukwaya is required to spend two days away from his usual place of residence on a business trip within South Africa. He receives a subsistence allowance of R1,800. He incurs actual expenditure of R1,950 on meals, accommodation and incidental costs and retains supporting documentation. The deemed rate for meals and incidental costs is R595 per day. 

What amount of the allowance is taxable?

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Mr Nghidinwa received a travel allowance of R30,000 for the year. He travelled 18,000 km, including 6,000 km for business purposes. His deemed cost of operating the vehicle is R5.20 per kilometre.

Which statement correctly reflects the tax treatment?

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A taxpayer sells an asset on which capital allowances were previously claimed. The sale proceeds exceed the asset’s tax value but do not exceed its original cost. What is the most likely tax consequence?

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Ms Iiyambo received a travel allowance of R28,000. She purchased a vehicle for R90,000 on 1 January 2025 and began using it for business and private travel on the same date. Her total mileage for the year was 20,000 km, of which 8,000 km related to business travel. Assume a 365-day year and that the vehicle was used for the final 213 days of the year. What is the taxable portion of the allowance using deemed costs?

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A company has total capital gains of R500,000 and total capital losses of R120,000 for the year. It also has an assessed capital loss brought forward of R80,000. What is the taxable capital gain?

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