Ngwenya (Pty) Ltd and its employees contribute to a medical scheme on an annual basis. On 1 January 2025 it contributed R180 000 to the medical scheme. This R180 000 was its contribution for the 2025 CALENDAR year.

How much is deductible by Ngwenya (Pty) Ltd in determining it's taxable income for the year of assessment ended 28 February 2025.

On 1 February 2024, Ubuntu (Pty) Ltd acquired a new machine for R2 050 000. The machine was brought into use the same day in a process of manufacture. The machine was totally destroyed during a flash flood after heavy rains in December 2024. The insurance company indemnified Ubuntu to an amount of R1 900 000 on 1 February 2025.

Calculate any recoupment or scrapping allowance for Ubuntu (Pty) Ltd on this machine for the 2025 year of assessment ending 28 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as defined in the Act.

Ngwenya (Pty) Ltd made a restraint of trade payment of R1 800 000 to a retiring employee, Mr Msomi, on 1 January 2025. Mr Msomi was restrained from competing with the company for two years from the date of the payment. This payment will be included in Mr Msomi's gross income for his 2025 year of assessment.

Calculate how much will be deductible by Ngwenya (Pty) Ltd for the year of assessment ending 28 February 2025.

Ngwenya (Pty) Ltd has a taxable income of R240 000 before taking into account this information.

Ngwenya (Pty) Ltd had the following expenses during the 2025 year of assessment:

Bad debts from customers = R72 000

Bad debts from a loan to a supplier = R96 000

Ngwenya (Pty) Ltd experienced a couple of break-ins at the shop. The company acquired a watchdog for R8 500. The dog food expense for the watchdog of R11 200 were incurred for the 28 February 2025 year of assessment. The watchdog had to visit the vet during the 2025 year of assessment at a cost of R1 800.

What amount can Ngwenya (Pty) Ltd deduct in terms of the general deduction formula (section 11(a)) with regards to the above costs incurred for the 2025 year of assessment?

During the 2025 year of assessment ending 28 February 2025, Ngwenya (Pty) Ltd moved to new premises. The total cost of this move was R27 000, made up as follows:

-moving of its shop equipment - R14 500

-moving of all its trading stock - R12 500

Ubuntu (Pty) Ltd owns an office building from which it earns rental income. The CEO did not like the colour of the new roof tiles that were installed in the prior year of assessment at a cost of R170 000. The company replaced it with new roof tiles that are differently coloured on 1 April 2024 at a cost of R400 000, in order to improve the appearance of this property.

Determine the amount that Ubuntu (Pty) Ltd can deduct as repairs in calculating the taxable income for the 2025 year of assessment ending 28 February.

On 1 February 2025, Ubuntu (Pty) Ltd acquired a second-hand machine for R1 400 000. The machine was brought into use the same day in a process of manufacture.

Calculate the capital allowance to be claimed by Ubuntu (Pty) Ltd on this machine for the 2025 year of assessment ending 28 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as defined in the Act.

Ngwenya (Pty) Ltd in December 2024, sponsored a national weightlifting championship with branded equipment (displaying their logo) worth R240 000.

How much can Ngwenya (Pty) Ltd deduct from its income for the year of assessment ended 28 February 2025.