CTAA 021 - Test Run - 2020 - Ultimate PDF

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Download CTAA 021 - Test Run - 2020 - Ultimate PDF

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UNIVERSITY OF LIMPOPO FACULTY OF MANAGEMENT & LAW SCHOOL OF ACCOUNTANCY DEPARTMENT OF TAXATION

DEGREE AND DIPLOMA TESTS

04 SEP 2020

MODULE:

CTAA 021 (TAXATION)

PAPER

:

P1

TIME:

30 MINS

MARKS

:

20

ASSESSOR

:

MR MM LEPHEANA

THIS PAPER CONSISTS OF …2…PAGES INCLUDING COVER PAGE

INSTRUCTIONS: 1. 2. 3. 4. 5. 6.

Answer all the questions Write neatly and legibly Start each question on a new sheet Round all answers to the nearest rand Write down the Taxable Framework where necessary Show all calculations

CTAA 021 SEMESTER TEST 1

2020

QUESTION 1

(20 MARKS)

You are a junior tax practitioner at Alpahol, a sole proprietary owned by Miss Mpho Tsekeme and operating in Mankweng as a liquor store of choice with a legal license to buy and sell alcohol. Due to the lockdown regulations Alpahol has been losing a lot of revenue and the manager had a dream while sleeping, that she believes will turn-around her business, completely and she has been up since 4:00 AM calling people and organizing. It is the 4th of September 2020, as early as 06:00 that you are woken up by a call from your Mpho telling you about an urgent rally that you must organise, amidst the lockdown restrictions of South Africa being at level 2. You have been given only 30 minutes to raise tax related considerations relating to the effect of the rally that will take place just that afternoon.

You are given contacts of all the 2,000 people that will be at the event, whom are all very discrete people and you are assured that the event will not be on social media, neither will it attract any legal actions. In the 2,000 attendees, Mpho invited all police brigadiers who have already shown interest by buying tickets to this prestigious event. Alcohol is part of the ticket and will be served, despite that today is a Friday.

#

Required

Marks

1. Considering only the literature in provisional taxes, advise Miss Mpho Tsekeme how Alpahol sole proprietary will be affected if it changes its business to become a private company, registered in terms of the Companies Act 71 of 2008, governing legal entities 8 established in South Africa.

2. Relying on the literature in prohibited deductions only, critically evaluate the plan that Miss

Mpho

Tsekeme

has

and

how

it

will

affect

Note: Only use the relevant topics to provide you response. - END OF PAPER -

2|Page

her

tax

deductions. 12...