662 GRADED QU! IN SOUTH AFRIC | Va, eee lk Eee eee Be Olive Rey traveled a al dace of1 50 ilmetes ding te 202 year ofasesmenin, | Pivot this motor car, of which 7 800 kilometres were for business purposes. minibus, Hingebeck CC's financial year ends onthe lst day of February, Petod You are required to determine all the resting normal tox and value-added tax consequences ofthe Stitie Dt above transaction, for both Hingeback CC and Olive Ridley i computer 29.16 (60 minutes) oe ‘This question tests section 18(5) (a deemed supply) of die Value Added Tax Act, the GolinitonDe id “gross income’, sections 8(1), 10(1}(nA), 10(1KnB) and 10(1)(@) and paragraphs 5, 6, 7, 11, 12 and 13 ofthe Seventh Schedule to the Income Vax Act. It also tests the judgment _v G (1981 (4) SA 167 (ZA), 43 SATC 159). as In Happy ‘n Contented Limited's two-month ‘tax period’ that ended on 31 January 2022, i provided the following fringe benefits to certain of its employees: Heranted a ‘ho needed ad himself Florence He A subsidy of payment of Tiny Commis An entertainn Manager. He i Armold Ow1 Itpaid a, mold « titector of secy Premises, = Samuel Wise ST fbry orgs ‘Sampson Strong A bravery award of R4 999 cash to Sampson Strong as a result of him saving the weekly wages from being stolen in a hold-up at its trading premises. | } Larry Longserving ‘A wrist watch that it had purchased for R4 025 (R3 500 plus R525 value-added tax) was given to Larry Longserving in appreciation of his 25 years’ service to it. Neville Balance The free home use of computer granted to Neville Balance ts accountant. He needs «compat at home since he often prepares budgets (for work) at home. It hires this computer ata rental of R460 (R400 plus R6O valve-added tax) a month under an agreement of lease. He uses. this computer tothe extent of 40% for business purposes and 60% for private (domestic) porposes Nelson Good t The fee use of a motorcar to Nelson Good, its managing decor. This motor car cost it R345 00 (300000 pus R45 000 valued tax at 13%) on I December 2019 Dung the 202 ya of assessment he travelled total of 30000 kilometres in it, OF the 30 00 ttl kilometres wav him in i, 12000 kilometres were for business purposes : Bee Good, Nelson Good's wife was given the use ofa second” motor ear or the wo mont FR This motor ear cost it R16S 600 (R44 000 plus R21 600 valeaded tx at 13%) oD 2019, All petrol and maintenance cost of his ‘second’ motor ear are bone by Neson Gs 2022 year ofasessment ‘+ it cost him R12 000 to maintain this ‘second’ motor ear, and