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Case Study - Taxation 2A
Case Study - Taxation 2A
Sam made contributions of R6 500 per month to a medical scheme on behalf of himself, his wife and child. He paid R48 000 qualifying medical
expenses for the year. His employer contributed R40 000 to the medical scheme during the year.
Required:
Calculate Sam Sithole’s normal tax liability for the 2023 year of assessment.
1. One of Danny’s vans, with a tax value of R180 000 on the date, was hijacked when the driver was returning after havingtransported a
team of guards to a client’s business premises in Springfield. The van was not insured.
2. One of Danny’s guards was badly bitten by one of the guard dogs while on duty. The court granted the guard compensation amounting
to R30 000 on 25 April 2023 which Danny duly paid on 30 April 2023.
3. Three of Danny’s team leaders attended a two-day training workshop in Midrand, Johannesburg on the latest security techniques, at
a cost of R16 000 per person.
Required:
Determine with reference to tax cases (case law) whether the expenses/losses above [1-3] are deductible in terms of the general deduction
formula.