JFC SMITH 201336111

GROSS INCOME
SALES
INTEREST
RECOUPMENT (par (N))
Total allowances claimed - 900 000
Recoupment proceeds R 1 200 000 ,limited to original cost price of 900 000
LESS :EXEMPT INCOME
INCOME
LESS: deductions,allowances and amount to be set-off against income
COST OF SALE
SALLARIES
OPERATIONAL EXPENSES
LEGAL EXPENSES (28 000 - 28000)
Deduction ito S11 not applicable as EXPENDITURE OF A CAPITAL NATURE
(legal expenditure incurred in enforcing a restraint of trade)
Restraint of trade s11(cA)
Deduction limited to lesser of
(450000/3 years) = 150000
(450000/4 years (term of restraint)) = 112500
MACHINE A
1200000*0.2
S12(C) NEW AND UNUSED MACHINE REQUIRED ON/after 01/03/2002
MACHINE B
500000 *0.4
S12(C) NEW AND UNUSED MACHINE REQUIRED ON/after 01/03/2002
MACHINE C
300000 *0.2
S12( C) USED THEREFORE 5 YEAR WRITE OFF PERIOD
MACHINE D
900000*0.2
S12(C) NEW AND UNUSED MACHINE REQUIRED ON/after 01/03/2002
MACHINE E
200050*0.4
12 ( C) NEW AND UNUSED MACHINE ACQ ON/after 1/10/2012 and before 1/10/2022

DELIVERY VEHICLE
450000*0.25*(11/12)
11 (e )
LABORATORY
2785000*0.05
SECTION 13 (RESEARCH AND DEVELOPMENT ON/after 1/04/2012)
BUILDING
4500000*0.05
SECTION 13 ( ERECTED ON/AFTER 1/10/99
ADMINISTRATIVE BUILDING
BUILDING NOT USED FOR MANUFATORING
ADD:AMOUNTS ,SPECIFICALLY INCLUDED IN TAXABLE INCOME ,EG CAPITAL GAIN TAX
Base cost = 900 000 - wear and tear 900 000 = 0
Proceeds = 1 200 000 - recoupment 900 000 = 300 000
Capital Gain @ inclusion rate : 300000*66.6%

TAXABLE INCOME
NORMAL TAX PAYABLE @28%

R 17,025,000.00
R 16,000,000.00
R
125,000.00
R
900,000.00

R
R 17,025,000.00
R -4,839,895.00
R 2,000,000.00
R 1,000,000.00
R
500,000.00
R

112,500.00

240,000.00

200,000.00

60,000.00

180,000.00

80,020.00

103,125.00

139,250.00

225,000.00

R
R

199,800.00

R 12,384,905.00
R 3,467,773.40