Page 110 - P6 Slide Taxation - Lecture Day 7 - Various Topics
P. 110
Example solution
• Even though the actual foreign tax of R18 600 (R1 000
+ R5 600 + R12 000) exceeds the calculated R15 120,
the s 6 quat rebate is limited to R15 120 in terms of s 6
quat (1B)( a ).
• The excess of the foreign tax which was not allowed as
s 6 quat rebate (the ‘excess amount’), i.e. R3 480 (R18
600 less R15 120), may be carried forward for a
maximum period of seven years to be set off against
normal tax (proviso (iii) to s 6 quat (1B)( a ).
• Note 1 The R54 000 is calculated as (R10 000 + R14
000 + R30 000)
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