Page 106 - P6 Slide - Taxation - Lecture Day 1
P. 106
Example – other expenditure
On 1 October 2014, Norush (Pty) Ltd owes debt of
R50 000. Norush (Pty) Ltd has used the debt to
fund ordinary operating expenses (for example
salaries), all of which are tax deductible under s
11(a). Norush (Pty) Ltd’s creditors discharges the
R50 000 of debt, due to Norush (Pty) (Ltd)’s
inability to pay.
Calculate the tax implications for Norush (Pty) Ltd
of the debt reduction for the 2015 year of
assessment ending on 30 April 2015.
