Page 109 - P6 Slide - Taxation - Lecture Day 1
P. 109
Example (allowance asset)
On 1 October 2014, Nofuss (Pty) Ltd borrows R1
500 000 to acquire a new plant. Nofuss (Pty) Ltd
purchased the plant for a total cost of R1 500 000.
Nofuss (Pty) Ltd has claimed allowances of R900
000 on the asset, at the stage when Nofuss (Pty)
Ltd’s creditors discharge the R1 500 000 of debt,
due to Nofuss (Pty) (Ltd)’s inability to pay.
Calculate the tax implications for Nofuss (Pty) (Ltd)
of the debt reduction for the 2014 year of
assessment ending on 30 April 2015.
