Page 113 - P6 Slide - Taxation - Lecture Day 1
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Effect for debtor:
Capital asset Allowance asset
Asset still held @ date of debt reduction
Base cost reduced with Base cost reduced with
"reduction amount" "reduction amount"
Where base cost is reduced to R0, = Where base cost is reduced to R0, =
balance of the "reduction amount" balance of the "reduction amount"
is applied against any assessed leads to a recoupment ito s 19 of
capital loss the Act
