Page 117 - P6 Slide - Taxation - Lecture Day 1
P. 117
Example
During its 2014 year of assessment B (Pty) Ltd
borrowed R3,5 million from ABC Bank to
acquire new plant and machinery used in a
process of manufacturing. During the 2015 year
of assessment B (Pty) Ltd started experiencing
serious financial difficulty and the bank
subsequently cancelled R1 million of the debt
(none of the capital amount had been repaid by
B (Pty) Ltd). Explain the CGT consequences of
the cancellation of the debt on B (Pty) Ltd).
