Page 119 - P6 Slide - Taxation - Lecture Day 1
P. 119
Example
On 1 October 2014, ABC (Pty) Ltd borrows R1
000 000 to acquire a new plant. ABC (Pty) Ltd
purchased the plant for a total cost of R1 000
000. On 1 April 2015 ABC (Pty) Ltd’s creditors
discharge the R1 000 000 of debt, due to ABC
(Pty) (Ltd)’s inability to pay.
Calculate the tax implications for ABC (Pty) (Ltd)
of the debt reduction for the 2015 year of
assessment ending on 30 April 2015.
