Page 134 - P6 Slide - Taxation - Lecture Day 1

Example

• Ltd acquired a non allowance asset on 1 April

2001 for R6m. The market value of this asset

on 1 October 2001 was R4.5m. TABC equals

R5m.

• On 1 January 2016, A Ltd was relieved of

R1.5m of the outstanding debt by their

creditor.

• You can assume the mark value immediately

before reduction = R4m

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