Page 30 - P6 Slide - Taxation - Lecture Day 1
P. 30
Example: Donations
Mr Green donates a 12m yacht to his son on 1
April 2013. The market value of the yacht is R1
250 000 and its base cost, excluding donations
tax, is R750 000. Donations tax of R230 000 ((R1
250 000 – R100 000) × 20%) is payable.
Calculate Mr Green’s base cost of the yacht if
Mr Green (the donor) pays the donations tax
