Page 112 - ADVANCED TAXATION - Day 1 Slides
P. 112
Solution (Finance Lease)
The bank has to account for output tax on the cash value (excl. interest)
of the car of R13 754 (R112 000 × 14/114) on 1 June.
The interest is a financial service – an exempt supply.
The manufacturer is not able to claim any input tax deduction, since the
vehicle is a ‘motor car’ as defined.
