Page 129 - ADVANCED TAXATION - Day 1 Slides

Example

Ohno recently experienced flooding of the ground floor at the
premises rented from Agnee CC.
Ohno’s insurance company replaced the following items:

 Computers R48 000
 Desks and chairs R80
000

 Cupboards R12 500
Their insurance company also reimbursed Ohno in cash for other
losses suffered as follows:

 Fittings R93
600

The insurance company also paid Agnee CC for damages suffered
amounting to R36 000.

Calculate the output tax in respect of the insurance
payments and replacements.