Page 162 - ADVANCED TAXATION - Day 1 Slides

Solution

Motor vehicle

– Can not claim input tax in terms of s 18(4), as input tax is denied
Computer

14/114 × R7 300 × 100% = R896,49 input tax can be claimed in terms of s
18(4).

Printer

14/114 × R1 500 × 100% (note 1) × 100% = R184,21 input tax can be
claimed.

Offices
14/114 × R500 000 (note 2) × 80% × R300 000/R500 000 = R29 473,68

input tax can be claimed.

Notes
(1) Taxable use of 97% is deemed to be 100% (as it is more than 95%).

(2) The lesser of the original cost R500 000 and the market value on the
date of the change of use - R750 000 - should be used.