Page 171 - ADVANCED TAXATION - Day 1 Slides
P. 171
Example
A station-wagon is purchased for R114 000 (VAT included). An input tax
deduction is denied, as the station-wagon falls within the ambit of the
definition of ‘motor car’. The station-wagon is subsequently converted
into a hearse for R22 800 (VAT included). The market value on the date
of the conversion was R115 000.
Calculate the input tax claimable as a result of the conversion
of the motor vehicle.
