Page 63 - Test 4 Slides - Individual Class Slides

INDIVIDUALS & RING FENCING
Impact of the inclusion of taxable capital gains

in taxable income on the calculation of

allowable deductions

• A taxable capital gain is included in taxable income

in terms of section 26A

• Certain deductions are calculated as a percentage

of, for example, taxable income and it raises the

question of how the calculation of these

deductions is influenced by a taxable capital gain.

• The following notes along with SILKE example

7.12(a) will help explain it:

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