Page 39 - ADVANCED TAXATION - Day 1 Slides

Solution

39

Provided Speedy acquired the printer for the purposes of making

taxable supplies, he will be able to claim an input tax deduction on

the acquisition of the printer amounting to R847,37 (R6 900 ×

14/114). No input tax will be claimable on the acquisition of the

motor car and coffee machine, as input tax deductions are

specifically denied on the acquisition thereof.

Speedy will be required to levy output tax on the sale of only the

printer, since the said supply will be made in the course or the

furtherance of his enterprise. Speedy will not be required to account

for any output tax on the sale of the coffee machine and motor car,

since Speedy was denied input tax deductions on the acquisition of

these items.