Page 23 - Capital Allowances Recoupments Part 1 (CTA)
P. 23
CLASS EXAMPLE:
Eaxample 3, Interpretation Note 9 (5th edition)
Co X provides consultation services (“personal services”).
Co X‟s financial year ends 31 March 2016.
There are 2 holders of shares and 2 full-time employees.
The 2 employees have no share in the co and they provide consultation
services.
Financial information available iro the yoa 1 April 2015 to 31 March 2016:
• Income from services rendered by 2 employees = R3 900 000
• Income from services renedred by the 2 H/S = R1 100 000
• Royalties received = R 23 000
• Benefit received from a will = R 950 000
• Capital gain on disposal of an asset = R 40 000
Total receipt or accrual R6 013 000
REQUIRED:
Is Co X a SBC based on the 20% rule?
