Page 24 - Capital Allowances Recoupments Part 1 (CTA)
P. 24
SOLUTION:
Total receipts/accrauls iro the 20% rule:
• Total receipts/accrauls R6 013 000
• Less: caputal receipt (R 950 000)
R5 063 000
• Investement income R 23 000 and
• Personal service income (H/S) R1 100 000
Total R1 123 000
• R1 123 000 / R5 063 000 = 22.18%
Thus > 20% and teherfore not a SBC a will be taxed @ 28%
