Page 10 - F6 - Capital Gains Tax - Debt Reduction
P. 10
Example (Allowance Asset)
On 1 October 2014, Nofuss (Pty) Ltd borrows R1 500
000 to acquire a new plant. Nofuss (Pty) Ltd
purchased the plant for a total cost of R1 500 000.
Nofuss (Pty) Ltd has claimed allowances of R900 000
on the asset, at the stage when Nofuss (Pty) Ltd’s
creditors discharge the R1 500 000 of debt, due to
Nofuss (Pty) (Ltd)’s inability to pay.
Calculate the tax implications for Nofuss (Pty) (Ltd) of
the debt reduction for the 2014 year of assessment
ending on 30 April 2015.
