Page 21 - F6 - Capital Gains Tax - Debt Reduction
P. 21
Example
On 1 October 2014, ABC (Pty) Ltd borrows R1 000
000 to acquire a new plant. ABC (Pty) Ltd purchased
the plant for a total cost of R1 000 000. On 1 April
2015 ABC (Pty) Ltd’s creditors discharge the R1 000
000 of debt, due to ABC (Pty) (Ltd)’s inability to pay.
Calculate the tax implications for ABC (Pty) (Ltd) of
the debt reduction for the 2015 year of assessment
ending on 30 April 2015.
